Commissions on Options Trades

Discussion in 'Options' started by EliteTraderNYC, Mar 7, 2012.

  1. Hey guys, just wondering what type of commissions rates do you get?

    OptionsHouse is 12.50 per spread order and .15 for each additional contract...this seems pretty economical.

    Or it can be 8.50 per option order plus .15 per additional contract.
  2. sle


    eek - i really see why retail bro houses are doing so well. at the hedge fund, i was getting 1-2c per contract.
  3. FSU


    Are you saying you were paying 1-2c per option contract?
  4. Pretty sure those were the words- That's dirt cheap!

    I pay 0.70 with IB and I'm happy. Has to be one of the cheapest out there.
  5. rmorse

    rmorse ET Sponsor

    Some brokers like us provide other services to hedge funds besides execution and clearance. Because the transactional side is easier pass on the cost to investors, hedge funds prefer to pay higher transaction fees so they can pay their broker for the other services.

    They don't want to get bills for custom reporting, cap-intro, business advisory, etc. They also don't want to hire full time employees or outside contractor. This is very normal and customary.
  6. sle


    under a buck of premium, 1c, over dollar of premium - 2/3c (you have to be an important client for 2c, usually it's 3c). so not cheap at all, thats what i was trying to say (need to mult by 100, obviously)
  7. FSU


    So you are saying that you were paying 20 to 30 cents per option contract since you added that you needed to multiply by 100? Plus exchange fees? Plus regulatory fees? Plus OCC fees?
  8. When i was on the buyside too, I found myself paying 1 and 3 except for spreads, then it was 1 and 2. Theoretically you are getting guaranteed pricing, committed capital, research, and someone to take you out for nice dinners and concerts.

    Retail is cheaper because a lot of the firms get payment from the market makers. Like seven years ago, i think the going rate was about $1/qqq contract that the brokers got for sending orderflow to a particular MM for first look.
  9. I have to dive in here for a second. There is no way in the world that someone is paying 1c or 2c. You can get rebates by trading on BATS to help, but even with that, I will question, respectfully, the pricing. Unless you have some sort of "all in" per contract type thing (as with a single ticket charge for one symbol, of $250 per day max or something, but never have I seen that with options, wouldn't make any sense, too many strikes).

    Execution and Clearing costs are 10 times or more than that.

    Mr. Morse, would you agree?

  10. $1 per contract retail is more likely, not a penny. With a max price of $5.00 or something.

    #10     Mar 8, 2012