Is IB the best broker to trade options?

Discussion in 'Options' started by kalashnicac, Apr 14, 2005.

  1. I am about to open an account and I would like to have your opinion here: I have been looking for a broker with which I can trade futures and options on as many markets as possible (basically currencies, rates, indices and raw materials), as I would like to diversify my investments-you need to spread the risk when dealing with options.

    Many brokers offer options only on certain markets. For example Saxo Bank will let you trade all the futures but only enables customers to trade forex options. Other brokers will let you trade options but only over the phone and for big amounts.

    Do you reckon IB is overall the best?

    Thanks for your advice. Hope I will be posting my strategies soon.
  2. ktm


    IB trades only electronic markets. If you are trading electronic markets only, then I would say IB will provide the most comprehensive list of tradable products. If you have a need for pit access, you will need an additional broker.
  3. I see... Thanks ktm.

    Aren't most of the markets electronic though? I thought the pits were disappearing little by little...
  4. Trajan


    Most equity options markets are electronic or at least you trade it electronicaly even if somebody is standing in a crowd. A lot of futures options markets in the U.S. aren't electronic.
  5. i think ib's option fills unmat5ched and so is price. i do 1k contracts a month never a prolbem
  6. Trajan


    I forgot to add my opinion about IB. They're fine, but I'm leaving. The options part of the platform is a resource hog and sometimes you just shake your head wondering where they get some of the greeks. The fills are fine. If I was sticking around, I would write something of my own to trade with.
  7. I also trade primarily options with IB and I'm very happy. The platform is very stable, fills are very good and fast and commissions are the best.
    There are many options markets that trade in the pit, but also electronically side-by-side (SPX in CBOE and ZN in CBOT if to name some...)

    I use my own option analysis tools and I also use something else for charting.
  8. Thanks for these different opinions.

    There are enough option markets to trade electronically at IB, it seems... (with the Liffe notably, which I think is entirely electronic-correct me if I am wrong).

    Looks like I will need an extra analysis tool, though.

    Optionwizard: may I ask which option analysis tool you use? I have a few option pricers of my own (excel), but they're not very sophisticated, especially if I try simulating option combinations (BTW my favorite paper-trade strategy: ratio spreads, the best imho in terms of risk/reward).

  9. In my opinion: NO

    No meaning, I dont think IB is the best but every trader has different trading styles which make different platforms better fro different people.
  10. Thanks pumpanddump but would you mind being a tiny bit more explicit: what broker do you use? what are the problems you have experienced with IB? for what style of trading is IB appropriate?


    #10     Apr 18, 2005