#CryptoFees101 The commission from futures trading mainly goes to the following places: broker, exchange, and, in some cases, the National Futures Association (NFA). Additionally, some brokers also charge commissions for position liquidation or other services.
Details:
Broker.
The brokerage firm charges a fee for executing a transaction to buy or sell futures. This fee may be a fixed amount or a percentage, depending on the broker.
Exchange.
The exchange also charges a fee for using its trading platform and clearing services.
National Futures Association (NFA).
NFA is a self-regulatory organization in the USA that regulates futures brokers and trading. It may also charge fees for its services.
Liquidation fee.
If a futures position has been liquidated, part of the assets provided for its maintenance may be withheld as a liquidation fee.
Other fees.
The broker may charge additional fees for other services, such as asset storage, fund transfers, etc.
Thus, the commission from futures trading is distributed among various market participants, including brokers, the exchange, regulatory authorities, as well as those providing liquidation services and other additional services.
