When it comes to opening a futures account, there are various types of accounts you can consider. Here are the different options available:
Individual Account #
This is the most straightforward type of futures account. It involves trading under your own name and making all trading decisions independently.
Joint Account #
With a joint account, you and another individual, such as your spouse, have access to the account. This arrangement can be useful in case unforeseen circumstances affect one of the account holders.
Corporate Account #
A corporate account is suitable for individuals who run a business where trading is a part of its operations. It can also be used by traders looking to establish a trading business.
Trust Accounts #
If your funds are part of a trust, you can open a futures account under the trust’s name. However, it’s important to ensure that your trust allows futures contracts or doesn’t have any restrictions against leveraged trading.
IRA Accounts #
It is possible to trade futures within an Individual Retirement Account (IRA). However, make sure you are set up with a custodian that permits derivatives trading.
LPAO (Limited Power of Attorney) Accounts #
LPAO accounts grant someone trading authority over your accounts, solely for trading purposes. It is advisable to check the background of the person you are considering granting this authority to by visiting the National Futures Association (NFA) website.