Becoming an Exchange Member (Leasing Seat) - Emini and Emicro Index Futures Trading | futures io social day trading
futures io futures trading


Becoming an Exchange Member (Leasing Seat)
Updated: Views / Replies:10,996 / 36
Created: by Tundi Attachments:2

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 2  
 
Thread Tools Search this Thread
 

Becoming an Exchange Member (Leasing Seat)

  #1 (permalink)
Fullerton, CA
 
 
Posts: 201 since Dec 2010
Thanks: 33 given, 98 received

Becoming an Exchange Member (Leasing Seat)

Big Mike requested I start a thread on Exchange Memberships, so here it is.

I am seriously thinking about making this investment in my trading business because I believe it will significantly improve my profitability.

Becoming an Exchange Member entitles you to a huge savings IF you are a Successful Hi-Volume Trader. For example, non-member clear and exchange fees on E-mini indexes are $2.28 RT. The fee drops to $.92 for exchange members, a 40% savings. Savings can be higher or lower depending on which instruments are traded.

Exchange Memberships are available for all of the major Exchanges thru either the purchasing or leasing of an Exchange Seat. Most Members prefer to lease an Exchange Seat because they usually average approximately $1,000 / Month per Seat. Also, there are no Volume Quota Restrictions placed on you by either the Exchange or the Clearing Firm, so you can trade comfortably at your own pace. But your final decision should basically hinge on whether it is cost-effective for you or not? If your personal trading performance can exceed the cost of the Seat, then it would be practical. But if your personal trading performance cannot exceed the cost of the Seat, then it would just be an added expense that you don't need. Also, the Exchange requires a Non-Refundable $2,000 application fee which takes up to a month to approve. But they will allow you to lease a Seat immediately while you go thru the application process so you can start receiving your savings immediately.

You can learn more about Exchange Memberships at : http://www.cmegroup.com/company/membership/

And you can contact the Exchange Membership Dept. directly at : 312-435-3480

Reply With Quote
The following 4 users say Thank You to Tundi for this post:
 
  #2 (permalink)
 
 
Posts: 1,081 since May 2010

I know a big volume trader and he does NOT have a seat. He showed me the commissions he pays. He pays lower than half of what I pay.

It's even lower than the listed 'seat' prices. When I asked him why he doesn't have a seat he asked me promptly: Have you looked at my price level ? Why do I need to pay for a seat ?

Moral of the story: You don't need a seat to have even lower commissions.

Reply With Quote
 
  #3 (permalink)
New Brunswick, NJ
 
Trading Experience: Intermediate
Platform: N/A
Favorite Futures: N/A
 
Posts: 133 since Jun 2009
Thanks: 46 given, 154 received



MetalTrade View Post
I know a big volume trader and he does NOT have a seat. He showed me the commissions he pays. He pays lower than half of what I pay.

It's even lower than the listed 'seat' prices. When I asked him why he doesn't have a seat he asked me promptly: Have you looked at my price level ? Why do I need to pay for a seat ?

Moral of the story: You don't need a seat to have even lower commissions.

Any high volume trader will get lower commissions than published commissions for small time traders. But if he had a seat, his commissions would have been even lower; even for a high volume trader. So, yes... you do need a seat for even lower comissions than without.

Reply With Quote
 
  #4 (permalink)
 
 
Posts: 1,081 since May 2010


thatguy View Post
Any high volume trader will get lower commissions than published commissions for small time traders. But if he had a seat, his commissions would have been even lower; even for a high volume trader. So, yes... you do need a seat for even lower comissions than without.

Do you have a seat ? Do you trade +20.000 contracts a month ? He does, and he knows that he cannot lower his prices by having a seat.

Reply With Quote
 
  #5 (permalink)
New Brunswick, NJ
 
Trading Experience: Intermediate
Platform: N/A
Favorite Futures: N/A
 
Posts: 133 since Jun 2009
Thanks: 46 given, 154 received


MetalTrade View Post
Do you have a seat ? Do you trade +20.000 contracts a month ? He does, and he knows that he cannot lower his prices by having a seat.

I don't need to trade 20000 contracts a month or a friend to know that having a seat will always beat not having a seat if you are a high volume trader. Your exchange fees are fixed. When you have a seat, they are lower. The rest of your commissions are brokerage fees. No matter how much discount you get from your broker, you will always pay the fixed fees.

I would be very interested to hear how your friend are able to pay lower exchange fees without having a seat?

Reply With Quote
 
  #6 (permalink)
Szczecin
 
Trading Experience: Intermediate
Platform: Ninja, writing own now
 
Posts: 212 since Mar 2010


thatguy View Post
I don't need to trade 20000 contracts a month or a friend to know that having a seat will always beat not having a seat if you are a high volume trader. Your exchange fees are fixed. When you have a seat, they are lower. The rest of your commissions are brokerage fees. No matter how much discount you get from your broker, you will always pay the fixed fees.

I would be very interested to hear how your friend are able to pay lower exchange fees without having a seat?

I would check the statements again. He probably pays "comission" that is lower - but does NOT include the exchange fees. If the broker lits up all items separately, then he may think he pays lower, but there is the second item with the exchange fees.

Reply With Quote
 
  #7 (permalink)
New Brunswick, NJ
 
Trading Experience: Intermediate
Platform: N/A
Favorite Futures: N/A
 
Posts: 133 since Jun 2009
Thanks: 46 given, 154 received


NetTecture View Post
I would check the statements again. He probably pays "comission" that is lower - but does NOT include the exchange fees. If the broker lits up all items separately, then he may think he pays lower, but there is the second item with the exchange fees.

Yes, exactly. Commissions are different than exchange fees. Regardless of how contracts you trade, you cannot get lower costs than with a seat. I don't know of a way how you can pay less than the stated fees and would still be very interested in how MetalTrade's friend does that.

Reply With Quote
 
  #8 (permalink)
 
 
Posts: 1,081 since May 2010

It seems that with higher volume even without a seat you can get lower exchange fees.

That's the whole issue, people think they need a seat but in reality they don't.

Reply With Quote
 
  #9 (permalink)
Site Administrator
Manta, Ecuador
 
Trading Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 47,646 since Jun 2009
Thanks: 30,377 given, 89,973 received

Just looking at Velocity's site, for NYMEX (an important difference), you can see that the lowest quoted commission for non-member is still higher than the highest quoted commission for member.

Crude Oil (Full Size) (CL) Commissions | Velocity Futures

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member (see why)

Attached Thumbnails
Becoming an Exchange Member (Leasing Seat)-12-28-2010-6-04-56-am.png  
Follow me on Twitter Visit my Facebook Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to Big Mike for this post:
 
  #10 (permalink)
Market Wizard
Berlin, Europe
 
Trading Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,794 since Mar 2010
Thanks: 4,235 given, 26,377 received


This is just about fixed and variable costs

If exchange member -> higher fixed cost, lower variable cost

If no exchange member -> higher variable cost, lower fixed cost


At the moment I am happy with my ultra-low fixed cost approach, as it gives me some flexibility.

Or you may put it otherwise: I do not think that my trading volume is big enough to make up for the additional fixed cost.

Reply With Quote
The following 2 users say Thank You to Fat Tails for this post:

Reply



futures io > > > > Becoming an Exchange Member (Leasing Seat)

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

futures io is celebrating 10-years w/ over $18,000 in prizes!

Right now
 

$250 Amazon Gift Cards with our "Thanks Contest" challenge!

Right now
 

Show us your trading desks and win $1,400 in prizes w/Earn2Trade

November
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Will leasing fast server in Chicago give me better fills? MadManmos Commodities Futures Trading 20 September 6th, 2016 12:22 PM
Bernanke Back in the Hot Seat as QE Expectations Cool Quick Summary News and Current Events 0 February 29th, 2012 11:40 PM
As Florida Votes, Romney Seems in Driver's Seat Quick Summary News and Current Events 0 January 31st, 2012 05:20 AM
Bank of America CEO Will Be on the Hot Seat With Investors Quick Summary News and Current Events 0 December 2nd, 2011 07:40 PM
not trading off the seat of my pants Tiberius Stocks and ETFs Trading 128 July 15th, 2011 06:30 AM


All times are GMT -4. The time now is 06:37 PM. (this page content is cached, log in for real-time version)

Copyright © 2019 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts