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I think you neglected to factor in cost of infrastructure and all the other operating and overhead costs. Breakeven is a lot higher than $10/mo/person (that's the Nasdaq exchange fee) and $1/trade clearing.

wireless - yeah, still using TP. Still the best I've come across (especially for the money). Been on vacation and then of course had to pay for that time off by working my butt off catching up on things at my clients, so haven't been able to do more than a few trades lately. Hope to finally...

Privateer - did you notice the fine print on the GRO Trader pages? They're not just comparable to CyberTrader - they're using CyberTrader from CyberCorp as their trading platform. Any idea what the advantage is that they would offer then to just using CyberCorp?

wireless - My gut feeling is that there must be more to the story than what Business Week reported as it is difficult to fathom the FreeTradez.com business model foundation having such an impractical basis. Why would you assume such a thing? There are way too many dot com's with totally...

If they're giving really free Level II (i.e., they're eating the Nasdaq Exchange fee) - they'd have to hit you with 1000 ads a month just to pay the exchange fee. The cost to provide the whole trading infrastructure must not be cheap. E*Trade charges, what, $8-10/trade AND gets paid for order...

Got to say I'm skeptical. If the guys who do charge commissions and do get paid for order flow can't make a profit (didn't E*Trade post another losing quarter recently?), how the heck is some outfit who's supposedly doing neither? Is this another "we're going to get rich with an IPO and then...

MM - just curious what your definition of a daytrader is (since there's a bunch of different trading methods that are all "daytrading") that would benefit from using this kind of combo? Couldn't tell if that was a typo or if you intended to mean scalping for fractions was the focus. I believe...

MM - I understand what you were getting at now. If you can put the conversion on for close to net zero, you could use it as a kind of cover for selling the long equity and buying it back at a lower price (effectively the benefit of shorting without actually shorting the equity). That might...

That doesn't seem all that worthwhile since you have to both wait for expiration (you can't sell your stock because then you'd be left with a naked short call) and pay the premium over intrinsic for the put (somewhat offset by the call) and usually lose the spread twice (once on buying the put...

MM - run that by me again - if you bought stock and then sell it, you're not short Are you saying you do something like buy 100 shares and then sell (without noting it as short) 1100 shares to create a net short of 1000 shares?

def - I didn't say Schwab, I said CyberX. You confuse (or perhaps you don't really) the fact that Schwab just bought Cybercorp, with Cybercorp selling order flow. Since their CyberX platform provides direct order routing and execution, I find it interesting that you are trying to confuse the...

def - I think the concern about longevity (and still my concerns about account safety) are driven by the fact that IB is NOT those affiliates or the Timber Hill group that you always talk about. It's an LLC insulated from the others (thus my belief that mentioning Timber Hill is irrelavent...

I can understand the fast execution for autoexecutable options (under $10 premium) - at least when the floor traders don't get the exchange to declare fast market conditions and turn off autoexecute. And when the option is multiply listed the spreads definitely shrink and it's easier to get in...

Are you scalping options? 50 small lot trades a day is a lot for an off floor option trader. I haven't found it worthwhile to trade less than 10 contract lots (not because of a minimum commission, just because 1-2 points on only 3 contracts isn't enough to risk the occassional screwing around...

kralcd - I pay $2-3/contract at Preferred ($2 if premium is up to $10 and $3 for premiums over $10), there is a $20 minimum commission but since I'm usually trading 10+ contract lots it's irrelavent.

kralcd - just curious, but why is the difference between $2-3/contract and $1.95/contract that significant?

Ros - Nice of the CBOE to have the increased limits on autoexecutions for the SPX - wonder if those huge 2 point bid/ask spreads have anything to do with that?? When there isn't a fast market exception, I get executions on RAES eligible trades within a few seconds through Preferred. I just...

Ros - also be aware, that RAES will only autoexecute orders of up to 10 contracts (assuming autoexecution is enabled at the time and for the contracts you're trading). If you're looking to trade up to 50 contracts at a time, you'll need to break the orders up if you want a chance at autoexecuting.

Ros - keep in mind that no matter how fast any broker routes your index option order to the CBOE, you're still at the mercy of the floor. It's not like direct execution of equities. Anything over $10 premium must be handled by hand at the floor and even for the under $10 premium options, the...