Commodity Trading Advisors and Advisory Services

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Commodity Trading Advisors and Advisory Services

Commodity Trading advisors or CTAs are those traders qualified and licensed by the CFTC to provide specific futures trading advice. This means they are also held accountable, plus of course they have to comply with many rules and regulations set forth by the CFTC.

Some CTAs write a daily trade update where they provide their picks to subscribers, others run live trading rooms where they call their trades in real time which can be a lot of fun, but also very expensive. Price usually depends on the sort of track record the trading advisor can provide.

The live trading room model most often deals with day trading, and this oftem means the indices or forex because of the huge liquidity and the volatility. Markets that move slowly are not popular with a lot of day traders, as the more trade opportunities or signals their system can generate, the more the potential for profits.

Of course, this is a double edged sword, as those trade signals may result in opportunities for losses as well if the CTA you're following is on a losing streak. When you're considering trying a CTA or a live trading room, ask for credentials...a real money track record is a must.

You can check out the record of any Commodity Trading Advisor at the NFA site. Also, you can check the CFTC website for any actions against any CTA.

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