If you have 25 grand.
Why bother?
This fee, that fee, the other fee up up up
Why bother?
This fee, that fee, the other fee up up up
Cost to trade futures always going up, while equities 0.00 commision.
- Thread starter VEGASDESERT
- Start date
Some brokers that have free commission on stocks, will still charge you if you're trading really large size. Also, with futures your leverage is a lot more, even with the increased margins.
However, if you're not doing tons of volume and you don't want to trade using much leverage, than I would tend to agree with you.
Especially since the vast majority of aspiring traders cant beat commissions, with no to very little trading cost with equities, you have a 100x better chance.
It only increases your chance of paying less to trade but it does not increase your chance 100x to be profitable.
wrbtrader
Actually, if you have a 99.7% chance of not profitable trading
futures long term (fairly accurate) (basically trading 50/50 while commissions eat
away your account.
And you have a 30% chance of being profitable paying almost nothing except
sec fee and always going for twice your risk.
That would be 100x better chance. Even if its a small profit.
futures long term (fairly accurate) (basically trading 50/50 while commissions eat
away your account.
And you have a 30% chance of being profitable paying almost nothing except
sec fee and always going for twice your risk.
That would be 100x better chance. Even if its a small profit.
I once had a client that ALWAYS had around $3,000 in the account who incurred over 50-65k yearly in commissions. At the end of each year he always hovered around 1-5k in funds in the account and had huge yearly commissions. He paid $9.95 +1.00 per Contract for Options and between $4.95 - $9.95. for stocks + huge inflated ECN fees. . . This went on for 5 years until I left that Brokerage. I wonder where his account is now.
Looking at his trades in isolation, he was a pretty good trader but the commissions killed him.
If he had a better commission plan he could have easily broken out of that range.
Looking at his trades in isolation, he was a pretty good trader but the commissions killed him.
If he had a better commission plan he could have easily broken out of that range.
It's CME, pure and simple. They are the most egregious capitalistic pigs. They will skin you alive if they could. They give special privilege to HFTs so that we small fries can be raped. On top of that, they've been increasing exchange fees (and charging for data fees) to rape us even more. Truly despicable.
Agree. They squeeze the FCM's as well. Those guys are the only financial intermediaries I see on a shoestring budget.
MattZ
Sponsor
Ask your stockbroker for leverage, and you'll what "this fee and that fee" means. Compare notional values.
I received an email earlier from AMP regarding CME monthly data fee increase effective April 1, 2020. In it, it states
"We (AMP) sent a request to CME to delay their fee increase due to this coronavirus (COVID-19) current situation. They declined...."
Does this come across as a shocker to anyone? I didn't think so.
"We (AMP) sent a request to CME to delay their fee increase due to this coronavirus (COVID-19) current situation. They declined...."
Does this come across as a shocker to anyone? I didn't think so.