Interactive Brokers Micro S&P E-Mini futures (MES) Commissions

[tom]

I'm testing intraday trading with the Micro S&P E-Mini futures (MES). It's a great contract to live test any trading idea with futures without much risk.

A one lot was $1.14 commission round trip or $0.57 each trade.

MES is 1/10th the size of the full E-mini contract so the equivalent commission for ES would be $11.40. (The last ES futures trades I did averaged $4.20 round trip)

The intraday margin is $1,681.83 compared to ES $14,978.84

I had a quick move in MES and my trailing stop took me out of the position with +$3.50 points. That translates to +$17.50 - $1.14 commission = +$16.36 net

If you open a position and close it with +0.25 movement in MES, you would have: +$1.25 - $1.14 commission = +$0.11 net profit. If a trade is going your way and you want to cover the commissions at a minimum, you only need +0.25 (one tick) from your entry price to not lose any money.

 

[DaveN]

That's excellent perspective, Tom! Thanks for sharing this. For scalping and intraday trading, I always start with the rule of the "one tick covers any commissions and fees" and work from there. The liquidity and spreads make the index futures really great to trade.

If you are watching the market intraday, and you see a support or resistance about to break, this micro (or the mini-contract) is a great instrument to "put a pin" or hedge off your longer term options combos or campaign while you construct an adjustment. It's also a great way to scalp and learn in a smaller size.

Fills are quick, the book has depth, and there are no worries about short selling. Nice!