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Lease or Buy a IDEM membership of CBOT to trade YM
I am about to scalp YM for around 200 sides daily. I am considering leasing or buying an IDEM membership to get discounted exchange rate.
IDEM membership is cheap. it is around $5000. Lease fee is about $60 per month.
Now, It looks like with leasing, you got $0.20 for exchange fee.
But, with IDEM (without equity, meaning without buying CME stock shares), you got $0.24 for exchange fee.
Am I correct? Can somebody who does own or lease IDEM help?
1) When you mention "owning a IDEM seat", do you mean paying the price of IDEM
($5000) + 985 shares of CME stocks($70k)?
- You can buy the IDEM seat without the stocks.
2)I would like to make sure that if I only pay for the IDEM seat ($5000), and execute the trade myself, my exchange fee and clearing fee will be $0.20 + $0.06. Is it right?
- No. if you buy the seat (trading rights only) and trade for your own account (executor is you) then the exchange fees would be
$0.05 and $0.06 clearing. The $0.20 exchange fee is when you lease a membership and trade for your own account.
Well, spend $5000, you will get $0.11 per side for exchange and clearing fee. vs $1.14 per side for non-member. If you are high volume YM trader, consider to buy or lease an IDEM seat.
Oh, there is an one time application fee $2000 if you want to purchase or lease a seat.
To apply for the lease or purchase of membership, I need to pay $2000 one time application fee.
Let say I pay $2000 application fee to purchase the IDEM membership in February, 2014. Then, In May, 2014, I want to lease a CME's IOM membership to trade NQ, do I need to pay $2000 again?
- You will need to submit another application for the CME's IOM membership, but as a member of the CBT, you will only pay a $1,000 application fee.
I think I pay the cme .11 cents aside for YM...I have an IDEM membership.
talk to your clearing firm....it is a no brainer....do the math.....if you lease the seat you always have the risk of the membership prices going up (not likely but always a chance). Instead of paying $5k for the seat today you could have to pay $20k in the future (you never know).
