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IB vs TDAmeritrade brokerage for SPX put write

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sepidpooy
Posts: 9
Topic starter
(@sepidpooy)
Active Member
Joined: 1 year ago

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.

https://www.interactivebrokers.com/en/index.php?f=1199

I don't see any other disadvantage. Please correct me if I am wrong.

My Porfolio Margin account is shy of $250K.

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11 Replies
earlyretirementnow.com
Posts: 273
(@earlyretirementnowcom)
Member
Joined: 6 years ago

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.

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sepidpooy
Posts: 9
Topic starter
(@sepidpooy)
Active Member
Joined: 1 year ago

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?

 

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jkoptions18
Posts: 14
(@jkoptions18)
Active Member
Joined: 1 year ago

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)

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sepidpooy
Posts: 9
Topic starter
(@sepidpooy)
Active Member
Joined: 1 year ago

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 ?

Thank you

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1 Reply
jkoptions18
(@jkoptions18)
Joined: 1 year ago

Active Member
Posts: 14

@sepidpooy I am not 100% certain about eligibility, but it could be useful to learn about others experiences: https://www.google.com/search?q=negotiate+commission+td+ameritrade+site:www.reddit.com

I personally trade anywhere from 10 - 40x a week depending on the premium of SPX and NDX and got the reduced commission with no hassle. 

Unrelated to the commission: I trade anywhere from 3-8DTE, and my deltas are usually around .5 - 2.  I would say 80% of the time I do NDX, 20% SPX.

 

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