Does a full service commodity broker have an advantage over an online commodity broker? Or, are the lower brokerage commission rates with an online commodity broker such a large factor that the savings on commissions far outweigh the benefits of using a full service commodity broker?
This is a situation where you need to give yourself an honest evaluation of your trading skills. Can you trade on your own without outside help and consistently make money? Another consideration deals with your trading style. Do you make multiple trades a day where the commissions add up quickly - or do you only make a trade or two every month?
A knowledgeable commodity broker can be very helpful to a new trader, as it is not easy to learn how to trade the commodity markets. A good broker can save you a sizeable amount of money in the long run even though the commission rates are higher than a discount online broker. The key is finding a good commodity broker. There are many brokers out there who continuously lose money for their clients so be careful.
It is very important to have low commission rates if you plan on day trading futures or making multiple trades every week. It is nearly impossible to make money in the long run as a day trader if you are paying full service commission rates. If you are a frequent trader, you almost have to use a discount online commodity broker.
If you have a commodity broker you like working with and make only a couple trades a month, there is really no reason to save a few bucks with an online broker. You are also paying for an education with the commissions and it is nice to have someone where you can discuss trading ideas.
