What is an FCM?

What is an FCM?

A Futures Commission Merchant is an organization that solicits or accepts orders to buy or sell futures or options contracts and accepts money or other assets from customers in connection with such orders. FCM’s work with the exchanges to handle confirmation, delivery, and settlement of transactions. In addition, FCM's hold customer funds and supply statements to members. Most FCM's act as exchange liaisons for Introducing Brokers and rely on them to communicate with traders.

The link below directs you to information regarding the CFTC's Financial Data for FCM's: 


Some key sections we link to look at are:

Adjusted Net Capital: This is the amount of regulatory capital available to meet the FCM's minimum net capital requirement. The classification of assets and liabilities used in arriving at net capital, and the additional capital haircuts that a FCM may be required to take, are set forth in CFTC Regulation 1.17.

Net Capital Requirement: The minimum net capital that each FCM must maintain is determined under CFTC Regulation 1.17(a)(1)(i). Refer to pages 7-11 through 7-12 of the Form 1-FR-FCM Instructions for more information regarding how to compute the net capital requirement.

Excess Net Capital: This is the amount by which the adjusted net capital exceeds the net capital requirement.



    • Related Articles

    • Financial Data for FCMs

      Futures commission merchants (FCMs) and retail foreign exchange dealers (RFEDs) must file monthly financial reports with the CFTC's Division of Swap Dealer and Intermediary Oversight (DSIO) within 17 business days after the end of the month.  To view ...

    • FCM Fees

      Funding your account at Edge Clear often requires wiring funds to your segregated account at the FCM. Though most FCMs do not charge a fee for the transfer of funds into an account, they may charge a fee for the transfer of funds out of the account. ...

    • What FCM's does Edge Clear work with?

      Edge Clear works with: Phillip Capital Dorman Trading Ironbeam To open a live account with Edge Clear, please use the following link to fill out the application: https://edgeclear.com/open-account/

    • How to Switch Data Providers

      Edge Clear partners with many data feeds, each of which may be differentially suited to the needs of a trader. Edge Clear wants to make it as easy as possible to find the right data feed for your trading needs. To see a list of the data providers ...

    • Are my funds Segregated?

      Yes, your funds are segregated from the working capital of our FCM's.  In order to comply with CFTC 1.25, clearing firms must ensure proper segregation of customer funds. More information can be found below: All customer funds for trading on ...