Mini Dow commisions

Discussion in 'Order Execution' started by roncer, Apr 17, 2004.

  1. #11     Apr 20, 2004
  2. #12     Apr 20, 2004
  3. #13     Apr 20, 2004
  4. Transact Futures

    Transact Futures Transact Futures

    Roncer,
    I saw your post. If you are trading 40-50 contracts a day. I took the lower side of 40 and figured you are doing 800 contracts a month.
    You charge from us would be 1.37 a side or 2.74 a RT. This breaks down to .55 a lot commission+ .75 exchange fee+.02 NFA fee+.05 CME Clearing fee. You have covered the minimum 727 lots for no platform fee. If my calculations are correct it should be about a $1000 savings.

    Call if you would like a demo or to correct me on any calculations.
     
    #14     Apr 20, 2004
  5. nitro

    nitro

    OK,

    I uderstand the .55 per side, and the .02 NFA, but why are you adding .75 per side on the "exchange" ?

    And then adding .05 pe side for the CME? Isn't he talking about the YM?

    nitro :confused:
     
    #15     Apr 20, 2004
  6. Transact Futures

    Transact Futures Transact Futures

    I believe the .75 is the CBOT exchange fee is it less? .05 is what the CME charges for clearing. We charge .55 per lot plus exchange fees.
     
    #16     Apr 20, 2004
  7. It´s the exchange (not the broker) who takes your money.

    CME charges outrageous fees for E-Minis - and here comes the trick:

    No volume discount for their exchange fees ! :p

    2000 contracts per month is 2000 * $1.14 in exchange fees.
     
    #17     Apr 20, 2004
  8. KeyWest

    KeyWest Velocity Futures

  9. nitro

    nitro

    Ah ok, I see where you are getting your numbers now:

    http://www.cbot.com/cbot/pub/page/0,3181,1042,00.html

    But if you lease an IDEM seat, as per the table above, it is .10 per side per contract for the first 25K on e-cbot for the YM. Still, I only see .90 per side (first 100k,) not .75 per side for non-members on that web page for e-cbot, so I am not sure where you are getting .75 from?

    So if you lease a seat, your comm should come to:

    .55 + .10 + .05 per side = .70 per side = $1.40 per roundturn. Also, I assume you have some sliding scale for volume.

    AFAIK, an FCM should be able to give better rates than .55 per side to a "high volume" trader. A .55 per side sounds like Introducing Broker rate, or an FCM like Interactive Brokers that for whatever reason refuses to compete with Chicago based brokers.

    Also, be careful with these rates. If you are executing thru an API like Pats or TT, they tach on a per transaction in the case of Pats or a minimum in the case of TT on to the commission as well that is not refundable. That adds anywhere from .10 per side for extreme volume, to like .50 per side ( I am not sure what the actual amount is here) for normal volume. So when comparing these rates to InteractiveBrokers, you have to compare the whole cost because InterativeBrokers has a free API.

    Everyone wants to get into your pocket when you execute a trade.

    nitro
     
    #19     Apr 20, 2004
  10. roncer

    roncer

    Thanks for the feed back. It sure is hard to get a simple commission rate price. Some brokerages almost seem to be hiding the fact that they charge fees. Also it seems rather typical to have to do the math then make the phone call to find a nice add on for software or something.

    Thanks to Velocity for at having their fees openly displayed.

    Restated, I trade the YM with an average of about 40-50 trades per day. I am currently with IB but looking for better commission rates.

    Thanks,

    Ron
     
    #20     Apr 20, 2004