Futures Fees At Td Ameritrade: Everything You Need To Know In 2023

Introduction

If you’re interested in trading futures, it’s important to understand the fees involved. TD Ameritrade is one of the most popular online brokers in the United States, and they offer futures trading with competitive fees. In this article, we’ll take a closer look at the futures fees at TD Ameritrade and provide some tips for minimizing your costs.

What Are Futures?

Before we dive into the fees, let’s quickly review what futures are. A futures contract is an agreement between two parties to buy or sell a particular asset at a specific price and date in the future. Futures are often used for commodities like oil, gold, and wheat, but they can also be used for financial instruments like stock indexes and currencies.

Futures Fees at TD Ameritrade

TD Ameritrade charges a $2.25 fee per contract for futures trades. This means that if you buy or sell one futures contract, you’ll pay $2.25 in fees. If you buy or sell ten contracts, you’ll pay $22.50 in fees. In addition to the per-contract fee, TD Ameritrade also charges a commission for futures trades. The commission varies depending on the type of futures contract you’re trading and the exchange it’s traded on. For example, the commission for trading E-mini S&P 500 futures is $2.25 per contract for trades made on the CME Globex exchange.

Reducing Your Futures Fees

While futures fees can add up quickly, there are ways to reduce your costs. Here are a few tips:

Trade During Off-Peak Hours

TD Ameritrade charges lower commissions for trades made during off-peak hours. For example, the commission for trading E-mini S&P 500 futures is only $1.50 per contract during off-peak hours on the CME Globex exchange. Off-peak hours vary depending on the exchange, so be sure to check TD Ameritrade’s website for the specific hours.

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Use Limit Orders

Using limit orders can help you avoid paying unnecessary fees. A limit order is an order to buy or sell a futures contract at a specific price or better. By using a limit order, you can avoid paying the “market order” fee, which is an additional $1.50 per contract for trades made on the CME Globex exchange.

Take Advantage of Promotions

TD Ameritrade occasionally offers promotions for new futures traders. These promotions may include reduced commissions or waived fees for a certain period of time. Be sure to check TD Ameritrade’s website for current promotions.

Conclusion

Trading futures can be a profitable way to invest, but it’s important to understand the fees involved. TD Ameritrade offers competitive futures fees, but there are strategies you can use to reduce your costs even further. By trading during off-peak hours, using limit orders, and taking advantage of promotions, you can keep more of your profits in your pocket. As always, be sure to do your own research and consult a financial advisor before making any investment decisions.

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