Closed TOS to add Merrill and also considering Tasty & IB

FP22

FP22

Merrill Lynch is my primary broker but I gave TOS a 1 year trial and that ended last month. Merrill gave me some money to bring my TOS money to them in the form of a second trading account. They said if I made swapped my wife's name as primary and me as secondary then there would be no problem having margin on each. This idea worked well for me as the second account was going to let me organize accounts into TRADING and INVESTING. My wife would be primary on INVESTING as part of an estate plan so when I die her instructions are to close all positions in TRADING account and move them into INVESTMENT account. That account is boringly made up of VTI and VTEB.

Ok, enough about death... that is just the estate plan in case that should happen. I don't plan on dying anytime soon.

Today Merrill calls me up saying there is a problem with having margin on both accounts so I must choose to combine accounts into one or take margin off of one. Not sure why this wasn't discovered before they approved it 2 months ago but not the biggest deal. Either way I keep their $ offer and will likely just take margin off the INVESTMENT account as that is supposed to be a more stable account for my wife to manage when I'm dead so margin really not needed.

So with this change I get the urge to look at adding a second broker. I am reminded of the few things I dislike about Merrill... their restrictions on some ETFs (I can trade TZA but not MJ for example... wtf?) and limiting online option size to 100. Trades are sometimes delayed for review. I deal with these because I do like account oversight for security and also feel I get good pricing. Still, I may benefit from a broker that specializes in options.

So, this gets me thinking I should re-consider getting a second broker again and my search points me in the direction of Tasty trade or IB as these seem to be the most cost effective. I don't need charting or any bells and whistles so mostly I just want a solid platform, good execution and low fees. Option trades mostly SPY, SPX, IWM, RUT.

Thanks for reading!
FP
 
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I did not understand part of the restriction. You can have an individual account with a TOD for your wife and your wife can have the same. Or, you can have a joint account. I'm not sure why you need investments and trading separate unless you claim MTM/Trader Tax Status on the active account. Wash sales will still apply if you do not.

We offer the benefits of IB with our LVX software. You might like that as a second account. https://www.lightspeed.com/trading-platforms/livevol-x/

Email me if you have any questions.

Bob
 
Bob,

Thanks. Both accts are JTWROS. Sure, I could separate them individually with TOD but that isn't what was set up. I can consider changing how they are held but I'm not there yet.

I will check out your link. I did review it within reviews but the costs did not seem as competitive which is why I didn't list Lightspeed. I will look at it again.

FP
 
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FP22 said:
Bob,

Thanks. I don't need the investments separate... I wanted it that way to separate my strategies entirely. As far as TOD yes, she would get both accounts but the account where I was primary would have to be moved/re-opened in new account. Just trying to keep accounting simple for the grieving wife in the future.

I will check out your link. I did review it within reviews but the costs did not seem as competitive which is why I didn't list Lightspeed. I will look at it again.

FP
More...

My commissions are lower at Lightspeed with custody at Wedbush but you will have to pay for the software. You could open a personal master/sub-account and keep them separate at Wedbush (One account for cash, one for active trading, one for investments-accessed by one platform with a joint account or TOD and a consolidated 1099. For a Reg-T account, we offer Sterling Trader Pro and Realtick. For a PM account and options, I prefer CBOE Silexx. Again, it would be best to talk about it when you are ready.

Bob
 
sfwind,

Thanks, some of that new technology might not be the right fit for me. You said you like it for small accounts... Is there a size limit? What would you consider small?

THanks

sfwind said:
I like Robindhood and Webull for small accounts.
More...
 
FP22 said:
sfwind,

Thanks, some of that new technology might not be the right fit for me. You said you like it for small accounts... Is there a size limit? What would you consider small?

THanks
More...
It is all relative. I have $3000 at Robinhood and $50K at Webull. I use these two accounts for price discovery and try out new strategies. One for option, and the other for stocks. Both are commission free.
 
Robert... thanks again for your feedback. I looked over Lightspeed and my trading volume (low-not a daytrader) doesn't justify the costs.

Sfwind... Robinhood doesn't offer the accounts and option ability I want so it is out. Never heard of Webull so it is out for that.

Now deciding to just keep my options account with ML or open with Tasty or Etrade. I'm not that impressed with the Power platform at Etrade so I'm leaning towards giving Tasty a chance with their interesting fee setup. Any happy or unhappy Tasty traders out there??
 
FP22 said:
Robert... thanks again for your feedback. I looked over Lightspeed and my trading volume (low-not a daytrader) doesn't justify the costs.
More...

If you are only looking for free options trading, you should wonder where their revenues come from. Our Options rates are low but not free. With rates starting at $0.60/option including the OCC fee of $0.05 and a process to offer volume discounts, I have had no problems adding accounts that were at Robinhood, IB, Etrade etc.

Be well,
Bob
 
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