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Best Platform for trading futures options?
- Thread starter jwcapital
- Start date
Quote from Maverickz:
ToS default commissions:
Options:
The lesser of: $2.95 per contract OR $1.50 per contract plus $9.95 (only one $9.95 charge for unlimited spread legs)
Again those are rates for equity option contracts, not options on futures.
IB charges $0.7 + exchange fee per contract with a min order of only $1 required. It is significantly lower than TOS. For options on futures, it's $1.7 all inclusive for the es mini options. Does anyone know how much TOS charges? i cant find it on their website.
The tradeoff for iB is of course very bad customer support. I guess it depends on how often you need to contact CS.
Quote from newguy05:
Again those are rates for equity option contracts, not options on futures.
IB charges $0.7 + exchange fee per contract with a min order of only $1 required. It is significantly lower than TOS. For options on futures, it's $1.7 all inclusive for the es mini options. Does anyone know how much TOS charges? i cant find it on their website.
The tradeoff for iB is of course very bad customer support. I guess it depends on how often you need to contact CS.
You are correct that this is the equity option rate. ToS hasn't actually started allowing Futures Options trading yet...it's "Coming Soon" so those commissions haven't been set yet...I would assume it would be similar.
I read on TOS's web site that the total commissions for ES futures(including exchange fees) is $3.50 per side, per contract. The clearing/exchange/BKG/REG/NFA fees for ES futures are $1.16 total. For ES future options, the fees are $0.57 total. So, basically TOS's commission is $2.34 per contract, per side. If they use the same commission for futures options, then the total commission for FOP's would be $2.91. We will see. If the platform and service are top-notch, then the commissions are worth it.
Quote from newguy05:
Again those are rates for equity option contracts, not options on futures.
IB charges $0.7 + exchange fee per contract with a min order of only $1 required. It is significantly lower than TOS. For options on futures, it's $1.7 all inclusive for the es mini options. Does anyone know how much TOS charges? i cant find it on their website.
The tradeoff for iB is of course very bad customer support. I guess it depends on how often you need to contact CS.
For options on futures, such as ES, ER2 options, IB charges $1.81 per contract, not $1.7. It was $1.65 before 2007.
You folks are also overlooking the fact that TOS pays a paltry interest rate on cash balances. This can add up to major opportunity costs over and above the higher comission costs, in comparison to IB.
I'd say do a cost/benefit analysis. If TOS is under $2000 in additional interest/commission costs, make the change. I would also be cognizant of what sorts of margins TOS requires for options on futures. IB is in the habit of hiking margin reqs, not telling cusomers, and then blowing out positions in client's accounts. This has happened to me I don;t know how many times, with no resolution with IB.
Chaning margin reqs with no notice is my main reason for giving STRONG consideration to TOS once they roll out options on futures. IB has clearly shown to me that they are no partner of mine. TOS's platform also works with my firewall at work, so I am not always in the dark with IB's stupid Webtrader.
I'd say do a cost/benefit analysis. If TOS is under $2000 in additional interest/commission costs, make the change. I would also be cognizant of what sorts of margins TOS requires for options on futures. IB is in the habit of hiking margin reqs, not telling cusomers, and then blowing out positions in client's accounts. This has happened to me I don;t know how many times, with no resolution with IB.
Chaning margin reqs with no notice is my main reason for giving STRONG consideration to TOS once they roll out options on futures. IB has clearly shown to me that they are no partner of mine. TOS's platform also works with my firewall at work, so I am not always in the dark with IB's stupid Webtrader.
But you are overlooking the power of negotiating if you trade and have money. Net with interest and commissions I have as good (if not better) a deal at TOS as I would with IB. But you are correct in pointing out the advantage of no surprise margin changes at TOS. TOS advertised rate for anyone who trades over 20 contracts is .95 per contract all in with no ticket or other fees.Quote from Div_Arb:
You folks are also overlooking the fact that TOS pays a paltry interest rate on cash balances. This can add up to major opportunity costs over and above the higher comission costs, in comparison to IB.
I'd say do a cost/benefit analysis. If TOS is under $2000 in additional interest/commission costs, make the change. I would also be cognizant of what sorts of margins TOS requires for options on futures. IB is in the habit of hiking margin reqs, not telling cusomers, and then blowing out positions in client's accounts. This has happened to me I don;t know how many times, with no resolution with IB.
Chaning margin reqs with no notice is my main reason for giving STRONG consideration to TOS once they roll out options on futures. IB has clearly shown to me that they are no partner of mine. TOS's platform also works with my firewall at work, so I am not always in the dark with IB's stupid Webtrader.
TOS will always have better service than IB and will work with you directly on any margin issues. IB will always have many more products than TOS and will have better rates for smaller traders. There is no perfect broker, it depends on what the best fit is for each trader.
I have been asking Tom and others from TOS as to When TOS will REALLY have options on futures.
Been asking for close to 2 years. Talked with them in person and by phone. I have been getting the answer "Should be within a few weeks" -- this is the answer i received for over a year now.
I have hung in with them because i am used to trading with the TOS platform but will change to IB if they don't start trading options on futures within the next couple of weeks.
If any of you know how to get an ACCURATE launch date I would appreciate your passing it on.
Thanks.
Been asking for close to 2 years. Talked with them in person and by phone. I have been getting the answer "Should be within a few weeks" -- this is the answer i received for over a year now.
I have hung in with them because i am used to trading with the TOS platform but will change to IB if they don't start trading options on futures within the next couple of weeks.
If any of you know how to get an ACCURATE launch date I would appreciate your passing it on.
Thanks.
I gave up waiting for them too... but in their defence, they actually have got quotes up there now for fut ops like ED, ZC, ZW etc, I'm guessing it really is imminent... cool
yeah i also got tired of how ib kept raising margin requirements with little or no notice. i lost faith in them and switched to tos.
if you have a large enough account, tos is better than ib. you can negotiate a competitive credit interest rate, and if you have portfolio margin you can park your cash in money market funds that pay higher rates than ib (this reduces your available margin by 15%, however). actually, if you have tos portfolio margin, there's no reason to use ib, because their margin for f.o. is nearly identical to reg-t for certain positions, and commissions for equity options at tos are lower than f.o. commissions at ib.
if you have a small account, stick with ib. otherwise go with tos.
if you have a large enough account, tos is better than ib. you can negotiate a competitive credit interest rate, and if you have portfolio margin you can park your cash in money market funds that pay higher rates than ib (this reduces your available margin by 15%, however). actually, if you have tos portfolio margin, there's no reason to use ib, because their margin for f.o. is nearly identical to reg-t for certain positions, and commissions for equity options at tos are lower than f.o. commissions at ib.
if you have a small account, stick with ib. otherwise go with tos.