for 100 shares SPY, the commission on IB is 0.5 dollars. why 1 lot spy option is so expensive, i.e., 1.5 dollars at IB? anyway to decrease it?
Both would qualify for Free under the Tradestation promotion or many broker "new" account promotion. Also both free on the free platforms. The fees attached would be orf and or clearing. Index options would still about 1/2 buck of exchange fees. Most of the free deals limit your routing, but you're subject to best ex. and NBBO protection. SPY would not be an issue for either the cash or the option with so much competition. Plus SPY trades global trading hours if you broker has access.
That is expensive, ~ 3x my expensive broker's commissions? If you execute more than 100 trades a month, most brokerages will offer you commission discounts.