anyone knows some cheaspest option brokers

Discussion in 'Options' started by trader198, Jan 26, 2013.

  1. IB capped cancelletion fee, but I found its commisiion fee suddenly jumped like NFLX. normally 100lot costs me 100~200bucks, but now sometimes greatly exceed this number.
    and it varies time from time, strike to strike, instrument to instrument.

    I am wondering why the same strike today I need pay this commission, and another time, I need pay higher commision, it is very unpredictable. not like stocks, 200shares cost 1buck. so i can know before.

    any option house with fixed rate, no cacelletion fee,low reasonable commission fee?

    I trade options mainly, ocassionally individuals stocks and futures.
  2. United States - Smart Routed: <=10,000 Monthly Contracts

    .................................................Commissions...........minimum per order
    Premium => USD 0.10 USD........... 0.70 per contract........... USD 1.00
    Premium < USD 0.10 >= .05 USD... 0.50 per contract............ USD 1.00
    Premium < USD 0.05 USD............. 0.25 per contract............ USD 1.00

    This is what IB charges me.... the small time retail customer. e.g if the premium is = .05 and I sell 5 for .25 total ($25) I will pay $2.50 total commission(10%).

    If I sell one for .05 total ($5.00) I will pay $1.00 total commission(20%).

    " In addition, you will be charged separate fees to offset exchange, regulatory, clearing and transaction costs incurred by IB"
  3. skk7963


    I don't think you will find a cheaper options brokers (overall ) than IB for retail investors.
    I trade in small quantities(1-2 lots) at a time and IB is the cheapest for small lots
  4. You don't understand the rate-structure. Aren't you the guy with the fictional 800 lot NFLX 125 call buy after the news broke?

    Don't feed this troll.
  5. You are not providing enough relevant information to assist the rest of us in determining exactly why your IB option commissions vary so much.

    What exchanges are the orders executed on?

    Adding or removing liquidity?

    Is price improvement (PIP) taking place?

    For example, at BOX PIP removing liquidity gets a rebate of 75 cents a contract and PIP adding liquidity costs $1.00 a contract. For 100 contracts that is an exchange fee swing of $175 depending on how the order is executed.

    The cheapest commission option brokers is eOption. $3.00 plus 10 cents a contract. eOption sells all its order flow, so quality of fills is not going to equal IB.
  6. 1245


    Almost all option brokers route "smart" orders to CBOE, AMEX, ISE and PHLX were the MM pay for order flow. IB not only does this, they they also have a trading desk at Timber hill that has access to your order flow.

    In the end, commissions don't always tell your true cost and have very little to do with most traders P & L unless you're high volume scalping for rebates. The traders and funds I know that make the most money just want a fair rate. Other services are more important in their trading business.

  7. Baywolf


    Amen brother. I am with IB and I've experienced some "interesting" micro market behavior. There are times I am adding liquidity to the book and my bid is nearing the offer price. I am even calculating the pegged underlying price/IV in Excel in real-time. I am way above the mark. It should execute but it doesnt at times. This week, I knew I was way above the mark on a buy to open order and hit the cancel order button, and I was immediately filled! As soon as my order filled, the market went through to where I was expecting it to go, .15 lower.
  8. sle


    You should be happy, since you are getting the best execution on the street. IB provides the most price improvements of all brokers out there.
  9. Baywolf


    I see no reason I should be happy when I hit the cancel order button and I get filled instead.

    I'm not necessarily disappointed with IB, just the way the MM algorithms wait until my order is completely in their favor, even if I am well past the mark.
  10. sle


    #10     Jan 27, 2013