@mmt: You can go 2 routes: you can open an account with Dorman through an introducing broker, like Ninjatraderbrokerage. Then you can trade as little volume as you want and still get ok commissions. Or you can open an account directly with Dorman. They will do this for you, but you will probably not get as good commissions as if you go through an introducing broker. I would say as soon as you start trading more than 1000 RTs per month, you get into a position to negotiate directly with the FCMs for better commissions.[/quote] Thanks. I was actually thinking about FC Stone. Got confused with Dorman.
doesn't it seems counter intuitive that you will get better commissions if you go through an introducing broker? This seems odd to me that if you go through a middleman (an introducing broker) rather than go direct to an FCM you would get a better rate. I am sure you are right but shouldn't we ask ourselves why?
I've been trading futures for a while now. I go through IBs because I usually have a broker I can speak with immediately if I have questions about the platform, my statement etc. I find going to the FCM directly most lack customer service. Not saying that I need to speak with my broker every day but if I ever need too then he's available for questions or even to discuss markets.
I used to be a broker with an FCM for many years, and now I am a broker with my own IB. People think that FCMs give them advantage, but the reality is that only I prefer to service my customers as an IB, especially as an independent IB. I get to be objective without any agenda.