I was wondering if anybody had any experience with MB trading with options? I could go on and on about how absolutely terrible their trading platform is. It's the absolute worst I've ever used. When I use it, I'm constantly thinking, isn't there anybody that tests this? I've somewhat gotten used to that. My main problem recently is that in the past week I have been assigned on 4 different short options. There was no dividends or anything involved. These were expirations more than a week out on highly traded ETF's. Pretty standard stuff. The problem is it's an IRA. First, I have to pay $5 to close the stock out instead of the usual $1 with options. Then my whole account has a negative debit for at least 3 days and I can't reopen the position. Last Friday, I had options expiring but because of the negative debit, I could only close them. I had protective puts going out to December on them so it was a simple calendar roll. I tried it on the platform but the software is a piece of junk, it was saying it was a debit transaction. I called the trade desk to see if they could just roll them. The guy said he couldn't because it was a debit transaction. I said no, it's a calendar spread, I'm just rolling it. The system is wrong, it should be about a 20 cent credit. He just didn't understand that. So I just closed it and said I would reopen it on Tuesday when the balance gets straightened out. Monday, I get assigned early on another option. OK I'll reopen Wednesday. Wednesday, get assigned on another option. This is what I get for trying to save 50 cents a trade over TOS.
Found out yesterday after the close that I was again assigned early on Friday on 2 11/22 SDS puts. I didn't know it so they closed the positions for me and did me the favor of restricting my account for 90 days to closing transaction only. I am so done with MB trading. Worst trading experience ever. I don't know how they are still in business.
I had an account with them for a very long time (10yrs +) and recently closed it. For the following reasons: -as you said, the options platform is terrible- crashes and just all around useless -Hard to borrow: they never seem to have any shares to short Rates are OK, customer service i have found to be OK, but there are much better brokers out there. TOS and IB are better choices. TOS rates are higher, but worth it IMO.
Regarding the software, I went from TOS to MB Trading to save on option trading commission. Didn't last there for a long time because the software was so bad. Not worth it. I understand you know also that the software is hopeless but I think their mobile app is a bit better than the desktop software, although I didn't trade options on it. If you don't want to move to a broker with a reasonable platform maybe you should try it, at least for submitting orders.
I have traded with TOS for probably 10 years. I was always irked by the $15 option assignment fee (per strike). I wasn't assigned early too often but what I didn't like was if I sold let's say 20/15 put spread and at expiration it was at 13, I would like to just let them expire in the money and cancel out. But that would cost me $30. So I have to buy it at $5 plus $3 commission. But of course the market makers won't sell it for $5, you have to bid up to $5.02 till you get filled. That's $5 wasted, hence the reason to try MB (plus 50 cents cheaper on options). Now with them I get assigned early on options not expiring for a week. Because it's a cash account, they will then freeze funds for 3 days. MB's platform is awful. The option program never works right. If you have a spread with the protective option expiring at the same time as the short option, the system doesn't recognize if you buy a farther out option and then try to roll the short. You also cannot edit an option spread, only single option orders. The mobile app doesn't work very well either. It's just hard to believe that in 2014 these kinds of things are wrong with a broker.
All roads lead to IBKR. The only way to get a better value is Prime brokerage. The only way to get lower costs is a brokerage price structure that fits your specific ( if unchanging) strategy. ie. e-options favorable pricing for large quantity spread order though they will probably get you on major slippage.