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Assignment fee upon expiration
- Thread starter JPope
- Start date
get a real broker. ib charges nothing.Quote from JPope:
Atrade has been charging me $20 per option I've been assigned on, either selling puts or getting excercised on covered calls. Is this reasonable? Negotiable? What's everyone else paying for these? Thanks for everything in this forum...
If the 20 dollar assignment fee is a problem, then you are not making enough from your short put or covered call positions.
Quote from KINGOFSHORTS:
If the 20 dollar assignment fee is a problem, then you are not making enough from your short put or covered call positions.
Quibble: If making a fortune, it's still a mistake to pay an outrageous fee for an exercise or assignment.
It cannot hurt to try to negotiate. It's not likely to do you any good.
Mark
IMO, $20 for an exercise is pretty steep.
Fees are negotiable if you trade high volume. I don't know about all firms but IB offers both bundled and unbundled fee structures.
As per two previous replies, IB charges nothing for assignment/exercise. That's good. They also charge cancellation fees (do others?). That's bad, particularly if you chase price all day.
Some brokers charge a fee per share/contract. Others charge a flat fee per tade. Which is best depends on the size of your trading. I prefer fee per shr/contract because it enables me to scalein and out.
Fees are negotiable if you trade high volume. I don't know about all firms but IB offers both bundled and unbundled fee structures.
As per two previous replies, IB charges nothing for assignment/exercise. That's good. They also charge cancellation fees (do others?). That's bad, particularly if you chase price all day.
Some brokers charge a fee per share/contract. Others charge a flat fee per tade. Which is best depends on the size of your trading. I prefer fee per shr/contract because it enables me to scalein and out.