# Best broker for trading options?



## Johno (11 February 2009)

Do you guys have any ideas on who would be the best broker to go through for trading company options both on the ASX and the DOW? Im looking for the cheapest, but with the a good trading platform....cheers, im new to options....


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## CanOz (11 February 2009)

*Re: Trading options*



Johno said:


> Do you guys have any ideas on who would be the best broker to go through for trading company options both on the ASX and the DOW? Im looking for the cheapest, but with the a good trading platform....cheers, im new to options....




Interactive Brokers.

I have no affiliation with them, nor do i trade options. DYOR.

CanOz


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## Grinder (11 February 2009)

Theres heaps of info on this topic, do a search & you will find.


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## boostn82 (28 February 2010)

*option selling*

Hi after reading the complete guide to option selling  I have been selling and buying options for the last 6 months eg sell the xjo
4000 put buy the 3800 for protection and also sell the call 5300 and buy the 5500, ten contracts of each one,  i have them expiring in march and April and have just done the same strategy on bhp for may, what i am finding is that with 90 dollars brokerage to open and close each positions what credit i do have or profit is just getting eaten up in commissions as i take all the risk and my stockbroker takes all the profit, what I would like to know is  what company you guys use to trade options,  commsec IB ??I am confident that I can make my decisions on what options i would like to sell/buy  with out a broker giving me advice thank you for your time


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## So_Cynical (28 February 2010)

*Re: option selling*



boostn82 said:


> Hi after reading the complete guide to option selling  I have been selling and buying options for the last 6 months eg sell the xjo
> 4000 put buy the 3800 for protection and also sell the call 5300 and buy the 5500, ten contracts of each one,  i have them expiring in march and April and have just done the same strategy on bhp for may, what i am finding is that with 90 dollars brokerage to open and close each positions what credit i do have or profit is just getting eaten up in commissions as i take all the risk and my stockbroker takes all the profit, what I would like to know is  what company you guys use to trade options,  commsec IB ??I am confident that I can make my decisions on what options i would like to sell/buy  with out a broker giving me advice thank you for your time




That's why everyone uses IB...i think its like $6 each way.


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## wayneL (1 March 2010)

*Re: option selling*



So_Cynical said:


> That's why everyone uses IB...i think its like $6 each way.




Well, boostn's position (an iron condor) is a 40 contract position just to open it.... $120 through IB.

Hence there is much discussion here on strike selection and trade management to optimize the risk-reward-probability-adjustment parameters.


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## boostn82 (1 March 2010)

What about Etrade and optionexpress?? seems to be a few post  but all of them seem to be old,or is everyone just use IB these days


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## cutz (1 March 2010)

Something else to look out for with Australian brokers apart from the hefty brokerage on options is the assignment/exercise fees.

One well known aussie big four broker charges 0.35%. So if you have a modest spread on that hasn't been managed properly, say 5/5 contracts on a $40 stock you can well find yourself close to paying one and a half grand on the assignment and subsequent exercise.


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## obsessive-focus (3 March 2010)

For Us Options, my money is with thinkorswim.  Great platform and $1.50 each way per contract.  Unfortunately they don't do ASX options


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