Solo 401k Broker with Level 2 or 3 options?

Discussion in 'Retail Brokers' started by SoCalOptionsWriter, May 10, 2022.

  1. Ok, so I had Level 2 or 3 with TDA, but the merger with Schwab, means they would rather not have have Solo 401ks, I hear, or would rather have them at Level 1. I thought eTrade would allow level 2 or 3 but no -- just a Level 1. Any brokers out there allow Solo 401ks with Level 3 options trading?
  2. Robert Morse

    Robert Morse Sponsor

    What is Level 3 Option data from OPRA for public customers?
    TrailerParkTed likes this.
  3. It’s access the MMs had to adjust NBBO if I recall during the MM physical person days. Op is probably huge volume MM.
  4. Robert Morse

    Robert Morse Sponsor

    I'm not aware of this Option Level. I'd like to see a link to the OPRA website where it describes this offering. I'm only aware of OPRA offering level 1, one level of each exchange, where your broker can display that or just top of book. I would call this Level 1. You see one level of each exchange in a Level 2 window. As an example, seeing the NSDQ bid below $0.67 and more would be Level 2. Level 3 would show the make up of the $0.67 bid for 3. Is that one order or three one lots.

  5. Robert Morse

    Robert Morse Sponsor

  6. I think the term Level 1, 2, 3 might mean different things in terms of options quote availability, and for my use, the level of permission granted for certain types of options spreads, covered, spread, naked, etc.
  7. Robert Morse

    Robert Morse Sponsor

    I'm sorry, that is my fault. You were not asking about Option data but option trading levels.
    For any pension account, today, we only offer up to Option Level 2, buying options. Again, sorry.

  8. Your best bet may be to partial rollover your Solo 401k to an IRA. Keep the Solo 401k open for contributions, and roll over into an IRA (traditional or roth), with your broker of choice that allows at least Options level 2 (not sure if level 3 is allowed in a traditional IRA) and futures trading in IRAs.

    Since it's a 401k to IRA rollover, this source says there are no limits to the amount or frequency:

    One downside that comes to mind is that by rolling over into an IRA, you lose the option to borrow from your Solo 401k, and I don't believe you can take a loan against an IRA the way you can for 401k, even if it's for a home purchase.
    Last edited: May 11, 2022
  9. Thanks for the idea.
  10. Only level least at Schwab and with the finances and money I have.
    #10     May 11, 2022