This depends on the broker, but yes this is theoretically possible. However, if I recall correctly an individual is asked to indicate their employment status and the value of their liquid assets during the application process.
Hey man, I was just trying to answer your question after most everyone else said it was a bad idea, and even though I agreed, I figured I would offer something different. It was your question, I was not trying to say if it was right or wrong.
I am not associated with Mirus or any other broker. My advice is to ask them whatever other questions you have, but on their FAQ section it states you can open an account with as little as $2500 and trade an ES contract for $500 each. They have a website and an 800 number.
If you are unemployed and have zero experience, and can get an account open, it would not sound very responsible of you either. But, that was not your question.
At the time you apply to establish a futures trading account, you can expect to be asked for certain information beyond simply your name, address and phone number. The requested information will generally include (but not necessarily be limited to) your income, net worth, what previous investment or futures trading experience you have had, and any other information needed in order to advise you of the risks involved in trading futures contracts. You will also be required to provide proof of identity to comply with federal law.
At a minimum, the person or firm who will handle your account is required to provide you with risk disclosure documents or statements specified by the CFTC and obtain written acknowledgment that you have received and understood them.
Opening a futures account is a serious decision and should obviously be approached as such. Just as you wouldn't consider buying a car or a house without carefully reading and understanding the terms of the contract, neither should you establish a trading account without first reading and understanding the Account Agreement and all other documents supplied by your broker. It is in your interest and the firm's interest that you clearly know your rights and obligations as well as the rights and obligations of the firm with which you are dealing before you enter into any futures transaction. If you have questions about exactly what any provisions of the Agreement mean, don't hesitate to ask. A good and continuing relationship can exist only if both parties have, from the outset, a clear understanding of the relationship.
Nor should you be hesitant to ask, in advance, what services you will be getting for the trading commissions the firm charges. As indicated earlier, not all firms offer identical services, and not all clients have identical needs. If it is important to you, for example, you might inquire about the firm's research capability and whatever reports it makes available to clients. Other subjects of inquiry could be how transaction and statement information will be provided, and how your orders will be handled and executed."
Well, my case was not exactly "fair" to the broker. I had tax returns that could substantiate anything they needed, but when I opened mine I was in an equity kamikaze move.
I really have no idea what they do with it. I used to get "stated income" loans at the tail end of the real estate blowup, which I thought was bizarre but, whatever they wanted... I don't know if futures brokers go off what you say and swear to as you sign it, or if they dig into it further.
I believe it should be your responsibility to tell the truth on your application. They all have some sort of risk management software that will cut you off if you exceed margin cutoffs, so from their side they are doing their due diligence. If my opinion mattered...
Here's my real comment; The broker has steps thay should take to meet requirements and to protect themselves and their clients. You as an adult have the right to open the account if you meet their requirements. If you lie about it and they do not pick up on it, that should be your fault, not theirs, as we are taking them at face value. How many of us have opened an account with a broker and not requeired them to fill out an aplication to receive our money? There should be some implied trust to the transaction. It is contractural, but as I have told many nervous business owners as they debated my contract language, we sign it, it goes in a drawer, and neither one of us is ever going to look at it again... unless one of us does not do what we said we would.
If you are unemployed, if coming up with $3k is questionable, and if you have zero experience, trading futures is about as sure of a way to lose that money as there is. Futures trading operates on the holy grail of leverage, trading will never be as easy as it should be, and I am sure many of the guys on this site would love to take your money if you are so inclined.
But, I have blown up accounts, and consider it "part of the process". So, if you want to get in there and fight, go get 'em tiger.
Why would they care? They want to make commissions off you. You can day trade the ES with a one lot as long as you have $500 or more in the account, $2500 to open. Like Mike Patek from TST says about brokers, "a client is a customer until proven broke". As soon as your account is $499.99 or below you are done until they get more money. It is not their job to make sure you know what you are doing and you can afford to lose the money, that is your responsibility. Maybe check out Stage Five. All the best to you, I hope you make a ton of money.
The following 3 users say Thank You to AlexB for this post: