And the first thing you'll see in that quote is that there is no fee on equity options. This has been pointed out by the OH CEO in interviews and discussed in threads here.
Just curious, how many people trade 1000+ lot? Also if you do 100K+ per month volume, IB offers you .15 per contract flat. So you are still $8.50 costlier than IB. So far my strategy was following; if I can afford 20+ contract per order (usually spread, so 10+ spread) I go OH. For smaller orders IB was my choice (usually multiple orders, 2 contracts each on some high priced stocks). Per contract pricing with no fixed cost is great for scale-in and scale-out. So guess I'm out :-( My 2 cents:- Don't lose your edge else you'll lose your business. Why can't you match eOption.com? $3 + .10 per contract. Equity trades are 2.95; so just make .10 or .15 per contract on top of that.
In other words, "Using this particular example, you will now pay 16 times the former commission rate or a 1500% increase." What about the closing transaction? That will be costly as well. What about clients who trade 4000 contract positions? A $1200+ commission versus the former $20. How can you possibly try to spin this as something beneficial for your clients? AZD
BS... If you actually can find somewhere in the document or the cboe's website what is the definition of "customer", well 1) i'd be very happy to know and 2) you'd be my hero Untill I see this definition, OH is either a market-maker. a member firm or a broker-dealer in my book so they do pay per contract
OptionsHouse: This is treating your current customers like crap. You should *at least* offer them a grandfather clause to continue with the flat rate 9.95 pricing. We are the ones who got you to this level of success. Time to check out eOption...
1500% commission jack up applies to me .. i trade 4 digit lots .. came to OH after ditching top 3 brokers that I had accounts with . .. well no point staying with OH now
Actually what they should do is keep the flat-rate for LESS than 1000 contracts. If they are stuck only with professional guys, hit them with the new rate for more than 1k contracts. Guys like me who are just regular traders are getting screwed by this.
This. Or something like this that allows existing customers to keep the old rate (or something real similar) and makes everyone happy. I'm sure there's some middle ground..