Exchange membership

Discussion in 'Ag Futures' started by heech, Aug 27, 2009.

  1. heech


    Hi guys,

    Any insight on when exchange membership becomes worthwhile for lease...? I'm not concerned about the increased margin, thinking more about lower clearing fees.

    I'm trading about 700 RTs a month right now. I'd say probably 400 in the softs, 300 in the CME/CBOT ags. That's all in the underlying.

    On options, I'm doing about 200-300 contracts a month. But my broker is just quoting me a flat fee on options, so don't think I'd get lower clearing fees with membership.

    This is just all really early thinking-out-loud mode, coming from very much a novice. Any downsides from membership? I'd really appreciate insights from those more experience.
  2. if you were doing all 1000 (I'm assuming 700 futs + 300opts, correct me if I'm wrong) all on one exchange, then I'd say definitely look into it. However you are only doing half that at each (some at CME some @ ICE)...and I'm not so sure that you'd save enough to be worth the hassle. (taxes, membership fees, all the paperwork, etc)

    In fact, just doing the figures in my head...I'd say its not worth it.
  3. heech


    Hey there,

    I thought you'd be the first man to reply. :) Thanks as always!

    Yea, I looked quickly at the numbers... looks like I save around $1-$1.25 round-trip by doing membership. Volumes don't really justify it yet. I'll have to look again if/when I scale up another order of magnitude.
  4. TraDaToR



    Quite the same problem here: 2000 RTs per month on average but across CME, CBOT, ICE, NYMEX which does not make it worth taking a real membership...

    Even the elec corporate ( free ) membership is not worth cause I would pay more taxes in my country as a company and that would annihilate the savings made on exchange fees...

    Shitty situation.
  5. You could concentrate your trading in the E-Mini's to make that "worthwhile". :cool:
  6. TraDaToR


    LOL... Sorry for my english. I thought I edited it.

    I would not touch the e minis with a pole. You need to know how to trade to deal with this kind of competition and liquidity, like you have to guess the direction of the market or weird stuff like that...LOL... I am no fool.
  7. Pa-tay-toe, pa-tott-toe. :D
  8. Which one is:

    ::Even the elec corporate ( free ) membership

    ? I trade through busienss accounts (registered to my business), so.... I wonder which exchange offers free membership for businesses.
  9. TraDaToR


    CME ECM-W electronic membership if I'm right.

    You just have to pay a 2000 $ paperwork fee and make 25 RTs per day( not sure about the number )on CME products( not CBOT and NYMEX ).You will get better exchange fees but not as low as real memberships...:)
  10. Ah, that one. Hardly free (around 100 usd per month actually, or you pay around 20.000 one time). That i knew ;) Makes hopefully sense in some months.
    #10     Sep 1, 2009