Optionsellers.com goes bust and the apology video is painful to watch

[PJB1994]

Yeah but that $69 would include what he would have to pay FC Stone. Assuming he places all of his trades broker-assisted which would incur the most expensive commissions. TD Ameritrade charges $45 for broker-assisted trades for stocks, assume they charge the same thing for options on futures. So that would leave him (69 - 45) = $ 24 X 300 contracts that would be 7.5K per month, for 12 months, that's $90K per year, commissions/fees pocketed by him. So that article was right. That would be his annual fee, not in management fee but in pocketed commissions. Now that's what he charges for any account sizes below $1 million. So let's say the account size is $500K, 90K/500K = 18% fee. So he has to make basically 43% return in order to give his clients 25% return net of fees according to this calculation.

There were also additional charges for clearing and execution per trade of about $4.

 

[JSOP]

There were also additional charges for clearing and execution per trade of about $4.

That's not included in the $69 roundtrip commission?

 

[PJB1994]

That's not included in the $69 roundtrip commission?

Nope

 

[JSOP]

Nope

That's outrageous. Are you able to post a statement of yours with your name and account no. redacted of course?

 

[Overnight]

That's outrageous. Are you able to post a statement of yours with your name and account no. redacted of course?

Why would he have to? Commissions do not "have" to includes exchange and data-feed fees.

He's right. The guy said his commish was X, and there would be extra on top, such as exchange and data fees, which was Y. *shrugs*

That seems par for the course.

 

[JSOP]

Why would he have to? Commissions do not "have" to includes exchange and data-feed fees.

He's right. The guy said his commish was X, and there would be extra on top, such as exchange and data fees, which was Y. *shrugs*

That seems par for the course.

That is ABSOLUTELY RIDICULOUS!!! Well that's just more for his clients to recover.

 

[RedDuke]

It was per contract round trip. There were no management fees, but he reduced the $69 fee if you had more money in your account (reductions at the $1M and $10M levels), I believe - but I don't have those rates handy.

This is robbery. $69 per contract

 

[PJB1994]

This is robbery. $69 per contract

Plus an additional $4 for clearing and execution fees (each way).

 

[RedDuke]

Plus an additional $4 for clearing and execution fees (each way).

And he had the audacity to call his clients family.

 

[sle]

And he had the audacity to call his clients family.

A poor stepchild that get's molested by the stepfather is still family, right?