Recommend good online or discount broker

[poorboy]

Have looked at futures and understand them, but do not actively trade. Was thinking about starting very small, using wheat futures instead of CWB fixed price contract, trade futures or options in canola and possibly hedge the dollar at times.

Tried setting up a futures account at RJ O'brien and before it was all done, I was tired of the broker calling me.

Lots of discount brokers do not trade Canadian futures.

Also thinking to write options on wheat in the future.

Everyone happy with online trading, or should I run to a full service, full charge broker?

I expect volume to be low. Not a big farm, and somewhat of a chicken on the markets trading.

[Choice2U]

RBC Dominion Security - Keith Ferley - 1-866-820-9297. I'll stress that the value is Keith Ferley and not RBC. I make about 4 -10 trades per year and he always gives me the time of day. He's not pushy!

[charliep]

Below is an ARD publication on "Choosing a Broker". A little dated (i.e. R. J. O'Bryne is not listed).

[URL="http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sis1015"]choosing a broker[/URL]

[parsley]

http://www.bizjournals.com/boston/stories/2010/09/06/daily26.html

[ado089]

RBC - Allen Wigelsworth in Edmonton. Not pushy, calls throughout the growing season to get first hand crop updates. Daily newsletters e-mailed and key trade alerts on all ag/food commodities.

[ado089]

$80/100t trade plus standard exchange fees, $25 I think.

[mbratrud]

Jamie Wilton - Scotia McLeod 1-800-667-9997

Keith Ferley - RBC DS - 1 - 866-820-9297

I would not consider either of these gentleman discount brokers, but the type of guys you should use when starting out.

Online
Mark Gunnip - MF Global Lind Waldock 1-866-299-6553

All top notch guys in my opinion.

Personally I am addicted to Online trading but have several years experience as well as commercially. Options’ trading is much easier with a broker.

You definitely want to get your feet wet with a broker. Just tell them right off though that you are not interested in trading commodities that you do not grow and you should be fine!

Keith and Jamie are both good options haven’t dealt with Jamie for several years, since he moved to Scotia.

Several other brokers I have dealt with in the past as well that I would love to recommend but not sure where they are these days. It is an industry with a lot of turnover and corporate changes.



IE. Refco -> Man Financial -> MF Global -> LindWaldock

PCTS -> Benson Quinn GMS -> Union Securities

Fimat Canada -> Newedge

Some Brokers can get cranky if your account sits idle for a long time, so it is clear to set proper expectations with them off the hop. This is a tool in your toolbox. I have some monkey wrenches I haven't used for several years.

Every Farmer should have a trading account but not to play with! Used properly it can enhance a farms marketing in a dramatic way.

[charliep]

Also be carefull and realize that you don't have a second set eyes reviewing your trades. Entering a buy when you really wanted to sell. You say this will never happen but you may be like me and done on line banking/transferred money between accounts the wrong way. Likely the only one here that dumb but hard to explain why a cheque bounces and yet you have lots of money in another account.

[mcfarms]

Had a line company phone and offer us 4.50 for our feed wheat not biting there, If I was a brave soul I could do a FPC at almost 5.50. this aft. Just pondering whether it's worth taking a chance of the spreads not completely screwing me on delivery.
Had a long talk with our FBR yesterday I felt there was an understanding that feed wheat needs to be disconnected from the FPC and priced better/differently or at least have the ability to lock the values on sign up , If I say its feed and it doesn't make specs I would pay a penalty If It is a millable 3 on delivery thats my fault for not sampling properly and knowing what I have. For what its worth my sampling is deadly accurate, I know what I have good bad or ugly and should be able to market it to the best market. This year that market is off shore and I have top use the board that said the board has to honestly reflect values and let us capture them on FPC .

Charlie

Did the introduction of Barley GPC's (not GDC's) not occur mid year could we not see feed wheat GPC's as well?

[charliep]

mcfarms

Hit the nail on the head.

Lots of feed wheat in Alberta. Ability to lock in a fair price and delivery opportunity on any given day.

Not sure on the answer to your last question. Would be a good question for CWB candidates.

[TOM4CWB]

Charlie,

If any CWB director, government official... or WTO investigator wants to open their eyes for a millisecond... they COULD clearly see the CWB is distorting the whole grain complex in western Canada.

For the CWB claim that they are 'commercial' and don't distort markets... the CWB has a fabulous track record of doing the exact opposite!

Like all the high grade durum... that just went into the domestic feed market... and the theft of malt and feed barley year after year... the endless parade of deceptions that Goodale protects are VERY annoying... to say the least!