good low-cost option broker

yip1997 · May 11, 2006

I am currently using ameritrade and fidelity with commission $8 + 0.75/contract. I put around 20 trades every month with a total of 100 contracts ( I usually trade 5 contracts each time ).

I know IB offers 0.75/contract, but I don't like their cancellation fee. Anyone knows of a good option broker with:

(1) low-commission with no other fees ( I cancel 50% of my orders)
(2) good fills
(3) easy to transfer funds with ACH
(4) high interest rate for balance

Thanks.

osho67 · May 11, 2006

There is no cacellation fee. I cancel all the time-never has been charged cancellation fee.

JayS · May 11, 2006

Quote from osho67:

There is no cacellation fee. I cancel all the time-never has been charged cancellation fee.

http://www.interactivebrokers.com/en/accounts/fees/otherFees.php

http://www.interactivebrokers.com/en/accounts/fees/cancelModifyExamples.php?ib_entity=llc

fh2000 · May 11, 2006

I have all three. If I needed to trade more than 20 contracts with spread orders, I sometimes would use Ameritrade. Mine is Ameritrade Izone. Option commission is something like $5 + $0.75 per contract. The reason for that is I can use web feature on Ameritrade Izone to put together a spread order, but for IB, I need to use the desktop software which I sometimes cannot do in the office.

As to the cancellation fee for IB, I think it is small enough to be even an issue for me.

thecalip · May 11, 2006

Their cancelation fee is not even funny. So expensive just to cancel and modify an option order.

Quote from JayS:

http://www.interactivebrokers.com/en/accounts/fees/otherFees.php

http://www.interactivebrokers.com/en/accounts/fees/cancelModifyExamples.php?ib_entity=llc

El OchoCinco · May 11, 2006

Thinkorswim.com

You can get $1.25 a contract with 10 contract minimum and no extra fees. Just call up and ask about it. If they are not willing then tell them Coach Phil referred you. It is not special thing but since I have recommended them to a lot of people they have been more willing to give the low rate.

But just asking will probably be enough to get that rate anyway so just ask...

yip1997 · May 12, 2006

I like to get 0.75 a contract or lower with no other fees. I usually scale in with 5 contracts each time and don't want the requirement of 10 contracts minimum.

MTE · May 12, 2006

Quote from yip1997:

I like to get 0.75 a contract or lower with no other fees. I usually scale in with 5 contracts each time and don't want the requirement of 10 contracts minimum.

Talk to them. It won't hurt if you ask.

Li Ka Shing · May 12, 2006

I think the good ones are not so cheap/ not cheaper than your previously $8 + ( $0.75 / contract ) with Ameritrade.

There is some cheaper ones like TradeKing which charge $4.95 + ($0.65/ contract) however Im not sure if this would qualify as a good options broker compared to more established ones like ThinkOrSwim and OptionsXpress.