Are high futures commissions quietly eroding your profits with every trade? Many investors think commissions are fixed. However, in fact, they have great flexibility for adjustment. To understand how to lower futures commissions, you must first know can futures commissions be adjusted? The answer is yes. This article reveals this open secret and provides negotiation techniques for large capital commission discounts designed for large investors and active traders, teaching you how to communicate effectively with brokers, reduce your trading costs fundamentally, and protect every bit of your hard-earned money.
Before learning how to negotiate, you must first understand the composition of futures commissions, as this will be the foundation of your negotiation. Know yourself and your counterpart, and you will never lose a battle. The commission is not a single number but a combination of several parts. By understanding these components, you will know where the broker’s profit lies and how much room you have for negotiation.
In general, each futures commission you pay mainly consists of the following parts:
Simply put, your total commission = fixed exchange fees + broker profit + broker bonuses. The parts you should negotiate are the latter two.
The main criteria brokers use to assess a client’s value are none other than two indicators: trading volume and capital size. These two factors directly determine how much profit you can bring to the broker and serve as your most important bargaining chips.
Therefore, before applying any futures commission negotiation techniques, first evaluate your own strength in these two aspects. The stronger your position, the greater your confidence in negotiation.
After understanding the fee structure and your own value, the next step is the actual negotiation process. Many people miss valuable opportunities simply because they are afraid or don’t know how to start the conversation. Below are five field-tested and highly effective negotiation techniques that will help you avoid paying unnecessary fees.
Empty talk is the biggest taboo in negotiation. Before contacting your broker, make sure to prepare your trading statements from the past three to six months. This statement is your résumé, it clearly records your trading frequency, average monthly contracts, main traded products, and other key data.
Key communication points:
The purpose of this step is to establish your position in the negotiation and make it clear that you are a client worth prioritizing, not a beginner who can be brushed off casually.
Many people tend to beat around the bush, which only reduces communication efficiency. In the financial industry, time is money, and professionals appreciate clear and direct communication. Once you have your data ready, approach your broker politely and state your request directly.
Example communication script:
“Hello Mr./Ms. X, this is client OOO. I’ve reviewed my trading activity over the past few months, and my average monthly volume exceeds XXX contracts. I’m quite an active trader and would like to discuss whether there’s room for adjustment in my current commission rate.”
This approach acknowledges your value, shows respect to the other party, and clearly expresses your purpose. Avoid using threatening or emotional language such as “Your commissions are too expensive!”, that will only make the broker defensive. Maintaining a professional and calm attitude is the first step toward a successful negotiation.
If you are a trader with substantial capital, even if your current trading volume is not high, you should absolutely make use of this advantage. Brokers have entirely different service standards and fee structures for large-capital clients because they know such clients may execute large trades at any time.
Key communication points:
The core of this technique is to showcase your “potential value”, encouraging the broker to offer a lower rate as an “investment” in you as a client, anticipating that you will generate greater future revenue.
This is one of the most classic and effective strategies in business negotiations. Before contacting your broker, it’s worth reaching out to one or two other brokers to learn what rates they can offer clients like you. This helps you understand the market range, giving you a clear benchmark and preventing you from being swayed by a single broker’s sales talk.
Example communication script:
“…While evaluating my trading costs, I also inquired with other brokers, and some competitors have offered me more competitive rates. However, since I’m used to your platform and have had a pleasant experience working with you, I wanted to discuss with you first to see if there’s a more attractive plan available so I can continue trading here with confidence.”
Key points:
Successfully lowering your commission is not the end. Your trading journey continues, and your trading scale may keep expanding. Therefore, treat the review and negotiation of commissions as an ongoing process.
This demonstrates that you take your trading costs seriously and signals to the broker that they must continue offering competitive terms to maintain their relationship with you as a valuable client. This creates a positive cycle and reflects the meticulous, professional mindset of a skilled trader.
A: Yes, almost all futures brokers have room for negotiation on commissions. The “broker service fee” portion of the commission is flexible, it’s an important tool they use to attract and retain clients. However, each broker’s base rate and the level of authority granted to their brokers differ, so the final discount you can achieve will vary. Some online brokers that promote extremely low commissions may already be close to cost price, leaving less room for negotiation, but for clients with a certain trading volume, negotiation is still possible.
A: Absolutely. The strategy is just different. Although beginners or small investors may not have an advantage in trading volume or capital size, you can start from the following points: 1. Show enthusiasm and potential: When opening an account or communicating with your broker, express your active attitude toward trading and your long-term commitment. This helps them see you as a client with potential. 2. Centralize your trading: Concentrate your funds and trading activity with one broker. Consolidated data looks much stronger than if it were spread across multiple firms. 3. Ask about promotional offers: Proactively ask whether there are commission discount campaigns for new or small-scale traders. Even a small discount can add up to substantial savings over time.
A: If your broker takes a firm stance and refuses to offer any discount, you can try the following approaches: 1.Request to speak with a supervisor: Sometimes brokers have limited authority. You can politely ask if it is possible to discuss the matter with their department head or manager, who usually has greater decision-making power. 2. Be ready to move your account: If communication fails, the most direct approach is to “vote with your feet”. Let them know you are considering transferring your account to another broker that offers more reasonable rates. This often serves as the final push for them to reconsider. 3. Open a new account elsewhere: Go ahead and open an account with another broker and transfer part of your funds to start trading. When your original broker notices a clear drop in your trading volume, their representatives will likely reach out to you proactively.
A: In general, it will not. The level of commission has no direct connection to the stability or speed of the trading system, nor to the quality of customer service. Regardless of the commission rate, you should receive the same trade execution quality. However, some additional “soft services”, such as exclusive research reports, one-on-one market analysis, or invitations to offline events, may be tied to your overall contribution in commissions. During negotiation, it is advisable to clarify: “After the fee adjustment, will my existing services remain the same?” to ensure your rights are protected.
In summary, the key to lowering futures commissions lies in recognizing that commissions are adjustable and in taking a proactive communication approach, using concrete trading data to demonstrate your value as a client. Stop silently accepting the standard rate offered when you opened your account, as that is often the highest rate. Review your trading records now and apply the five futures commission negotiation techniques provided in this article to confidently start a professional conversation with your broker and maximize your investment efficiency. Remember, in the world of trading, every dollar you save is pure profit.
