Comssion Rate for Emini futures?

LexNY · Mar 21, 2009

I am trading the Emini futures average 50 contracts per day round turn. It adds up fast in a week with my comm. rate. I am paying $7.00 round turn.

I am assuming I will be increasing my volume in the weeks to come. I was triple/ultra Etf trader now moved on to the Index futures, seems like working well for me. Active scalper, and very profitable. Directional in and outs are great but these comms, gush can burn you down fast.

Whats should be an active trader (scalper ) rate?

Thks in advance.

Big AAPL · Mar 21, 2009

Anyone can start out at Amp/Mirus/Dorman for about 4.4 per RT. Commissions are reduced as you increase contracts. Most futures only brokers are advertising less than $5.00.

Even OEC with no platform fee can do better than $7.00.

gttrader · Mar 21, 2009

$7.00 per RT ouch.

These prices are per side
http://www.interactivebrokers.com/en/p.php?f=futuresComparison&ib_entity=llc

That is the starting point for negotiation with other bokers if your doing 50 RT a day it should be way lower.

taclander · Mar 21, 2009

Advantage futures...At that size and increasing you will get rates better than IB with fantastic service. You have a problem, you get through to the desk right away, or they give you a number to call Globex desk. I don't work there, just trade there.

brownsfan019 · Mar 21, 2009

I'd suggest contacting Open ECry as well as that rate seems incredibly high.

http://www.openecry.com/

college_trad3r · Mar 21, 2009

negotiate with your current broker to get RT<$4
if you truly trade 50 contracts they wont want to lose you.

Right now they pocket around $4+ a contract or $200+ everytime you trade 50 contracts, but at <$4 They will pocket only 50$+ per 50 contracts, that $150 goes straight into your pocket instead of the brokers

So basically you have been giving 150 times 30 is $4500 a month free to your broker for the same services that another broker provides $4500 cheaper. Do you think your broker is worth $4500?

Jaysal555 · Mar 21, 2009

paid 7 rt at thinkorswim, now 4.80 rt at infinity

startraitor · Mar 21, 2009

Why do ib's and some fcm's screw people like this? If they have not already offered to reduce commissions based on 50 rt's/day, be a whore and shop around like you would for any service before you commit to any broker.

Go with an fcm as an introducing broker is just a layer in the commission structure if you do not need any hand holding. Then do not take their first offer or published rate and do not be a pain in the ass if you want any further reduction down the line based on established volume. This applies to smaller, inside sales force based fcm's. Do not expect the large supermarket shops, IB etc. to negotiate, everyone is a piker to them.

In this environment capital is key, they know you may have some staying power with a $50,000-$100,000+ account. Blowing through a $5,000 account is not worth their time and expense of setting it up with rock bottom rates, expect to pay more if this is the case. Everything is negotiabe though and open to offer and acceptence. Good luck.

BTW, here is Velocity's illustration of commission breakouts for retail and exchange members and lessors when trading through Velocity at various volumes just to note where a good starting point is based on your volume. Not a velocity customer, just one of the only brokers that shows an online comparison very clearly.

http://www.velocityfutures.com/pdf/leaseorbuy.pdf

Arb Under Par · Mar 23, 2009

I agree with some of what you said, but in regards to an Introducing Broker, it can work both ways. There are times when an IB has aggregated significant volume and negotiated lower rates with an FCM than you could alone...and then pass those savings on.

Also, that is a nifty table from Velocity, but it is severely outdated. You could actually do an ECM membership that is significantly less than a seat lease and still get some great savings. You can look up all the current info on the CME website.

Quote from startraitor:

Why do ib's and some fcm's screw people like this? If they have not already offered to reduce commissions based on 50 rt's/day, be a whore and shop around like you would for any service before you commit to any broker.

Go with an fcm as an introducing broker is just a layer in the commission structure if you do not need any hand holding. Then do not take their first offer or published rate and do not be a pain in the ass if you want any further reduction down the line based on established volume. This applies to smaller, inside sales force based fcm's. Do not expect the large supermarket shops, IB etc. to negotiate, everyone is a piker to them.

In this environment capital is key, they know you may have some staying power with a $50,000-$100,000+ account. Blowing through a $5,000 account is not worth their time and expense of setting it up with rock bottom rates, expect to pay more if this is the case. Everything is negotiabe though and open to offer and acceptence. Good luck.

BTW, here is Velocity's illustration of commission breakouts for retail and exchange members and lessors when trading through Velocity at various volumes just to note where a good starting point is based on your volume. Not a velocity customer, just one of the only brokers that shows an online comparison very clearly.

http://www.velocityfutures.com/pdf/leaseorbuy.pdf

startraitor · Mar 23, 2009

Very true, the updated cme fee site sucks, was just putting it out there for illustrative purposes.

Quote from Arb Under Par:

I agree with some of what you said, but in regards to an Introducing Broker, it can work both ways. There are times when an IB has aggregated significant volume and negotiated lower rates with an FCM than you could alone...and then pass those savings on.

Also, that is a nifty table from Velocity, but it is severely outdated. You could actually do an ECM membership that is significantly less than a seat lease and still get some great savings. You can look up all the current info on the CME website.