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IB vs TDAmeritrade brokerage for SPX put write
Hello ERN community,
I am considering to move to IB PM from TDA PM. I was wondering if you are aware of any brokerage advantage that I might miss with this move?
I am paying only $0.65 commission for each contract with TDA. However, I think IB will charge CBOE fee as well so my commission is going to be $0.45 more.
I don't see any other disadvantage. Please correct me if I am wrong.
My Porfolio Margin account is shy of $250K.
Are you sure you're doing a fair comparison? IB quotes the SPX option commission as $0.42 per contract. I usually pay a little bit above $1 due to exchange fees that you'd pay everywhere. So, you might have to add those extra fees to your TD account $0.65.
Thank you for your point.
I am not sure about IB since I didn't trade there yet. However, looking at my trade history in TD, they only charge me 0.65 + 0.01 reg fee for naked short spxw put with $1.1 premium. I am surprised why they don't charge CBOE fee.
Anyway, I am not concerned about the commission since it is not much.
Do you see any other advantage in TD that I might miss moving to IB?
With TD I am paying the commission + a fee per contract based on if it's SPX, SPXW and if the premium is +- $1. See: https://www.tdameritrade.com/retail-en_us/resources/pdf/TDA101302.pdf for fees.
Currently my commission is $.50 / contract (I called and asked for it to be lowered from $.65), but I have seen people on other forums get $0.40 / contract.
In total, my total cost per contract is usually .50 + .49 = $0.99 because I do SPXW and aim for premiums under $1.
(One neat thing is the trading fee for NDX is $0.01, for a total of $0.51 per contract)
I did double check my statements. You are right, TD is charging me 0.65 + 0.058 + 0.015 per contract that has >= $1 premium.
Do you know who is eligible to get $0.15 discount per contract and pay $0.5 instead of $0.65 to TD per leg like you?
Also which delta you usually target to get <$1 premium ?