I struck out a second time with TDA trying to get approval to trade spreads. In any case, their commission is too high if trading around 50-100 option contracts. Can anyone here recommend the best broker to trade spreads? Both in terms of commissions as well as ease of approval for the appropriate option trading level. Data feeds and other services are not that important since I will still be using my TOS platform. I am hoping to sign up with EOption tomorrow. Let's see how that goes.
I am not sure if you understood my original post but anyway.... Most brokers, definitely TDA, have diff trading levels for trading options. With TDA it goes like this: Level 1 - Write covered calls and cash secured puts Level 2 - Purchase options Level 3 - Create spreads Level 4 - Write uncovered options I currently have only Level 2; hence unable to trade spreads. Note how funny it is that TDA will allow anyone to blow their entire account speculating by buying options while not allowing them to lower their risk by using spreads. And also I don't understand how a bull call spread is substantially different from a long stock/covered call position. The lower strike long call essentially acts as a long stock, doesn't it? (with some restrictions of course)
I've thought the same thing for a while...They should at least differentiate between credit and debit spreads also.
Thinkorswim doesn't have trading levels, well at least they didn't have them in the past, so once you are approved for options trading you can trade whatever you want.
"Best" broker is a debatable topic since each one offers different features. I've been with IB for 10 years. Some here have noted problems with them. I've had none. Thier low rates are on a per share/contract basis rather than on a per trade basis. That's imp't to me since I scale in and out of positions. Option approval then was based on a 10 or 20 question test which wasn't difficult. I assume it's still the same. Lose the TD Ameritrade. It's a square wheel