Hi Fellow Traders,
I am trying to minimize the impact of commissions and margins on my intraday trading.
I am with Halifax at the moment and have a $4000 trading account currently.
In the last 3 weeks I have been simulation trading and on paper made about 280 ticks (gross) from 100 trades, across 4 derivatives AU, EC, ES, NQ. This is about $2400US. I trade a 30 minute chart and only take smallish risks i.e. 6-12 ticks.
Whilst this is good, the commissions I will be paying are $12US for a round trip. This means that my commissions will be $1200 US!! This seems a bit ridiculous to me. How much should I be paying on 30 or 40 trades per week? Does anyone else trade with Halifax and how much do you pay on a round trip for futures? I am trading single contracts at this stage.
The other challenge is that my system relies on trading multiple derivatives rather than just one. The reason is that I have found that my system works better on some markets than others - so it is important to diversify in this way. But, the challenge is that the margins I have to pay through Halifax are high e.g. S&P mini is about $3800 US. That means that I would need about $10000 to trade four different markets. Is it true that it is possible to pay much less for margins if day trading?
I have thought about going to IB, but I only have $4000 in my account at the moment and I believe that they need $10,000 min. From what I understand, they have lower commissions and margins??
Can someone give me some perspective about possible solutions. I do have access to $10000 if I need it, but I am conservative and would prefer to work with smaller accounts. How do the rest of you make any money nett commissions if you are intraday trading and with a small account and having to meet large margins requirements?