ES comissions

B

barnetda

I am averaging 200 ES contracts a day for the last few months.

I am paying $3.50 per contract. Is it time to renegotiate or is that a fair price?

thanks
 
At that volume, you you should be leasing a CME seat, so you don't have to pay the CME's full retail fees (which have nothing to do with your broker's commission, as that $3.50 is a combination of CME fees and your broker's commission).

Leasing a CME seat would save you over $4K per month (after the leasing fee). Your broker will have information on how to lease a CME seat.
 
When I looked into leasing, it seemed that if you lease, the IRS then considers you a professional trader, and you need to file taxes that way. Even though the seat would save me commissions, it wouldn't make the self-employment taxes worth it.

Please correct me if I'm wrong here. It was a few months ago that I researched it, and got a little sidetracked before I could confirm all the stuff I found.
 
I avg over 300 ES per day and was considering the CME lease thing too, bit if Im going to get taxed by IRS bcuz of the CME seat status, then I dont think its worth it either...I have to look into it more...

Anybody have a CME seat that could elaborate on this??
 
bravo susanah,,,,finally someone here on elite trader that understands the tax implications of fica taxes and leasing a seat
 
Quote from Cazza La Randa:

Of course you mean $3.50 Round turn...not per contract (aka per side) ...I hope
More...

I am paying $3.50 per lot per trade. So if i buy 2 contracts and sell 2 contracts i pay a total of $14.00 (3.50*4)

What should i pay?
 
Quote from barnetda:

I am paying $3.50 per lot per trade. So if i buy 2 contracts and sell 2 contracts i pay a total of $14.00 (3.50*4)

What should i pay?
More...

1/2 as much!

WHO is your broker, you are being ripped off, look at the rates @ IB for example on their website, not the lowest but average for a moderate volume trader.

(I strongly doubt you are actually paying $7/RT my friend)

http://www.interactivebrokers.com/en/accounts/fees/commission.php?ib_entity=llc

Click "Futures".
 
Quote from Surdo:

1/2 as much!

WHO is your broker, you are being ripped off, look at the rates @ IB for example on their website, not the lowest but average for a moderate volume trader.

(I strongly doubt you are actually paying $7/RT my friend)

http://www.interactivebrokers.com/en/accounts/fees/commission.php?ib_entity=llc

Click "Futures".
More...

I am definately paying $7 RT.

Just looked at my first trades on Friday. I bought 5 Es and then Sold 5 Es. My com charge including all exchange fees etc was $17.50 on the buy and $17.50 on the sell.

I am happy with my brokers execution but i definately will talk to them on monday re my coms.
 
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