I recently was told it might be a good idea to become a member of cbot. (1500 app fee 1oo/ mo lease. roughly) I am currently a client of IB and was told this would lower comm. roughly 1.40 rt. Do any traders who trade 70 or more contracts at a time do this and is it worth it. Thanks ahead of time
Leasing (or buying) a CME and/or CBOT seat can make a lot of sense depending on volume and frequency of trades. All you have to do is do a cost comparison. A quick run in Excel should do the trick. Once you have a seat make sure you contact a few brokers to check rates out. Some firms specialize and/or do a lot with traders that have seats and can provide very good rates. Not sure how IB compares to others. Again, check around and see what make sense for you.
From what I understand, once you're a member of an exchange, you're expected to pay self employment tax to the IRS. Depending on your volume, it may be better to try negotiating with your broker for lower fees than lease a seat.