Choosing an FCM for Managed Futures

[Th4Sh4rk]

Hi everyone,

I've been trading using Tradestation for my personal account for the last 5 years.

I recently set up a CTA for trading client funds through managed futures.

I've been told by a few knowledgeable people to use RJ O'Brein as an FCM, as they are set up to handle managed futures accounts, whereas, "discount brokers" like Ironbeam, IBKR, and Tradestation don't have the same capabilities to properly handle managed futures accounts.

I have two trading programs, one is discretionary, the other is systematic. And the systematic is written in EasyLanguage (which should be easy to translate to a different programming language if necessary)

I'll only be launching with $1-2m in AUM, with the expectation to continue to grow over the coming years and decades.



Has anyone here worked with Tradestation for managed futures?

If you handle managed futures accounts, who do you use as an FCM?

What do you like/dislike about who you use as an FCM?

What recommendations can you give me as a new CTA startup?

 

[Robert Morse]

Th4Sh4rk-I suggest you choose an FCM with a trade desk that has Give Up relationships with a number of FCMs. Ask them what rate they will charge for the give up trades and what rate they will charge when the account custodies at their FCM. It will depend on monthly volumes. Online brokers do not typically offer this service. The FCMs that come to mind besides RJO that you spoke to are Wedbush Futures and StoneX. In addition, ask them if they provide cap into services. I would be interested to see your Presentation and Tear sheet if you want to email it to me directly.