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Monday, July 7, 2014

thinkorswim's FUTURES Commissions

I promised to get back to you on the verdict on the commissions. Right now I am paying $3.50 per contract for each trade, i.e. $7.00 for a roundabout, in and out. It's a hefty price to pay when you trade small, like me. About 34% of my profits are going to the broker.

So, on your advice (see previous comments), I called TOS this morning to plea my case. Alas, if they take me off this "flat" $3.50, they would move me to another type of commission structure which would reduce the commissions to $2.25 each trade BUT invoke another kind of fee of $1.47 which would total $3.72 and not do me any good.

When I mentioned that "others" only paid $5.00 for a round trip, he responded by saying, "yeah, but they probably traded 1000 contracts a month."

He did say that when I got up to 200 trades per month, I should call back because they might be able to do something then.

Oh well, I DO believe it's the cost of doing business, so I'm not going to whine about it. I'll just get up to 200 trades per month!

And btw, he was looking specifically at oil (for me). I don't trade other futures. So not sure if the fee structure is different for other commodities. You'll have to call yourself, if you're curious.

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