Discussion in 'Options' started by m_j_m, Mar 16, 2005.
Will Fidelity let you route to the Boston exchage? Do you ever get price improvement?
Yes, and it drives me nuts. I just keep it closed for most of the day. I'm leaving so it doesn't matter.
The beta, version 847, of the browser based TWS was better today.
Have to say I never encountered what you guys report. I have option trader open all day, every day.
How many option markets do you look at? How often do you switch between the different markets? What sort of pc/graphics card do you have?
Remember cheapest ticket doesn't mean cheapest charge overall to the client.
Charging the cheapest/ticket usually means you fill isn't as good as it should be.
Bad fill= paying more for the overall trade. Especially if they execute your oders for you. Firms have to make money somewhere. If not on the ticket, then on the fill or rebate.
If I get a debit spread filled at OX for $1.00 and get the same debit spread filled at IB for $1.05, how does IB make more money on the bad fill? I do not see how the broker makes or losses money on whether I get a nickle better or worse in my fill. IB charges low because it deals in volume and charges market data fees while OX just rolls it into the higher commissions to an extent.
One way would be if IB #1 internalizing your order, they buy it at 1.00 and sell to you at 1.05, that would say on confirm, IB may have acted in as principal. Also the bad fill could be attributed to the rebate that the IB might get from that market maker that the order went to. How if its volume driver, can some of the smaller firms come close to matching the $7-12 ticket charge, w/o the volume. The fill you get on an order to me is more important than the commission. I should say I dont buy the 5,'s and 10 contracts, I trade the 50's to 100's contracts.
Fiesty, you're right. commissions are secondary to the fill. However, I'm not clear here if you are talking about an Introducing Broker or Interactive Brokers. if the latter, I'll make it clear that IB routing is designed to route orders to the exchange with the best price and dynamically re-route them if an opportunity for a fill occurs on another exchange. We are confident that our option routing is amongst the best - if not these best - in the business. Thus it is possible to get both superior executions along with excellent commissions.
I use both Fidelity and IB. IB is my first choice in terms of price improvement and fast filling. I have a gold account with Fidelity and I did not know that they charge 0.75 for a contract. I know that they have a max 5% for commission. So if you trade 10 contracts each for 0.1 the commission will be $8 and not 8+10x 0.75. Or if you sell 20 contracts each for 0.05 , Fidelity charges you 8 and IB will charge you $10.
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