I am going to get on the ball with some industry contacts and see what can be done to publicize the huge fees the NFA is charging on all of the micro contracts. the NFA should not be collecting 4 cents a round turn and even 2 cents a round turn is high over the course of year. With all of my accounts I would guess I will pay the NFA over 1000 dollars by the end of 2020! thats almost 80 dollars a month! would you stand for a 2 cent fee on every text you sent and a 2 cent fee for every text received! if not then why accept these high fees . i will figure out the best way to go about this and post a petition here and maybe together we can get something accomplished. 1 cent a side is almost tolerable but 4 cents round turn almost a nickel every time. with a 5 lot you are paying 20 cents!!! if you do 10 ...5 lot micros in a day that is 50 lots x .04 = $ 2.00 every day. Thats 40 dollars a month! thats your quotes!! or a decent dinner or a tank of gas. I would propose a half cent a side and a max of 1 cent. what next 10 cents in the minis!! Just wait they will figure out a way to tax us all and MEMBERS do not pay the NFA fees? why? this is like saying certain members dont have to pay a tax. the regulatory fee needs to be applied equally to all market participants members or not. it is utter nomsense that members dont pay tje 4 cents a turn!! that will be the new petition reduction of fees for micro and that ALL members pay the full NFA fee. have you thought about that..all the props all the hft all the big houses that print money by taking your money and do 70% of the volume do not pay a 4 cent round turn fee!!! we can get this changed and that will stop some of them from spoofing so much. it might save some of your stops from being aggressively gunned for if the win loss is not as great. this will help level the playing field and my gut says we can get this done!! whos with me!!
There was a time before "unlimited" phone plans. There was a time when you had to pay a per-minute fee to use the telephone. The longer the distance, the more you paid. Then there was the time where when you checked your voicemail on the cellphone, it took minutes away from your plan. And the minutes started counting when the automated voice came on and said, "to check your voicemail, press 1. To change your outgoing message, press 2", etc. And yes, there was a time where you were charged for each and every text message you sent and received. That's why you still see cellular plans today reference "unlimited talk and text." So yeah, the NFA fee is not outrageous for futures. I mean, hell, remember all those years ago when brokers used to charge commissions for trading stocks? How dare they ever did that! Greta mode ENGAGE!
lol. as i wrote this up i thought to myself who will be the first person to say fees are good..it took 2 seconds..oh yeah..over night. i knew it would be you. hilariously your examples show a per unit tax like a fee per text. then the normal progression would be a reduction to a flat rate. just like stocks are now free to trade and the slippage is the same! you just save tons of money now buying amd selling stock! Futures have extremely high exchanhe fees and other regualtory fees and also high commission amd data costs! Anyone who is not for a reduction in fees obviously is not taking trading seriously or treating it like a business. I DID 56 ROUND TURNS TODAY. I PAID $ 2.24 to the NFA that is ridiculous!! sure i can trade less but thats like saying well freeze to death by using less heat so you can save on tax. 2.24x 20= $ 44 dollars a month to the NFA from just me how many mes points is this? 44/5. yup 9 full risk on MES Points to cover the nfa fee per month! if i reade every day that means i must overcome 2 ticks a day for 20 days in order to break even on my NFA fees!!!
https://www.cmegroup.com/content/dam/cmegroup/notices/ser/2020/12/SER-8691.pdf also MES fees and micro gold fees are all going up in 2021 and these are exchagne fees!! you are talking a nickel a side higher or 10 cents higher a round turn!! why is this happening because the greedy execution platforms are charging 10 to 20 cents a side so why shouldnt the CME charge more which is also bullshit. an exchange that gains mroe volume as technology gets cheaper is deflationary!! fees should keep going lower with more volume just like in stocks !! so yeah just keep tacking on the fees on top of fees and before too long you will not beable to trade much at all. It is cehaper with zero commission to trade 50 spy shares than it is to trade a micro es! micro es= 1.25+1.25+ .50 +.50 = $ 3.50 a round turn with slippage and 1 dollar roound turn fees to trade a MICRO ES! 50 spy shares with 1 cent slippage in and 1 cent slippage out is $ 1.00 to trade!!! in slippge only so you could have almost 2 cents of slippage in spy= 4 cents x50 = 2 dollars still cheaper than CME e micro 3 cents slippage in spy (rare) = 6 cents x 50 shares= 3 bucks still cheaper than the CME EMICRO hopefully there will be a class action lawsuit against the cme for ridiculously high prices on everything or just trade the SPY. this is different of course for he e mini it is still cheaper. this is yeat another reason we need an nfa fee reduction!!
These fees are taxes and punishment for the people who are stupid enough to trade micros. Trade minis, problem solved
I also trade the micro's but i must say this 4 cents per trade don't really hurt me, of course on the long run in a year it would be nice to save some. But then again, i don't to 56 round turns per day, with 56 round trips i assume your profit is also solid? How much is the $2.24 you had in commissions % wise compared to your PnL? If you made +$200, what i would expect (at least) with 56 contracts, it's only 1% or less. Would it be nice to save some money, sure, but let's be real, it isn't going to change because we ask for it. So better save the energy/time and make some extra money trading .
If you are doing a lot of volume, you can reduce your clearing fee by leasing a seat on the CME. When you lease or own membership, you are also exempt from the NFA regulatory fee.
true but as a BROKER YOU should be paying for the NFA not me! they are regualting the broekrs more than anything and retail are not brokers. the NFA is littered with fines against broekrs who lie about profits or take sdiscretion illegally or have FX PONZI schemes. the CFTC covers the market and they do a shitty job at that. The mentality of people still astounds me and makes me realize very few on here are actually trading because 2 cents is huge and fees at the cme are enormous. I am about to start trading SPY instead of MICRO due to the fee increase coming next year. once again the CME is going to ruin something good for the HFT
it is thinking like this that actually allows the CME to keep raising fees every 6 months which is unheard of and how the hell can you back test or work with data if the fees are always chaging! You really beleive that a fee increase wont come to the MINIs.. hilarious!
I understand you feel that way but it is consistent with equity and option trades that incur the SEC Section 31 and TAF fee which support the SEC and FINRA budget.