I am considering offering autotrading in the future and I was looking at the borkers that are compatible with the C2 autotrade system and the fees. One broker that I am considering is MB Trading. It appears as though the fee to autotrade a system usnig MB Trading would result in a $99/month license fee to the verdor??!! Is this correct? Other brokers have similar fees. So does this essentially mean that a vendor offering autotrading would be charged $99/month to do so? If so, I guess we would need significant subscribers to cover the monthly fee. Thanks to those who are able to reply!
From C2âs Trades-Own-System page:
"Collective2 has worked out special arrangements with participating Gen3 AutoTrade Brokers. When you participate in the TOS program, all trades executed in your brokerage account for participating systems will not be charged any AutoTrade fee. In addition, all Gen3 monthly fees for stocks/options will be waived for your account. (AutoTrade fees will be waived. Regular brokerage commissions will still apply.)"
MB Trading is listed as one of the participating brokers for stocks. So, the above would indicate that your $99/month license fee for the stock Gen3 interface would be waived.
Thanks for the reply Jack! Now that you mention it, I do remember seeing the information on the TOS promotion. That is great to hear. I was wondering how I could make the use of autotrading profitable with only a few subscribers. Take care!
The Autotrade license is not for the vendor unless of course you autotrade your own system with C2. The TOS waives the autotrade license fee for the developer if they trade their own system, this is only to promote TOS.
If I was to subscribe to your system, I would have to pay $99 for the license to auto-trade your system on my MB broker account. This is true to all subscribers who wish to autotrade a stock system using G3.
The only good thing is that the G3 Autotrade license fee allows you to autotrade any or multiple stock system on C2, so is not a per C2 system base, but per subscriber base. The G3 license also covers all G3 enabled Broker accounts, again not per Broker account base, but per subscriber base.
So the fee is NOT for the vendor but the subscriber if you don’t autotrade your own system. You can always autotrade your own system with a simulated account which is free and doesn’t require the G3 license.
Thanks for the reply Julio. So, a SUBSCRIBER to a system would pay $99 for the license to autotrade. On the autotrade FAQ, it seems to indicate that this fee is paid monthly, is this correct? Thanks!
Yes indeed. The subscriber pays the fee. It is monthly but C2 has a 6 month special for $399 I think. On Forex systems it $1 per trade per 10k. So if you don’t trade you don’t pay. Of course if you trade a lot, you pay a lot too unlike stocks which is a fixed $99 a month.
Keep in mind this is additional to the commissions charged by the broker.
The subscribers pays for it all except for keeping the C2 system online.
Auto trade fees
so it really sucks for the subscribers is the system developer doesn’t manage risk well. Because of all the fees subscribers really look for low risk and steady wins.
Sheesh! That is a lot of fees! I really like the concept of C2 but it would seem very difficult to persuade subscribers to auto trade your system in light of this. I was really exploring autotrading as a big benefit to potential subscribers but I don’t know about that now. I am sure many will balk at the high fees; unless the system is really producing stellar returns. Thanks again for all of the feedback!
C2 is great and if you have a good system the fees are an afterthought. Stocks can be traded without auto trade thus auto trade makes it more convenient. Forex is very hard to manually trade specially on most Forex systems in C2 which have very many small profits. I normally try to get at least 2% on average per trade on stocks to cover for fees. I’m able to easily accomplish this on high beta very low volume stocks which would be impossible to trade in C2 because well subscribers would be moving the stock and create slippage. There are a good stock system with around 1% gain per trade and 60%+ winners in C2. The problem with these systems is that you need at least $5k to $10k per trade to make them worth it or the fees will eat all your profits. The auto-trade information has shown me that most users trading stock systems trade around $2k per trade. Right of the bat you loose .5% to 1% with all the fess depending on how is traded and with who. Forex is a different story, the high leverage makes horrible systems look like gems, because someone with $2k can easily trade $100k. So these systems rarely make more than .1% gain per trade which is pathetic but they do it with high frequency and high winning percentage. The problem is that it only takes 2-3 losers of 1% to 2% to wipe out their accounts. Now, the day I find a good Forex system with at least .25% gain per trade and low DD, well count me in as a subscriber.
Thru the years here on C2 I have not yet found anybody proclaim. âWow the auto trading option on this site is great!!! I have auto traded my way to millionaire statusâ.
The only thing ever discussed is the prohibitive fees and problems sinking accounts.