Lowest cost per-trade option broker for cheap spreads that's not Robinhood

Discussion in 'Retail Brokers' started by alphadistribution, Jun 12, 2020.

  1. I leg into cheap spreads with premiums around $0.01-$0.05. My edge per trade on the whole is pretty low, so I'm on some razor margins, but it's there. I trade around 30k contracts per month.

    Robinhood has been the cheapest broker I've found, only charging the SEC and FINRA fees of 0.00221% (rounded up) and $0.002 per contract (rounded up) on sells. So I can get into 100 spreads at $0.01 premium for $100*0.0000221+$0.002*100=$0.21 (both rounded up to the penny). And one spread for $0.02.

    I've found some other zero commission brokers like Tradier, Firstrade, Gatsby. All charge OCC fees and option regulatory fees of around $0.10 per contract (buy+sell).

    Schwab, Fidelity, IB, TOS are all out of the question with the "zero commission" $0.50+ per contract "fees."

    Is Robinhood just eating the OCC/ORF fees? Or is there someone else (with an API) who I can broker with who doesn't charge to clear options? I would be willing to pay a flat rate monthly, under $1k ideally.