the best option's broker

dose any one knows what is the best option's broker to use, I found that option's house is very cheap (.15 per contract).

 

Their rate on their website is $1/contract or a ticket charge of $8.50/ trade plus .15/contract.

For you, what makes a broker the "best." Is the cheapest price the best?

 

do they include exchange fees in that?

 

OP only plans on doing the .15/contract and skipping the $8.50 deal

 

Very nice rate. They will charge you .15/contract, no minimum and no ticket charges? I'm guessing they choose the route. You're most likely benefiting from them receiving Payment for order flow, PFOF. They get another $0.25 to $0.55 from the market maker that receives the order at the exchange.

 

they do charge the 8.5 but I do trade like 1000+ contract a week so the 8.5 is nothing comparing to the .15 per contract

 

I guess the average ticket size is more important that the total volume. If your trading 4K contracts a month in 10 lots, the ticket fee makes your rate around $1.00/option. If your average order size is 100 contracts, your rate is now .235/contact. I hope I'm doing the math correctly. .235/contract is a very good rate for your volume. $1.00/contract, not so good.

Bob

 

A key consideration that's been discussed on other threads is whether a broker will ever liquidate positions without contacting the client first. Some traders won't consider a broker who robotically 'auto-liquidates' positions.

 

Many online brokers send out an e-mail for a margin call. If you don't react by a certain time, they auto liquidate.

 

my max hold time is 72 hours, I don't wait to hit expiration.