Robert thx for clarifying. I actually looked at lightspeed before (maybe around 4 yrs ago) cause you guys had API accesss but was turned off cause of the high portfolio margin requirement. I think it had a net liq requirement of 500k vs. 100k at IB or 120 ish at tos. Is that still the case or can I have portfolio margin with less net liq nowadays.
tastyworks announces fee structure
- Thread starter Sweet Bobby
- Start date
Robert Morse
Sponsor
PM at Wedbush is $175,000 to start and must maintain $150,000. API access is available with Lightspeed Trader, Sterling Trader, Silexx OEMS and Realtick. Our two platforms that we own, LST and Sterling, if you enable the API with MD, you will be subject to non-display MD fees. Other APIs will follow with the same requirement very soon. If your software that you connect to the API does not require our MD, you can avoid the non-display fees on Sterling and Silexx by disabling the MD to the API. The display will still get feed MD.
There is no additional capital requirement to enable the API.
Not my fault, complain to SEC that NYSE/NASDAQ/OPRA are doing this.
There is no additional capital requirement to enable the API.
Not my fault, complain to SEC that NYSE/NASDAQ/OPRA are doing this.
I'm assuming you are dodging the answer to my question - >>which broker has a better listed pricing structure (aka a website that lists better rates for a regular option round trip) -
I have to say everything else is BS to me - I don't care about commissions for trading 50k contracts/month - Now to set a precedence and to answer your question specifically - I trade about 5k contracts/year.
I am not dodging your question. Just trying to teach you how to fish instead of giving you a fish. Like I said in my post before, you have to call these guys to pay less than advertised price. I wasn't sure of your usual volume because that makes a difference of course. Also with trading 5K contract/year what is the difference in paying $.50 and $.60? $500...which is $41/month. With that level of volume you will probably not be using any DMA software, so it is probably more of a preference of what house software you like better.
Also, I wouldn't like the fact that tasty works is front loading the fee on the opening trade. If you are a spread trader and want to reduce cost you could just sell the call or put option spread and let it expire at full value to eliminate the closing executing pricing.
Here are a couple of introducing brokers that I found with the same or lower cost after searching for 5 mins on google.
1.) E-option ($3 ticket + .15/option)
2.) Cobra Trading (.50/contract)
I see where this is going - I'm going to have to learn some math before I learn how to fish.
I guess the difference is how we trade - and the fact that that may be very different cause your math doesn't work for me and how I trade.
I do a lot of algo stock trades that I need to adjust based on changing beta.
So here's why tastyworx seems to be great FOR ME - especially once they have portfolio margin.
I'm long 200 shares of AAPL (gives you an idea of my typical position size). I may need 17 more long delta based on it's relationship to the SPX. I can sell a put or buy a call to make that work. Let's assume I'm closing the trade so that at the end of this I'm back long 200 AAPL.
Here's what I'm currently paying
Buy Call (@ IB ) = 1$
If I'd do the same at E-option or Cobra it would be 3.15$ or 1$ (Cobra has a 1$ minimum just like IB)
If I do the same at tastyworks it's 1.20$
Three days later I close my position.
Sell the Call (@IB) = 1$
Tastyworks = 0
E-Option 3.15, Cobra 1$.
I do this 5000 times a year.
Tastyworks: 6000$
IB (and Cobra): 10000$
E-Option: 31500$
Almost 1/2 of my current commissions (or about 333$ less per month). It may not work for people who don't close their positions or trade 1000 contracts/day but I can tell you that structure may work for A LOT of people. Robert if you're reading this and can beat that use case by 20% I think there's a big market for this or small lot option traders.
Thanks for explaining your strategy.Yea, I trade a lot different that you do. I'm 100% option spreads. I will say this, you can also find brokers to pass through the maker/taker rebates on certain exchanges so that cost/year would be zero or less.
Take a look at some interesting discussions about tastyworks:
https://forums.capitaldiscussions.com/threads/tastyworks.1121/
https://steadyoptions.com/forums/forum/topic/3481-tastyworks-a-new-brokerage-firm/
https://forums.capitaldiscussions.com/threads/tastyworks.1121/
https://steadyoptions.com/forums/forum/topic/3481-tastyworks-a-new-brokerage-firm/
For a NEW broker, those fees are pretty high, even considering no closing fee. IB cancellation fee is $0.01, not really a factor. Plus IB doesn't charge Exercise and Assignment fees, has 4 times lower margin rates, and has proven reputation of 40 years.
So yes, Tastyworks might take some business from TDAmeritrade, but it cannot really compete with IB.
Here's a screen shot of their fees and how they show in the platform.
1.15 for the opening trade - 15 cents to close out the position.
I guess with IB it would have been around 2.80 as well (70 cents/leg) if I read their website commission table.
However I've closed two twelve lots on IB (no spread but single option positions) and interestingly one was 5.11 the other one was 4.54 for commissions - so about .42 or .38 per contract.
1.15 for the opening trade - 15 cents to close out the position.
I guess with IB it would have been around 2.80 as well (70 cents/leg) if I read their website commission table.
However I've closed two twelve lots on IB (no spread but single option positions) and interestingly one was 5.11 the other one was 4.54 for commissions - so about .42 or .38 per contract.
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I thought tastyworks commissions was 1.00. What is the extra 0.15 per leg?
Reduced commissions with IB are probably due to adding liquidity.
Reduced commissions with IB are probably due to adding liquidity.