How do Prop Firms Avoid Insane Data Fees?

Discussion in 'Prop Firms' started by newwer, Sep 2, 2020.

  1. newwer

    newwer

    I have a startup prop firm and I'm forced to pay $120/month in data fees (pro fees) for a single exchange and for every single trader.

    Here are my fees:

    CBOT: $120
    CME: $120
    COMEX: $120
    NYMEX: $120
    EUREX: $120
    ICE: $127

    Even data for 3/6 is almost $400 per trader.

    So how do the "tryout" firms like TopStep get away with not paying these fees? They must have negotiated a special deal with the exchanges because I've been told that every single sub account I have is automatically a professional account since I have an LLC account. Multiple brokers have confirmed this.

    The the crazy thing is its not even per person but per username. So if you have 3 accounts at 3 brokers you pay the fee 3x.
     
  2. Wow so crazy
     
  3. ha ha ha that is nothing. Prop autotraders have to pay nondisplay fees which are thousands per exchange.
     
    Math_Wiz likes this.
  4. patrickrooney

    patrickrooney Sponsor

  5. Per month or per year? I just Googled, non display seems to be $375 per CME sub exchange.
     
  6. maxinger

    maxinger

    to make it worse ...
    you have
    ICE US $127
    ICE Europe financial US$127
    ICE Commodities US$127
    ICE Singapore ?
     
  7. LexKnight

    LexKnight

    I could be wrong, but I believe when people are trying out for Topstep, E2T, etc., they are just trading Sim accounts, and assume no fees from the exchanges on these. Once funded, the individual traders do have to pay the month fee per exchange they want to trade on.

    https://help.topsteptrader.com/hc/e...494-What-are-the-costs-in-the-Funded-Account-

    I know some of the programs changes slightly less, basically subsidize (LeeLoo is $85 I believe they charge the trader for example, assume they pick up the rest). Topstep looks like its $105, etc.
     
  8. TopStep will charge you once you get a live account. OneUp trader is popular as they do not charge you data fees at all when funded. Tradeoff is the withdrawal threshold however...
     
  9. newwer

    newwer


    I have to pay for data on demo accounts. CME only gives 2 week free trail and TST is offering monthly renewing demo accounts.

    These firms have found some kind of a loophole to avoid paying huge data fees considering they offer almost every product to trade.

    I can understand a subsidy if they are offering only 1 exchange but they are offering many exchanges to trade. I doubt they are willing to subsidize hundreds of dollars in data fees per trader per month considering huge attrition rate of traders.
     
    #10     Sep 3, 2020