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Why does ES exchange fee vary by website?


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  #1 (permalink)
pjbear22
New York, USA
 
Posts: 7 since Aug 2022
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Hi guys,

The CME website shows exchange fee of $1.23 for ES
with .02 NFA fee, which comes out to $1.25.

How come some websites such as trade station show $1.30?

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  #2 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT Stellar & Tradestation
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The cost to trade futures is made up of three major components.
  • Exchange Fees
  • NFA Fees
  • Broker / FCM / Software / Data Fees

In its simplest form Exchange Fees are the same for everybody. (In reality its more complex than this as there are exchange memberships and discount programs that can give you a discount but if your using a retail broker then this probably doesn't apply to you). So it doesn't matter which broker you use the exchange fee will be the same. (Note in some cases the exchange splits this between what they call an exchange fee and a clearing fee - doesn't really matter though, still just the same thing).

NFA Fees are 2c for non-members and 0c for members. So I have a NYMEX seat so If I'm trading Crude/CL I don't pay an NFA fee. I don't have a CME seat though so if trading S&P500/ES I do pay 2c.

Where the difference comes in is with the Broker / FCM / Software / Data Fees. Different brokers charge different things. Some software has a routing fee.

Answering your question specifically I think your $1.25 is wrong. For ES the CME exchange fee for non-members trading outrights is $1.28 and the NFA fee for non-members is $0.02 which is probably why Tradestation quote $1.30. In reality Tradestation are then going to charge you 'their' fee on top of that.

see exchanges fees at https://www.cmegroup.com/company/clearing-fees.html

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SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT Stellar & Tradestation
Broker: Primarily Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,081 since Dec 2013
Thanks Given: 4,427
Thanks Received: 10,265


Very true @mendal. In fact when I worked for a large trading company we were told by our lawyers to never discuss commission structures with other traders in case it was considered to be price fixing by the powers that be!

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Last Updated on August 29, 2022


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