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I want to look into leasing a seat on CME to save commissions.
If someone leases a seat, do they need to use a special broker or is there any extra work in clearing trades? Can I still use any broker such as AMP, etc..?
If making 2k RT a month , than would there be any reason not too lease a seat? What would the downside be?
I see seats getting leased for $2,500 for 6 months.
Thanks.
Can you help answer these questions from other members on NexusFi?
If you are trading this much and with success then speak with your fcm and the cme.
Build a simple spreadsheet based on your exact exchange and clearing fees and commissions if you will have them based on your sliding scale and any rebates you may get.
Then multiply this out for day week month year and see what the amounts are and compare the savings.
Then assume you quit trading or you take a few weeks or a month off and see what the savings are at that point.
Throw a bunch of scenarios at it including building and doing more lots
Obviously if getting a seat that means you feel like it is time to start growing and doing more trades and more lots
Good luck.
I would recommend buying one and also including the real cost since the seat is an asset and you can get back a lot of the value from a sale
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
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Leasing a seat makes you a professional in not only the CME's eyes but also many other exchanges. This biggest impact of that is that data fees for professionals are significantly higher than non-pro's and not just for the exchange you lease the seat on - but for all exchanges.
There may also be tax implications - check with your tax advisor.
