Futures Gaining Quick Popularity

Until recently, most brokers hadn't introduced futures trading to their small investors. In fact, it wasn't until around the year 2000 when retail investors began to trade options using tools and platforms from online brokers. The numbers have rapidly increased, and Theresa W. Carey claims that nearly half of the firms listed in Barron's 2010 review of online brokers allow futures trading. And she claims there is more to come.

Futures contracts allow traders to speculate on the prices of everything ranging from pork bellies to orange juice to currencies as well as the level of housing starts, explains Barron's. Though huge margins and greater leveraged can be attained through a futures contract, they can be very risky. In fact, TD Ameritrade's Thinkorswim trading program cautions its users with a disclaimer: "This allows for strong potential returns, but can also result in significant losses."

"Futures as an asset class is becoming more and more accepted and recognized, understood and used, particularly by active traders," explains trademonster CEO Wade Cooperman. "People who understand options are looking for additional vehicles for their portfolios," he says.

Trademonster, another platform similar to Thinkorswim used for online trading, offers three unique trading platforms: a Web-based browser version, a mobile app, and a downloadable desktop software application. The desktop software application is state of the art, and has been adapted to look more like the firm's stock and options trading platform. With streaming live data all day long, tick by tick, the application is gaining quick popularity.

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