Trading volume aggregation for brokerage commission discount

[Tradovate]

Not sure if it has been explored before, I wonder how is it possible for a few (below 10) relatively sizeable monthly futures volume individual traders (around 1000-2000 contracts each) to club together to aggregate their volume (about 15000-20000) in order to improve their commission rates. Without forming an entity to pool together money or anything complicated. We just want to have our accounts/money/PL separate as always. I see the Interactive setup requires a master account which we try to avoid.

If you didn't want to jump through the hoops of forming an entity and then trying to negotiate your commission rate down with your broker, you may want to take a look at Tradovate. We don't charge commissions and there is no minimum volume required, so you and your friends could get started without any extra hassle.

Using an e-mini S&P 500 contract as an example, you would pay $1.18 for exchange fees, $0.01 for NFA fees, and $0.09 for clearing fees, bringing the total cost to $1.28 per contract or $2.56 round turn. That’s it. There are no other hidden fees or catches.

We have traders that transact similar volumes to what you mentioned who have taken their commission savings and used that to get an exchange membership. If you and your friends went that route, you could take the total cost per contract down to $0.44, or $0.88 round turn.

Here is the link to our pricing page where you can take a closer look at what we offer.

If you have any questions or need any additional information, please let us know. Thanks!

 

[ryker]

@Tradovate: What's the status with futures spreads and butterflies? Are they still not supported?

 

[Tradovate]

@Tradovate: What's the status with futures spreads and butterflies? Are they still not supported?

We've been pretty busy adding things to our platform, like market replay with full market depth & unfiltered tick data, enhanced charting with volume profile, bid-ask charts, & more, third party integrations of OFA Charts & AlgoX, Bookmap xRay, & Jigsaw Trading's Depth & Sales and Recon Tape, 2-factor authentication for more security, moved custom indicators into beta, and quite a bit more, but we haven't added futures spreads just yet.

When we add spreads to the platform, we'll certainly make the announcement on EliteTrader so spread traders can get the same great value that outright futures traders currently do at Tradovate.

 

[Sig]

We've been pretty busy adding things to our platform, like market replay with full market depth & unfiltered tick data, enhanced charting with volume profile, bid-ask charts, & more, third party integrations of OFA Charts & AlgoX, Bookmap xRay, & Jigsaw Trading's Depth & Sales and Recon Tape, 2-factor authentication for more security, moved custom indicators into beta, and quite a bit more, but we haven't added futures spreads just yet.

When we add spreads to the platform, we'll certainly make the announcement on EliteTrader so spread traders can get the same great value that outright futures traders currently do at Tradovate.

That's a feature I think more people have been asking for than any other, at least here. Highly recommend you put it at the top of your list! Interactive Brokers is ripe for picking off, but you've got to at least offer the basics when it comes to trading options.

 

[Overnight]

Then I understand......would it help if I put on a dress?

"Dirty pool old man!" <----Name that movie. hehe

 

[blueraincap]

Interesting structure, but only suitable for non-algo traders, algo trading functionality seems to be still lacking.

 

[MattZ]

Interesting structure, but only suitable for non-algo traders, algo trading functionality seems to be still lacking.

I have a very good understanding of Rithmic API, hosting and their collocations.
Further, to reduce cost you can put it all on a block account and reduce costs as a group.
We can negotiate with the FCM, rithmic, etc. and hopefully get you a deal suitable for your size.
Lastly, I can walk you through R Trader that I know inside and out to show you how to track orders, push the "panic" buttons and other functionalities that may come in handy.
You can PM me or call me, either way i will respond ASAP.

 

[xandman]

We've been pretty busy adding things to our platform, like market replay with full market depth & unfiltered tick data, enhanced charting with volume profile, bid-ask charts, & more, third party integrations of OFA Charts & AlgoX, Bookmap xRay, & Jigsaw Trading's Depth & Sales and Recon Tape, 2-factor authentication for more security, moved custom indicators into beta, and quite a bit more, but we haven't added futures spreads just yet.

When we add spreads to the platform, we'll certainly make the announcement on EliteTrader so spread traders can get the same great value that outright futures traders currently do at Tradovate.

I am rather skeptical that Dorman will be willing to carry that overnight risk from spreads on futures and options. And of course, you have to give your corporate answer. However, I do not doubt the ability of Mr. Tomsic to make it a reality. We probably have spread order capability already via the Sierra Charts tie-up.

But back of the napkin calculation, a trader needs to do only 1000 lots RT to make up for a year's advanced membership.

Annual Membership $139 x 12 mos = $1668
Using IBKR's comms., we have: .85 x 2 sides x 2 for a RT = $3.4 RT broker commission.

$1668/$3.4 = 491 2-legged spreads RT

It makes a lot of strategies feasible for a lot of people and is even better than being a CME Member. Every other futures broker and maybe even platform vendors are sweating this and want to stop you or beat you guys to the punch. The gauntlet has been thrown.

Btw, that calculation is for the general public and some added pressure. I am sure you brokerage guys and some wise guys on ET have more exact numbers. But, those the calcs are fundamentally correct.