Can anyone recommend one or two FCMs for a new CTA?

Discussion in 'Professional Trading' started by slash2859, Sep 16, 2014.

  1. Hi everyone,

    Can anyone recommend one or two FCMs for a new CTA?Actually,I like RCG and RJO,but RCG didn't approve my application.and I don't know any IBs working with RJO.Could anyone recommend one or two IBs that could open a RJO account at a reasonable commission?Please send me a message.Thank you in advance.

    Except the two mentioned above,I don't really have others in mind.Please recommend.I really appreciate that!

  2. Advantage futures

  3. R1234


    I manage client accounts at RJO. I trade the block account on their WebOE platform which is free.
    Their back office is accurate and responsive. For example sometimes I have to complete a trade in several parts during a session in some of the more illiquid markets. Upon request, their backoffice will do APS and treat it as one trade. I also manage client accounts at Interactive, which requires no intro broker.

    I prefer not to reveal my RJO introducing broker but there are many out there - just look on RJO website.
  4. Hi,R1234,

    Thanks for reply! I know some IBs working with RCG can offer far more low commissions than opening the account directly with RCG. I'm wondering if there are some as the same with RJO?Indeed,their website shows plenty of IBs working for them.But they offer pretty high rates,since I'm an infrequent trader.Are there any other ways to get a lower commission?

    And regarding Interactive Brokers,I heard that they were not suitable for new CTAs,because they didn't do any give-ups to other firms.This is not how the business works.Though I have no clients now(I just want to open the account for proprietary track records),I don't want to restrict myself.Indeed,they can provide lowest commissions,I don't really know how big the effect of their business model to my future development.Could you share your experience on this issue?Thank you.

  5. Thank you!Are you using them?What advantages do they have?
  6. R1234


    The commissions negotiated through intro brokers can vary a lot. Volume per million is the main consideration. My trading volume exceeds 10,000 round turns per million per year so I have negotiated a relatively lower commission at RJO, but still nowhere near Interactive Brokers commissions.

    I have fewer clients at Interactive because they are not tied into the Introducing Broker network. I think if they did in the future they would attract a lot of managed money due to their cheapness.

    For you I would say just trade your prop at Interactive Brokers and manage any clients that you personally find at Interactive as well - this will make your track record look better from the cheap commissions. Once you have accumulated a few months of prop and/or client performance blast it out to Intro Broker databases and begin managing the clients they bring to you through RJO or RCG (or ADM etc, etc).
  7. bone

    bone ET Sponsor

    Advantage or Rosenthal-Collins Group come to mind. If you want access to some OTC products and LME without a give-up agreement, then New Edge comes to mind - but they have a considerable account minimum.
  8. That's what I'm planning to do,using Interactive to build track record and then move to RCG or RJO to accept customers.But I'm still worrying about some issues arising by doing so.Have you heard anything about that?

  9. R1234


    Not sure what issues you are referring to. But one main issue is the execution of trades for clients who are on different platforms (forced to trade different platforms because of lack of give up mechanism at IB).
    I handle that by alternating the execution each week ie. one week the trades get done first on the RJO platform and the next week the trades get done first at IB.
  10. bone

    bone ET Sponsor

    I would also agree that RJO has an excellent reputation and balance sheet, and I would add them to anybody's Tier One list of FCM's.
    #10     Sep 20, 2014