Velocity Vs. Global Futures, Vs. Etc.

Quote from asa:

If you make 1000 RTs per month you should consider to obtain ECM-H or ECM-W on CME. This would great decrease your Globex and clearing commission.
Then ask Velocity if X-Trader is avaliable for free for customers with such membership. Velocity say on their site about it.
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I see the ECM/106-R & 106-H but no W!? what is that?
 
The CME offers traders who create a firm solely devoted to trading the ability to apply for an Electronic Corporate Membership (ECM). How do you know if your firm qualifies? All profits and losses are produced and taxed at the firm level, all funds and trading activity come from and benefit only the firm. The ECM is a class of Chicago Mercantile Exchange membership that allows proprietary trading firms the ability to benefit from reduced clearing fees.

There are two kinds of ECMs available, those that hold membership (ECM-H) and those that simply meet the volume requirements (ECM-W). ECM-Hs are not subject to any minimum trading volume, but ECM-Ws are. ECM-Ws must average 25 round turns per day to be eligible for the membership waiver. If the firm does not meet the minimum trades, there is a period of two weeks to obtain membership, and if it does not do so the membership will expire. To get the membership again, you must reapply. ECMs do not have to pay NFA fees.
there is a one time non-refundable $1750 application fee
 
if you are not a scalper, but look to make 1-10 trades a day, which broker is topps right now?

no need for xtrader...

currently looking at openecry
 
No need X_Trader?!... mhmm!...if you are scalping 50 lots per day a reliable and fast datafeed is essential..what you pay more than others is just peace of mind and state of the art DOM (aka patented MD Trader).
 
I know this topic has been up a number of times, but does anyone have any updated info on ECM's? I know there was talk that it was going to expire on a particular date, but have they established it permanently now?

Also curious on how we are taxed.. Another words, are gains still given the blended 60/40 tax rate? Not exactly sure what the "firm" level for taxes means.. Any info would be greatly appreciated.



Quote from asa:

The CME offers traders who create a firm solely devoted to trading the ability to apply for an Electronic Corporate Membership (ECM). How do you know if your firm qualifies? All profits and losses are produced and taxed at the firm level, all funds and trading activity come from and benefit only the firm. The ECM is a class of Chicago Mercantile Exchange membership that allows proprietary trading firms the ability to benefit from reduced clearing fees.

There are two kinds of ECMs available, those that hold membership (ECM-H) and those that simply meet the volume requirements (ECM-W). ECM-Hs are not subject to any minimum trading volume, but ECM-Ws are. ECM-Ws must average 25 round turns per day to be eligible for the membership waiver. If the firm does not meet the minimum trades, there is a period of two weeks to obtain membership, and if it does not do so the membership will expire. To get the membership again, you must reapply. ECMs do not have to pay NFA fees.
there is a one time non-refundable $1750 application fee
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For traders with more than 100 contracts( Per side )
Best way to go is get Exchange membership.

CME or CBOT membership is good route.
 
Quote from anjum55:

For traders with more than 100 contracts( Per side )
Best way to go is get Exchange membership.

CME or CBOT membership is good route.
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100 contracts per side at what frequency??? Do you also calculate miles per hour without the miles?

Currently lease a CME IOM seat locked in for 5-month term @ $2100 per month, trade 3000-3500 ES contracts per month. Break even on current lease rates require ~1700 contracts spun per month. Add in $2k initiation to equation.
 
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