cheapest futures commission

Discussion in 'Index Futures' started by Funster, Jan 25, 2002.

  1. Funster

    Funster

    I am looking for the cheapest commission deal out there for globex emini s&p500 contracts.

    IB is alright at $2.40 per side, but I want cheaper if I do serious volume.

    I remember someone telling me about a broker that will do it for a lot cheaper for good volume. Can't remember where I heard it though.

    It only costs a cme seat owner $0.33c per trade so come on is there any sensible brokers out there that aren't blinded by greed?


    Even 66c per side would be 100% profit. Greedy buggers!
     
  2. monee

    monee

    as I recall the cme charges the broker over $2 per side fee for e-minis traded on Globex.
    Don't see how you could get commissions much lower than you are paying because of that.
     
  3. Funster,

    Have a look at this link:
    http://www.cme.com/risk_management/clearing_house/fees.cfm
    and this:
    http://www.cme.com/risk_management/clearing_house/equityandclearingfees.cfm

    Note that the $0.65/round-turn is only when an equity member has executed an order for his/her own account or another equity member's account, or for proprietary accounts etc. under certain conditions. For us (sorry, for me) it's $2.28/round-turn. And there are other fees, and development/maintenance/operating costs, etc. And of course an atractive profit factor.

    I think IB's $4.8/round-turn all inclusive is competitive and reasonable. With scale of economics, auto offset policy, cost down via least human intervention, and sound management (I think so, but I don't testify it), IB will achieve a handsome profit with such a low fees.

    Of course room is there for IB to further cut its rate for e-mini's to $3.9/rt ($1.95 per side) while still profitable. [and so 300RT/mo save us eSignal, 600RT/mo for a basic CQG/NET). Any lower rates for general customer accounts without high threshold is unbelievable, and insignificant to trading profitability. In fact for rates below $5/rt all-inclusive, other elements such as stability, efficiency and financial solidness dominate our considerations to choose a broker/platform.

    I think it's the exchange to cut down the clearing & execution fees to at least 35% off, and market data fees to nominal for non-pro, that will most benefit the whole industry.

    As to IB. IB's most un-attractive lies on its equity/index option fees. They really should cut its current $1.95/contract to $1.25 or below.
     
  4. Funster

    Funster

    Thanks for info guys.

    Yes, it seems the xchange charges more if not for your own account.

    Perhaps it's worth leasing a seat for high volumes!!!
     
  5. Funster..

    no offense but its not that simple.. 66c per side would only be 100% profit if IB did not have any other expenses.. office space, employees, phones, computers, exchange fees, internet, etc..

    next time you go to Outback tell them you only want to pay 4 dollars for your steak because they probably only paid 2 for it.. =)

    -qwik
     
  6. It all depends on the EXCHANGE. When will they ever close that d..n open outcry pit and allow electronic trading at realistic cost-based rates (which are probably $0.10 per contract or so) !!!!!!
     
  7. Brandonf

    Brandonf ET Sponsor

    Funster,
     
  8. Brandonf

    Brandonf ET Sponsor

    Funster,
    If you do enough volume you may consider a seat on the exchange to reduce your rate. Otherwise, you could buy an exchange seat at one of the smaller exchanges (Minneapolis, Kansas City, Midam) and that will lower your rate as well I think. I think a seat in Minneapolis is about $25K
     
  9. Funster

    Funster

    How exactly are you getting the $2.88 RT rate? Is this with IB or another broker or are you going direct to globex?

    Thanks
     
  10. We currently pay $2.64 a round turn. To lower your rates you have to get away from the typical broker situation and move to a clearing firm that deals with professional traders. All rates are individually negotiated, based on volume, capital, trading style, risk, etc.. What you are missing in your $.66 number is a nonmember or customer fee.
     
    #10     Jan 27, 2002