CTA's experiences using introducing brokers.

Quote from hma:

I am using Interactive Brokers now. Thinking about moving to MF Global, RJO or Vision to get LME metal coverage. Do anyone have suggestion on
which one is the best?
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Vision has poor international coverage. They aren't clearing members of most (any?) non-US exchanges. Any overseas trades have to be cleared via give-up, primarily at newedge.
 
Ok ASusilovic I'll bite...where do you suggest getting good customer support for a CTA? I use the NinjaTrader platform and so far have no problems with it.
 
Never deal with Vision. I had bad experience and heard they lost one introducing broker's all records when transfer over to them.
 
Quote from georgek:

Never deal with Vision. I had bad experience and heard they lost one introducing broker's all records when transfer over to them.
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Very unfair statement. I've tried several IBs, before and during my use of Vision (RCG, MF, IB, Advantage... As well as discussions with NewEdge, Crossland, Credit Suisse, ADM).... Pricewise, they aren't the best, but they remain my FCM of choice.

I've done almost 200,000 RTs with them over the past 18 months.
 
Quote from georgek:

Never deal with Vision. I had bad experience and heard they lost one introducing broker's all records when transfer over to them.
More...

I bet you never even traded with them, who is your contact?
 
I use Penson Futures, they are small enough to care about the individual but big enough to offer access to all markets. The desk I use specializes in CTAs has been doing so for 15+ years and is really the best in the business. They used to be the MF Global institutional desk, when MFG was good and then moved to UBS for several years before moving to Penson. I don't know any other firm that has such professional people that actually care about the "smaller" clients.


5yr
 
Hi Syrtrader, Penson is one of the largest (if not the largest) daytrading clearing firm. Why you said they are small? But their commission charges was high, Isn't?
 
Quote from georgek:

Hi Syrtrader, Penson is one of the largest (if not the largest) daytrading clearing firm. Why you said they are small? But their commission charges was high, Isn't?
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I say they are small based on customer assets, they are around $1billion where the biggest (New Edge) is about $20 billion and MFG is around $8 billion. Those numbers are just off the top of my head. I am not sure how much they do daytrading wise, I am longer term.

In my experience they commission is just as competitive as anyone else, but I am longer term and don't do a ton of business, so commission is "almost" a non-issue for me. But unless you are expecting pennies per side I would guess that they could meet or beat your current rate.

5yr
 
Actually, I am looking for a FCM who is strong in the following areas:

(1) Good coverage: since I trade all the commodities, I would like the FCM to have London Metal coverage.
(2) Good protection on clients' assets. We all know what happened to Lehman's clients, when Lehman failed.
(3) Low commissions: I use Interactive Brokers now. The commission is about $2/side. I am quite happy about it.
(4) Potential capital introducation opportunities. I would like to build a long-term relationship with the FCM so we can help each other.
(5) Good reporting, charting tools or risk management tools.
(6) Of course, good execution with direct access to the exchange.

It looks like a lot. Do people have any suggestions?
 
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