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Anyone know of any brokers that would be suitable for commission intensive trades (i.e. Creating Alpha TLT trades) that accept Canadians?

None of their suggested brokers there seem to...

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On 4/24/2018 at 9:29 AM, Kim said:

image.png

Looking more closely into opening an account with IB. Are these selections still good for the SO trades we do? I don’t really understand the data subscriptions are charged with IB and not others..

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Yes, this is what I'm using.

What you have to look at is the overall cost. If TOS charges you 1.50/contract but data is free - you will save $10/month on data, but lose much more on commissions.

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11 minutes ago, Kim said:

Yes, this is what I'm using.

What you have to look at is the overall cost. If TOS charges you 1.50/contract but data is free - you will save $10/month on data, but lose much more on commissions.

1.50/contract? Is that the real commission cost at TOS? I can certainly see why this would never work for SO. Perhaps there is a sliding scale for volume? 

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You can negotiate lower rates if you do enough volume, but I believe most people still pay $1 or higher, and some still pay ticket fee of $4.95, which in my opinion is a highway robbery.

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Anyone using tastyworks? I’m experiencing quote delays on the iOS app. I asked them and they have live quotes but doesn’t seem quotes are in real time comparing to I also have TOS, which is real time streaming.

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On 1/24/2019 at 5:44 PM, Kim said:

Yes, this is what I'm using.

What you have to look at is the overall cost. If TOS charges you 1.50/contract but data is free - you will save $10/month on data, but lose much more on commissions.

@Kim
Hello. No difference using 'US Equity and Options Add-On Streaming Bundle' for $4.50 in Quote Bundles section or AMEX+NASDAQ+NYSE+OPRA for the same $4.50 (taking waiver into account) in Level 1 NBBO Section?

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A couple of questions regarding IB:

1) Does IB charge an exchange fee of 0.35 - 0.45 in addition to the commission fee when trading SPX options?

2) Assuming one is trading a large volume, how low can one get the commission rate on equity options (either with an associated ticket fee or without one)?

Edited by Alan

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5 minutes ago, Alan said:

A couple of questions regarding IB:

1) Does IB charge an exchange fee of 0.35 - 0.45 in addition to the commission fee when trading SPX options?

2) Assuming one is trading a large volume, how low can one get the commission rate on equity options (either with an associated ticket fee or without one)?

IB passes along the exchange fees and to my knowledge does not negotiate commission rate. You can see the volume tiers on their websites. Lower rates start above 10k contracts per month, so quite large volume for a retail trader.

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Hi there, folks.

Have a question regarging IB 'smart route' algo. I'm surprised with comission differences depending on where my order was routed. Have a nice example with recent NKE straddle trades. So opening comission for +3 straddle -1 strangle was 3.6, 5.16 and 10.22! for the same quantity (last box in red).

image.png

 

I know the orders were executed via different exchanges:

image.png

 

Buy why there's so big difference between them? Does anybody encounter this? If yes, how would you fight it? Do not use smart route?

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@Dael This is totally normal with IB.    Your average over all these trades was $0.79 per contract, and that's what really matters.   When you compute commissions over an entire year, you should see a per contract average of 0.75 or less per contract (assuming you did a good volume of trades).

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I was able to negotiate with TOS for options 1 dollar per contract and no base fee. I mobile trade a lot and their platform is the best one on the go with the most features imho.

 Will try again in 6months to lower it to 0.75 per contract. 

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7 hours ago, aldem said:

check out the news on Charles Schwab eliminating all commissions starting October 7

Based on what I get from this source...

https://www.investors.com/news/schwab-stock-dives-unveils-zero-fee-stock-trades-tdameritrade-etrade-ibkr-plunge/

...Schwab is dropping their per-trade fee, but will still be charging 0.65 per options contract traded.

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TD Ameritrade users benefit, too:

TD Ameritrade Holding Corp. (NASDAQ: AMTD) announced Tuesday evening the brokerage firm will eliminate commissions for its online exchange-listed stock, ETF and option trades, moving from $6.95 to $0, effective Thursday. Clients trading options will now pay 65 cents per contract with no exercise and assignment fees.

https://finance.yahoo.com/news/td-ameritrade-joins-party-cuts-232459946.html

 

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Ally announced that they were going commissions free as of 10/9/2019, but they started doing this on my trades on 10/4/2019. Nice.

 

And I do mean no flat fee or per option fee. I was being charged 2.95 + .50/option.

Edited by g5harlan

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Hi All,

 

Im quite new to all this, 

Using SAXO Bank as the broker for now, they are charging me something like $2.08 per leg as per what i can understand and their fills seem to take ages, I see other users positing of fills at prices which I am working at as well and not getting filled.

I am currently subscribed to the OPRA Data and have no idea which exchange are the orders being routed to. Anyone have a similar experience with them?

Do let me know if Saxo is a worthwhile broker to continue with or switch to someone else, my account size for trading is USD 100K and I am only trading and learning as per SO advice. So the number of trades will be about 80% of what SO does monthly.

Any advise will be highly appreciated! 

Thanks! 

 

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Does anyone use robinhood?  I was looking at doing a trade on SPX that was posted and I’m not sure if you can do it on robinhood.  The zero fees are amazing, but if it is going to hold me back from taking full advantage of steady options, I will look into switching.

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2 minutes ago, nlesko1988 said:

Does anyone use robinhood?  I was looking at doing a trade on SPX that was posted and I’m not sure if you can do it on robinhood.  The zero fees are amazing, but if it is going to hold me back from taking full advantage of steady options, I will look into switching.

You cannot trade SPX on Robinhood. 

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I’m wondering if I will run into any other problems with robinhood as my broker?  Not sure of it is worth switching just for SPX trades, but if there are any other shortcomings of robinhood I would like to know before I dive on any deeper to options trading.

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@nlesko1988, with zero commissions you can use SPY to replicate SPX trades (just do 10 SPY lots for every 1 SPX lot). Even considering exchange and regulatory fees you'll probably pay less commissions for 10 SPY lots than using other broker that supports SPX and has higher commision rate (plus 0.60 exchange fee for SPX).

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3 minutes ago, nlesko1988 said:

I’m wondering if I will run into any other problems with robinhood as my broker?  Not sure of it is worth switching just for SPX trades, but if there are any other shortcomings of robinhood I would like to know before I dive on any deeper to options trading.

When you trade multi-leg options with Robinhood you will need to round up or down, I think in 5 cent increments. Other brokers allow you to place trades on the penny. 

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Just now, Stanislav said:

@nlesko1988, with zero commissions you can use SPY to replicate SPX trades (just do 10 SPY lots for every 1 SPX lot). Even considering exchange and regulatory fees you'll probably pay less commissions for 10 SPY lots than using other broker that supports SPX and has higher commision rate (plus 0.60 exchange fee for SPX).

This is an excellent idea. Do be aware, however, that SPX with a zero-commission broker is still likely to be cheaper than SPY with that same broker. Zero-commission SPY is definitely cheaper than commission + SPX exchange fee, though.

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1 minute ago, Stanislav said:

@nlesko1988, with zero commissions you can use SPY to replicate SPX trades (just do 10 SPY lots for every 1 SPX lot). Even considering exchange and regulatory fees you'll probably pay less commissions for 10 SPY lots than using other broker that supports SPX and has higher commision rate (plus 0.60 exchange fee for SPX).

SPX is european style, SPY is american. Something to keep in mind.

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1 minute ago, Djtux said:

SPX is european style, SPY is american. Something to keep in mind.

Also a good point. SPY has dividends, so there is an assignment risk not to mention an attendant price gap after that dividend is paid.

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