For option trading TOS is a superior platform to IB. That's what you're paying for in higher commissions. Trade entry and analysis features (such as such as risk graphs) in TOS are convenient and intuitive. IB's feature set is very basic in this regard. I know option traders who won't move fromTOS to a cheaper platform just for this reason. It's like using a Mac for years and suddenly being forced to use a Windows platform. Both work, but it's all about what you've grown used to.
Expensive, yes. To the point of making it virtually impossible to be profitable unless you trade large enough (10k contracts/month) to negotiate out all the crazy fees, 50c commish/car and no exer/ass fees
The guys I referred to had already negotiated lower commissions that were within the realm of reason. I suspect TOS is like Subway: no one pays full price, there's always a discount coupon available.
I think it's more like DirectTV. You have to actually quit and restart as a new client to get the good rates. What would TDA gain by reducing your commission on a low volume account!? You got no bargaining power, esp if you've been with them for a while. They figure you're just not going to leave.
I've got nothing but respect for TOS. But it all depends on how you trade as to whether you need their platform. If trade friction is a limiting factor to profitability then you have to look somewhere besides TOS.
I talked to a rep at my local AMTD office to get the 7$ ticket and .65/contract price - I hounded the rep for months trying to get .15/contract, so I wouldn't have to move my accounts to OptionsHouse, but oh well... (OH 8$ +.15/contract is pretty decent.) I still use TOS though for keeping a monitor with charts on 24/7 (some futures and some stocks.) I asked the rep what I needed to get lower, but she wouldn't tell me directly except to say "it" would have to be alot more... very annoying to not get specifics from her. ps 7$+.65/contract is not a typo. pps - one more thing about AMTD - you can now buy back short options at .05 or less and pay no ticket or contract charges. I sell puts alot and buying them back at .05 for no fee is nice.
I actually have a buddy that runs a firm that is offering .35 a contract with TOS. To be honest, I have no idea how he is doing that. And you would be REQUIRED to open an account through his advisory firm. Which means you WOULD have to pay some sort of annual advisory fee like 1.25% annual or something. And I'm not 100% sure if there is a ticket charge on that or not. And guys, it's easy as hell getting them to knock off that ticket charge. But their posted rates are still high even without the ticket. But if you have a small account or trade no volume, I'm not sure how on God's green earth you are going to negotiate something. I mean, think about it, you are asking them if they would be willing to lose money on your account which is nonsensical.
The .05 is a double edge sword! There were times that when the option is .06, .07 or even .08, I waited one more day only to have it run away from me.
I asked nicely. They just won't bulge from the $1.5 which is an rate increase from my current $7+.75/contract. Like I mentioned on the initial post - my volume has been down from 300 to 50/mon recently - not the best time to negotiate. I just hate that $7 ticket fee, it's a killer to scale in and scale out.