Fidelity Options

Does anyone use Fidelity for their option trading? I have been using them in the past and they recently offered me a new product iSpreads Pro. It seems to be a good analytical tool, which offers me Greeks, theoretical values and implied vols. All of the data is streaming and they allow me to graph my p and l. I can direct my own trades and see size for any exchange. No market data or platform fees. Contract price is $1.50, but the functionality seems legit. Curious if anyone else is using and what they think or if there is something people like more.

 

Fidelity has ticket fee of $8 plus $1.5/option.
IB has $1/option with no ticket fee. There are other lower cost brokers, but I selected IB and never regret it.
The features you mentions seems like industry standard.

 

They must have lowered their commissions since this last post...they are offering $8 plus $.75 a contract with the ispreadpro. Anyone using Fidelity for option spread trades? How are the fills? This pricing def looks enticing.

 

If you are using directed trading (i.e., routing to a specific exchange) and trade over 7 contracts per time then Fidelity's pricing is better than IB's.

In addition, Fidelity does not charge cancellation fees.

However, IB is better for small lots or if you trade through SMART.
In addition, IB uses the exchange minimum margin requirements. I believe that Fidelity does not. This makes a big difference if you are selling naked options.

Otherwise, both firms do offer benefits that complement each other.

 

I am not sure I follow your sentence below in quotes.

Assume a trade of 10 contracts:

IB is $10 commission
Fidelity is $15.50 ($8 + $0.75 per contract)

IB is still better because there is no flat fee on top of the per contract fee.

Phil

 

IB have got real problems with screen redrawing in TWS OptionTrader. I have to logon and off several times a day. i am now trying the latest beta of the browser version. Anyone else having problems with IB TWS OptionTrader?

 

IB's Commission will be higher above 28 options...but what if you get partial fill and the market moves and you need to update the limit? You'll have to pay the ticket fee again with Fidelity and not with IB.
There are so many more reasons to use IB for options. I just suggest you read the broker reviews on this site.

 

When you route an option order direct (not SMART routing), you are charged $1.95 per contract. SMART routing is $1.00.

Thus, if you want to route your orders to a specific exchange, any order that is greater than 7 contracts will favor Fidelity. Anything less than 7 favors IB.

If you trade through SMART routing, IB still kicks butt.

 

http://www.interactivebrokers.com/en/accounts/fees/commissionStockIndexOptions.php?ib_entity=llc

 

I trade 10 options SMART through IB:

IB Commissions $1.00 x 10 = $10

Fidelity Commissions $8.00 + $7.50 = $15.50

Advantage IB..

I trade 10 options directed routing through IB:

IB Commissions $1.95 x 10 = $19.50

Fidelity $15.50

Advantage Fidelity