Dear fellow traders, I am looking for a new futures broker and maybe a new platform. I feel quite lost at the moment, as there are sooo many offers and all the brokers seem to compete with each other for the lowest commission and best platform. That is nice, but doesn't help me if everybody says he's the best and charges almost nothing for commission and so on. What I want to do: - Trade the Index Futures (NQ, ES, YM) - around 100 RT per month - Submit and follow my trades through charts with pending limit/stop orders. - Have tick data What's important: - Good execution (by the way: does this matter at all - I mean, if the limit orders are kept on CME anyway?) - Reliable broker, trustworthy, safety of funds,... - Cheap Don't want to spend a lot money on trades, or platform or data fees. Currently I am trading on Interactive Brokers with Sierra Chart. IB charges 4,02 RT all inclusive, but doesn't offer tick data. I'd stay with IB, but I have my stock portfolio and swing trading funds there. I don't want to keep all my funds with one broker, so I think I want to switch my futures trading to another. By the way, IB take 2,000 USD intraday margin for NQ, whereas all others need just 500. I could stay with Sierra Chart, but I'm open for all platforms as long as I can trade through the charts. So, any recommendations? I'd be thankful Kind regards, Alex
- Ninjatraderbrokerage (FCM is Dorman), Ninjatrader platform - deepdiscounttrading (FCM is Crossland), with CTS T4 or CQG Qtrader - Infinity Futures (FCM is Transact Futures), free Transact AT platform - Cannon Trading (FCM you can chose Transact Futures), free Transact AT platform, maybe better rates than Infinity (negotiable)
Alex, IB passes on CME margins without any increase at all, one of their very best features. CME's maintenance overnight margin for NQ is $3600, same as IB's. I doubt anyone has $500 intraday. IB are very legit about margins, executions and costs. IB has the best API in the business. But, IB's non-tick market data sucks, more for latency than info, though.
@CALLumbus, thanks a lot, I'm going to check them out. @None Business, sure, overnight they all take the 3600 margin from CME. but intraday a lot of brokers now offer 500 usd margin on NQ, ES, YM. even IB takes just 1800 USD. Tradefutures4Less, AMP, DeepDiscountTrading, almost all that I contacted.
This is simply incorrect. The exchange's initial overnight margin requirements for NQ = $3,960. IB's = $4,500. It is one of their very worst features. Most futures brokers charge exchange margins, but not IB. OK, but just don't confuse your doubts with reality. Yet again, not true. The top of IB's margin table states, "The table below depicts the exchange margin requirements." However, as previously stated, the margin requirements listed are actually higher. Also, IB is the inventor of, and remains the only broker in the industry that charges DAILY "exposure fees," an expense that can easily go unnoticed when someone new is trying to ascertain IB's total trading costs.
I've never had $1 added to an Energy margin. And even big clearers add to margins. I don't short options so I had no idea about the "Daily Exposure Charge." I apologize about that. I've never heard of it, let alone pay it, despite routinely holding futures positions to expiry and thru IB's tier of warnings about such.
Thanks guys for your feedback! I have decided to go with DeepDiscountTrading now and use SierraChart. I was a little sceptical about the firm because their website is very poor, but the do get a good reputation on Elitetrader. Howard, the manager, seems very nice and answered all my questions in detail. And so far it's the very cheapest broker I found. I checked dozens of brokers and it's simply the cheapest I made a list on Excel - feel free to use it if you're looking around for a broker. There are big differences, most take 4-5 USD RT for a NQ, WWFSystems even wanted 7 USD DDT takes 3,62 all inclusive. Velocity and TradeFutures4Less are cheap, too. I've been using SierraChart for a while already, swing trading stocks on IB and I like the software. It's cheap, but it fits my needs perfectly. Thanks for your help and have a nice weekend, Alex
The big differentiator for IB is their Universal Account which allows you to trade stocks and futures from the same account. This is a great convenience if you want to fund your trading from one source instead of maintaining separate accounts. The Universal Account is also nice if you spread stocks/ETF's vs. futures. If I were to choose a futures-only broker, I would consider Advantage Futures.
@Alex: Alex, DDT is a very good choice. Dont let you scare by the simple website design With DDT, your FCM will be Crossland, which is one of the best, in my oppinion. Your funds will be in a segregated account at Fifth Third Bank. DDT is just your introducing broker, and one of the better ones, in my oppinion. Howard does a real good job, he usually replies within minutes and takes good care of his clients. @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.