Australian (ASX) Stock Market Forum

Options trading platform?

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Dowdy

Dowdy

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Probably been discussed before but does anyone know any good platforms for trading options?
 
I'm mainly looking for a broad range of markets to trade options - stocks (world and oz), commodities, precious metals, forex etc
 
Dowdy said:
I'm mainly looking for a broad range of markets to trade options - stocks (world and oz), commodities, precious metals, forex etc
Click to expand...

One of the most comprehensive platforms is the one from Saxo Bank. You can trade equities on 21 international markets, options, CFDs, FX and Futures. Unfortunately, it is provided through Tricom Equities here in Australia which means Tricom holds your trading funds. Tricom is in a lot of trouble now so I won't feel comfortable having them hold my funds. If you are, you can check out this broker who is one of the marketing reps for Tricom http://www.spectrumlive.com/

I am currently using CommSec for my Oz options trading. The free web based platform is pretty basic and allows you to do single legged options only. Good enough if all you need to do is to buy a put to protect stock or or do covered calls. Not good for spread trading. The good thing is your money is held in a government guaranteed bank account.

I also had an options account with e-trade. It is a little bit better than Commsec i.e. allows trading two legged spread trades (bull call, bear puts, etc) in one transaction.

I have not found anything else in Oz that can do the kind of trades that Thinkorswim provides. I also use Thinkorswim for US options and I use it for all the more complicated strategies like Iron Condors, Butterflies, etc.

I would also like to hear if others have found better platforms than CommSec and e-trade that are also safe.

Christina
http://blog.sli-smsf.com/
 
bongcso said:
I would also like to hear if others have found better platforms than CommSec and e-trade that are also safe.
Click to expand...

Hi,

I've been using IB for around 6 months for the majority of my options trading, security procedures are superior than the brokers you've just mentioned.
 
cutz said:
Hi,

I've been using IB for around 6 months for the majority of my options trading, security procedures are superior than the brokers you've just mentioned.
Click to expand...

Thanks Cutz. I just took at look at IB and it looks like you can trade Australian shares and options. The last time I looked (many months ago) it was only for US market. I just had a quick look at the cost of trading 1 Australian options contract and it is only AUD3.00 per contract. Commsec charges AUD36 per contract so that is like 10 times cheaper. Your account is also SIPC protected so no worries even if the broker goes bust. I will definitely be looking at changing brokers soon.

I am glad I stopped by the derivatives corner of the forum today. :)

Christina
http://blog.sli-smsf.com
 
bongcso said:
Commsec charges AUD36 per contract so that is like 10 times cheaper.
Click to expand...

Hello again,

Actually comsec charges $34.95 plus OCH fees per leg up to 10K, over that it works on percent per leg value, (0.35% last time i checked )

Still works out much cheaper for me using IB especially since i may do many adjustments over the term of a position.

Depends on how you trade i guess.
 
I like the look of think or swim. Applied for an account and told the do not do business with Australia.

Anyone else had this?

Jim
 
Saxo now have offices in Australia. Their platform is also used by BBY, Sharemarket College and probably others. Good for options on futures markets. Probably going to find it hard to get a platform where you can trade asx and non-asx routed options.
 
Re: options trading platform

wayneL said:
Oz options?

If so others will enlighten.

If you are looking at US options there are none better than:

www.thinkorswim.com

www.interactivebrokers.com
Click to expand...

Hey guys, began trading options after an intense 6 months of studying and researching the risk/reward possibilities of my new journey. I currently use E-TRADE PRO, which is a software based system. It really is a good system for ASX trading, however there are no active greeks charts (unless you go to a separate web page), there's no total greeks value in your portfolio, liquidity in the ASX option market is very poor and etrade are charging me $45 per trade. I have made some gains but with etrade taking a huge portion of my returns i need to begin looking elsewhere but really do need an active GREEKS chain.

Is IB still the best for aussie users for this ??

And if anyone lives in the sydney area that has this software (not web based platforms) i would love a mentor to show me the ropes!

Thanks guys.
 
Re: options trading platform

jubuss said:
Hey guys, began trading options after an intense 6 months of studying and researching the risk/reward possibilities of my new journey. I currently use E-TRADE PRO, which is a software based system. It really is a good system for ASX trading, however there are no active greeks charts (unless you go to a separate web page), there's no total greeks value in your portfolio, liquidity in the ASX option market is very poor and etrade are charging me $45 per trade. I have made some gains but with etrade taking a huge portion of my returns i need to begin looking elsewhere but really do need an active GREEKS chain.

Is IB still the best for aussie users for this ??

And if anyone lives in the sydney area that has this software (not web based platforms) i would love a mentor to show me the ropes!

Thanks guys.
Click to expand...

Hi,

You can use IB and Optionvue 7 (see http://options21.com/trading-software/asx-data-in-optionvue-7/

Good software but not cheap.

But I do not believe IB will let you trade on margin whereas Commsec/E-Trade etc let you use your share portfolio as security - this is the only good feature of ASX traded options.

Commsec/E-Trade pricing is ok if you are trading 10+ options per leg.

I use Options Oracle which is open source and free and it gives me greeks on option chains and its trade analysis does most of what I need. It gets ASX data via Yahoo so there is a time lag. Not a problem for my trading
 
Re: options trading platform

gkh said:
Hi,


I use Options Oracle which is open source and free and it gives me greeks on option chains and its trade analysis does most of what I need. It gets ASX data via Yahoo so there is a time lag. Not a problem for my trading
Click to expand...

Just wanted to say thanks for the options oracle tip. That is one very very good software.

Do you still actively trade options using that software and commsec?
 
Interactive brokers, halifax and i'm assuming all who use TWS do no allow margin accounts for Australian individual customers. Their platform will not calculate margin on a spread (or multi leg trade) and require the full margin of the short position (even though you have a long position which would take care of most of the margin requirements) when using a cash account. This consumes a lot of capital just to maintain the margin requirements of the short option.

IB allow margin accounts for corporate account customers.

NABtrade wont allow short positions of options.

Is there a solution that is available to us here in OZ? Who are people using to get around this requirement?

Thanks,

HC
 
hcrn said:
Interactive brokers, halifax and i'm assuming all who use TWS do no allow margin accounts for Australian individual customers. Their platform will not calculate margin on a spread (or multi leg trade) and require the full margin of the short position (even though you have a long position which would take care of most of the margin requirements) when using a cash account. This consumes a lot of capital just to maintain the margin requirements of the short option.

IB allow margin accounts for corporate account customers.

NABtrade wont allow short positions of options.

Is there a solution that is available to us here in OZ? Who are people using to get around this requirement?

Thanks,

HC
Click to expand...

Commsec/E-Trade both use 2 times ASX clear margins which is true portfolio margining (don't know about others)

You can still use your share portfolio as collateral (with a 30% haircut)

Money in your account is in your name in a proper bank account (not in some pooled account - see BBY disaster)

spreads on the XJO are good, as is volume.

spreads on stock options variable, but much worse on deep ITM options. Which is why Iron Butterflies are do-able while normal butterflies are not.

Trading platform is crap, but not a problem selling premium with the object of letting the options run to expiry
 

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