commodity floor trader?
Author: Hi,
I am taking commodity broker exam,and wanna work as a floor trader just to trade my own account on CBOT.. I am willing to buy a membership but they say I need two sponser.
what kinda sponser would i need? I would be sponsored by brokerage firm?clearing members? I just wanna trade my own account..please let me know
thank you
regards
I dont need full CME membership..I just need partial membership B-4 to trader metal, index future..how much I have to put in advance with clearing firm?
You have to be registered with Commodities Commission, meeting all their capital requirements..
You need to be sponsored by existing members,
You must have clearing arrangements in place before you start any operation.
Why don’t you sit down with the CBOT and get their packet of what is required, and while there speak to some of the other members and/or clearing firms.
Judging by your questions, you have no idea of what you are doing and if your not careful you are going to hurt yourself severely (financially)
Good luck, you;re going to need it
I think they’ve done away with the sponsor requirement.
If they haven’t then once you’ve selected a clearing firm, and they’ve agreed to clear your trades, then they should be willing to serve as or provide sponsors for membership.
I think you don’t really understand, though. You don’t need your Series 3 in order to trade for your own account on the floor.
I think you may also not understand the amount of money necessary to start trading. You say you’re willing to purchase a membership but a CME IOM membership (remember that the CME bought the CBOT last year) costs about $500,000. You can lease a seat for a monthly fee of about $2,000 but your clearing firm, who guarantees that you’ll make good on any loses, will require you to put up about $100,000 IN CASH.
Finally, the trading floor is dying. The vast majority of trading is done electronically now. This is the way to get started. There are a number of trading firms in Chicago that hire new traders, assuming you’ve got first-class credentials.