Cannon Trading Company

Cannon Trading Company: A Comprehensive Overview

1. Company Overview

Founding Date and Background

Cannon Trading Company, Inc. was established in 1988, positioning itself as a reputable and respected broker in the futures trading industry. With over three decades of experience, Cannon Trading has continually adapted to the evolving landscape of commodities and futures trading, catering to the diverse needs of its clients.

Parent Company/Ownership Structure

Cannon Trading operates as an independent introducing broker and is not owned by any larger parent company. This independence allows it to offer a personalized approach to trading services, ensuring that strategies are tailored to individual traders' needs.

Headquarters Location

The company is headquartered in Los Angeles, California, which serves as a strategic location for engaging with both domestic and international clients.

Global Business Scope

Cannon Trading provides its services globally, connecting clients to various commodities futures and forex exchanges around the world. This international reach is complemented by partnerships with five major clearing houses, allowing for efficient trade execution and settlement.

Main Regulatory Bodies

Cannon Trading is regulated by several key bodies, including the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). These regulatory affiliations ensure that the company adheres to strict standards of conduct and operational integrity.

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2. Company History and Development

Key Milestones

Since its inception, Cannon Trading has achieved several notable milestones. The company was among the first to offer online futures trading, marking a significant shift in how traders engaged with the markets. Over the years, it has expanded its service offerings and technological capabilities to remain competitive.

Business Expansion Journey

Cannon Trading's growth has been characterized by a commitment to innovation and customer service. The company has continually invested in developing advanced trading platforms and tools, enhancing the trading experience for both new and experienced clients.

Customer Base Growth

Cannon Trading has cultivated a diverse customer base that includes individual traders, institutional clients, and hedgers. Its focus on personalized service and educational resources has attracted clients from various backgrounds, contributing to steady growth in its user base.

Platform Development History

The company offers a range of trading platforms, including proprietary solutions and partnerships with established platforms like CQG and Transact. This diverse selection allows traders to choose the tools that best fit their trading styles and preferences.

Important Awards or Recognitions Received

Cannon Trading has received various accolades for its commitment to customer service and innovative trading solutions. The company has been recognized for its educational resources, helping traders improve their skills and knowledge of the futures market.

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3. Trading Services Offered

Forex Trading Options

Cannon Trading offers a robust selection of forex trading options, providing access to numerous currency pairs. This includes major pairs like EUR/USD, GBP/USD, and USD/JPY, among others, enabling traders to participate in the global currency market.

Stock Trading Options

While Cannon Trading primarily focuses on futures trading, it also provides access to stock indices, including the S&P 500, NASDAQ, and Dow Jones. This allows clients to diversify their trading strategies and engage with both futures and equities.

CFD Trading Products

Cannon Trading does not explicitly mention offering Contracts for Difference (CFDs) on its website. However, it does provide access to various futures contracts, which can serve similar purposes for traders looking to speculate on price movements without owning the underlying asset.

Other Financial Instruments

In addition to forex and stock trading, Cannon Trading offers a wide array of commodities, including agricultural products (like wheat and corn), energy products (such as crude oil and natural gas), and precious metals (including gold and silver). This extensive range of financial instruments enables traders to diversify their portfolios effectively.

Special Services or Unique Advantages

Cannon Trading distinguishes itself through its personalized broker support, educational resources, and advanced trading tools. The company provides daily support and resistance levels, live alerts for breaking news, and customized technical analysis on demand, which are invaluable for traders seeking to enhance their strategies.

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4. Regulatory and Legal Background

Detailed Regulatory Information

Cannon Trading is subject to regulation by the following bodies:

• Commodity Futures Trading Commission (CFTC)
• National Futures Association (NFA)

These regulatory frameworks ensure that Cannon Trading operates within the legal requirements and maintains high standards of transparency and integrity.

Legal Entity Structure by Region

Cannon Trading operates as a sole entity in the United States, with a focus on serving both domestic and international clients. The company's structure allows it to provide tailored services while adhering to the regulatory requirements of the regions in which it operates.

Client Fund Protection Measures

To protect client funds, Cannon Trading maintains segregated accounts for customer deposits, ensuring that client funds are kept separate from the company's operational funds. This practice is a standard requirement in the industry and provides an additional layer of security for clients.

Countries/Regions Served

Cannon Trading serves clients worldwide, with a particular focus on the United States and international markets. Its global reach allows it to cater to a diverse clientele, including both individual and institutional traders.

Compliance History

Cannon Trading has maintained a strong compliance record, adhering to the regulations set forth by the CFTC and NFA. The companys commitment to regulatory compliance is evidenced by its accreditation with the Better Business Bureau (BBB), where it holds an A+ rating.

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5. Competitive Landscape

3-5 Main Competitors

Cannon Trading faces competition from several other brokerage firms in the futures trading space, including:

1. Interactive Brokers - Known for its low-cost trading and extensive range of products.
2. TD Ameritrade - Offers comprehensive trading platforms and educational resources.
3. E*TRADE - Focuses on user-friendly platforms and a wide array of trading tools.

Positioning in the Industry

Cannon Trading positions itself as a discount futures broker, emphasizing personalized service and extensive educational resources. This focus on client education and support helps differentiate it from larger, more impersonal brokerage firms.

Market Differentiation Factors

Cannon Trading's key differentiators include its independent status, personalized broker support, and a wide range of trading platforms tailored to various trading styles. Additionally, its commitment to providing educational resources and market insights enhances its appeal to both novice and experienced traders.

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In conclusion, Cannon Trading Company has established itself as a significant player in the futures trading industry, with a robust offering of services, a commitment to regulatory compliance, and a focus on customer support and education. For traders looking for a reliable brokerage with a comprehensive suite of trading tools and resources, Cannon Trading presents a compelling option.

For more information about Cannon Trading services, learn more.