LIFFE Designated Brokers

Choosing a broker firm to trade LIFFE equities futures and options for you.

If you want to deal in futures and options and find that your existing share dealing broker does not offer the level of service and/or advice you require, you may have to use a different broker to your normal one. So, what is the best way to go about selecting one that does?

Ready to select a broker? Click here to find out more about LIFFE's Designated Brokers and what they can offer you.

In addition to LIFFE Designated Brokers there are other brokers who provide access to the LIFFE market's range of equity futures and options. Click here to find an alphabetical list of these brokers detailing how you can contact them and which industry associations they belong to.

In order to improve private investor access to LIFFE's range of equity futures and options products, LIFFE has recently introduced a Private Investor Broker Access Programme. The aim of the Programme is to work closely with dedicated broker channels through which you, the private investor, can access and trade LIFFE's equity futures and options. To date, 7 firms have joined the programme and, in their capacity as LIFFE Designated Brokers, are committed to working closely with LIFFE to assist you in your futures and options trading activity whether you are new to futures and options or whether you are an experienced investor.

LIFFE Designated Brokers who provide futures and options dealing facilities for the private investor clearly view it as a way of attracting business that can be processed economically, as well as possibly gaining new clients who will eventually move all their dealings to the firm.

When selecting a broker it is important to consider the different types of services available. They are briefly described as:

Execution only
The execution-only broker offers a dealing service with no element of advice. This type of service is popular with experienced investors who make their own investments decisions and call their broker simply to instruct them to trade on their behalf. If you are new to futures and options you should consider looking for a broker who is also prepared to offer some advice, although advice usually attracts commissions.

Advisor
An advisory broker will deal on your behalf and offer advice where required. The relationship should be two-way and the broker will not be keen to discuss ideas on a regular basis if deals never materialise from these discussions. It is normal for advisory service commission rates to be higher than for an execution only service.

Discretionary
With this service the broker makes all the investment decisions on behalf of you, informing you once deals have been made rather than before or during. Broker commission rates for this type of service are more likely to be linked to the value of the portfolio and its ongoing performance under the broker's discretion.

In summary, if you are new to futures and options, a dealing-with-advice service should be considered until you become familiar with the market and gain confidence in your views of the market and are able to monitor your progress expectations.