Discussion in 'Options' started by cashmoney69, Aug 5, 2009.
has TOS gone down hill aftr they got bought out?
who else are the top 5 option brokers?
maybe Option House. I don't know enuf about them
how are they going downhill??
I dont know for the american side of tos, but the canadianside, they already switch to tdwaterhouse canada clearing. so if you short with them,it suxs.
I guess the broker selection depends on your account size and trading volume.
This is my recommendation
Less than 10K - stay away from options
10K to 40K - InteractiveBrokers
40K to 100K - InteractiveBrokers
100K+ - InteractiveBrokers
Sorry! but I don't believe in flat rate commission. There is always a catch!!
Per share/contract commission is great for scale-in and scale-out trading (a great strategy). Go IB with unbundled pricing; No one can beat that!
So your logic is that there is a catch because it is a flat rate, but you only say that because you think there "has to be"? .. Pretty piss poor logic if you ask me.
To the OP: If you're always doing large contract orders (you can do the per contract math on it) then OH is good. If you're only doing 1, 5, 10 orders then don't use OH. Simple. I've used OH since November and there's no catch, no hidden fees, no whatever. The only thing I dislike about them is that you can't route your orders.
THERE IS NO FREE LUNCH - SPECIALLY FROM A PROFIT MAKING ENTITY.
*** THERE HAS TO BE A CATCH ***
If you don't agree to this - you sure live in a dream world.
Exchange charges per contract fee, so it is common sense that anyone giving you flat rate is relying on combination of followings.
* Most of their orders will be small order.
* They'll get kickback for routing. It may result into an inferior routing for end user.
OptionsHouse is obviously my second choice. I love their interface. Simple and light but very powerful. Another positive point is that they do not have any cancel/modify fee for options order.
OH account is my back-up which I use sparingly with bigger/cheaper lots.
What do you like about TK? I used to use them, moved to ToS and haven't looked back. If it's the TK commissions you like...ToS will give you TK commission rates....along with the better tools, real platform, etc.
I understand what you are saying, but you said there has to be a catch without providing any proof.
Exchanges do not charge a per contract fee. If you ever listened to the OH CEO give an interview he points that out everytime.
(Direct link to his most recent interview)
Everyone gets paid for order flow (even the beloved IB).
As for the "most of the orders will be small orders" .. Yah, once in a while I have a small order but I know I clearly make it up in my larger trades. That's not a bankable expectation that they can create a business model off of, they have to expect everyone to do large orders, and anyone that goes on there and then does 1 and 2 contract orders is a dumbass for choosing them as a primary.
OH will tell you they piggyback on Peak6's feeds and since Peak6 gets good rates due to the large volume they do, they can get those rates for OH as well. I _assume_ this includes whatever they're paying for data feeds and to some degree their internet connection. If Peak6 is sitting on (for example) an OC3 and it was only 20% used, then why not stick OH on it. Paying the same amount but utilizing it more and having it help make money.
Finally. Shitty routing. Yes, I run into it once in a while. It typically only occurs on a few select options on the penny pilot when I get routed to crap like BOX/NOM/ARCA .. it's annoying but not typical so whatever. ..
It's your backup so you know their's no "catch" .. either that or you rarely use your backup account on there.
The interface .. yes.. I agree.. I love their interface. For a web based broker it is my favorite..
(For the record, I don't work for them I just think a lot of people don't try them for the same reason you said. "There must be a catch".. when in fact the arguments people always put up are true for other brokers as well).
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