EntityCannon Trading Company, Inc. — US Independent Introducing Broker (NFA ID 0216708; pending manual BASIC confirm)JurisdictionUnited States — no CIPF; entity-mismatch fires for Canadian clients; provincial availability unverified at scoring dateRegulatorCFTC (IIB) + NFA. Not an FCM — customer funds held at the chosen clearing FCM (StoneX / TransAct / Dorman / Phillip Capital / Ironbeam). Founded 1988, family-held.SchemeNo compensation scheme — SIPC excludes futures; no CIPF equivalent at the IB or FCM layer
Capped at 7.0/10 — no negative-balance protection (jurisdiction not mandating it).
Transparency & Conduct6.5/108%
Withdrawal Integrity — dimension ceiling
No (jurisdiction not mandating it). Withdrawal Integrity is capped at 7.0/10 regardless of other withdrawal performance (it would otherwise be 7.2). Approximate composite impact: −0.2 points.
Verdict
Cannon Trading scores 52/100 (Adequate) — a 37-year US Independent Introducing Broker (NFA 0216708) with a genuinely clean structural story on custody: customer funds never touch Cannon, wiring directly to named §1.20 customer-segregated accounts at five named clearing FCMs (StoneX, TransAct, Dorman, Phillip Capital, Ironbeam) with named receiving banks. The score sits in the Adequate band for structural reasons, not conduct: the IIB registration class carries lighter supervision than an FCM (no DSRO, no daily segregation surveillance), US futures has no investor compensation scheme at any layer, IB capital filings are not public, and the family ownership names no principals on any public surface. The custodial picture ultimately devolves to whichever FCM you clear through — a real due-diligence step Cannon leaves to the customer.
Best for
Experienced US futures traders who value 37 years of operating history and broker-by-phone service, and who will pick their clearing FCM deliberately (the FCM, not Cannon, holds your funds).
Skip if
Canadians (no CIPF at any tier, entity-mismatch, provincial availability unverified); anyone who wants single-entity simplicity, published broker financials, or named leadership; traders unwilling to do FCM-level due diligence on top of broker selection.
TraderVerdict brokerage scores assess custodial safety from a Canadian investor perspective. Scores do not constitute investment advice. Verify all details directly with the broker before opening an account.
Evidence & Sources
Scores are on a 1–10 scale. = one step on the scoring ladder. Source links open primary evidence.
“Cannon Trading Company, Inc.: NFA ID 0216708; CFTC-registered Independent Introducing Broker; registration active at scoring date; firm states "Continuous good standing since 1988." (NFA BASIC bot-blocks automated checks — PUBLISH CONDITION: human pull of the BASIC registration + enforcement tabs required before pasting.)”
“SIPC explicitly excludes commodity futures contracts and futures accounts from coverage. Cannon Trading customers hold futures accounts at US clearing FCMs (StoneX, Dorman, Phillip Capital, Ironbeam, TransAct) — not eligible for SIPC coverage at any link in the chain. No CIPF equivalent exists.”
“No compensation scheme membership — see d2_scheme_membership. No per-customer coverage limit exists at the IIB or at any of the five clearing FCMs for futures accounts.”
“No excess insurance or private compensation top-up referenced in Cannon Trading public materials, account documents, or any of the five clearing FCMs' public disclosures reviewed June 2026.”
“Customer wires route DIRECTLY to FCM customer-segregated accounts — account titling verbatim: "StoneX Financial Inc 1.20 Seg", "Phillip Capital Inc. Customer Segregated Funds Account", "TransAct Futures Customer Seg Funds". Funds do not pass through Cannon Trading at any point.”
“Customer funds are held and invested (if at all) by the chosen clearing FCM under CFTC Regulation 1.25 — Cannon Trading has no custody or investment authority. Per-FCM investment practice varies across the five offered FCMs and is not disclosed by Cannon per-FCM.”
“Five named clearing FCMs with named receiving banks: StoneX/Gain (BMO Harris Bank N.A.), TransAct Futures (Harris Bank), Dorman Trading LLC (BMO Harris Bank N.A.), Phillip Capital Inc (Citibank N.A.), Ironbeam Inc (BMO Harris Bank N.A.).”
“Independent (non-guaranteed) Introducing Broker — maintains its own adjusted net capital against the CFTC IB minimum ($45,000). IB financial filings go to NFA and are not published; no public capital figures exist for Cannon Trading. (37 years of continuous operation implies sustained compliance with IB capital requirements.)”
“Privately held, family-owned California corporation; no parent company, no institutional shareholder, no group capital backstop referenced in any public material reviewed June 2026.”
“No client count, AUM, or segregated-funds-share data published — and as an introducing broker, Cannon files no public 1.55(k) disclosure (that obligation sits with the clearing FCMs).”
“Withdrawals are processed by the clearing FCM holding the funds (funds never sit at Cannon). No documented systemic withdrawal failures, delays, or withdrawal-related complaints against Cannon Trading or its FCM chain found in evidence review June 2026.”
“Standard ACH/wire withdrawal via the clearing FCM; published wiring instructions per FCM; no unusual documentation requirements or hold policies documented in public materials reviewed June 2026.”
“Commission-based introducing broker; no percentage-based exit fees, forced-haircut paths, or above-norm flat withdrawal fees documented in account documents or public pricing reviewed June 2026.”
“No dormancy-seizure or freeze-forfeiture clauses found in Cannon Trading account documents or public materials reviewed June 2026; customer balances sit at the clearing FCM under §4d.”
“The About page references "Founders & Leadership" and "Veteran professionals" generically but names NO principal, owner, or officer anywhere on the public site (verified June 2026).”
“Firm states "Continuous good standing since 1988." No enforcement actions against Cannon Trading Company, Inc. (NFA 0216708) found in public evidence review June 2026. (NFA BASIC bot-blocks automated checks — PUBLISH CONDITION: human pull of the BASIC enforcement tab required; score conditional on zero unresolved actions.)”
“U.S.-regulated Independent Introducing Broker — agency model: Cannon introduces accounts to clearing FCMs and provides broker-assisted execution; it does not hold funds, clear trades, or act as principal counterparty.”
Primary sources
Every Cannon Trading variable score traces to a public, primary source. The full verbatim extract and verification date for each is in the Evidence tab above; the underlying documents are listed here.