Hi, I'm doing some research on a trading system for a fund/pooled account and they have the following commissions in the system - 10,000 lots - $3 commission round turn (for volume 0-1 yard) 20,000 lots - $4 commission round turn (for volume 1-2 yard) 30,000 lots - $5 commission round turn (for volume 2-3 yard) So for example, say the fund had 10m USD in it,the strategy would do an average volume per month of about 2-3 yards, so 30,000 lots, which has a $5 commission round turn. Im wondering if this is high low, standard etc for the industry?
Commissions going up the more volume you trade? I would expect commissions getting cheaper the more volume i trade.
Spot FX/CFD Indices/Precious Metals vs USD Should say i'm not trading this, this is a managers strategy
Sorry I wasn't clear, this is a rebate the strategy/fund manager is offering. so he is probably keeping a chunk himself? So the larger the investment, more you get rebated etc.
What on hell is a "yard", man? In this context I mean. Never seen that before in the finance world. Must be something of the royalists, right?
1,000 standard forex lots A "yard" is a financial slang term meaning one billion. It is used to avoid confusion with the words million or trillion when making a trade. The term is often used in currency trading. Someone who buys a yard of U.S. dollars is purchasing one billion dollars.Aug 21, 2019 Yard Definition - Investopedia
The product you are using has a role to play in it. I think you should have mentioned the product that you are using for better answers.