How much money is needed to start trading in the London Metal Exchange (LME)?
I am interested in investing in cobalt, lithium, and nickel.
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Here are the share holding requirements for members of the LME. Note that these are the number of shares one is required to own to be a member at each level. In brackets after each number of shares is the value those holdings would have today. The price is based on 2010 data though, so it may be a bit off but gives you an idea of what to expect:
Category 1: 25,000 ($2,975,000)
Category 2: 25,000 ($2,975,000)
Category 3: 5,000 ($595,000)
Category 4: 2,500 (297,500)
Category 5: 0 ($0)
For category 5 (the "free" level) the LME has this to say:
These [category 5] members may be customers of Category 1, 2 or 4 members, in which case they receive Client Contracts but are not permitted to issue them, or they may be physical market participants who wish to be associated with the LME brand. Category 5 members are not required to be regulated.
There are also nominal fees associated with trading and it looks like they range from about $0.25 to $0.90 depending on the type of trade.
Links:
Michael Hartmann
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