Day trading Eminis, Russell and Forex? Best broker for prices ?

Question

Hi

I use IG index but have found their spread to be expensive, are there any brokers out there that are cheaper for day trading the Forex and eminis russell 2000 and other index's?

kind regards

David

Answer 1

Hello David,

I have used many different brokers for eminis and have found http://www.mirusfutures.com to be very inexpesive per round turn.  Talk with Tony.

For forex Saxo Bank is the best I have used for execution, no slippage and running a true time electronic exchange.

Depending on your RT's you can negotiate better pricing.

Answer 2

Hi David,

The brokerage business is highly competitive and rates are usually subject to negotiation. Unfortunately there are no shortcuts. Use the internet and search for "Futures Broker" or "Forex broker" and compare the prices of 10 brokers. This will give you a feeling for the lower prices possible.

When comparing prices, make sure that they are "all inclusive", i.e. inclusing exchange and NFA/SEC fees and any other fees that might apply. Sometimes brokers lure you in with "Trade the e-minis for $0.50" and then you will see that they add all kinds of fees and you end up paying $5 - $6 per round turn.

When trading futures, you can expect to pay $4 - $5 per round turn with a discount broker and $5 - $8 if you need some service. Full service brokers usually charge $10 - $15 per round turn.

Right now you might consider trading the e-mini S&P Midcap. The CME Group and Infinity Futures Brokerage run a promotion until the end of the year: You can trade this contract for $1.50 per round turn ALL INCLUSIVE. I think that's a heck of a deal.

The e-mini Midcap (Symbol EMD) is comparable to the e-mini Russell (ER).

Regarding Forex: I don't trade Forex at all. I prefer trading the currencies as futures contracts at the CME. This has there advantages:

1.) Lower spread. The spread is usually 1 tick and not 2-5 pips.

2.) Better leverage: 1 tick in the futures is worth $12.50 and not $10 like in the forex. That's 25% more!

3.) It's regulated, and you are trading against other traders and NOT against the house.

Hope that helps.

Markus

PS: Below is the link for the EMD promo I talked about.