Ameritrade Raising Option Fees

[Arnie Guitar]

"We want to let you know that a small transaction-based fee will be added to all options order executions on or after August 14, 2011. This Options Regulatory Fee (ORF) was first implemented in 2009 by the options exchanges and is intended to help them offset their surveillance and regulatory expenses. TD Ameritrade has previously absorbed this fee for our clients.

About this fee:

• The fee will be a blended rate, calculated based on the fees assessed by the exchanges. It is currently $.012 per contract, rounded up to the next highest penny with a $.02 minimum, and subject to change. The ORF is assessed on all executed buy and sell transactions.

• You will see this fee under the “Reg Fee” section of each trade confirmation (which replaces the “Sales Fee” section). It will be reflected in the totals for “commissions and fees” on transaction and order histories. "


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I know, I know, no one uses TDA, but are the other brokers following suit?

 

[noob_trad3r]

Weird I got a refund for the ORF fees. it was about 340 dollars for 2010 and 2011 combined.

 

[Eliot Hosewater]

I wonder if they will do it for Thinkorswim too? So far I haven't seen anything from them, but the monthly expiration notice has been coming from TD Ameritrade since December.

 

[probe1957]

Quote from Arnie Guitar:
I know, I know, no one uses TDA, but are the other brokers following suit? [/B]

Since I am a newb to trading options and since my account is with TDA, I thought I should ask why "no one" uses them.

I will say I had a little issue with them when I first started but they got it fixed right away. I signed up for some of their training and was supposed to get 2 years of $1.50 per contract option trading with no commission. On my first trade, I was charged a commission but like I said, a phone call got it straightened out.

 

[Arnie Guitar]

Quote from probe1957:

Since I am a newb to trading options and since my account is with TDA, I thought I should ask why "no one" uses them.

I threw that in because many consider them too expensive for option trading.

 

[Arnie Guitar]

"This Options Regulatory Fee (ORF) was first implemented in 2009 by the options exchanges and is intended to help them offset their surveillance and regulatory expenses."

Another group seeing a big pile of money and wanting to "wet their beak". (Don Fanucci from "The Godfather")

"TD Ameritrade has previously absorbed this fee for our clients."

I guess the big bump in revenues generated from the commissions on weeklies wasn't enough to cover the endless barrage of TV commercials..."Trade Architect"...ok, ok, we know about it...

Greedy bastards. Where is that IB link...?

 

[uptickk]

Quote from Eliot Hosewater:

I wonder if they will do it for Thinkorswim too? So far I haven't seen anything from them, but the monthly expiration notice has been coming from TD Ameritrade since December.

FYI, TOS has charged the ORF Fee for quite some time now.