Low cost futures brokers for day traders

CME fees are listed at:

http://www.cme.com/risk_management/clearing_house/fees.cfm

Click on the links on the left side of the page to see lessee rates, member rates and nonmember rates.

Summary: A lessee can expect to pay $1.4 less than retail in fees for Globex trades of EMINI products. A member can expect to pay 1.63 less than a nonmember for those same trades.

Originally posted by Aranha
>"The only way to really pay less is to become a memeber trader >for about $3,000 a month. That's probably worth 80 cents off >each side or so. Those other firms give you 50 cents off each >side but then you are charged $500 to $700 a month for the >platform and/or you have a volume quota. "

Dear All,

As far as I could understand, becoming a member (paying U$3.000 a month), is the cheapest way for those who trade high volumes, correct?

Even so, what would be the costs per side, considering that you are a member?

And, Does lease a seat mean the same as become a member?

Also, as far as I could find, this /www.advancedfutures.com is the cheapest available, isnt? Or is there any other one besides IB?

Thank you.

Regards

Raphael
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Dear Tripack,

thank you for your response.

I'm a little bit confused. I hope you could help me out, since it looks like you know very well the subject.

I intend to trade only during regular hours. By doing this, I won't be using the GLOBEX, will I?

So, If I lease that seat for around U$3.000 a month. How much will I be paying, including all fees (clearing, exchange..etc)?

Also, what is the difference among: 106 H/J/N, CBOE, Equity / Clearing, Lessee Member/106F Employee and Non-member ?

Sorry for bothering you with so many questions.

Regards

Raphael
 
If you're trading the MINIs, which it sounds like you are, then virtually all your trades will be on the CME's electronic Globex system, as opposed to being executed in the pit via open outcry. How much you end up paying is strictly a matter that is negotiated with your clearing firm based on your volume and financial condition. The fees listed previously give you an indication of the variable exchange costs, on top of which there will be clearing costs. If you are saving $1.40 per contract you can figure that you will break even on your monthly lease if you do over (3000/1.4) = 2,143 round turns per month, assuming you can't negotiate a better deal than that.

There are simple definitions for the different customer types listed at: http://www.cme.com/risk_management/clearing_house/customerdefinition.cfm

and if you search a bit you can find more detail.


Originally posted by Aranha
Dear Tripack,

thank you for your response.

I'm a little bit confused. I hope you could help me out, since it looks like you know very well the subject.

I intend to trade only during regular hours. By doing this, I won't be using the GLOBEX, will I?

So, If I lease that seat for around U$3.000 a month. How much will I be paying, including all fees (clearing, exchange..etc)?

Also, what is the difference among: 106 H/J/N, CBOE, Equity / Clearing, Lessee Member/106F Employee and Non-member ?

Sorry for bothering you with so many questions.

Regards

Raphael
More...
 
Until you're connection goes down.




Originally posted by Pabst


I think it would be tough for anyone trading less then a few thousand contracts a month to beat IB. I'd consider 250 sides a day to be a medium guy. Keep in mind that there are true scalpers in ES. These are guys who are going direct to Globex and trading a thousand a day. But for the average index trader who makes a few trades an hour I think IB is the ticket.
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Originally posted by FX-Trader
I wonder if CME will ever drop their wonderful Globex System Fee. Don´t need this at all. :mad:
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I've been wondering the same thing with the daily volume increase of the E-mini's. The only way it's going to happen though, is if another exchange gives them more competition. I believe the CME's exclusive rights to the S&P 500 and Nasdaq 100 doesn't expire until 2009.
 
does anyone know of another broker using the same platform as PFGbest,from what I see they're a little high but of all the platforms I've looked at theirs suit me best.If anyone has comments about PFG as a broker I'd appreciate it.
Thanks
 
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