Apply for CME/CBOT Membership to lower fee for Individual trader questions

Discussion in 'Professional Trading' started by stockcik, Jun 23, 2018.

  1. Earn2Trade-Ryan

    Earn2Trade-Ryan Sponsor

    For the CME it definitely makes you a pro as you’re a member of an exchange:

    https://www.cmegroup.com/market-dat...it-a-to-schedule-4-non-pro-self-cert-form.pdf

    For the other, I’m not an equity trader so I I’m not entirely sure but on a quick read..

    For the NYSE, you’re a pro because if you’re a member of the NFA or if you’re a trust/org:

    http://www.nyxdata.com/nysedata/Des...yId=5078&PortalId=0&Downloadmethod=attachment

    NASDAQ you’re a pro if you lease a seat but depending on if it’s done under a trust and how you’re related to the trust, it’s possible you could be a non-pro:
    https://www.nasdaqtrader.com/content/AdministrationSupport/AgreementsData/subagreemstandalone.pdf
     
    #11     Jun 24, 2018
    JSOP likes this.
  2. manonfire

    manonfire

    Consult a tax professional as well as to if it changes how 1256 contracts are taxed.
     
    #12     Jun 24, 2018
  3. CSEtrader

    CSEtrader

    We are also individual traders, no floor, no CTA and leased CME membership in 2012, preparing to make big volumes with our UBS sad deal. No fingerprints was requested. But the approval take a while, we are residents in the Bahamas, European citizens
     
    #13     Jun 24, 2018
  4. Hey stockcik,

    applying for membership is a great idea. If you trade roughly 2,000 ym contracts you will get back the cme fee.

    Right now leasing seems to be the best option. There are a lot of idem seats available.

    I have never heard of somebody failing the membership test. Background and credit checks are more important than the rest. The exchange wants to make sure that you were never bankrupt and that you are not a felon for obvious reasons.

    You can always ask the membership department for more information. If you live in Chicago I strongly recommend going there as you can be done in an hour if you give them a cashier’s check along with your paperwork.

    Anyway, good luck.
     
    #14     Jun 24, 2018
    CSEtrader likes this.
  5. TraDaToR

    TraDaToR

    I asked my broker's compliance dept. You don't need to register to NFA if you don't access the trading floor.
     
    #15     Jun 25, 2018
  6. bone

    bone

    Call CME Membership services directly - ask if you need to be a registered floor trader in order to lease a Membership - I doubt it but best to get it straight from the source.
     
    #16     Jun 25, 2018