Introduction
Futures trading is an investment strategy that involves buying and selling financial contracts that obligate the buyer to purchase or sell an asset at a predetermined price and date. Fidelity is one of the largest investment firms in the world, and many investors are curious if they offer futures trading. In this article, we will explore the question, “does Fidelity offer futures trading?”
What are Futures?
Before we dive into Fidelity’s offerings, let’s define what futures are. Futures are contracts that obligate the buyer to purchase or sell an asset at a predetermined price and date. These contracts are traded on an exchange, and the price is determined by supply and demand. Futures can be used to hedge against price fluctuations or to speculate on price movements.
Fidelity’s Futures Trading Offerings
Fidelity offers futures trading to its customers through its subsidiary, Fidelity Futures & Commodities. This division provides access to a wide range of futures contracts, including commodities, currencies, and stock indices. Fidelity also offers a variety of trading platforms, including Active Trader Pro, which is designed for advanced traders.
Commodity Futures
Commodity futures are contracts that obligate the buyer to purchase or sell a specific commodity at a predetermined price and date. Fidelity offers access to a wide range of commodity futures, including agricultural products like corn and soybeans, energy products like crude oil and natural gas, and precious metals like gold and silver.
Currency Futures
Currency futures are contracts that obligate the buyer to purchase or sell a specific currency at a predetermined price and date. Fidelity offers access to a variety of currency futures, including contracts for major currencies like the US dollar, Euro, and Japanese yen.
Stock Index Futures
Stock index futures are contracts that obligate the buyer to purchase or sell a specific stock index at a predetermined price and date. Fidelity offers access to a variety of stock index futures, including contracts for the S&P 500, NASDAQ, and Russell 2000.
Fidelity Futures Trading Fees
Like all investment firms, Fidelity charges fees for futures trading. These fees can vary depending on the type of contract and the trading platform used. Fidelity charges a minimum fee of $1.25 per contract for online trades, with a maximum fee of $2.95 per contract for broker-assisted trades.
Fidelity Futures Trading Requirements
To trade futures with Fidelity, investors must meet certain requirements. These requirements include a minimum account balance of $25,000 and approval for futures trading. Investors must also have a good understanding of futures trading before they are approved for trading.
Conclusion
In conclusion, Fidelity does offer futures trading to its customers through its subsidiary, Fidelity Futures & Commodities. Investors have access to a wide range of futures contracts, including commodities, currencies, and stock indices. While fees and requirements apply, Fidelity provides a robust platform for advanced traders to invest in futures.
