TT Fees

[Savage1701]

This occurs to me also - if I have my broker charge me the fee, it comes straight off my bottom line, much the same as a commission. If I have to purchase "credits" from NT to do this, the best I can do is deduct those costs on my taxes, and unless you are on mark to market accounting you have to hit 2% AGI before the deduction can take effect. This effectively almost doubles the costs of the credits. Again, I think I will drop the DOM version of NT. This is not worth the hassle.

[NinjaTrader_Ray]

We are releasing a SuperDOM version that will not be subject to TT fees tomorrow or the next day.

[Savage1701]

How is this accomplished? I need to know, because, honestly, I can't stay with a platform that I have to "buy credits" at to trade, as I mentioned in my last post. Please clarify this. Is this going to be a true SuperDOM or a Basic window? Thanks for any help.

[NinjaTrader_Ray]

http://ninjatrader.mywowbb.com/forum9/625.html

[cody]

savage-- You're making it too hard. Think of it as a petty cash draw at NT. As you trade, they subtract from your balance.

Your accounting position is wrong. Its no different from having your broker subtract the amount. In some ways, its cleaner as you can probably deduct the full amount immediately, if you view your trading as an ongoing business and you pay the amount this year. You can talk to your CPA and book it as a pre-paid expense as well.

[Savage1701]

What is the difference between a static and dynamic DOM?



Never mind, the email just appeared in my box as I submitted this. thanks.

[Savage1701]

I'm not sure you are right about that Cody. It depends whether the IRS views this TT fee as a true commission expenseor as a trading expense such as my NT subscription or my quote fees. My NT sub. is deductible, but is subjetc to the 2% AGI. And at 10 cents per side per contract, which is how I understand these fees go, this ain't no petty cash we're talking about. I'd agree with you if I were making 5-10 round trips per day and was paying $1-$2 per day, but not if it is 10 cents per contract per side.

[al_gorithm]

Ray,

Could you make a quick Flash Video of the new dynamic SuperDOM window so we can see how it will look and feel to place orders with the ladder moving instead of the inside market.

Would appreciate it very much. Thanks in advance.

al_gorithm

[Savage1701]

Yes, that would be great. I can't visualize this very well from just the description.

[NinjaTrader_Ray]

We will release the udpate tomorrow or the next day so you can put the DOMs side by side and see the difference. Nothing has changed except for how the display updates as the market price changes.

[cody]

Even if your commissions are $2 RT, the 20 cents disappears pretty quickly.

IMHO, if the TT fee dissuades you from trading, you need to re-consider if trading is for you.

[Savage1701]

Cody, you need to pay attention to what I post. I am not particularly concerned with 20 cent round turns. I stated that. I AM really concerned about what happens when it starts being 20 cents per contract per round turn, which is apparently what the fees are from what I am reading in this forumn. Start trading in 20, 40, 50 lots 5-10 times per day and that's real money. IMHO, if you don't watch your commission rates and who is charging what for which services, then you need to re-consider if trading is for you.

[Antraman]

yeah Savage we hear you, but when you're trading in 20, 40, 50 lots 5-10 times per day, you should be *making* a real lot too...surely that would be enough to offset the expenses?

By my calculations, TT fees are going to add a mere 0.4% to the 11% commissions already being taken out of my gross profits (excluding data fees and Ninja subs.)

[cody]

Well, savage, you win. Your crushing logic ofthe impact of the 20 cents RT is too much for anyone.

Lets take a simple yet concrete example. If you trade gold, where each tick is worth $10, less TT's 20 cents, that certainly affects anyone's profitability and decision on what to trade. Maybe you should trade bonds, where the ticks are $31.25 each.

Lets take your examples. if you trade 50 lots a day x 2(for RTing) x 10 times a day x 10 centsTT commiss thats $100 to TT. If you make 1 tick in gold, $10, that equals a P&L of +$5,000, or 50 lots x 10 times a day x 1 tick x $10 profit per lot.

I'm not trying to gun you up, just saying, if the platform makes money for you, TT's commiss simply becomes a rounding error.

[wagross]

re the 20 cents per contract....

maybe its the fact that i'm jewish, but better the money should be in my pocketinstead ofTT's

[Savage1701]

Well Cody, I don't really think it's "crushing logic" to want to minimize commissions. It's just common sense.

If it's so irrelevant, and just a "rounding error", why would NT be doing a dynamic DOM? Apparently I'm not the only one who wants to save money. I'd even wager that I'm in a big majority, as I doubt NT would bother with a Dynamic DOM if everyone was just all warm and fuzzy about TT's fees.

I'm with wagross; far better the money is in my pocket than TT's.