The Futures Commission Merchant ( FCM)

The Futures Commission Merchant is licensed to execute market orders which includes futures contract, buy and sell orders. The FCM accepts payments for the transactions and must be a registered member with and follow the rules, regulations and remain compliant with the NFA. The FCM may hold client money in margin accounts, in accordance with the exchange being traded, and they may also extend credit for margin trades. In addition, the FCM takes care of accounting and record keeping duties.