Ok, so you have done some research on futures markets, and have decided to try your hand at trading. You have by now evaluated which contracts to trade, either by interest in a specific market, or by your belief that you have good information on future market moves through your job, or contacts you deem well informed. The next decision to consider then, is choosing a broker.

The current trend in brokerage houses is to offer rock bottom commissions on round turns, but very little in way of information or support services for their customer base. Although this option is good to have, there are certain issues to consider when looking at these types of brokers. The first realization you should have is an old adage that still holds true, you get what you pay for. Though some traders are experienced enough, and pay for enough outside research to make use of these discount services, most of us will need a lot more help from a professional to be successful long term. With most discount brokerage services, you are on your own.

The other day I sat in a meeting listening to a young man extol virtues of owning real estate. Much of what he said was true. However 2 things made me sit up and take notice and I couldn't help but comment.

First, he said interest on his home loan was tax deductible, so government was underwriting his house payment. I asked how much government was giving him. He said they were not giving him anything but allowed interest on his home loan to be deducted from his taxable income.

Assuring him I didn't want to be nosey, I asked what that deduction meant to him. 28% of interest paid he saved on taxes was reply. "So, you get to keep 28 cents for every dollar in interest you pay?" Eagerly he responded, "YES."