eFloorTrade vs. IB?

I got more information about the eLocal commissions and the deletion of their $500/month charge. I started a new thread so I wouldn't take this one too far off topic.....

http://www.elitetrader.com/vb/showthread.php?s=&threadid=2910

 

DaveN,

Thanks for taking the time to post in detail about eLocal. Sounds like a pretty responsive outfit.

Happy Trading!

 

Anyone know of patsystems brokers that charge $7.00 rt or lessfor eminis?

 

larrybf: Good question. So far, looks like you need to do pretty high volume to get better rates.

Looks like range of $6-8/RT is current low, and that a $1-2 difference in rates would be overwhelmed by other factors such as timely quotes and faster executions, since, for example, picking up a single $10 NQ tick or two will pay for a $1-2 rate difference if making 10-20 RTs/day. Anyway, the fixed cost (spread and commissions) of trading 1 NQ contract at these rates is already about half that of trading the equivalent 800 shares of QQQ (even at IB's low rates), which is a big improvement.

If, however, someone out there knows of a better deal as of 11/16/2001, please speak up!

 

Why does everyone appear so obsessed with intraday scalping of e-minis? It is probably the hardest way of all to trade. Of all the futures guys I know who make good money, I can think of none who daytrade.

I hold my trades over a few days. Sure I am happy with my 3 bucks a side commission, but if I was paying 10 or 15 it would not make that much difference to the bottom line.

 

you guys need to negotiate your commission..if u open account with 5k - what u expect ?

i have seen post stating that with 20k you can get 5.95/RT (eLocal )and then someone was asking a question where you can get $7/RT.??? ...my question is what you have to offer? what's wrong with 5.95?

The truth is that that when you open account with less that 20k and want to trade Eminis with no previous experience - you are kidding yourself - brokerage houses know but you do not know that yet; and that's why firms want to get from you the highest commission possible to compansate for the risk u represent. They expect you are not going to last long enough so they may as well get your money faster..

PKJR

PS. I am paying less that IB rates and using PatSystems...

 

zentrader: “…scalping of e-minis? It is probably the hardest way of all to trade.”

Agree completely. It’s just not practical for a screen trader, IMHO.

“…if I was paying 10 or 15 it would not make that much difference to the bottom line.”

I’ve traded intraday for a quite a while and I can say that the lower commissions today have been an enormous boost to my bottom line. Even $15 is a far cry from what it use to be.

I’m always happy to reduce my overhead, particularly in today’s market where I find that my trade frequency has been increasing. In addition, today’s lower RT rates have allowed me the flexibility to trade short-term setups that I could not have justified trading in the past.

 

PS. I am paying less that IB rates and using PatSystems... [/B][/QUOTE]

What broker? What kind of monthly volume? thanks

 

Scalping, meaning less than 4 ticks I would agree with you 100%. If you're going to try and scalp, get enough capital to scalp the full SP. The min tick size on eminis will kill you.

But if you're looking for short-term, say 2-4 pts (i.e. 8-16 ticks), there are a lot of players doing well with these short-term plays. Some mornings I wake up, catch a couple 10-12 tick moves on my first few plays, then go right back to sleep content with making enough for one day.

 

This thread would go nicely in the futures section. Not enough action there.