Lowering commissions: Traits to look for in a broker/platform for Hi Freq trading | Traders Hideout


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Lowering commissions: Traits to look for in a broker/platform for Hi Freq trading

  #4 (permalink)

Taipei, Taiwan
 
Trading Experience: Intermediate
Platform: Custom
Broker/Data: IB/IQFeed
Favorite Futures: HG
 
Posts: 30 since Jul 2014
Thanks: 21 given, 23 received

When you say high frequency, you probably just mean thousands of contracts transacted per month (like in a market making strategy) rather a special class of low latency strategy that we known as HFT. You have to explain why speed matter in your case because speed cost a lot. But I am still going to answer your question, given what I know.

1. Many firms offer tiered commission. IB, Advantage, AMP and many others. You should ask around. There is even a firm that just charges a fixed monthly fee rather than by volume. You should probably look into that too.
2. I would imagine the best platform would be developed by yourself via API with IB, Rithmic mentioned already. Only you know what functions your strategy needs and what order management features you want.
3. Renting a seat at the exchange can lower your commission a lot. You can even buy a seat if you trades a lot every month.

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