# What's SelfWealth or Robinhood equivalent for trading Warrants & Options?



## Dpkmelb (28 August 2020)

Hi all,

What's SelfWealth or Robinhood equivalent for trading Warrants & Options.


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## cutz (28 August 2020)

Dpkmelb said:


> Hi all,
> 
> What's SelfWealth or Robinhood equivalent for trading Warrants & Options.




Watcha mean, you looking for cheap option brokerage on the ASX ?


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## Dpkmelb (28 August 2020)

cutz said:


> Watcha mean, you looking for cheap option brokerage on the ASX ?



Yes, For both Options & Warrants. Something cheaper for stocks like SelfWealth. I tried googling but couldn't find the information anywhere.


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## cutz (28 August 2020)

Dpkmelb said:


> Yes, For both Options & Warrants. Something cheaper for stocks like SelfWealth. I tried googling but couldn't find the information anywhere.




Have a look at https://www.interactivebrokers.com.au/en/index.php?f=1590&p=options7 , they are really good.

Then compare with what you previously mentioned, not sure free brokerage is available for the ASX, Interactive Broker Lite offers free stock brokerage but only on US markets I believe.


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## Dpkmelb (28 August 2020)

cutz said:


> Have a look at https://www.interactivebrokers.com.au/en/index.php?f=1590&p=options7 , they are really good.
> 
> Then compare with what you previously mentioned, not sure free brokerage is available for the ASX, Interactive Broker Lite offers free stock brokerage but only on US markets I believe.



Thanks Cutz


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## Garpal Gumnut (28 August 2020)

cutz said:


> Have a look at https://www.interactivebrokers.com.au/en/index.php?f=1590&p=options7 , they are really good.
> 
> Then compare with what you previously mentioned, not sure free brokerage is available for the ASX, Interactive Broker Lite offers free stock brokerage but only on US markets I believe.



Australia



COMMISSIONS


Index options (ASX)
AUD 2.00 per contract                 
MINIMUM PER ORDER.
AUD 2.00

Stock Options
AUD 0.30 per contract
MINIMUM PER ORDER.
AUD 1.00

I cut and pasted this. Check on @cutz link.

gg


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## cutz (28 August 2020)

Garpal Gumnut said:


> Index options (ASX)
> AUD 2.00 per contract
> MINIMUM PER ORDER.
> AUD 2.00
> ...




What make those rates above a thing of beauty is that they are inclusive of clearing fees.

Aussie brokers like Westpac, Comsec, ANZ, NAB ect sting you on the brokerage then pass on the clearing fees to rub salt into the wound, so what you see above with Interactive brokers is what you get.

Not sure what Selfwealth Option brokerage is like, haven't looked, they might be OK, Dpkmelb have you looked into it ?


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## Dpkmelb (28 August 2020)

Garpal Gumnut said:


> Australia
> 
> 
> 
> ...



Thanks Harpal Gumnut


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## over9k (28 August 2020)

To be fair, when you get fees, you do actually get some service with them too. They sting, but when there's a problem or you need help with something...


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## cutz (28 August 2020)

over9k said:


> To be fair, when you get fees, you do actually get some service with them too. They sting, but when there's a problem or you need help with something...




I share my trading between the two.

No comparison.

Only reason why I've stuck with the Aussie one is due to my own stubbornness in wanting keeping most of my buy and holds chess sponsored, the tens of thousands of brokerage difference just isn't worth it, when the stuff hit the fan recently thank goodness is was business as usual at IB, can't say the same thing about my Aussie broker, had some really anxious moments due to reasons I care not to mention now.


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## cutz (28 August 2020)

I just want to put it out there that just because the brokerage is cheap doesn't mean you're not getting support, I've been frequently trading with IB since around the GFC 1, the only time I recall ever needing help was when for some reason ITM index options didn't auto exercise, this happened years ago, a phone call with no holding period and the issue was fixed, I was extremely pleased with the service.

Sorry about the thread drift, it's great seeing new brokers come online here in Australia, Selfwealth and the affiliated companies look great, bring it on, bring on competition and superior technology, the offerings from the Big 4 Banks seem Pale in Comparison.


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## Sharkman (28 August 2020)

cutz said:


> I just want to put it out there that just because the brokerage is cheap doesn't mean you're not getting support




i would say IB support is far better than that of the big banks. instead of waiting on hold for half an hour or more only to be put thru to someone who can't actually help you (but they can reassure you that your query is important to them, as well as log your issue for the relevant department to address "as a matter of urgency"), you log on to the IB client portal, start up the chat window and typically within 5 mins someone will pick up the ticket.

and these aren't just call centre staff who log your request for someone to look at later, their staff know their product, if you use financial jargon when talking to them, they will understand you and can usually help you on the spot. that's far better service than i've gotten from the big bank help lines (or the ATOs for that matter), where as soon as you mention things like "ex-dividend date", "franking credits" or "overseas withholding tax" often they don't know what the hell you're talking about, and revert to "we'll log your query for the relevant department to look at" mode.

very happy with IB's level of customer service over the 12 years or so i've been trading options thru them. the only downsides i can think of are the CHESS holding vs nominee account thing, and the minimum activity requirements which might be an issue for some.


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## cutz (28 August 2020)

Totally agree with you Sharkman

Even the Bank Priority lines get clogged up when you really need to get through.

The Chess thing I'll be gradually letting go, I heard on the grapevine we will be moving away from that legacy system anyhow.


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## Austwide (28 August 2020)

I saw something on IB's website about their insurance covering you if they collapse, not sure where on if their is a limit.


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## Sharkman (28 August 2020)

cutz said:


> I heard on the grapevine we will be moving away from that legacy system anyhow.




haven't heard of that before - do you have a link?

i can't imagine they'd eliminate central depository type holdings completely and force everything to be migrated into nominee accounts. many people (myself included) are a bit paranoid about those given the broker collapses we've seen in years gone by.

if we are moving to a newer system, it might not be called CHESS, but it should still be some type of central depository system where the investor remains as the legal owner of the holdings i would've thought?


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## Sharkman (28 August 2020)

Austwide said:


> I saw something on IB's website about their insurance covering you if they collapse, not sure where on if their is a limit.




there is, it used to be 500K USD (SIPC limit) across all asset classes back when we were all on IB LLC. after the migration to IB Aust it is nowhere near as much, i don't know for sure what it is, but i think it's 250K AUD of cash only (stocks etc. are not covered).

IB is very large and stable, the chance of it collapsing is minuscule, but it's not zero, so i wouldn't be putting my entire capital base in there. though i don't lose any sleep having 20-30% of it in there either.


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## cutz (28 August 2020)

Sharkman said:


> haven't heard of that before - do you have a link?
> 
> i can't imagine they'd eliminate central depository type holdings completely and force everything to be migrated into nominee accounts. many people (myself included) are a bit paranoid about those given the broker collapses we've seen in years gone by.
> 
> if we are moving to a newer system, it might not be called CHESS, but it should still be some type of central depository system where the investor remains as the legal owner of the holdings i would've thought?




Hey buddy,

It's been a work in progress for a while. 

https://asxchessreplacement.atlassian.net/wiki/spaces/COMMS/overview


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## Sharkman (28 August 2020)

cutz said:


> Hey buddy,
> 
> It's been a work in progress for a while.
> 
> https://asxchessreplacement.atlassian.net/wiki/spaces/COMMS/overview




thanks, had a quick skim over it, sounds like it's more of an operational/technical change, the principle of us retaining legal ownership of the units should be remaining intact?


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