The cost of trading

摘要

Competition has forced rates down, but there are still traders willing to pay higher commissions for better service. While the large wire houses have to a great extent eliminated retail business and those competing for the introducing broker business are seeing their rates squeezed as they race for scale, end users who are looking for a little added service or managed accounts can still face round-turn rates north of $50. Commissions have a direct impact on the ultimate performance of a commodity trading advisor's (CTA) program. Performance figures are quoted net of trading commissions, management fees and incentive fees, so higher rates directly effect performance.