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In a message dated 5/30/02 7:30:51 PM Central Daylight Time,
jeffg@xxxxxxxxxxxxxxxxxxxxx writes:
<< Lastly, simply put emini SPUs only have one fee, the NFA. If you see
anything else the fees are pocketed. >>
Jeff:
FYI, the last guy I heard make this erroneous claim was the president of
Futureswise. I called him on it and I am going to call you on it too. It is
just not true. http://www.cme.com/risk_management/clearing_house/fees.cfm
The CME has a fee. Whether the broker cares to break this fee out or not is
entirely a marketing decision. You are paying this fee whether you realize
it or not. And if you are not paying this fee, your firm or it clearing firm
will not be around for very long.
Any ISV also has a charge. PATS has standardized its fees to level the
playing fields. Trading Technologies also has a fee, as does Rolfe & Nolan.
Just because you are not show the fee, or it is packaged within your cost
structure does not mean it does not exist.
I chose to market my services on a commission plus hard costs basis. That is
purely a marketing decision. But there is no guarantee that fees only go
down. Thus, I have insurance against higher fees.
I believe the high road and the right road is to disclose what all the fees
are. But then you probably guessed that.
Regards,
John J. Lothian
Disclosure: Futures trading involves financial risk, lots of it! John J.
Lothian is the President of the Electronic Trading Division of The Price
Futures Group, Inc., an Introducing Broker.
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