I don't dispute this at all. I'm just saying if there was real competition for the CME, exchange fees would be more reasonable for retail traders....or at least more flexible based on volume.
CME Group - fees outrageous
- Thread starter syswizard
- Start date
I dunno.....guessing they are at $0.50 commission, $0.50 exchange fees, $0.10 reg fees. So $2.20 R/T.
Can some pro's speak up on this ? I think HFT firms are at least half of this....maybe much less.
MattZ
Sponsor
Why not a membership lease? I would be more than happy to help you if you are my customer.
Why not then lease a seat on the exchange unless you don't want the burden of paying a monthly lease ?
wrbtrader
Check the seat prices they are in a year long bear market. You can lease an IOM memebership for $250 a month.
https://www.cmegroup.com/company/membership/membership-and-lease-pricing.html
Yeah...I know but I was asking syswizard about why he does not lease a seat on the exchange ?
Maybe the issue is that the size he's currently doing...he has not been doing it that long or he plans on soon dramatically reducing his number of contracts per day or maybe he plans to soon begin investing / less trading.
Maybe if he leases a seat on the exchange...he'll get reclassified as a professional trader and that classification would carry over to other brokers that he may be using ?
wrbtrader
Last edited:
I didn't realize the cost was so low. What will that bring the exchange fees down to I wonder ?
Wait ! The monthly fee is actually $2600/mo for a 1 year lease. Sale is around $250,000.
I downloaded the fee schedule in Excel format:
It says: Rule 106 .D Lessees pay $1.03 for Globex equity futures.
However, it says Non-members Globex -Outrights pay $2.40.
How can that be ? I'm paying less than that right now and I'm not a member !!
Last edited:
MattZ
Sponsor
I believe you should look under Reported Lease Information - Lease Renewals where the fees are about $275 per month. There is a one-time application fee of around $2,500.
An IOM seat will indeed allow you to receive Member rates on equity index products. The latest lease rates run from $150 to $300 per month.
But first, as Matt Z mentioned - you must become a Member before you can lease a seat.
The NFA will do an extensive background check on you, and by statute the FBI does a background check. You’ll have to submit fingerprints to the FBI on their form FD-258. The application process is about $2500 and is not a trivial matter. Whatever you do - under no circumstances should you lie or fail to mention something on the application. If you were arrested when you were 17 for a misdemeanor marijuana violation and the charges were dismissed - say so when asked if you were ever arrested.
Every prop firm or independent trader that turns over serious volume on a particular exchange buys or leases a Membership. But there are plenty of CTA’s, Funds, and Specs who don’t bother with a membership because they are trading for points and not tics.