For the ES: with IOM ($195,000) -> $0.69 per turn + up to $50 per day for Globex fees. For ER2: with GEM ($27,000) -> the rate is the same For both with ECM ($1000 app fee) -> $1.38 per turn all in. The CBOT products are a bit different. Is this what you are asking? The best way to do this is to see how much you trade (turns per month) and then compute the fees across different products. For many people, for example, who trade the ER2, they will quickly find that BUYING a membership is actually cheaper when amortized over 2 years or whatever. This is even more true for the YM on the CBOT.
Does anyone know about leasing just the GEM seat. I saw on the CME site that the lease is only $200 per month for this and you can trade the ER2. Since I trade only the ER2 this would be a great starting point for me since my monthly volume is borderline. I talked to Velocity Futures but they did not seem to know much about it. They were telling me I had to get the IOM seat for $900 per month , but I think X-trader is included in that. If I could lease the GEM seat and get the reduced commitions this would be ideal. Thanks for any info.
Milly- If you're an independent trader, and you only trade the ER2, then you should definitely lease yourself a GEM and find yourself another professional trading firm- (ie: Advantage Futures) Velocity doesn't know much about this because there's no money in it for them. Check out the very helpful spreadsheet at the beginning of this forum; from there, it's a simple matter of plugging in your average monthly volume to see if you would be saving any money with a GEM. Best of luck
Thanks Covert Yes my monthly volume is more than suficient, I just need to find a broker to clear through. Yes your probabbly right about Velocity. Can you recomend a broker to clear through. Advantage??, anyone else.
Covert is right you should look at Advantage Futures to clear your trades if you are going to lease a membership. If you call them they will be happy to answer any of your questions. They will walk you thru the leasing process and drop off the paperwork and checks to the CME. You do not want to deal with the CME directly. Let the clearing firm do that for you. http://www.advantagefutures.com/ You should also look at buying a GEM seat. I own my GEM seat. At the moment the offer is 27,500. Members pay .095 clearing fee. Leasees pay .21. Do the math and see if owning would be helpful.
Yes I am already considering purchasing the GEM seat, But my plan right now is to start by leasing the seat for a few months and then go from there. Thanks, I will check out Advantage this week.