Anyone offer commission free trading in Stock Index Options?

Free commissions are tough for SPX options. The CBOE adds a substantial exchange fee and these orders don't bring the same amount in payment for order flow.

Because of this the traditional free brokers either don't offer SPX (such as Robinhood) or will pass on the exchange fees even though they don't charge commissions (Webull).

I have been told that Firstrade offers SPX commission free and doesn't pass on exchange fees, but I can't confirm firsthand.

Also, I don't believe the Fidelity passes on exchange fess, but they do charge commissions.
 
Tall Mike said:
sell order flow to Market makers.
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Thats the problem with SPX options. Its harder to sell this order flow. Since SPX options are single listed, there aren't the same opportunities to profit with the order flow.
 
FSU said:
Thats the problem with SPX options. Its harder to sell this order flow. Since SPX options are single listed, there aren't the same opportunities to profit with the order flow.
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Interesting, I didn't know that.
 
No payment in SPX products on CBOE - they are a monopoly list. Significant exchange fees. Some firms will do quid pro quo - you send me this and I'll trade that with you. Both pit and electronically traded. Most of the Pro Customer participants are in two monopoly products - SPX and VIX, but it's pricey. Allows you MM privileges, but expensive. A handful of firms eat the fees for HNW accounts - size varies from firm to firm.
HNW is not high activity - the money is generated by stock rebates.
 
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