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Old Jan 3rd, 2013, 11:00 AM   #1
robbo
 
 
Join Date: Sep 2002
Posts: 206
I have just applied to trade options with my tradestation account. They have given me the Level 2 rating which means I cant trade spreads. I need the level 3 rating to trade spreads. How much option trading do you generally have to do, to increase you level status or should I just open an account with another broker.
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Old Jan 3rd, 2013, 04:36 PM   #2
cdcaveman
 
 
Join Date: Aug 2011
Location: Florida
Posts: 4,014
Quote:
Quote from robbo:

I have just applied to trade options with my tradestation account. They have given me the Level 2 rating which means I cant trade spreads. I need the level 3 rating to trade spreads. How much option trading do you generally have to do, to increase you level status or should I just open an account with another broker.
umm i was with ETrade.. tell them you have been trading options for years and your income etc is high.. most people get approved.. its just bullshit red tape.. if you put 10k with interactive brokers you bypass this all together
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Old Jan 3rd, 2013, 04:40 PM   #3
Options_Noob
 
 
Join Date: Apr 2010
Posts: 79
Just tell them to give you level 3. You can't even trade spreads? How lame is that?

I honestly would recommend IB or TOS if you trade mostly options.
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Old Jan 3rd, 2013, 04:42 PM   #4
cdcaveman
 
 
Join Date: Aug 2011
Location: Florida
Posts: 4,014
Tos you will get killed in commissions trading 3+ legged spreads unless you are of a decent size and can convince them to relieve you of the ticket charge..
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Old Jan 3rd, 2013, 10:05 PM   #5
glassinc
 
 
Join Date: May 2002
Posts: 217
I am at Tradestation, and it's not just about experience. It also has to do with your financial situation, as in liquid net worth. Even though it isn't all in your account there, they require you to provide the info to gain approval.

I have level 4 and trade spreads mainly, the 4 alsos allows cash covered put writes. Level 5 is naked calls, which I have no interest in anyway. On a large co. with low probability for a takeover this wouldn't be much of a problem. However, imagine if you had sold some naked calls on Zipcar even 50% OTM, Bango you take a hit.

I also have an account at Trademonster for Options trading, they have a nice platform, if you're trading multiple contracts or multi leg spreads, the commissions are better.

Give them a check as there wasn't the similiar requirment as at Tradestation if I recall correctly. Minimum for an option account is 5K last I knew.
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Old Jan 5th, 2013, 10:18 AM   #6
robbo
 
 
Join Date: Sep 2002
Posts: 206
Glassinc, have you any idea whats the liquid networth tradestation is looking for before they class you as level 3 or 4, that is if you have the trading experience to go with it.
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