Ag futures/options broker

Discussion in 'Commodity Futures' started by dmitrip, Jan 25, 2010.

  1. dmitrip


    Hi everyone. Does anyone know which brokers are better at filling options orders on ag futures? Maybe even specialized ag brokers? I am using ToS and they kind of suck in terms of both fills and commissions.

  2. RPG


  3. H2O


    ADM -

    NOte: I have no personal experience with them, but know professional traders who use ADM.
  4. dmitrip


    Thanks guys. Both look good, although minimum deposits could be steep. I've emailed them about it.
  5. which options are you trading? I would recommend different brokers, depending on if you are trading grain or soft or livestock options. You might also PM Heech, as I know he went through a very long process finding an adequate options broker for the ag markets.
  6. dmitrip


    I am trading corn and wheat primarily.
  7. heech


    Hi there,

    Just wanted to chime in quickly, even after the pm. I know someone at an ADM-subsidiary IB who works mostly with (up-coming) CTAs... ADM fees are probably going to be higher, but obviously they're huge in ags. If you want to talk to him, let me know, and I'll be happy to send you a reference.

    For most casual retail customers though, RCG is probably the way to go. You'll have to go through the trade-desk for anything that's "deep" OTM, assuming you can't trade through it just globex.

    But if there's one thing I've learned about the pits: don't expect a narrow spread, ever. It's not pretty out there. I do *all* of my CME group (NYMEX/COMEX/CME/CBOT) options electronically, because the pits are just not a very competitive option... at least not for my trades.

    Thanks for thinking of me, Ross. :)

    - Edit: actually, depending on the day, NYMEX:CL pits are still barely okay.
  8. yea...about the only reason to go to the pits for options even these days is for large lot orders (>100) or if you are trading the softs or meats...although even livestock options are slowly migrating to the screen...and that volume split right now has hurt them recently imo.
  9. heech


    What volume split are you referring to?

    I'm trading all lean hog options on the screen. I called Vision's CME desk, and the spread was just insanely wide.

    By the way, have you played with EOS Trader at all? It seems kind of a cross between the pits / electronic. Vision is still working (after.. 4 weeks?) on getting me access. An IB for MF is promising me EOS Trader, and says they have a different market-making firm who would be willing to trade larger volumes with me on EOS Trader.

    My volumes have certainly come a long way since we first started talking. :) I'm trading ~1100 options a month (across all markets), these days. And you were definitely key help in the early days.

    EOS is a front end system offered, for free, by the CME. Its not a cross between pit/electronic... its electronic. Its nice that you can create any strategy imaginable and the RFQ (request for quote) to see if anyone wants to make you a market.

    I think you should call the CME, it shouldn't be that hard to access it through your FCM.

    #10     Jan 26, 2010