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Commodities Law
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How do I open a commodities account?

You should use caution and study hard and long before you invest. Commodities accounts involved substantial risk, particularly for inexperienced speculators. Do not believe that "it's easy to make a killing" in commodities, or that any one person "has the secrets".

If you are sure you want to, you may open an individual account with a registered Futures Commission Merchant or through an Introducing Broker. An Introducing Broker may accept your orders and transmit them for execution to a Futures Commission Merchant with whom she or he has a relationship. An Introducing Broker is not permitted, however, to accept any funds from you. All funds are deposited directly with a Futures Commission Merchant.

You may also trade futures and options on futures by participating in a "commodity pool." In a commodity pool, you are purchasing shares or interests in the pool, and trades are executed for the pool as a whole, rather than for the individuals who participate in the pool. Pool participants share ratably in gains or losses.


Related Information
» General Questions
» Process of trading
» Margin
» Legal protection
» Disclosure statement
» Traders
» Resources

Topics Related To Commodities Law
» Financial Law
» Banking Law
» Broker Disputes
» Commodities Law
» Investment Terms
» Raising Capital
» Securities Law
 
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