Finding a compatitive future broker

[Emini Maestro]

I think a better answer than just commission and plaform fee would include margins, both intraday and overnight. Such differences between brokers can range from $200 to $5000 intraday, per car. This range of margins makes it a required element in the choice of a broker, regardless of your personal comfort level for margin, as brokers change margins over time and a trader wants to know if they're up against the wall on either end, high or low.

It would be insane to trade with a broker who requires a $10,000 margin intraday for an e-mini contract, for example. But when volatility goes up, so do their margins. So, it is required information.

 

[Benign]

Quote from Emini Maestro:

Good question. Guys?

Perhaps because futuresbroker.com refuse to sponsor EliteTrader to be listed in the brokers rating list.

 

[Benign]

Quote from Emini Maestro:

It would be insane to trade with a broker who requires a $10,000 margin intraday for an e-mini contract, for example. But when volatility goes up, so do their margins. So, it is required information.

IB is notoriously one of them. It requires full intraday margin (100%) for most futures contracts. Some products are used to be 50% have been tightened to 100% all of a sudden.

KOSPI is one of the most liquid product. There are usually over one hundred orders on each side. You can easily trade several ten contracts with nearly no slippage.

For whatever reasons IB might come up with they decide that you are only safe if you daytrade at full margin. No discount. Such a very liquid market is still too dangerous to trade with half margin in their humble opinion.

It's just one of the ridiculousness found in the Interactive Brokers proud margin policy. They call it safe and prudent. I call it stupid and paranoid. There are other markets like KOSPI which are perfectly fine to trade at half margin but requires full margin.

IB doesn't issue margin call and has their proud real-time margin monitoring system in place. They are good things and have kept the risk to very low. Still they don't think it's enough. They want to go further and require full intraday margin.

 

[def]

Quote from Benign:

IB is notoriously one of them. It requires full intraday margin (100%) for most futures contracts. Some products are used to be 50% have been tightened to 100% all of a sudden.

KOSPI is one of the most liquid product. There are usually over one hundred orders on each side. You can easily trade several ten contracts with nearly no slippage.

For whatever reasons IB might come up with they decide that you are only safe if you daytrade at full margin. No discount. Such a very liquid market is still too dangerous to trade with half margin in their humble opinion.

It's just one of the ridiculousness found in the Interactive Brokers proud margin policy. They call it safe and prudent. I call it stupid and paranoid. There are other markets like KOSPI which are perfectly fine to trade at half margin but requires full margin.

IB doesn't issue margin call and has their proud real-time margin monitoring system in place. They are good things and have kept the risk to very low. Still they don't think it's enough. They want to go further and require full intraday margin.

korean regulations require full margin up front.

 

[suedeuno]

FuturesBroker.com as low as 3.50 with NinjaTrader. 5k minimum deposit. FCM is Clear Chicago Group. Much lower margins too.

 

[Benign]

Quote from def:

korean regulations require full margin up front.

Oh I see. Could you tell me why the same product from the same exchange can have two different margins?

The product in question is NIKKEI futures contracts from SGX. IB offers two symbols for the same product, one with MOS enabled (NIY), one with MOS disabled (SGXNK). MOS = Mutual Offset System, which is a special arrangement between CME Group and the Singapore Exchange (SGX) allows traders to take positions in the products at one exchange and offset them at the other one.

They are literally the same product, with the same liquidity. Why in the heck SGXNK can be 121875 JPY while the another is the hefty 625000 JPY.

There are more markets which are required full margin even intraday.
All except one futures product in NYBOT are at full margin.
All except the oil contracts in NYMEX are at full margin. Why is that? What is IB worried about again?

 

[BCE]

Quote from suedeuno:

FuturesBroker.com as low as 3.50 with NinjaTrader. 5k minimum deposit. FCM is Clear Chicago Group. Much lower margins too.

Hey I think I saw that but don't know anything about them. Has anyone here actually used them? Thx.

 

[rpolderm]

Quote from BCE:

Hey I think I saw that but don't know anything about them. Has anyone here actually used them? Thx.

Futures Broker is a discount firm and a division of Velocity.
I had a few simple questions, it took ages to get an answer.
Don't go there.

 

[tradingplat]

Quote from BCE:

Hey I think I saw that but don't know anything about them. Has anyone here actually used them? Thx.

Haven't used this any more.