If you trade an order of 100 options, with Eoption it costs you $13; do you pay less than that with IB?
Due to order flow rebates from Susquehanna and Citadel, Does that mean that the limit order placed through eOption will never be executed by ARCA, CBOE or PHLX exchanges?
100 option contracts costs $70 at IB (I trade with them too). At eoption, it would be $13, as stated above. If limit orders are used, it should be far cheaper to trade with eoption. What am I missing?
Your order may never will get filled at your limit price, while at IB it would. That means, a lot of missed opportunities.
def, can you post a link to these 606 reports so I can look at a bunch of these brokers? I'd be curious to have a close look at them and compare across a few brokers.
What if your limit order doesn't get filled? Keep in mind there are numerous option exchanges and an active SMART router should increase your chances of a fill. Also, what about when you want to exit a trade? Are you hitting the bid or working a limit? You should also note that can get price improvement when placing a marketable bid and that price improvement alone with IB will make up the difference. I also suspect that if you are trading 100 options at a time actively you would have much more success with a direct access broker than a web based broker. For the next question, you should enter your brokers name, 606 in google and you'll get the reports. i.e interactivebrokers, 606 that should get you to their SEC 606 link.
If you are trying to buy at bid, or between bid and ask, or at ask but with a penny spread then price improvement with IB does nothing for you. If you are trying to buy at a bigger spread then it would seem IB does do something. However, you start with a hurdle of $.70 per contract (for options prices above $.05) instead of $.10 per contract.
Also, with IB, you pay a lot on exchange fees, even when using smart route, and even when trying to buy at bid--as it will reroute to e.g. PSE to fill your order as if you are buying at ask.
I have emailed to eOption, asking about option routing practice and availability of Portfolio Margin accounts. After one week still no answer.