There is more to consider when choosing a Brokerage than merely comparing commission rates. IB stands head and shoulders above TOS, Global Acct, portfolio margin, access to all world markets and instruments. Solid, reliable platform and brokerage, API capability as mentioned above, integrates well with Tradelog and various Front ends... Granted charting leaves something to be desired, but that is easily solved with 3rd party charting i.e. Multi-Charts is solid and reliable and has a clean interface with IB... as does Button Trader for front end if desired... One is hard pressed finding a better brokerage...
I use both but should note that you can get better rates that what your stating with TOS if you ask them. Also, if you trade index option products, TOS is an all in rate while IB will charge you the related exchange fees (example - SPX adds on additional fees). Additionally, if you don't trade spreads, IB will charge you cancellation fees for re-booking an order. I recommend looking into the calculation on this as I generally trade spreads and the cancellation fee doesn't apply to me.
For the little option trading I do, I use IB to execute and Option Strategy Builder to visualise. It's free and has live vols data, but only stocks options. Go there, design it, look at the curves, create the legs in TWS and send. The rest of the complex stuff you should keep in your head or some table at hand, however you do it. http://www.samoasky.com/OSB/designer.html PS @mods: if it's not ok to post that link, please edit it (the site has no ads, it's all free).
Yes I am also interested to switch from IB. I had an option trade today on YHOO for 50 contracts and I just paid $4.86 for 50 contracts which is less than 10 cents per contract. It is outrageous. IB's system is unstable, when I logout from TWS, I cannot see the quotes anymore.
Why does TD suck and why should I stay away? Also, do your comments apply to TD Canada or TD USA, they seem to be different entities with different rules.
Here is the official option trade commisions in IB. As you see the high is 0.7 and it can go to as low as 0.25 and if you close 1 cent positions , it is actually zero commission. In my next post, I will show my trades. They are not hand picked. As you see I paid almost $1 per contract as I hit the bid in my sell. I don't usually do that.