Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Hi, I'm in the process of becoming a member of the CME, reason for CBOT an IDEM seat to lower my comm's for the YM. There's a $2000 non refundable application fee.
Has anybody gone through that process and if don't might sharing, what did they look for to allow or disallow your membership ? I have no disciplinary issues etc, though am concerned on financial assets they may require - is there a net worth minimum line to cross ?
Thanks for any insight.
Can you help answer these questions from other members on NexusFi?
It is advisable to get your broker to handle all the paperwork for you, instead of going it alone. Your broker should do this for free, and should have a person that is very familiar with the process and has a direct contact at CME that can answer questions prior to you submitting the application and fee.
Be sure you are also aware of what happens after you become a member, such as being classified as a professional.
Platform: Sierra Chart, TOS, Tradestation, NinjaTrader
Trading: energy
Posts: 114 since Jul 2012
Thanks Given: 81
Thanks Received: 172
Very easy to rack up 200$ a month in fees once you flip the pro switch and have to pay 85$ to cme, 95$ to ice and another 50-150$ for stocks and options.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,051 since Dec 2013
Thanks Given: 4,393
Thanks Received: 10,208
I got an IDEM membership many years ago. Back then I had to take all the exams to be a floor trader even though I was only going to trade remotely, not sure if that's still the case now though.
I think the exchanges are more concerned about you being of 'moral character' than they are your financial assets. Your clearing firm is the one who is going to be concerned about your assets.
Agree with Mike, your broker should be able to walk you through this process. My broker (Advantage Futures) did everything for me except actually take the exam. I now also have a NYMEX seat. They do everything. Arrange the leases, payment, communication with the exchange.
Data fees can be annoying but the tax implication can be huge. I believe having a seat means your trading gains are also subject to Self Employment tax. Not as big an issue today with the ACA investment tax but for some people it will be an additional $15k odd cost. Very surprised this doesn't get discussed more here or in most trading places. I suspect many people either don't know this or just conveniently forget to know. As mike says check with your accountant.
I have had cbot seats for 20 years. AM and IDEM. sold my AM because i was not trading treasury's anymore. Held the IDEM because i started trading YM. Sold the IDEM in Dec of 2014 because of the b.s. CME data fees and also was not really trading YM anymore. Presently, i almost exclusively trade TF and see no need for a membership.
Unless you are trading actively in YM, i don't see a reason to buy an IDEM. Trading has always been my primary source of income...so the self employment tax thing is not a factor. I believe i am still subject to that even though i don't have a seat.
Your broker should be able to see how much you are trading and advise you.....