Anyone comment on using them ? (There are some older threads about them but nobody had tried them yet.) Anyone know what their MM rates are on sweep accounts? Ive read here over and over that TOS/IB are the best for options. OH charges 9.99 flat. I usually make directional trades 150-200 contracts per month in 10-20 size trades. From what I can figure out OH would be better pricing for me, or am I missing something about IB/TOS ? TIA
I opened an account with them last week caues I wanted to put in a 1000+ contract trade sometime soon, would save me thousands getting in and out. I like them, the interface is very slick and they are affiliated with Peak6. It's taking them a while to send me some paperwork but it should all get here today. I hope in the future they add features to their web interface such as the ability to ACH funds on the website, online forms, etc, etc. Anyways, for pricing alone I would recommend.
One thing that eludes me in their pricing is how they can offer a flat rate at all. Exchange fees alone run about $0.30 per contract - so on a 30 lot they aren't even covering the external costs of the trade. I'm sure they'd argue that the vast majority of retail trades are less than 10 contracts. However, if they've set up an incentive for a trader to do all of his largest trades through them, guess what, they're probably going to see a lot of large trades.
they are a division of a market making firm, peak6 costs are extremely low, their is still money to be made on the spreads, remember.. all about volume..
I assume they also get compensation for order flow. I think their flat rate is per leg, but not sure.
i called them, they sound good to me. i would think they honor their rates, considering who their owned by.. peak6. it makes sense from their business model anyway, their are probably not many options traders doing 100 plus contracts per execution imo. Anyone with a account that can provide some feedback on your experience with them would be appreciated?