clearing and exchange fees

Discussion in 'Trading' started by mjbmedia, Dec 16, 2010.

  1. mjbmedia


    do all brokers have to pay these and if so do some of them not pass the charges on.
    Some openly say about it, some dont, some swear that all you have to pay is the commission (which can be a lot less than others charge for the exchange fee alone)
    Any advice, definite answers be appreciated.
  2. All brokers have to pay clearing and exchange fees for exchange based trades and they are passed on to the customer.

    If you have a bundled stock rate the fees are all built in. With an unbundled stock rate you can get ECN rebates.

    With futures it is commissions plus clearing and exchange fees.

    What brokers claim to have total commissions that are less then the exchange fees?
  3. mjbmedia


    hi thanks,
    two examples -
    Infinity have $5.50 per round turn and say it includes exchange and clearing,
    Expo futures charge exchange fees of around $6.40 and clearing of $7 plus their commissions $12 per round turn
  4. All retail futures clients must pay the clearing/exchange/NFA fees (total $2.30/rt for the ES, and going up to 2.32 on Jan 1.), whether your broker quotes you a rate including them or not.

    The only way to lower them would be to buy or lease a membership from the exchange, which is a great deal if you are a volume trader.

  5. mjbmedia


    Hi Craig thanks
    so if Infinity are adamant (I have verbally checked twice and email twice) that ALL Id pay is the $5.50 rt and that includes all fees then that is feasible
  6. LeeD


    For comparison, IB charges 3.98 round trip on ES. Prop firms often get (substantially) lower exchange fee as an exchaneg member. If brokers passed on lower "member" fees to the customers they would be breaking rules. "Member" fees apply only to transactions executed by exchange members on their own account.

    Regarding shares, the way to bypass exchange fess is when the order is executed by the brokers platform against other customer. This way the order never reaches the exchange. The downside is the trader may loose rebate for adding liquidity.
  7. mjbmedia


    this is for futures only if that helps
    You know you read of people on here who sign up for a low commission and THEN discover theres hidden fees, these guys are adamant thats not happening here Im just trying to see if its feasible or BS. As this is one area I dont get .
  8. Expo futures is just ripping you off as exchange and clearing fees are nowhere near those outragous numbers.

    Here is a list of CME Globex exchange fees

    The highest CME Globex retail exchange fee is $2.30 a side.

    Here is a list of CBOT eCBOT exchange fees

    The highest CBOT eCBOT retail exchange fee is $1.81 a side.

    For emini equity futures IB charges $4.00 RT for the first 1000 sides. A side costs $2.00 = $0.85 commission, plus $1.14 exchange fee plus $0.01 NFA fee.