good low-cost option broker

Discussion in 'Options' started by yip1997, May 11, 2006.

  1. I am currently using ameritrade and fidelity with commission $8 + 0.75/contract. I put around 20 trades every month with a total of 100 contracts ( I usually trade 5 contracts each time ).

    I know IB offers 0.75/contract, but I don't like their cancellation fee. Anyone knows of a good option broker with:

    (1) low-commission with no other fees ( I cancel 50% of my orders)
    (2) good fills
    (3) easy to transfer funds with ACH
    (4) high interest rate for balance

  2. There is no cacellation fee. I cancel all the time-never has been charged cancellation fee.
  3. JayS


  4. fh2000


    I have all three. If I needed to trade more than 20 contracts with spread orders, I sometimes would use Ameritrade. Mine is Ameritrade Izone. Option commission is something like $5 + $0.75 per contract. The reason for that is I can use web feature on Ameritrade Izone to put together a spread order, but for IB, I need to use the desktop software which I sometimes cannot do in the office.

    As to the cancellation fee for IB, I think it is small enough to be even an issue for me.

    You can get $1.25 a contract with 10 contract minimum and no extra fees. Just call up and ask about it. If they are not willing then tell them Coach Phil referred you. It is not special thing but since I have recommended them to a lot of people they have been more willing to give the low rate.

    But just asking will probably be enough to get that rate anyway so just ask...
  6. I like to get 0.75 a contract or lower with no other fees. I usually scale in with 5 contracts each time and don't want the requirement of 10 contracts minimum.
  7. MTE


    Talk to them. It won't hurt if you ask.
  8. I think the good ones are not so cheap/ not cheaper than your previously $8 + ( $0.75 / contract ) with Ameritrade.

    There is some cheaper ones like TradeKing which charge $4.95 + ($0.65/ contract) however Im not sure if this would qualify as a good options broker compared to more established ones like ThinkOrSwim and OptionsXpress.