I guess the real question is will this drop the bottom out of the market and force the other 'discount' brokers to compete and become much cheaper? What do you think?
Is it not direct routing by optionshouse ,tradeking End effect ,that would not cheaper ,possibly more expensiver as with direct routing Direct routing By IB 1.75$ (not pure agent ,market maker through TMWD) by OXPS 1.25$ - 1.5 $ (pure agent) By TOS 1$-1.5$ (pure agent) By AMTD 10$ + 0.75$ per contract (pure agent after selling interess in NITE) Your respectfully ...
Exactly. Since Optionshouse is their own version of SMART routing it is reasonable to assume that (1) all order flow will first go to Peak 6 so that they can maximize the bid-ask spread and then (2) any option that Peak 6 does not make a market in will be sent to the exchange where they can receive the most payment for order flow. Now the other question you need to ask is let's say that you are doing a spread in size (1000 contracts, 2000 contracts, etc.). Yes, it does look great that each leg is $9.95 and thus the commission per contract is so low. However, if you get immediately filled, then maybe you are the one holding the bag.....
I agree. I'm actually negoiating with my broker at this time for a quantity reduced rate. We'll see how that goes, and that will tell us if Option house is in fact offering a lesser service, or simply assuming a small margin.