Forex Trading Blog

Question by Ronald R: What online options brokers have flat rate commission?
What on line options brokers offer flat rate commission? I used to use optionshouse.com, but they sent me an email that they will change the rate to $ 8.50 + $ 0.15/contract. So I am trying to find a new online options broker that will allow me to trade as many options contract as I want for a flat rate commision. Can you help me out?

Best answer:

Answer by Answer Me
No I cannot help you out but I can ease the pain a little bit. Two brokers come to mind. One is Interactive brokers:

http://www.interactivebrokers.com/en/accounts/fees/commission.php

As you can see they charge 70 cents per contract only so if you buy 14 contracts the price is equal to what it would have been with optionshouse. If you buy less than 14 contracts it’s cheaper obviousy and if you buy more than 14 contracts a pop I donno it depends on how many.

Sogotrade offers contracts for 65 cents each but they also want a 4.95 transaction fee:

https://www.sogotrade.com/Setup/Default.aspx?rf=392837

If you buy huge amounts like 50 to 100 at a time then they would be cheaper than Interactive Brokers. Sogotrade only wants $ 500 to open a regular cash+options account and only $ 2500 for a margin+options while Interative Brokers wants $ 10,000 deposited in a new account.

Tradeking offers the exact same price as Sogotrade on options but Sogotrade wants only $ 3 for stock transaction while Tradeking likes to chugg $ 4.95 for each stock transaction. With Sogo if you do a multio short/call/stock spread they only charge you one transaction fee too. Not sure about Tradeking in that regard but I’m 90% sure they wouldn’t stab you with excess fees in a multi.

It almost sounds like you might be better off staying with OptionsHouse but splitting your funds between two or three brokers now and use whichever one is best depending on what the fees will be for each trade.

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