Here comes another one (Options Shop)

Discussion in 'Retail Brokers' started by Brighton, Apr 4, 2013.

  1. Brighton


    Saw an ad on some website this a.m. - a start up focusing on futures options. Of note:

    *$2.50 USD (all-in) commissions per side through June 30. That's very competitive, but I don't know how much they will charge after the "beta" period, as they call it, is over.

    *It's backed by OptionsCity, a developer of professional grade options software.

    Might be worth a look if they continue to offer decent commissions and if the software is a lite version of what they sell to the pros.

    I just glanced at the site, not looking for a new broker, don't know who their FCM is... but it caught my eye because like LiveVol, another options software/trading platform company is getting into the brokerage business.
  2. the clearing firm is RCG. see below from the account agreement.

    first, in general a very good tip if you can't find the clearing firm for an ib (or any other broker for that matter) is to click "open account" or whatever (don't enter any info) and usually on the first page there's all the legal language and almost every time the clearing firm is listed. if it's a lot of language and it usually is just press ctrl-f and "clearing" and the answer is right there.

    second, re new brokers, i'm very skeptical by nature about new things so a new place to put money isn't something i'd just jump into. i'd wait a couple months to see how things shake out - esp b/c of the software - if it was the pro version that's diff but if it's a stripped down version i want to KNOW it's not going to crap out on me during a trade.

    third, re the commission rate i agree that it's a great rate which is why they're doing it to get new customers. however i'd bet dollars to donuts that rate is at least 25% higher w/in 6 months so if i signed up i'd ask them for an agreement (in writing) guaranteeing me that low rate FOREVER.