Directional
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i suppose it depends on the deal you're on, and the sort of trading you're doing but those prices seem a bit steep to me.
Are you doing outrights or calendars?
if you're doing calendar spreads then those fee's are a joke. I was paying 0.48p a side at Marex.
Do the maths, if you're doing calendars, then you'll need to be doing at least six legs per trade, unless you're working the outrights against the spread in question, then it'd be four legs.
4 x £3.00 = £12.00 which is more than the €12.50 tick value (assuming Euribor future)
that means you cant be working orders for a single tick, you have to be taking a fat tick at least, and it also skews your risk because a scratch trade isnt a scratch with those sort of fee's, you lose a tick+ on a scratch.
Remember that LIFFE exchange fee's are only 0.28p a lot, everything else is the arcade margin on top
Are you doing outrights or calendars?
if you're doing calendar spreads then those fee's are a joke. I was paying 0.48p a side at Marex.
Do the maths, if you're doing calendars, then you'll need to be doing at least six legs per trade, unless you're working the outrights against the spread in question, then it'd be four legs.
4 x £3.00 = £12.00 which is more than the €12.50 tick value (assuming Euribor future)
that means you cant be working orders for a single tick, you have to be taking a fat tick at least, and it also skews your risk because a scratch trade isnt a scratch with those sort of fee's, you lose a tick+ on a scratch.
Remember that LIFFE exchange fee's are only 0.28p a lot, everything else is the arcade margin on top
As Arb says, it depends on the volume you are doing, how your are accessing the market and what you are being offered in terms of backing and your experience.
A higly experienced high volume trader who is self financing would not entertain rates at those levels.
A totally inexperienced, very low volume trader who is getting backed and is using a broker may be expected to pay rates at the level you have indicated.
A higly experienced high volume trader who is self financing would not entertain rates at those levels.
A totally inexperienced, very low volume trader who is getting backed and is using a broker may be expected to pay rates at the level you have indicated.
charliechan
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then try getting filled on low size in a pro-rata calendar! no thanks. that gig is bust, long ago. too many computers for all but the biggest players.
go to ICE or globex like the rest.
as for arcades, I hear the TCA is best for fees and technology
go to ICE or globex like the rest.
as for arcades, I hear the TCA is best for fees and technology
charliechan
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then try getting filled on low size in a pro-rata calendar! no thanks. that gig is bust, long ago. too many computers for all but the biggest players.
low risk is always a priority for new traders, but when there is also less chance of upside in reality, the equation falls apart.
go to ICE or globex like the rest.
as for arcades, I hear the TCA is best for fees and technology
low risk is always a priority for new traders, but when there is also less chance of upside in reality, the equation falls apart.
go to ICE or globex like the rest.
as for arcades, I hear the TCA is best for fees and technology
Charlie,
TCA is the best for fees, but they dont have their own technology they are in the Fortis trading arcade along with a few other trading groups.
But the old addage is still true, you get what you pay for. If you want cheap and cheerful, fair enough.
TCA is the best for fees, but they dont have their own technology they are in the Fortis trading arcade along with a few other trading groups.
But the old addage is still true, you get what you pay for. If you want cheap and cheerful, fair enough.
charliechan
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fair point parky.
to be honest though, ive heard a lot of the arcades (not all though) are fairly low rent joints and the it support is never what you will find in a bank which is what your getting if relying on fortis to support your/their platforms.
just a thought! i dont trade at fortis or tca.
on a separate note though, does it matter? where/who ever i seem to talk with these days, all i hear is bad stuff about tt especially the auto spreader. so, does it matter who supports it?
To be honest any trading room will live or die on it's technology and IT, commission pales into insignificance if the IT is rubbish or you have regular times outs or slow downs.
Fortis have a robust trading infrastructure and support many groups like TCA but they are a big corporate so suffer with bureaucracy and have a slow time to market. But they are not immune to IT troubles and the bigger and more complex the IT arrangement, sometimes the more difficult to identify and isolate problems. I have heard mixed reports about their VPN access for example.
As for TT, I have not heard about problems with the spreader although the latest upgrade has had its share of problems. But TT is a level playing field in so far as it is universal to the trading rooms so again look for trading rooms that offer alternatives like ECCO, RTS, Pat's etc. They all have their strengths and weakness but at least you have a choice.
Shop around, small bespoke trading rooms have to offer good IT to survive and some are much more focused and hands on than a big bank but always remember the security of your money, check the balance sheet of the outfit you are signing up to. A couple of pence per lot saving will look a false economy if the outfit you have signed up to does a "Griffin" and you loose tens of thousands of pounds.
Fortis have a robust trading infrastructure and support many groups like TCA but they are a big corporate so suffer with bureaucracy and have a slow time to market. But they are not immune to IT troubles and the bigger and more complex the IT arrangement, sometimes the more difficult to identify and isolate problems. I have heard mixed reports about their VPN access for example.
As for TT, I have not heard about problems with the spreader although the latest upgrade has had its share of problems. But TT is a level playing field in so far as it is universal to the trading rooms so again look for trading rooms that offer alternatives like ECCO, RTS, Pat's etc. They all have their strengths and weakness but at least you have a choice.
Shop around, small bespoke trading rooms have to offer good IT to survive and some are much more focused and hands on than a big bank but always remember the security of your money, check the balance sheet of the outfit you are signing up to. A couple of pence per lot saving will look a false economy if the outfit you have signed up to does a "Griffin" and you loose tens of thousands of pounds.
