A futures commission merchant (FCM) is a company or individual that solicits or accepts orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts or swaps, and accepts money or other assets from customers to support such orders.
What is a Futures Commission Merchant - FCM
A futures commission merchant (FCM) plays an essential role in enabling customers to participate in the futures markets. An FCM is an individual or organization involved in the solicitation or acceptance of buy or sell orders for futures or options on futures in exchange for payment of money (commission) or other assets from customers. An FCM has the responsibility of collecting margins from customers. The FCM is also responsible for ensuring asset delivery after the futures contract has expired.