Is it worth it to change from an IB to a FCM?

[tiddlywinks]

Thanks! I'm not so worried about meeting the FCM margin qualifications etc. I just have some bad experience with IB's like AMP and NT. I was told i could negotiate better commissions at a FCM. But maybe this has changed since IB's commissions have allready dropped so much.

The best thing commission-wise is to lease an exchange seat. However, this affects taxation, so there is more to consider than commission savings.

But yea, the landscape is very competitive.

 

[CALLumbus]

This is a funny thread, so I want to add a little bit to the confusion

 

[CALLumbus]

But there are also introducing brokers for Introduction Broker !!

 

[CALLumbus]

I mean, yes, they are FCM !

 

[CALLumbus]

Introduction Broker is FCM.

 

[CALLumbus]

I mean Interactive Brokers, of course.

But they also have introducing brokers, IB.

So everything is right, I guess.

 

[jokertrader]

I have TT with Amp no issues. If you want TT DESKTOP get a direct account and work with Amp to enable your platform- that’s how I have it.
You will be billed for platform and data directly by TT

 

[CALLumbus]

Ok, jokes aside, now some serious input from me:

an introducing broker pools activities from its clients and can therefore negotiate better rates for them, often much better than what an individual client with low volume could expect. In addition, they offer some handholding and service that the bigger FCMs cannot and dont want to offer for a low volume client.
So for a beginning trader with low volume, an introducing broker can absolutely make sense.

If you get more experienced, need less handholding and service from your broker and move some serious volume, it might be time to switch diretly to a FCM and negotiate individual good rates. If you trade at least 5000-10000 contracts per month, most FCMs will start listening to you.

 

[CALLumbus]

As other I also thought you were referring to Interactive Brokers with IB. As far as Amp, they used to be FCM, not sure if they still are.

They still are. In this CFTC report you can find all the FCMs in the USA:
https://www.cftc.gov/sites/default/files/2020-07/01- FCM Webpage Update - July 2020.pdf

And find information about their most important financial data (customers assets, capital requirements, excess net capital ... ).

 

[heispark]

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