One of the costs of trading is brokerage fees. Brokerage fees are normally charged as a percentage, which is what brokerage firms make money from. On the other hand, for investors, the brokerage fee is a cost that needs to be recovered.
For Eminis the cost of trading is a fixed $2.50 or $5.00 for one cycle. That means no matter how much you trade, you only pay a total of $5 everytime you buy and sell or reverse when you go short.
There are some brokerages though who do sell this but at a much higher rate, but in reality the cost is only $5 round trip. Now you know why brokerages don't sell this. Simply because they make more money trading equities and other markets
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Bob Mihailovich
ReplyDeleteRobert Mihailovich
Now I know why brokerage firms are not promoting Eminis. Thank you for explaining the reasons.
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