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Compare the Cost of Discount Stock Trading Vs a Managed Futures Account

 WHAT SHALL I TRADE AND WHERE? 
     
Trading Account:Plan APlan BPlan C
  StockStockFutures
Commission Per Trade:$9.00$7.00$1.50
     
                      Annual Cost of 5 Round-turn Trades Per Period
DAILY (20 per Mo.) $21,600$16,800$3,600
WEEKLY  $4,680$3,640$780
MONTHLY $1,080$840$180
YEARLY  $90$70$15
     
INITIAL CAPITAL$50,000   
     
ANNUAL  COMM AS A % OF CAPITAL:COMMMgmt FeeTotal Cost
Plan A Trading Daily43.2%0.0%43.2%
Plan B Trading Daily33.6%0.0%33.6%
Plan C Trading Daily7.2%4.0%11.2%
     
Plan A Trading Weekly9.4%0.0%9.4%
Plan B Trading Weekly7.3%0.0%7.3%
Plan C Trading Weekly1.6%4.0%5.6%
     
ANNUAL COST OF OPERATING EACH ACCOUNT WITH DAILY TRADING
     
 PLAN A:$21,600  
     
 PLAN B:$16,800  
     
  PLAN C:$5,600  
     
     
ANNUAL COST OF OPERATING EACH ACCOUNT WITH WEEKLY TRADING
     
 PLAN A:$4,680  
     
 PLAN B:$3,640  
     
  PLAN C:$2,780  

Text Box: Considering a "full service" brokerage account? You have to ask how much that helps when the market takes off against you. Does paying higher commissions make sense when the losses pile up, even in spite of "professional research?" I guess there's a market for everything, right?_____________________________________ OBSERVATIONS FROM THE "WHAT SHALL I TRADE AND WHERE" CHART Regardless of the broker's bells and whistles, the cost of trading has a dramatic effect on the bottom line of your account. Even a $2 difference per trade puts a significant dent into the results. Therefore, if you can save that money by trading somewhere else for the same result, why would a thinking person fall for the publicity hype when you can consistently (not "on sale") get the same result for less? Because I have determined in my trading experience that trading futures contracts (or holding them, for that matter) makes more sense than using stock, I want to take it a step further and show you the difference in the cost of trading. I even take it a step further and add in my annual management fee, something you don't have to pay if you are managing your own account in the stock realm. Trading stock every day is where the greatest commission massacre takes place. That's one reason why many think it's smarter to load up in January and adjust the account the following December, taking whatever the market hands them during the year. With a $50,000 account, you can easily reproduce the commission results in any of the listed "Plans." Simply stated, even with my 4% annual management fee included, Plan C offers the lowest cost of doing business, and with Plan C, there is absolutely nothing for you to do. But even with a 1.5% management fee offered by the full service firms, their trading costs are so high that you still come out on the short end of the stick. Plus, few of them will talk to you about futures accounts because they don't want to risk "disturbing you." They'd rather keep you walking the traditional road with it's higher costs and fees. To make money anywhere there has to be "movement." When managed successfully, that movement offers profits on both sides of any up and down market. Without a doubt, in my experience, futures contracts move far more and further than do common stocks. That's why I choose to exert my energies with "securities" that offer more for the money and at a lower cost for you, even including my management fee. Then you can go have a life doing something else. I hope you like the concept. (For personal attention, click here.)