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I can have good days in the market when the market is in play.
I can do up to 80 contracts a day at $4.40rt
This amounts to about $350 which is a lot of money.
This could add up to half of my profits maybe more or less pending on how well Ive traded.
50% of profits on commsion is A LOT especially when you have to factor in the scratch days.
Im jus wondering if there is a way to limit this and what kind of % you pay in commission of your profits.
Leasing a seat is not yet something I have looked into as it sounds a bit big boy for me but Im happy to hear all suggestions.
Cheers
Can you help answer these questions from other members on NexusFi?
Then negotiate with your broker. If you show him that you are profitable and it affects your bottom line, he should be accommodating. Most reasonable brokers would. If he will not, call us. Would be glad to help.
There are many ways to reduce fees, you just have to be a bit creative with feed, platforms, or the bottom line price.
Matt
There is a risk of loss in futures trading.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
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You don't specify what you are trading.
I trade mostly NG & CL. On NYMEX the member day trade rate for these contracts are 55c/side while the non-member rates are $1.45/side.
NYMEX seat leases are currently running at about $750/month. At a saving of $0.90 a side you only need to be trading 833 sides or 417 round turns/month which is about 19 round turns a day for a lease to be cost effective. Seats are so cheap now people often under estimate what their volume needs to be in order to make a seat lease pay. NOTE: I'm a trader not an accountant, but I understand that leasing a seat could make you subject to SE Tax. Talk to your accountant.
I clear through Advantage Futures. Their online commission estimate calculator estimates that somebody trading 80 contracts/day 21 days/month gives an estimated clearing price of $0.48/side. Assuming member exchange fees that equates to $2.06/RT and for non-member fees $3.86/RT.
I'm not trying to be an Advantage advertiser, just trying to highlight that you have options. As @mattz said talk to your clearer they may match this, or talk to @mattz himself, he may match it as well. Or talk to Advantage, they may even beat that themselves.
On a different note there are many on this forum that will tell you that 50% in brokerage fees isn't sustainable. Personally I think that depends upon what your strategy is, and that they are some stratergies that can support that. Just saying.
I Agree with that you are saying, and those who have been trading profitably for a while have other consideration besides commissions such as support and technology. The calculator your pointed to does not show technology rates, and/or cost of platform that could be of substantial impact as well.
Matt
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
I think they are of significant size, but like I mentioned when you look at commissions, you need to look at cost of routing and platforms separately. you have to put the components together.
Consider also the cost of the platform vs your RTs which adds to cost.
(Cost of platform per month/number of RTs per month) + RT cost as quoted by broker = Total RT cost
Thanks,
Matt
There is a risk of loss in futures trading.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
I have a lot of respect for stage5 and think they run a very decent operation, so I don't want to make futures.io (formerly BMT) a "war turf" over commissions.
I prefer to discuss this over PMs or email me directly.
Thanks,
Matt
There is a risk of loss in futures trading.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
