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How do I get approved for trading futures?

post #1 of 31
Thread Starter 

I'm currently in college and unemployed. I have over $250,000 in liquid assets due to inheritance. I recently opened an account with TDAmeritrade with $20,000 to trade futures, but I was denied for trading and margin even though I told them I had a lot of money to fall back on. I've been studying on my own and using a trading sim for two years. I felt that I have been pretty successful. I finally decided to open an account with a modest amount of money to trade with but I can't. 

 

What can I do to get their approval for trading futures? Are there any other brokers out there that will let me trade easier?

post #2 of 31

I'm not sure why you weren't approved. I signed up with thinkorswim with only paper futures experience and was approved. 

post #3 of 31

Ichi how much do you recommend one should start out with in futures?

post #4 of 31

At least twice as much as the instrument(s) you will be trading.

 

 

post #5 of 31
Quote:
Originally Posted by IchibomB View Post

At least twice as much as the instrument(s) you will be trading.

 

 

 

I see. Right now I'm thinking about 3-4x that of the currency futures. Seems like the pound and cad requires the least capital compared to the others?
 

 

post #6 of 31


in order to cover margin.. if applicable.

Quote:
Originally Posted by IchibomB View Post

At least twice as much as the instrument(s) you will be trading.

 

 



 

post #7 of 31

:) 

post #8 of 31
Thread Starter 

So if I put more money in my TDAmeritrade account, I will be allowed to trade futures?

post #9 of 31

No, you need to get approved first. try signing up through thinkorswim's website? 

post #10 of 31
Thread Starter 
Quote:
Originally Posted by IchibomB View Post

No, you need to get approved first. try signing up through thinkorswim's website? 



Yes I did, and they denied me for Margin and Options tier 2. I need both in order to trade futures. Though, I'm not sure why I've been denied even when I applied with the sufficient amount of capital to cover my losses.

post #11 of 31

Maybe you must've said the wrong thing in the questionnaire? I really couldn't tell you. 

 

I would try calling them and seeing what the problem is. 

post #12 of 31

Hey, I am in the same boat. I have a TD account and I want to trade futures. I am a college student who is unemployed. In my last year of college. I have been investing for three years and paper trading futures on TOS for six months profitably. I have 10,000 in cash I am willing to trade futures with outside of what I have in stocks at TD Ameritrade which is well above that. I am only wanting to trade a couple contracts. If it does as well as my paper account, i'll bump up a contract at the end of the month, nothing crazy. Net worth over 100,000 (Inheritance). I applied for tier 2 options with margin and didn't get it a couple months back. They did bump me up to be able to trade covered options. I don't have any desire to trade them though. I applied again for tier 2 option/margin. I don't know if i'll get it or not? Did you go to another broker? Is there anything I can say or do?

post #13 of 31

TDAmeritrade is tricky I've been with them for almost 7 years and I have never been able to get my main account approved for anything outside of margin.  One day I accidentally opened a new account instead of an IRA account and I've been pretty much approved for everything in that one including forex and futures within that account that was funded with only about $2,500.  So, who knows.... try just opening a new account.  

post #14 of 31

You opened a new account and got approved for everything, haha. Well maybe I need to do that. I just got TD Ameritrades email and my application has not been approved at this time. It said i can reapply in 90 days. Maybe a new account would get around that. I guess, I call and figure out why and see if they can do anything or I apply at a couple other futures brokers. I'm not waiting 90 days. I want to trade on my mac. I really like the tos platform for futures. I guess I learn to like firetip. MB trading also has a mac platform. Any recommendations on a futures broker that is easy to get approved for with a platform for Mac?

post #15 of 31

How many years of trading did you put down? 

You probably need to check at least 2 years. Just a guess. 

 

post #16 of 31


 

Quote:
Originally Posted by IchibomB View Post

How many years of trading did you put down? 

You probably need to check at least 2 years. Just a guess. 

 



Even after my second account was approved my main one has yet to.  It is really peculiar. 

post #17 of 31

just say you have traded options for forever, and that you have 1 or more years of futures exp.. Also say you have collateral.

I think i put 1 or 2 years cant remember.. but have had no issues with any clearance and have a few accts, some have more permissions than others in regards to forex and futures, but all have option ability. Keep in mind if its a level2 cash acct .. you cannot get higher than level2, but its its margin you should have level3.

 

Who are you with? TDA?

post #18 of 31

I got a hold of my account rep at TD Ameritrade. I asked why I got declined? He said nothing stands out. He did say you have to check speculation. I checked growth and capital preservation, thought it made me sound more responsible. He also said i should list my whole account total and not just the amount I would be trading futures with. I'm a student so my income hurts me a little but 0-25k should be sufficient. TD has a board that approves/disapproves so he doesn't make the decision but said to resubmit the form with those corrections in a week and put a note that I have taken a futures class and paper traded profitably for three months.  I guess if the resubmitted form doesn't work I try a different broker. 

post #19 of 31

I'll keep the Collateral idea in mind. 

post #20 of 31

I've been trading for two and half years so I rounded up to three. Traded real money since fall of 09.

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