Managed Futures

What are managed futures?

The term managed futures describes an industry comprised of professional money managers known as commodity trading advisors (CTAs). These trading advisors manage client assets on a discretionary basis using global futures markets as an investment medium. By broadly diversifying across markets, managed futures may simultaneously profit from price changes in stock indices, currencies, treasury futures, bond futures as well as from various commodity markets. Trading advisors can participate in more than 150 global markets; from grains and gold to currencies and stock indices. Many funds further diversify by using several trading advisors with different trading approaches.

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How does ITG Futures work with CTA’s?

ITG Futures assists clients with selecting a Commodity Trading Advisor (CTA’s), opening a trading account for the CTA to manage, and monitoring the trading activity of the Managed Futures Program on an ongoing basis. We spare no effort in finding CTA’s that we feel offers the potential for good returns while also employing good risk management strategies. We use very specific criteria when recommending Commodity Trading Advisors, including a disciplined investment approach, a positive track record, and a strong management team.

What are the benefits?

  • Potential to lower overall portfolio risk.
  • Potential opportunity to enhance overall portfolio returns.
  • Potential opportunity to profit in a variety of economic environments.
  • Broad diversification opportunities.
  • May limit losses due to a combination of flexibility and discipline

How do I begin?

Our Managed Futures Broker services start with one of our brokers conducting a one on one session to help you select a CTA or portfolio of CTA’s that best fits with your investing goals and risk tolerance. We will take you on a “guided tour” of our CTA database and provide you with customized recommendations tailored to your personal investor profile. 

THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.

TRADING FUTURES AND OPTIONS INVOLVES THE RISK OF LOSS. YOU SHOULD CONSIDER CAREFULLY WHETHER FUTURES OR OPTIONS ARE APPROPRIATE TO YOUR FINANCIAL SITUATION. ONLY RISK CAPITAL SHOULD BE USED WHEN TRADING FUTURES OR OPTIONS. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURES RESULTS.

Have a questions about Managed Futures?

It is very important that you fully understand the risk, commissions, and fees associated with Managed Futures Programs. If you have any questions about Managed Futures Program or need help - just post a question to our help forum or contact us.

What happens after I open my account?

After the account has started trading, ITG Futures monitors the account daily on behalf of the client. Your ITG Futures advisor will receive a daily equity run detailing all your open positions, netting all profits and losses, and showing the exact daily balances in your account. We will be able to guide you through the positions and tell you what the risk and reward benefits are for each position entered. A statement will also be automatically sent to your chosen mailing address on every single trade. The purchase and sale statement shows the date and price entered, and when you exit the trade, the date, price, net profit or loss on the trade, and your account balance. Furthermore, a summary of all transactions showing their results is sent each month for the entire month’s transactions. Therefore, you will always be provided with a written, detailed report of the transactions and the performance of your account.

Schedule a Personal Portfolio Consultation

If you need help or some guidance in determining the right CTA, please fill out the form at the top of this page. One of our licensed brokers will help you develop a managed futures portfolio that best fits your specific needs, taking into account your overall investment objectives, your risk tolerance, your trading time horizon, and the amount of risk capital you can invest.

If you have any questions or need assistance right away, please feel free to contact us. We are available to assist you by phone, Skype, chat or email Monday through Friday from 8:00 AM EST through 5:00 PM EST.

Managed Futures FAQ

What are managed futures & why should I use them?

Managed Futures are an alternative investment asset class that allows investors to simultaneously participate in multiple global market sectors such as currencies, energies, metals, short and long term interest rates, domestics and international stock indices and traditional commodities.

Managed Futures can be a valuable part of an overall asset allocation plan; their purpose is to add portfolio diversification, potentially reduce overall portfolio volatility and potentially achieve higher overall portfolio performance over time when compared to traditional investment portfolios alone. A study by the Chicago Mercantile Exchange (CME) concluded that a portfolio with 20% Managed Futures has less risk than a portfolio of Stocks and Bonds alone. The major benefits with using managed futures are as follows: diversification beyond stocks and bonds, potential for higher portfolio returns, potentially reduced portfolio volatility risk, access to broader market opportunities, potential to profit in any economic condition, professional management, and portfolio liquidity.

BE ADVISED THAT DIVERSIFYING ONE’S PORTFOLIO WITH MANAGED FUTURES DOES NOT GUARANTEE PROFIT, OR PROTECT A PORTFOLIO FROM SUBSTANTIAL LOSSES OR VOLATILITY.

AN INVESTMENT IN MANAGED FUTURES MAY HELP ENHANCE RETURNS AND REDUCE RISK. HOWEVER, THEY MAY ALSO DO JUST THE OPPOSITE AND IN FACT RESULT IN FURTHER LOSSES.

THE RESULTS OF STUDIES CONDUCTED IN THE PAST MAY NOT BE INDICATIVE OF CURRENT TIME PERIODS AND MAY NOT REFLECT THE PERFORMANCE OF ANY INDIVIDUAL CTA.

Who regulates CTA’s?
What is a disclosure document?
What is an incentive/management fee?
Where is the money deposited when a managed futures account is opened?
Is a managed futures account appropriate as a short-term investment?
Can I invest funds from my Individual Retirement Account (“IRA”)?

Margins

Margins

We offer low day-trading margins to accommodate traders that require high leverage for trading.

Low Fees

Commissions

Trading commissions without burden to your trading strategies.

Platforms

Platforms

Over 60 Trading Platforms & 4 Data Feeds Available ( CQG, TT, Rithmic, CTS )

Exchanges

Exchanges

We offer direct access to more than 25 futures exchanges in the United States, Europe, and Asia.

Learn More about Managed Futures

The following information has been prepared by the CME Group

  • Managed Futures: Portfolio Diversification Opportunities – Learn how you can enhance returns and lower overall volatility with this informative brochure from the CME Group. 


  • 10 Reasons to Consider Adding Managed Futures to Your Portfolio – This concise brochure from CME Group demonstrates 10 compelling reasons you should consider managed futures. 


  • Frequently Asked Questions About Managed Futures – Expand your knowledge about Managed Futures, your questions answered with this helpful brochure from the CME group.
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Download Managed Futures Whitepapers


  • Lintner Revisited: The Benefits of Managed Futures 25 Years Later – Dr. John Lintner, a Harvard Professor, presented the seminal paper entitled “The Potential Role of Managed Commodity – Financial Futures Accounts (and/or Funds) in Portfolios of Stocks and Bonds” at the annual conference of the Financial Analysts Federation in Toronto in May 1983. The findings of his work, namely that portfolios of equities and fixed income exhibit substantially less variance at every possible level of expected return when combined with managed futures, remain as true as ever more than 25 years later. In this brief paper, the authors attempt to update Professor Lintner’s work by demonstrating that the beneficial correlative properties of managed futures presented in his research persist today. They also reintroduce managed futures as a diverse collection of liquid, transparent hedge fund strategies that tend to perform well in environments that are often difficult for traditional and other alternative investments. 


  • Lintner Revisited: A Quantitative Analysis of Managed Futures in an Institutional Portfolio – Managed futures comprise a wide array of liquid, transparent alpha strategies which offer institutional investors a number of benefits. These include cash efficiency, intuitive risk management, and a proclivity toward strong performance in market environments that tend to be difficult for other investments. This paper revisits Dr. John Lintner’s classic 1983 paper, “The Potential Role of Managed Commodity-Financial Futures Accounts (and/or Funds) in Portfolios of Stocks and Bonds,” which explored the substantial diversification benefits that accrue when managed futures are added to institutional portfolios. As Dr. Lintner did, it analyzes the portfolio benefits that managed futures offer through the mean-variance framework, but it draws on more complete techniques such as the analysis of omega functions to assess portfolio contribution. The paper also conducts a comparative qualitative and quantitative analysis of the risk and return opportunities of managed futures relative to other investments, and includes a discussion as to why managed futures strategies tend to perform well in conditions that are not conducive to other investment strategies. It provides an overview of the diversity of investment styles within managed futures, dispelling the commonly held notion that all CTAs employ trend following strategies. Finally, it highlights the opportunities space offers to institutional investors seeking to create well-diversified, liquid, transparent, alpha portfolios.

TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. THE USE OF THE PHRASE “MANAGED FUTURES” REFERS TO THE ASSET CLASS, AND NOT TO ANY INDIVIDUAL COMMODITY TRADING ADVISORS PROGRAM. BE ADVISED THAT AN INDIVIDUAL PROGRAM COULD HAVE BETTER OR WORSE PERFORMANCE RESULTS WHEN COMPARED TO THE STOCK MARKET. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR MONEY. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE STUDIES PRESENTED IN THE BROCHURES ABOVE ARE BASED ON ACTUAL PERFORMANCE OF MANAGED FUTURES AND STOCKS FOR THE PERIODS SHOWN, THEY ARE NOT BASED ON ACADEMIC THEORY.

THIS MATERIAL MENTIONS SERVICES WHICH RANK THE PERFORMANCE OF COMMODITY TRADING ADVISORS. PLEASE NOTE THAT THE RANKINGS APPLY ONLY TO THOSE CTAs WHO SUBMIT THEIR TRADING RESULTS. THE RANKINGS IN NO WAY PURPORT TO BE REPRESENTATIVE OF THE ENTIRE UNIVERSE OF COMMODITY TRADING ADVISORS. THE MATERIAL IN NO WAY IMPLIES THAT THESE RESULTS ARE OFFICIALLY SANCTIONED RESULTS OF THE COMMODITY INDUSTRY. BE ADVISED THAT AN INDIVIDUAL CANNOT INVEST IN THE INDEX ITSELF AND THE ACTUAL RATES OF RETURN FOR AN INDIVIDUAL PROGRAM MAY SIGNIFICANTLY DIFFER AND BE MORE VOLATILE THAN THE INDEX.

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ITG Capital Management, LLC (d.b.a ITG FUTURES) is an independent introducing broker|Registered CFTC|NFA Member. Our clearing partners are Clearing Members at CME, CBOT, COMEX, NYMEX, ICE-US, Eris Exchange, Eurex, and other commodity futures exchanges in Europe and Asia. 

Please read our Risk DisclosurePrivacy Policy, and GDRP Policy.

Contact Us

500 North Michigan Avenue
Suite 600
Chicago, IL 60611
Phone: (312) 279-8640
Fax: (312) 279-8641
MONDAY - FRIDAY
08:30 - 17:30
SATURDAY - SUNDAY
10:00 - 14:00

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