Options on futures, any good broker recommendations

Discussion in 'Options' started by KB96, Apr 26, 2002.

  1. KB96

    KB96

    Does any one trade options on futures? Any futures, not just the indexes. Any good plays? How are the bid/ask and volume? I'm currently trading options on stocks, just looking to expand my options and opportunities.

    Also does any one have any recommendations on futures and options brokers. I have an IB account, but they only trade some of the electronic markets and i am looking for somewhere to trade the ags and softs markets. I'm looking for $10 or less Rt with about a $2000 min to open an account and I only want online trading. (don't like to listen to brokers tell me what I should be trading)
    Thanks, Kyle
     
  2. If you want, trade them.
    However, the market makers in these options
    will earlier or later knock you down.
    Spreads are huge, only a few trades
    occur, even in the "currently liquid"
    front month/at the money contracts.
    Pit traders will make you pay
    some slippage there... maybe calculate
    average 1.5-2 S&P pts. per "round-turn".

    I think Refco lets you trade these, but unsure.

    The SP cash options are also stealing,
    but in my opinion still better since the
    market is more transparent.
     
  3. lpo

    lpo

    Hi,I know a friend of mine who use LFG for SP options on futures and grains.He got no any complains so far.Also you can check Field Financial they got good commitions on options.
     
  4. Pabst

    Pabst

    There is no "electronic trading" in non index U.S. futures options. Orders may be transmitted online but trades are performed manually in open outcry. Bonds, 10 yr. Notes, Euros, Corn, and Soybeans all have tremendous volume. In notional value all trade more volume then any equity option. Tight spreads and huge institutional i.e. commercial interest. Traded bean options with LFG during a hot market several years back(1997) at $12.00 a rt. and got a lot of bang for my buck.
     
  5. syd697

    syd697

    If you want to trade the open outcry futures options with a decent online trading application, then go to www.5perside.com they charge $5 per side for Chicago markets and $5 + exchange fees per side for NY markets. They clear through E.D. & F. Man so it's a solid company. Take a look.

    Good luck.
     
  6. pretzel

    pretzel

    Hi syd697,

    I'm also looking for a futures broker for commodities (using IB for eminis, bonds, and currencies) and this is the first time I heard of 5perside. Visited their website and seems to be OK. Are you trading with them? How's the execution, slippage, etc.? I'm also looking at elocal, commission is $7.50 per side for Chigaco (all included) and $9.00 per side for NY (all included). $5 per side sounds great but what is the real commission after everything else is added?

    Thanks,

    pretzel
     
  7. syd697

    syd697

    04-27-02 04:24 AM

    Hi syd697,

    I'm also looking for a futures broker for commodities (using IB for eminis, bonds, and currencies) and this is the first time I heard of 5perside. Visited their website and seems to be OK. Are you trading with them? How's the execution, slippage, etc.? I'm also looking at elocal, commission is $7.50 per side for Chigaco (all included) and $9.00 per side for NY (all included). $5 per side sounds great but what is the real commission after everything else is added?

    Thanks,

    pretzel
    ----------------------------------------------------------------------------
    Pretzel,

    Just opened an account with $5 perside and as they tell me, all fees are included for Chicago markets. That covers exchange fees, clearing fees, floor brokerage and commission, so the total is a true $5 flat per side (maybe an extra $.05 for NFA). This is truly the lowest you'll find. For NY markets, it's the $5 commission plus whatever the exchange fees are for whatever market you trade plus NFA fees. So a typical NY trade may cost you $5.70? per side. Still lower than you'll find anywhere else. The trading platform looks good and you can even do futures options spread orders online (that's what I mostly trade). You get real-time snapshot quotes too, but only 5 markets at a time. I'm thinking of just placing a 1 lot order for a NY market and a Chicago market just to see what the real commission turns out to be. If it's truly $5, then I think it's a winner. Plus, for options trades, they only charge you per 1/2 turn, not based on round-turn like most brokers. So if you buy an option that expires worthless, then you only get charged $5 for the opening turn. That's a big plus.

    Good luck.
     
  8. I believe 5perside is actually owned by Man Financial.
     
  9. pretzel

    pretzel

    Thanks syd697 and cdntrader for the info.

    The standalone trading platform is JTrader, the same as Elocal's. The web platform seems easier to use. I really like their click on application (just like IB). With Elocal, you have to print out the forms (lots of them) and fax them back. I think I 'll open an account with them in a few days, unless there's a contrary comment. I was about to open an account at Elocal when I saw your post.

    Any problems with connections? - I guess this wont be a problem unless they get too popular.

    Thanks,

    pretzel
     
  10. wild

    wild

    #10     Apr 28, 2002