Cost Structure for CME Futures Traders

Anyone knows the costs associated to lease a CBOT seat to trade the US Treasuries complex so to create a new Excel spreadsheet for the CBOT, too?!
 
Quote from millydog:

Yes I am already considering purchasing the GEM seat, But my plan right now is to start by leasing the seat for a few months and then go from there.

Thanks, I will check out Advantage this week.
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Just so you know. You will have to pay $1100 to the CME to lease the seat. It is an application fee. Then when you purchase the seat you will have to pay $300 for the purchase application fee.

If you purchase right away you will eliminate the $1100 fee.
 
Quote from Covert:

Milly-
If you're an independent trader, and you only trade the ER2, then you should definitely lease yourself a GEM and find yourself another professional trading firm- (ie: Advantage Futures) Velocity doesn't know much about this because there's no money in it for them. Check out the very helpful spreadsheet at the beginning of this forum; from there, it's a simple matter of plugging in your average monthly volume to see if you would be saving any money with a GEM.
Best of luck
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Covert,
The statement "Velocity doesn't know much about this because there's no money in it for them." is untrue. At Velocity we have many members. It is in our best interest to help any trader get a membership if their volume merits it. The less a trader pays in commission or fees the better chance he/she has in becoming or staying successful. The more successful a trader is the longer he stays a customer of ours.
 
I'm probably wrong, but I think you need at least an IOM seat with the CME in order to get member/lease rates for the er2. I don't think the GEM membership gives you the er2 at discount rates.
 
Application fee for CME membership is $1750. Leases for GEM seats are around $200 per month. GEM seats do allow you to trade ER2 (Emini Russell 2000) at discounted rates with Globex rebates. If you need any more information on obtaining a membership at the CME let me know. There is a link on our website that can help explain the process.
http://www.velocityfutures.com/vf3.asp?page=78
Thanks,
Anthony
 
Is is possible to form an LLC and have several individuals share using the leased seat and thereby share the costs?
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1) Create an LLC.
2) Have the LLC purchase a seat.
3) Have anyone wishing to trade using that seat become a member of the LLC.
4) Members trade only the LLC's account.
5) Profits/losses from the LLC are divided based on profits/losses from trading the LLC's account. If you gain $100,000, and that is 50% of the LLC's profit for the year, then you are given 50% of the LLC's annual profit for that year. More complex methods, which take costs and fees into account, are also possible.

Sounds a great deal like a prop shop, doesn't it?

-Raystonn
 
Thanks Velocity rep! After I saw your post I found the breakdown on products for what each membership is entitled.
 
Quote from r-in:

I'm probably wrong, but I think you need at least an IOM seat with the CME in order to get member/lease rates for the er2. I don't think the GEM membership gives you the er2 at discount rates.
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Not true. ER2 can be traded under a GEM at member rates.
 
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