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Trading futures with Tradovate "no commissions" broker?

  #4 (permalink)

Taipei Taiwan
 
Trading Experience: Advanced
Platform: NinjaTrader
Broker/Data: Optimus
Favorite Futures: TW
 
Posts: 693 since Jun 2009
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bobwest View Post
I have no experience with this, but it seems logical to me that if a broker is not charging for commission, they are making their money through the spread; that is, the fills you get would be worse, and the difference is their profit.

You are thinking of Forex brokers. Futures are executed at a central exchange, so they are not making money on the spread.

Looking at the web site, they are just cutting costs. They are an FCM so they do not pay another FCM and they only offer one platform ( and apparently one feed ) making their customer support costs lower.

They still charge a $0.09 "transaction fee" whatever that is, so the ES is $2.54 a round trip.

Math. A gateway drug to reality.
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