ProActive Futures, discount online futures broker Proactive Futures

EASY TO TRADE

Day traders can experience many different benefits from trading futures as opposed to trading equities. Futures are for the daytrader who likes to focus on one symbol rather than a long list of stocks. Executions on the futures markets are lightening fast. There are no ECN’s, no market makers, and no specialists.

24 HOUR ACCESSIBILITY

With electronically traded futures contracts you can access the market anytime you want whether it be during normal market hours or during the night as well. This makes trading news much easier as many events take place after or before market hours.

NO DOWNTICK RULE

With Futures there is no downtick rule and or short sales rules as found in daytrading the equity markets. There are no bullets needed to short, you can short anytime at any price with ease, no problems

MORE LEVERAGE

Margin requirements for futures contracts tend to be much lower than for equities. With futures you can control more exposure to the markets using the same capital than in equities. Due to the new equity daytrading margin requirements, futures are becoming the vehicle of choice for many daytraders.

LOWER COMMISSIONS

Typically it costs an average of $4 - $12 per ticket to daytrade equities. Commissions on futures tend to be less than half the price.

LESS TAXES

Commodities are taxed on a different scale than equities. The net gain or loss from trading commodities is reported on a schedule D (capital gains & losses). 60% of the net gain is taxed as a long term capital gain and 40% is taxed as a short term capital gain. Equity traders have all their gains taxed as short term vs. commodities traders who have the 60/40 tax blend. Example: Trader “A” makes $20,000 in frofits over a month trading MSFT. Trader “B” makes $20,000 in profits over a month trading e-minis. Which trader pays less taxes? (assuming 39.6% bracket)

MORE RISKY

Futures trading is more exciting and faster paced than equity trading. It can lead to more excessive emotional swings because they tend to be more liquid than equities. You have more leverage to work with, therefore increasing your risk. Daytrading futures are for experienced traders only! Before trading futures please read all risk disclosure statements found on this site as well as on your new account forms.