I believe that it is the same commission structure for all brokers. I won't use them for the average stock, but it might allow me to take advantage of GOOG and other options that have high priced options because of volatility
I have looked at commissions on TradeKing, IB and TDA. TradeKing isn't TOO bad, its their normal $5 starting ticket rate, TDA has the same $10 base rate so its pretty steep. IB's is the same but at only $1 ticket minimum they're about the only sane choice commission wise. I was kinda surprised at how good the volume was on the SPY7 chains for the first month but the spreads are still out there. I got a few nickel price improvements on SPY7 through IB smart the first couple days, but it hasn't happened once since!!
Tradestation options are usually $1-- $2 round turn. So this means I should be able to do a round turn trade, on one of these mini contracts for 20 cents. Sounds almost too good to be true. I'll be trying this out very soon.
The following user says Thank You to townsend for this post:
No. I'm a day trader, so with no volume and huge spreads these mini options are useless to me.
You should call Tradestation to verify that low commission rate.
Be aware thought, that in order for me to use the Tradestation platform without incurring the $100 a month software fee, I must do 25 round turn options trades a month, which for me, is very easy to do. If I were trading just mini's I expect I'd need to do 250 round turns.
I was wanting to use the mini options as a low cost way to test new strategies, which of course won't work due to the low volume. So I'll continue to use the Tradestation "simulator" which is just paper trading, and is a very poor substitute for real trading. The quotes are real time, but the fills are always skewed to show much ore profit than you would make using real money.
understood. I currently trade through IB but was considering TS for better realtime data quality and secondly potentially the cost difference on minis but I am not doing lots of RTs. thanks for the info