I am averaging 200 ES contracts a day for the last few months. I am paying $3.50 per contract. Is it time to renegotiate or is that a fair price? thanks
At that volume, you you should be leasing a CME seat, so you don't have to pay the CME's full retail fees (which have nothing to do with your broker's commission, as that $3.50 is a combination of CME fees and your broker's commission). Leasing a CME seat would save you over $4K per month (after the leasing fee). Your broker will have information on how to lease a CME seat.
When I looked into leasing, it seemed that if you lease, the IRS then considers you a professional trader, and you need to file taxes that way. Even though the seat would save me commissions, it wouldn't make the self-employment taxes worth it. Please correct me if I'm wrong here. It was a few months ago that I researched it, and got a little sidetracked before I could confirm all the stuff I found.
I avg over 300 ES per day and was considering the CME lease thing too, bit if Im going to get taxed by IRS bcuz of the CME seat status, then I dont think its worth it either...I have to look into it more... Anybody have a CME seat that could elaborate on this??
bravo susanah,,,,finally someone here on elite trader that understands the tax implications of fica taxes and leasing a seat
I am paying $3.50 per lot per trade. So if i buy 2 contracts and sell 2 contracts i pay a total of $14.00 (3.50*4) What should i pay?
1/2 as much! WHO is your broker, you are being ripped off, look at the rates @ IB for example on their website, not the lowest but average for a moderate volume trader. (I strongly doubt you are actually paying $7/RT my friend) http://www.interactivebrokers.com/en/accounts/fees/commission.php?ib_entity=llc Click "Futures".
I am definately paying $7 RT. Just looked at my first trades on Friday. I bought 5 Es and then Sold 5 Es. My com charge including all exchange fees etc was $17.50 on the buy and $17.50 on the sell. I am happy with my brokers execution but i definately will talk to them on monday re my coms.