Broker + front end for hedge funds (FX and Futures) + DMA?

[sigma]

For IB you can request the portfolio margin rules https://www.interactivebrokers.com/en/index.php?f=marginnew&p=overview4



In my experience for balanced long-short exposures it allows to have 1:4 leverage without stretching.



This is a risk-based system and it incorporates some netting for equity exposures. It is not available for positions in futures and futures options though.

[a路径积分]

@TSWP



No problem. What you're doing takes a lot of courage and mettle, it's my blessing to be able to extend some help.



I agree with agentq, if you are just doing this in low-med freq on the majors, you should just pick one of the top 4 volume ECNs. They have anything from algo order types, GUIs, access over public internet and free live data over FIX sessions and are more supportive of sleeper accounts. This way you don't end up burning a monthly license fee before you even get started. The setup time takes 1-12 weeks depending on which ECN this is, and you don't need a PB to start connecting, so I'd get the ball rolling already if you can.



This is for later on, but one suggestion I have is that after you've picked your favorite broker, tell your 2nd favorite the sincere reasons why you went with the other broker, but that you want to schedule a quarterly callback in case you start needing a secondary counterparty. This also gives you some backup leverage in case the broker that you went with guts you on fees later on or has some staffing shakeup that leaves you with incompetent contacts.



Also, the space is very interconnected. If you asked your most-trusted auditor, attorney, or ECN salesperson for recommendations to PBs, I can guarantee you that they will easily set you up with 1-2 new contacts, and at least you get quality vetting through this, which is better than hearing recommendations from me.

[TSWP]

a路径积分 and agentq thanks for the solid input, I'll take advantage of it when we'll start trading FX (initially we'll trade only Futures, we have a plan on how to market the various ways we play different markets through dedicated investment programs and this will evolve as we learn to know better our clients and their need, a路径积分: your previous comment about SMAs rang a bell in that sense).



cquand, thanks for the clarification.

[a路径积分]

OK if you are starting out with futures and 1-2 years away from automation...



> Is there a broker you would use above anyone else? Lime? Interactive Brokers?, or do you prefer more complex, self-built solutions with APIs/DMA? Object Trading?



Is this CME, ICE, or both? For CME, I'd recommend against unnecessarily bumping yourself into the highest tier of non-display fees on your MDLA because of your platform choice and DMA setup. ICE is less discriminatory with this.

[TSWP]

>Is this CME, ICE, or both?





Most likely we'll start with CME.