Hi:
Over at Trade Station I'm paying $5.00 a trade and $.40 a contract. Is anyone paying more/less than that?
Thanks
Over at Trade Station I'm paying $5.00 a trade and $.40 a contract. Is anyone paying more/less than that?
Thanks
How much are you paying to trade options?
- Thread starter PennySnatch
- Start date
If you're doing a lot of contracts per trade that's not awful, but if you're trading say 5 at a time, you could do a lot better with IB or lightspeed.
IB starts at $0.7/contract with $1 minimum and lightspeed is at $0.6/contract, but depending on the platform there can be different minimums. I actually wish lightspeed would make their site clearer to understand (especially with respect to API and market data), but that's a separate issue.
If you're doing enough contracts, I could see the $5+$0.4 being OK, but if you're doing that many/mo you'd also likely qualify for a better commission at lightspeed than the $0.6/contract as well. I'm not endorsing either of these btw, just mentioning them since they seem to be quite popular.
IB starts at $0.7/contract with $1 minimum and lightspeed is at $0.6/contract, but depending on the platform there can be different minimums. I actually wish lightspeed would make their site clearer to understand (especially with respect to API and market data), but that's a separate issue.
If you're doing enough contracts, I could see the $5+$0.4 being OK, but if you're doing that many/mo you'd also likely qualify for a better commission at lightspeed than the $0.6/contract as well. I'm not endorsing either of these btw, just mentioning them since they seem to be quite popular.
Tastyworks.com I pay $1 to open a contract and $0 to close all trades. There are also a few cents for exchange fees. They are saving me lots in commissions!
Robert Morse
Sponsor
As he is my client, I'd prefer he does not say. Our commissions start at $0.60/option but we give volume discounts and are will to combine the volume of account that come in together to give better rates. We also offer DMA and SMART for the same cost on Sterling Trader Pro, Silexx and Realtick. Happy to talk to anyone here directly.
And, we don't charge for options that expire, by charging up front.
Robert Morse
Sponsor
Lightspeed Trading Named Among Best for Frequent Trading by Barron’s 2017 Best Online Broker Rankings.
https://www.lightspeed.com/news/lig...ing-barrons-2017-best-online-broker-rankings/
https://www.lightspeed.com/news/lig...ing-barrons-2017-best-online-broker-rankings/
With IB, it really depends widely. If you are lucky, you can get -ve commissions i.e. you get paid for trading. But when you are not lucky or you want to get a faster fill, you can upwards of >$1 per contract.
With IB, you can choose Maxrebate router which routes to the exchange with the highest rebate. Sometimes you end up with negative commision. My average commision per contract is lower than $0.70 advertised rate. Unlike some other brokerages mentioned above, IB doesn't sell order flow which can potentially cost you way more than few pennies in higher commissions. IB generally has lower processing & service fees and it's platform is free. Also do you really want to risk your hard earned money with other small brokerages because their advertised rate seems to be a little bit cheaper? IB is a public company with $14b in market cap and $5.8b in equity and the CEO/founder owns a huge stake in the company.
Everybody has their brokerage preferences and everybody's trading style is different. I will only reiterate that I'm quite happy with my data feed, commissions and service at Lightspeed trading. I've been around the block from Think or Swim, IB, some smaller outfits and a prop firm. Out of all the options, Lightspeed has been the best. I also understand that everyone has different needs.
I recommend a simple solution for any trader or investor: don't rule out any firm, do not go with any firm solely due to their "reputation" (anybody remember Lehman bros?) and try it out! It costs a few bucks but I'm sure happy that I did. I hope this discussion stays civil and good luck to everyone in their trading.
I recommend a simple solution for any trader or investor: don't rule out any firm, do not go with any firm solely due to their "reputation" (anybody remember Lehman bros?) and try it out! It costs a few bucks but I'm sure happy that I did. I hope this discussion stays civil and good luck to everyone in their trading.