Assignment fee upon expiration

Discussion in 'Options' started by JPope, Oct 1, 2009.

  1. JPope

    JPope

    Atrade has been charging me $20 per option I've been assigned on, either selling puts or getting excercised on covered calls. Is this reasonable? Negotiable? What's everyone else paying for these? Thanks for everything in this forum...
     
  2. Everyone else charges either nothing or the price of an equity trade. Ameritrade is the only one I've seen that charges more than a regular trade.
     
  3. get a real broker. ib charges nothing.
     
  4. IB has it's own quirks, it charges cancellation fees.
     
  5. If the 20 dollar assignment fee is a problem, then you are not making enough from your short put or covered call positions.
     
  6. MartinGS

    MartinGS

    So if I sell 5 puts and I'm assigned, then IB charges nothing for the 500 shares of the underlying that I have to purchase?

    Does Ameritrade charge 20 per contract or what?
     
  7. Quibble: If making a fortune, it's still a mistake to pay an outrageous fee for an exercise or assignment.

    It cannot hurt to try to negotiate. It's not likely to do you any good.

    Mark
     
  8. IMO, $20 for an exercise is pretty steep.

    Fees are negotiable if you trade high volume. I don't know about all firms but IB offers both bundled and unbundled fee structures.

    As per two previous replies, IB charges nothing for assignment/exercise. That's good. They also charge cancellation fees (do others?). That's bad, particularly if you chase price all day.

    Some brokers charge a fee per share/contract. Others charge a flat fee per tade. Which is best depends on the size of your trading. I prefer fee per shr/contract because it enables me to scalein and out.
     
  9. zdreg

    zdreg

    cancellation fees are charged by the exchanges and passed on to the client..
     
  10. mrwoody

    mrwoody

    what does cancellation fee means exactly?
    If I want to buy an option at limit and I change my mind before the limit is reached, would IB charge me?
     
    #10     Oct 2, 2009