You can interpret "c" how you want. I believe that if you are not receiving a W2 or 1099 or K1, you are an investor and not running a trading business. I'm happy to discuss tomorrow over the phone if you PM me you contact info. This is my interpretation. 1245
I think its the same as the tax treatment. Very active day traders who's primary source of income for the taxation year is through trading profits, can be labelled a trader. So maybe CME is using the same criterion. Although I think this is abused. I think anyone short of an incorporated entity engaging in proprietary trading of the firm's capital, should not be considered professional traders. Anyway, all of this difference in fees is just a cash grab anyway. They figure if you are doing this as a living, you're probably pretty good, and they prefer to take more money from you. Its price discrimination. Its like how they charge seniors less money for bus compared to adults, yet everyone is using the same service. Some doctors do this too in countries with private health care. If your annual salary is high, they charge a higher price than other patients who's income is lower.
It's not my interpretation, the FCM and/or echange is doing it. You can explain to me as much as you want what you "believe" the proper interpretation should be (and trust me, I know where you are going), but in the end, it is the FCM that is charging me this and another backs them up. As mentioned, the purpose was to let others know what not to put on that line in the application. Take it for what it is.
Your a professional if you put your profession as a 'trader' in the application. A trader by definition is someone who trades other people's money or works for a company that trades or invest for other people. Even bank employees who don't trade are deemed as 'professionals' Professionals are the main source of revenue for the exchange. like 99% of the their revenues. in prop firms traders pay like $300/month in software and data fees. Anyways if you are profitable than your a professoinal and the fees is cost of doing business. but like most 90% of traders or retail traders lose money so it's tin the interest of the exchange to recruit new accounts.
less than 5% of the stock and future exchange volume is from retail. from what I heard. retail volume is just sideline business for the exchange.
majority of the volume or profit is from hedge funds and High frequency traders or 'professionals' like prop desk et or brokers trading for client accounts. those are professionals.
Also if yo u don't have at least 1 year of profitable trading record or at least 3 years don't call yourself a daytrader or trader. It seems anyone can call themself a trader yet lose money. hahaaha it's like mechanic who can't do valves. you not a mechanic if you can't do valves or if yo u lose money your not a professional or trader.
I hear so many people call themselves daytrader or trader or investor.. well they lost money so they are not traders or investors.