I like to trade Credit Spreads and Iron Condors. I use TOS and am happy with their software, service, tech support and pretty much everything else. Except for the cost of executing a trade. I have been looking at Tasty Works. I opened an (unfunded) account and it looks like it is going to be usable. The best part is the commission structure. Much better than TOS and here is the part I like best....no commission to exit a trade! So if I put on an Iron Condor, closing it out before expiration costs me nothing. Am I understanding that correctly? Would there still be fees, just not "commissions"? So, the real question is this: what other trading firm does this? If there are any, I would like to know as I have not settled on a permanent broker yet, but need to soon.
Options commission question....Tasty Works......
- Thread starter marc82much
- Start date
Robert Morse
Sponsor
Our commission rates are lower than TD but we do not have a free exit. If you always exit your trades, it might save money to pay more up front, but if your spread expires, your paid for that too. We offer $0.60/Option including the OCC fee of $0.05 without A volume commitment. We do offer a volume discounts.
Bob
Bob
If I have enter a spread with a $1 credit and 30 days to go, I will often exit early if the debit will be less that half of the original credit, and days remaining is greater than half of the original.
Also, as much as I would like to, I am afraid I cannot deposit enough to play in your league.
Also, as much as I would like to, I am afraid I cannot deposit enough to play in your league.
Unless you're legging, you're nuts to trade complex orders anywhere other than IB.
Robert Morse
Sponsor
Why?
Yeah, why? Why is IB so superior to every other broker out there in the universe for what the OP wishes to accomplish? Please explain in exacting detail why IB will be the superior choice above every other broker on the planet.
I would actually say the opposite for 2 reasons. IB may hold a complex order until they view it is "marketable." In fact it may indeed be filled if they sent it to an exchange. Also you can't direct a spread to a specific exchange, which can be very helpful when a spread is trading on 1 exchange only.
Spreads can be routed at IB, but it is not very intuitive.
https://www.elitetrader.com/et/threads/ibkr-smart-route-and-order-fills.328595/page-5#post-4787571
In answer to Robert, FSU and srnir: I realize that IB is far from perfect. HOWEVER, would you rather have your complex order shopped to whatever MM pays the highest rebate?
Option spreads and multi-leg orders are the last frontier of theft for discount* firms. The juiciest rebates offered are for non-vanilla option orders. If you were Citadel, would you rather chomp on option butterflies or 100 share market orders in GE?
A spread offer at 40 cents on a "board" that's 38b-42a based on individual strikes (i.e. ATM is 1.00-1.02, OTM .38-.40) has a far better chance of being filled IB than anywhere else.
Further, as FSU certainty knows, serious* index spreaders stay away from ETFs all together and only trade CBOE listed products or options on CME futures.
I realize that due to small multipliers, SPY and QQQ are good products for under capitalized or novice traders but fill quality (and competitive commissions) are paramount to profitability. But, missing a trade because your order is hidden from the world is far more expensive than a slightly higher commission schedule.
Option spreads and multi-leg orders are the last frontier of theft for discount* firms. The juiciest rebates offered are for non-vanilla option orders. If you were Citadel, would you rather chomp on option butterflies or 100 share market orders in GE?
A spread offer at 40 cents on a "board" that's 38b-42a based on individual strikes (i.e. ATM is 1.00-1.02, OTM .38-.40) has a far better chance of being filled IB than anywhere else.
Further, as FSU certainty knows, serious* index spreaders stay away from ETFs all together and only trade CBOE listed products or options on CME futures.
I realize that due to small multipliers, SPY and QQQ are good products for under capitalized or novice traders but fill quality (and competitive commissions) are paramount to profitability. But, missing a trade because your order is hidden from the world is far more expensive than a slightly higher commission schedule.