Generic Trade Forex Broker

Generic Trade Broker - Complete Information Guide

1. Broker Overview

Generic Trade is a discount brokerage firm that specializes in online trading of futures and options on futures. Established in 2010, the company is headquartered in Highland Park, Illinois, USA. As a private entity, Generic Trade focuses on providing low-cost trading solutions for self-directed traders, primarily targeting individual and institutional clients who are experienced in futures trading.

Since its inception, Generic Trade has grown significantly, establishing a reputation for its straightforward, no-frills approach to trading. The firm operates under a business model that eliminates the need for human brokers or salespeople, allowing it to keep costs low. This model appeals to traders who prefer to manage their own investments without the added expense of advisory services.

Generic Trade's key milestones include becoming a member of the National Futures Association (NFA) and registering with the Commodity Futures Trading Commission (CFTC). The firm is designed specifically for experienced traders and those working with trading schools or mentors, allowing them access to a robust trading environment without unnecessary costs. The company's primary business focus is on retail futures and options trading, providing a platform that allows users to execute trades efficiently.

2. Regulatory and Compliance Information

Generic Trade is regulated by the following key authorities:

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

The NFA membership number for Generic Trade is 0501651, and it operates under the regulations set forth by these bodies, ensuring compliance with industry standards.

The licenses held by Generic Trade are valid for all futures and options trading activities, covering a comprehensive scope of operations within the United States. The firm adheres to strict compliance measures, including Know Your Customer (KYC) and Anti-Money Laundering (AML) policies, to ensure the security of client accounts and transactions.

Client funds are kept in segregated accounts, providing an additional layer of protection for investors. Generic Trade does not participate in any investor compensation schemes, but it emphasizes the security of client funds through its regulatory compliance.

3. Trading Products and Services

Generic Trade offers a variety of trading products, primarily focusing on futures and options on futures. The firm provides access to a wide range of futures contracts, including:

• Major U.S. indices (e.g., S&P 500, Dow Jones)
• Agricultural commodities (e.g., corn, soybeans)
• Energy products (e.g., crude oil, natural gas)
• Metals (e.g., gold, silver)
• Currency futures (e.g., Euro, British Pound)

In addition to futures, Generic Trade allows trading in options on these futures, making it a versatile platform for traders looking to engage in various strategies. The firm does not offer direct trading in stocks, bonds, or ETFs, focusing solely on derivatives.

The product offerings are regularly updated to include new contracts as they become available, ensuring that traders have access to the latest market opportunities. Generic Trade's commitment to providing a broad spectrum of futures and options allows traders to diversify their portfolios effectively.

4. Trading Platforms and Technology

Generic Trade supports multiple trading platforms to cater to different trader needs:

• Generic Trader Online: A web-based platform that is free to use, offering basic trading functionalities and real-time quotes.
• Generic Trader Desktop: A more advanced platform that requires a monthly fee, providing sophisticated charting tools, direct market access, and enhanced order management features.
• Generic Trader Mobile: Available for both iOS and Android devices, this app allows traders to manage their accounts and execute trades on the go, incorporating most features available on the desktop platform.

The firm does not support MetaTrader 4 or 5; instead, it focuses on its proprietary platforms designed for futures trading. The execution model used by Generic Trade is primarily ECN (Electronic Communication Network), ensuring fast and efficient trade execution.

Generic Trade's servers are co-located at major exchanges, providing low latency and high-speed trading capabilities. The firm also offers API access for automated trading solutions, allowing traders to integrate their systems with the Generic Trade platform for enhanced trading efficiency.

5. Account Types and Trading Conditions

Generic Trade offers a variety of account types to meet the needs of different traders, including:

• Individual Accounts
• Joint Accounts
• Partnership Accounts
• Corporate Accounts
• Trust Accounts
• IRA Accounts

There is no minimum deposit required to open an account, and all clients benefit from the same low commission rate of $0.59 per trade, regardless of account size or trading volume. The firm does not offer volume discounts, but the flat fee structure is designed to be straightforward and transparent.

The trading conditions include:

• Leverage: Generic Trade offers leverage that varies by product, typically allowing for a margin requirement that meets exchange standards.
• Minimum Trade Size: The minimum trade size is generally one contract, depending on the specific futures market.
• Overnight Fees: The firm applies overnight financing fees based on the contracts held, which are clearly outlined in the trading conditions.

6. Fund Management

Generic Trade supports several deposit methods, including:

• Bank Wire Transfers
• ACH Transfers
• Credit/Debit Cards

The firm does not impose a minimum deposit for account funding, making it accessible for new traders. Deposit processing times vary, with ACH transfers typically taking 5-7 business days to reflect in the trading account.

While there are no fees for deposits, withdrawal methods include bank wire transfers and checks. Withdrawal processing times may vary, but clients can expect withdrawals to be processed within a reasonable timeframe. Generic Trade does charge fees for wire transfers, which are standard across the industry.

7. Customer Support and Educational Resources

Generic Trade prides itself on its customer support, offering multiple channels for assistance:

• Phone Support: Available 24/7
• Email Support: Clients can reach out via email for inquiries.
• Live Chat: Accessible through the website for quick queries.

The support team is knowledgeable and ready to assist traders with any issues they may encounter. The firm provides support in English, catering to its primary market.

In terms of educational resources, Generic Trade offers limited materials directly through its platforms. However, clients have access to streaming live news services and daily market reports. The firm does not provide extensive educational content, focusing instead on enabling experienced traders to leverage existing knowledge.

8. Regional Coverage and Restrictions

Generic Trade primarily serves clients in the United States but also accepts international clients from various countries. The firm does not specify a comprehensive list of countries it serves, but it is open to clients globally, provided they comply with local regulations.

Certain regions may have restrictions based on regulatory compliance, and clients from jurisdictions where Generic Trade cannot operate will not be accepted. The firm's website offers details on account availability and any specific regional limitations.

In conclusion, the Generic Trade broker offers a robust platform for futures and options trading, emphasizing low costs and efficient execution. With a clear focus on experienced traders, the firm provides essential tools and resources to facilitate self-directed trading while maintaining high standards of regulatory compliance and customer service.