By Darrell Martin
All businesses have expenses and day trading is no exception. One of those expenses is the data needed to populate charts for reading the market being traded. Where does the data come from? It originates at the exchange i.e., CME, ICE and others. Those exchanges charge a fee for providing the data. Fortunately, there is a way to have free futures data while demo trading. Then, when it’s time to open a brokerage account, there’s another option for having multiple markets at a super low bundle price.
Having free data can be a relief for beginners. For all traders, NinjaTrader has always offered its award winning charting platform free, offering advanced charting, strategy backtesting and trade simulation. When downloading the NinjaTrader platform for free, at the same link, traders can also sign up for free demo live market data provided by Continuum/CQG. Often, a trader’s confidence is fragile when just starting out. Available trading capital can be low, and a full long term commitment to day trading may not have been decided. Through NinjaTrader, beginning traders are able to acquire the platform and data for free.
http://ninjatrader.com/OpenAccount
Take advantage of the free data while in demo mode. If the intention is to make money trading, then fund an account and get the real live data. That’s true whether trading futures and forex or options such as Nadex spreads and binaries.
Demo is good but it can be taken down for whatever reason, or knocked off connection. The Continuum/CQG data feed provided with brokerage accounts, is true, unfiltered tick data and takes priority. The power resources will always support the true live feed, as its real live traders with real money. Unfiltered data is better for fast markets versus other data from some providers that do snapshots, which can miss ticks. For trading live, having accurate uninterrupted data is essential.
When just starting out, traders may balk at opening a brokerage account to receive accurate data. However, without some kind of a brokerage account, charges add up. Consider the exchange charges, $50 base charge, $91 CME for indices and futures FX, $91 Nymex energies, and $91 for comex metals. This comes to around $323 a month or over $3500 a year. By having a brokerage account, that expense is cut down to $21 for the same accurate live data for the same number of markets. The savings is evident when one does the math. Only $252 compared to thousands a year means more capital to trade with.
To open a NinjaTrader brokerage account, it’s still only $1000. The next day after deposit, $500 can be withdrawn. Trading Nadex? If trading live Nadex, you’re still trading live. Take $250 of the withdrawal, and open an account at Nadex to trade spreads and binaries with capped risk. Then, back at NinjaTrader fund a forex account for $50. There, futures and forex can be traded on a single brokerage license. That will leave $200 to put back in the bank. The $21 a month won’t be felt now, because the $500 is in the account to cover the first year of data fees. At the end of the year, top up the account for the coming year of trading, if needed.
Concerned about being approved by the clearing firm that sets up the brokerage account? Most people wanting to trade need not be concerned. Clearing firms do just that, clear trades, along with preparing the statements showing trades, commissions and the $21 fee. Requirements for approval are fairly inclusive, 30k+ income a year ideally, age 22-64 years old or another disclosure is requested, 20k-50k of net worth and a utility bill that can match one’s credit statement. Some say Phillips is easier to get cleared than other clearing firms, and Phillips also offers free ACH withdrawals.
If a trader can’t manage that, it’s going to be really hard to trade and manage risks. If the goal is to be trading for a living or even income in the next few months or year, then it’s a step necessary in taking.
For free day trading education and shorten the learning curve for new traders, along with trading tools for better market analysis, visit www.apexinvesting.com.