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How much money is needed to start trading in the London Metal Exchange (LME)?

I am interested in investing in cobalt, lithium, and nickel.

  • Do you mean, via a broker with a membership on the exchange, or by becoming a clearing member? – dsolimano Jan 8 '18 at 21:52
  • 2
    the fee structure is here: lme.com/Trading/Access-the-market/Fees this is not really a personal finance question - here is the membership process information: lme.com/-/media/Files/Membership/… – MD-Tech Jan 9 '18 at 13:16
  • @MD-Tech Thanks for the links, they answered my question. Wright answer if you want and I will accept it. – vasili111 Jan 12 '18 at 19:35
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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:

Membership Categories

B Shares Requirements

LME Raises Price to $119

Fee Schedules and Calculator

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