FutureWise Trading Group

H

Haas

I came across this futures brokerage firm called FutureWise Trading Group. I found them on a website where a guy named Donald Johnson reviews online commodites brokers.

http://www.sonic.net/donaldj/futures1.html

This broker offers $5 round turn for any futures contract online or over phone. Also seem to include quotes and charts.

Is anyone familiar with this firm?

Here is the review:

"FutureWise Trading Group (1-248-596-9600) (800 number for clients only):
Note: The commissions below (listed on the FutureWise website) make little sense to us, because "full service" costs less than "discount" service. Therefore, at this firm, don't ask for a discount.
Commission (full service): $5 per R/T. In addition, all clients must pay a $25 per month "service fee."
Discount commission (self-directed, no broker-assistance): $5-$10 per R/T.
Other fees/warnings: "One item buried in their 'Customer Agreement' is that they charge all nonzero account balances $25/month. No T-Bill buys or money market fund is available to clients for excess cash in account, over and above margin requirements.(8/21/01)" Firm says: "Our firm does charge a $25/month fee. We use these fees to subsidize the low commissions, and it is non-negotiable. If you have a problem with this fee, please, don't apply.(10/27/01)"
Comments: We don't know what to think of this broker, who is new to our list. On the one hand, we have to give them credit for warning prospective clients, right up front on their webpage, that "most people trading in futures lose money." On the other hand, we wonder about the intelligence level of anyone who would choose this firm's "discount" service (which costs more than the regular broker-assisted service). This firm offers full service from a "team" of brokers with a leader, the firm says, who will be able to answer the most difficult questions. The broker-assistance people, they say, are not just "order takers." We must point out that there is no hint on the FutureWise website about what futures are tradeable or which exchanges might be available. We'll list any further information about this firm just as soon as we get it. "
 
They are testing out new software that should be suitable for daytrading.

I gave myself up for testing but had no time.
They give 1500,-$ daytrading margins for the E-mini S&P.

I think they will be a good alternative for IB.
 
I use em and I like em. Right now the trading is done on a browser based system...not to big of a deal. They are in the process of developing their own system and it should be up and working very soon. I have been part of the beta test group. I like the fact that they pick up the phone very quick during market hours if youl think there is a problem. Very good discount broker, but if you are looking for hand holding, this might not be for you. You should really know what you are doing first.

Mike
 
mbradley - Since the content on their website is very minimal I am not sure what contracts they trade. Do they trade Eurex, Liffe and all the main US, including the emini's? How do you like their charting and is it delayed or real-time. Thanks.

Haas
 
Join this Yahoo Group and they will answer any of your questions:

http://groups.yahoo.com/group/FutureWise_Trading

Here is what I know...
Todd Snively is the President/owner of FWTG (FutureWise Trading Group) and CCI (Commodity Consultants International). FWTG is the IB and CCI is the FCM. Side note: they also introduce through Iowa Grain for some products. From what I gather he started the IB a few years back (because he is a large trader) and wanted to lower his costs and for some reason - probably to lower costs even more, you can ask him, decided to start a FCM this year.

Todd is the one who will answer questions for you at the above Yahoo Group.

So far I've been very impressed with them.

Jay
 
Haas...I beieve they trade all the contracts, but Im not sure...on their new platform...which is just being Beta Tested...you can put them in. I only tradet the eminis though. The charting package on the new platform in just getting going, so my comments are of no value here...Im not a big charter anyway, so my bias is towrd the simple...

Mike
 
I e-mailed Todd Snively with a few questions and got a reply back a couple of hours later which answered all questions I asked (some concerning redundency after the IB Nov 19th fiasco). Although they use a unique platform which is in beta testing (I guess the browser version is past beta) I may give them a try.

Since he is/was a trader I'd imagine software he helped design would be at least adequate. As long as it gives me p&l for open and closed trades + easy order entry for stops, oco/oca etc I can adjust. My quotes and charting are seperate.

The commisions are unbeatable as are the daytrading margin requirements. There is apparently no volume requirement to get the low commision level (a bit unusual). I'd only margin up for a strong trend day that I scaled into but if an op comes to put the pedal to the metal, the margin is there.

I guess that since Snively owns the clearing firm as well he can pass on the lower overhead. I do wish they offered a more widely used platform but that would raise their overhead also.

I don't think he'd mind me posting his e-mail address todd@fwtg.com so you can ask him, not me for furthur details.
 
BASE-HITR........ did todd discuss the safety of keeping your account with his clearing firm. I never heard of them.I believe there is no insurance coverage for futures account ( no such thing as SIPC). The website seems very evasive regarding this.If I save $1000 in commisions but see a $25K account disappear I would be VERY UNHAPPY. Please let me know if he addresses this issue. Thanks
 
I came across this site that has a Q&A format that says that the low commissions could be temporary and FutureWise will add exchange fees on to the $2.50 per side after September (date?). Does anyone know how much this will increase commissions?

I'd like Futurewise to address this. Since I found no indication on their website that commissions would go up in the near future, I find this very confusing.



http://www.impulsiveprofits.com/futurewise/faq.htm

Here is the info:

QUESTION: My Broker Says That You Are Losing Money At $2.50/turn Because Certain Exchanges Have Fees that Exceed $2.50/turn - So How Can You Charge $2.50/turn INCLUSIVE of Exchange Fees?

Your broker is absolutely correct! There are certain contracts on certain exchanges that charge more than $2.50/turn for the exchange fees. So, how can we charge $2.50/turn INCLUSIVE of exchange fees? That's easy! First of all, when you read the details of the offer, the all inclusive rate is only good until the end of September. At that time, we will begin charging exchange fees on top of the $2.50/turn commission. Does that mean we are losing money if you trade certain markets until the end of September? Yes, but also understand that those markets and contracts are in the minority of all the trades executed. Some markets cost us only eighty cents to clear. Therefore, over all, it is working out fine for us financially, thank you very much.

Here's what your broker REALLY doesn't want you to know about clearing/exchange/pit/brokerage fees: MOST BROKERAGE FIRMS MARK UP THESE FEES!!! That's right, these fees are an additional profit center to the BROKERAGE FIRM! You probably thought they only controlled the amount of the commission, but the fact of the matter is, you are paying A LOT more than you need to pay. Now, whether or not your individual broker ever gets a piece of those fees is irrelevant. You are still paying more than you need to pay.
 
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