Options Trading Software

If you just want to simple analysis for the best return based on entry stop and target here's a free piece of software I found toi be very useful.

http://www.stockoptiongenius.com

 

What other fees?

 

TDAmeritrade (parent of ToS) is well aware of the competition from IB, and will aggressively lower prices or improve margin terms for active traders. In fact, they'll initiate without prompting from the trader. Having said that -- IB will still be cheaper, even for the most active traders.

 

For example,

Fees to ship money out of ToS.

With IB the first shipment out is free, and thereafter they are a fraction.

For example let's do a wire to CHF, which costs 11 USD. In ToS 50 USD. But that is 11 for the second. Thus if you did two transfers you would pay 100 USD.

Execution of options or index options in the US is free, whereas by ToS charges 15 USD.

So think about this, with ToS you buy an option, you get charged more probably about 8 USD, and then to exercise you would pay another15 USD. Thus with ToS you would end up giving them 23 USD for the pleasure of doing an option trade.

And then if you want to take some profits home you might even have to pay an additional 50 USD at least.

 

I would not use the term active trader because it implies day trading. I would say IB is or those that treat the market seriously and not as a casino or some get rich quick scheme.

Is IB for beginners or casual folks? Not really since you are expected to understand the various aspects of the market.

I remember it took me about a year to completely understand all aspects of IB. Even today I still find things that amaze me.

 

At first sight ToS looks OK. However, any broker where you have to pay high fees to withdraw your money one cannot take serious.

I would highly recommend IB.

 

While low cost commissions are certainly important, ease of use in the platform plays is a big part as well. In TOS, the option analyzer feature is great, and it is extremely easy to quickly create conditional orders. For options trading, I've found TOS fits my needs better than IB.

Not knocking IB, by the way as I've been an account holder for over 5 years (TOS for about 2). They actually complement each other quite well, since IB lets you trade futures in an IRA (TOS doesn't) and TOS lets you trade spreads in an IRA (amazingly IB doesn't).