Leasing a membership will save me a lot of money on exchange fees, but I'm concerned about the application process. It's $2k just to apply, which is fine if I'm guaranteed to get approved, but the application is intimidating. The questionnaire makes it sound like it's a pretty exclusive club. I don't want to blow $2k on an app just for them to turn me down. Does anyone know the acceptance rate for their membership? Ever heard of anyone getting denied, and for what reason?
CME Membership
- Thread starter traderzhang
- Start date
Better to lease one first. Try before you buy. Lease is about 2K for 6 months. Besides the spread on a purchase is about 80k right now!
I don't intend to ever buy. It's my understanding leasing still requires the $2k application fee? Do they ever reject people from leasing?
Actually, if the $450k membership is a one-time fee and not an annual fee, then it might make sense to eventually buy, but either way, I'm just suspicious about the application process. There's nothing to stop them from just taking everyone's $2k application fee and deny membership (lease or sale). Or am I being too cynical?
Yeah, you still need to pay for the application fee even if you're leasing. But unless you're flagged for some criminal history, you should be good to go. You also need to show them you have ample supply of funds.
(From some AI chatbot)
Leasing a CME seat, essentially renting access to trade on the Chicago Mercantile Exchange, involves several background requirements to ensure financial stability, suitability, and ethical conduct. Here's a breakdown:
Financial Requirements:
- Minimum Net Capital: You'll need a demonstrably sufficient net capital to handle potential losses incurred while trading. While the specific amount varies depending on the product you plan to trade, it typically starts around $250,000.
- Financial Statements: Be prepared to submit detailed financial statements, including bank statements, tax returns, and proof of income sources, to verify your financial standing.
- Creditworthiness: Good credit history is crucial, as the exchange assesses your ability to manage debt and financial obligations.
- Experience: Prior trading experience, especially in relevant markets, is highly valued. This demonstrates your understanding of the risks and complexities involved.
- Education: Relevant academic qualifications, such as a degree in finance or economics, can strengthen your application. However, experience often outweighs formal education.
- References: Providing personal and professional references who can vouch for your character and suitability for trading is recommended.
- Licensing: Depending on the products you plan to trade, you may need specific licenses, such as Series 3 or Series 7, issued by the Financial Industry Regulatory Authority (FINRA).
- Background Checks: Expect thorough background checks verifying your identity, criminal history, and any past regulatory violations.
- Lease Fee: Leasing a CME seat typically involves an upfront fee followed by monthly payments. Costs vary depending on the seat's product category and market demand.
- Sponsorship: For new entrants, finding a sponsoring member who can vouch for your suitability and guide you through the process is essential.
- Training: Be prepared to complete mandatory training provided by the CME Group to ensure you understand trading rules, ethics, and risk management practices.
It's always recommended to directly contact the CME Group or consult with a financial professional experienced in the commodities market to get the most up-to-date and detailed information about leasing a CME seat and its specific requirements.
No criminal history, good credit, but the rest of it sounds really intimidating! I have no sponsors, no formal financial educational background, and very short time in the futures market
What's the difference between those 3 memberships? I'd like to get the best discounts possible for trading ES.
LOL It really isn't that intimidating. Like I wrote at the outset, if you've never wore a orange jumpsuit and have enough money in the bank, there shouldn't be much to worry about. Who's your broker? Most futures brokers will assist you in the process, so talk to your broker.
For ES, you'll need IOM.
Here's a breakdown:
CannonTrading_Ilan
Sponsor
Your broker should be able to guide and assist you along with the CME membership group.
We have done it more than a few times with our clients.....
We have done it more than a few times with our clients.....