Hi, I am an option trader. I usually execute 10 to 30 trades per month, no day trading. I am currently using OptionsXpress, and is very pleased with their services. However, I notice that Interactive Brokers(IB) has the lowest option commissions for online trading, provided smart routing has been chosen. Any experience with option trading on IB that can kindly share with me. Thanks in advance !!
Cash account: cash from options sales won't be available to you until the next day Margin account: cash from options purchases is deducted from $25,000 daytrading minimum equity, but cash from sales is immediately available
I work for IB but as a trader (market maker in options for IB's affiliate Timber Hill), I can attest that the system speed, reliability, and executions are great. Hopefully others will comment so you get an outside opinion. My advice is simple, open an account, take some time to learn and get used the system (hot keys, order entry, order types, etc). Do a few trades and compare. If not happy, close your account for a return of funds. Naturally, I'm confident you'll be pleased.
One good thing about IB is that there is no minimum. Thus, you can trade a 1 lot and will be only charged $1 commission (SMART routing).
The only thing I would complain now is the cancellation fee kicking in recently. In IB statement, the cancellation fee is not shown on each order/cancellation, but in a lum sum. I have been trading options using SMART all the time but still get cancellation fee charged!
I am very satisfied with IB and their option fills. I only do about 10 - 20 option trades a month and I sometimes trade somewhat illiquid contracts and love the fills I get. I've only had 1 bad experience. I once was day trading some contracts and had a stop loss protecting my position and got stopped out way below where any trades took place. I called IB and they made it right. Happy IB customer
Trader.NET, if you've been charged for cancels when routing to SMART, send a note to the help desk. They should be able to correct it.