IB commission quesiton

[joeyata1]

def mb trading and tradestation charge $1 a contract $1 min. you ought to give a choice of either $1 per contract and no cancel fee's or .75 cents per contract and cancel fee's. i trade 300-400 contracts a month and these cancel fee's are starting to hurt me

 

[yip1997]

Quote from def:

Note that there is a credit for executions. There's a tradeoff between offering low cost commissions or charging higher commissions which eat the fees. We chose the former.

I can get the same low commission rate with no cancellation fee from a bigger public firm with helpful support team. Even when you have margin calls, they will call you and give you two days to fund your accounts instead of liquidating your positions without telling you.

 

[loufah]

Quote from yip1997:

I can get the same low commission rate with no cancellation fee from a bigger public firm with helpful support team.

Which one? All the public firms I know of (ET,SCHW,AMTD,TRAD,OXPS,C,BAC) have higher option commissions.

 

[def]

Quote from yip1997:

I can get the same low commission rate with no cancellation fee from a bigger public firm with helpful support team. Even when you have margin calls, they will call you and give you two days to fund your accounts instead of liquidating your positions without telling you.

you mentioned who you trade with in another thread. They have higher minimums and are browser based. The higher minimums easily subsidize the cancellation fees.

 

[loufah]

OK, I see Yip uses Ameritrade. It's $13.70 to trade 5 options instead of IB's $3.75, but if you tend to cancel more than 8 times for every fill I see how it can be less expensive.

I still use Ameritrade once in awhile, but I've found that, when trying to get a price inside the spread, having to hit the refresh button repeatedly to see whether I got the fill was taking too much of my time, so I make most of my orders on IB and Schwab.

 

[Bitstream]

Quote from def:

you mentioned who you trade with in another thread. They have higher minimums and are browser based. The higher minimums easily subsidize the cancellation fees.

active options tradin' is good under current mkt condition if u can get inside the mkt and for that u are required to keep tryin' again and again to place your orders below/above bid/ask..it is a continuous modify/ cancel until u get a fill....if u raise your rates to $1/eliminate cancel many of us that gave up derivatives 'cause of fees would be back tradin' 'em much more often and your biz would be benefitin'.....win/win situation, innit[?]

 

[battle river]

ameritrade? ugh.be careful. do they still do the payment for order flow thing?

 

[yip1997]

Quote from def:

you mentioned who you trade with in another thread. They have higher minimums and are browser based. The higher minimums easily subsidize the cancellation fees.

Don't u know that you can negotiate the commission rate?
I don't have minimum, and I am paying 0.75 per contract without paying any other fees.

 

[yip1997]

Quote from loufah:

OK, I see Yip uses Ameritrade. It's $13.70 to trade 5 options instead of IB's $3.75, but if you tend to cancel more than 8 times for every fill I see how it can be less expensive.

I still use Ameritrade once in awhile, but I've found that, when trying to get a price inside the spread, having to hit the refresh button repeatedly to see whether I got the fill was taking too much of my time, so I make most of my orders on IB and Schwab.

I only pay 3.75 for 5 option contracts.

 

[krishiyer]

Hi
I use IB more now compared to OXPS before.
Days when I have canceled or modified and not executed much,I get a debit .days when I have traded many contracts even after so many cancel/ modify,I dont get debit.It is a nuisance,but with the flexibility of order size/ proportional commision,much better compared to single pricing for 1 or 10 contracts every where!!!
When Iam in a defensive mode or trading small size on so many counters ,I trade 3/5 lots. IB is far better compared to what I was paying $14.95!! for each ticket.
ON SPY/IWM options I trade 10/20 or more,even there $7.50/10 contacts at IB is half what others charge.
This is one of the main reason I have shifted most of my funds to IB recently as I have paid $50k commission in the last 18 months at the previous broker!!!!