An option broker (full service)

[PohPoh]

An options broker who charges $200 commission to buy a 750$ option spread is an _______________________?

 

[Traveler]

They're saying, "We prefer you do not trade options with us."

 

[TorontoTrader2]

troll

 

[PohPoh]

I was gonna say a bucketshop, won't last long, trying to rape as much in commission as possible.

It's amazing how many people out there still pay these rips.

When's it gonna end?

Soon - if that bill passes through the Senate..

 

[STEERAM]

what bill is that

 

[PohPoh]

I heard that they are placing firms that charge excessive commissions under 'enhanced supervision'..

 

[loufah]

Are you talking about $200 commission for a self-directed trade, or for a trade recommended by the broker?

 

[PohPoh]

Full-service, as I said...

 

[loufah]

I suppose there's a niche for full-service brokers who still get a few percent commission on each trade, but they're falling by the wayside as people go to 1.5%/yr money managers at MEL etc.

In 2005 I got a cold call from a commodities broker who wanted to make money for me trading oil. $100/contract each way, account minimum $5000. I presume he was trading QM, and doing the math it meant a 1% move in the correct direction would mean $100 for me and $200 for him.

 

[demoship]

$100 / contract? you gotta be shitting me, you'd need the price of the commodity to either explode or implode to have any hope of seeing any money out of it.