Tuesday, December 07, 2010

Best futures Broker Based on Commissions, Data Feed, and Trading Platform


I've reviewed some of the most popular Futures Brokers available to retail traders and rated them based on Commission. Finding the best broker based on commission should be one of the top factors you have when selecting your broker, because you can save you thousands of dollars per year by choosing the right one. I've put together a table comparing each broker based on their "advertised" commissions. Some brokers are negotiable in their commission rates, so be sure to call the broker your interested in before making the final decision. Remember, Commissions alone should not be your sole determining factor in choosing your broker, you should also consider data feed speed and reliability as well as the trading platform offered in which you will be placing your trades on.

4 comments:

Success on 10:14 AM said...

I agree... low commissions does NOT insure that you are trading with the cheapest broker. Especially when your delayed trades cost you profits on your entries and exits. You do PAY for low commissions one way or the other.

Den on 8:51 AM said...

Supposedly IB got sued over some Booktrader DOM interface features. I guess they copied something that was perhaps patented?

Now Booktrader completely blows, there is no true "armed" single click order anymore, everything you click in book trader to place an order, a new window opens up to "confirm" the order.

Trader workstation always sucked, they forced everyone to upgrade to the latest version because of this booktrader deal.

There are obviously workarounds, like zeroline trader, button trader, Ninja trader, etc etc.

http://sourceforge.net/projects/ibcontroller/

Perhaps IB should really understand that their platform has always sucked. The API is there, so many people have created better interfaces for order management, but you still have to deal with TWS in the end.

Den on 9:20 AM said...

appending to my claims earlier, I believe this is the post that explained it, but it was also back in June so I dunno if what I was saying earlier was related. This is a post from elitetrader forums:

Quote from jfilla:
"
IB recently got sued by TT over the DOM, along with Cunningham. It's not like they just sat around and said, "Hey let's make the DOM suck with confirmations".


The two key components of TT's patent are the static price ladder and single click entry, hence, the auto recentering feature and the new confirmations...

Until the settle with TT, better stick with a previous TWS if you want to use BookTrader.

"

In that case why don't they flip the bid/ask sides so the ask is on the left and the bid is on the right to avoid a similarity. Or create a diagonal "ladder".
Either way, a double click requirement will not make IB's most active customer's happy and may result in less trading or customers taking accounts elsewhere - because to confirm each trade and each movement of an order just slows down a scalper too much.
Another thing IB can do is require a double click to place an order - I think that would be faster than waiting for the confirmation screen to pop up and hit ok.

Eyal on 11:32 PM said...

Hey HPT,

Good review. I would add that in addition to considering commissions one should do full due diligence, including for instance checking the NFA records of the broker/clearing firm.

For example Optimus clears with Vision Financial Markets. Their NFA record can be seen here:
http://www.nfa.futures.org/basicnet/CaseInfo.aspx?entityid=0208888&type=reg

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