Cybertrader is being combined with Schwab in Dec. and several of the execution problems at Schwab will, according to the Cybertrader people, be forced on Cybertrader clients. Three that really frost me are: 1) Cannot route option trades to specific exchanges. Schwab uses UBS and they seem to have some order flow game going on where trades are routed to illiquid exchanges. 2) Double charging of option margin requirements on credit iron condors. Schwab charges margin requirements on both sides of the credit verticals of a iron condor. They can't, or won't, match up the credit verticals so that you only get charged on one side (the higher of the two margin requirement). 3) Schwab has a manual review process for option trades to ensure margin requirements are met on option orders. It can hold up trades going to the floor from 2-5 minutes. At Cybertrader, the review process is electronic. Anybody have some thoughts about a broker that doesn't do the the above nonsense and is financially solid?
You should consider interactive brokers (ib) who will satisfy your requirements FYI, a recent independent study came out where it showed IB's customer equity option orders received price improvement 14.85% of the time vs. an industry average of 0.57%.* * Source: Transaction Audit Group (TAG) for marketable equity option orders submitted January - June 2007
For experienced options trader; Interactive Brokers For newer options trader or one who needs to get a live person from time to time: thinkorswim I've used both. Both are leaps (no pun intended) ahead of the Schwab's, Fidelity's, etc. in options platforms. I chose thinkorswim because 1) I need to a reach a live person from time to time (away from computer alot), 2) I like their platform better, and 3) slightly higher commish does not greatly affect my strategies. Your mileage may...