The really big clearing firms or hedge funds might offer something like this because, at the end of the day, their costs for trading tons of stocks really are fixed if they are self-clearing. Of course if you have to ask, you don't trade enough to justify this sort of deal with a major investment bank. I doubt many here would pick paying $1M/month for "all you can trade" vs paying IB or Wedbush or whoever $0.0020-0.0030/share.
Commisionless brokers
- Thread starter ceaser
- Start date
short and wrong.
1.you didn't even ask how they handle monies. don't even consider if you have to make out the check to them instead of a well capitalized clearing firm.
2. you didn't suggest to look at their balance sheet.
3. you didn't suggest to check for customer complaints.
4, term longer term trader is likely an oxymoron
5. for some traders longer term is 2 minutes.
6.if you don't trust a firm with a market order it is the wrong firm period.
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While commission-less brokers do not exist, you can effectively erase your commissions through rebate. I just bought 100 contracts through IB by opening the modify order window, clicking MaxRebate. I was charged $0.31 for the entire order. BOX tends to give me the best rebates. This order in particular was routed through NASDAQBX, BOX.
Now options FREEEEEEEEEE
Robert Morse
Sponsor
I have option clients that clears Wedbush, that use DMA to C2, that get rebates from $0.42 to $0.80 on Sterling Trader Pro, RealTick and Silexx. This is not just IB. Our SMART routes avoid the maker/taker fees for single leg orders. We charge the same for DMA and SMART routed options orders.
Why do you always lose? I guess if you're trying to nickel and dime very short term trades maybe. But lets say you wanted to buy TSLA at $50 way back when. So they have your order flow. Cry me a river. You just want to buy and hold. Now it's at $300+ a few years later. No front running is going to take away your gain if your time length is long enough.
Can you confirm whether it's possible to get a rebate for a 2-legged option spread order if submitted to an exchange with a rebate? And, if so, is it possible to select a SMART route option to maximize rebates or would it require a direct order to an exchange which provides such a rebate? I also assume your service has a mobile app, right?
I'm with IB and their mobile app doesn't let me select smart routing to maximize rebates (don't understand why) for either single leg or multi-leg option orders. They also charge more for direct orders...
Robert Morse
Sponsor
This is what we offer on certain platform.
DMA for both single leg and multi leg orders. On single leg orders, we pass through maker/taker fees. On multi leg orders we do not, except for higher volume accounts. For a small retail account, I can confirm that we do not offer rebates on spreads. We also don't charge for taking liquidity. The software we use does not track maker/taker fees on spreads. For an institutional account or higher volume accounts, I can request a manual reconciliation that occurs a few weeks after months end when we get the bills from the routes.
Options SMART is available for both single leg and multi leg orders. Our SMART route does not subject your orders to any maker/taker fees except for cash settled index and VX symbols. We pass through those charges.
In most cases, our option commissions are the same for DMA and SMART on Sterling Trader Pro, RealTick and Silexx. When the Lightspeed Version of LVX is offered with clearing at Wedbush, that will target SMART only option traders and will not offer option DMA.
I want to point out that I am willing to talk in detail with anyone reading my posts. Just email me your name and phone number and the best time to talk. Even though my title says "Institutional Sales", I also support retail accounts.
Bob
Robert Morse
Sponsor
On my option exchange maker/taker fee schedule C2 in general provides the best rebates for adding on single leg orders. The BOX charges $0.05/options for public customers. https://boxoptions.com/fee-schedule/