Update (12/31/2022):
It seems that new users have trouble registering for the forum. The confirmation email never shows up. I’ve decided to phase out this forum and transition over to a new forum plugin. The new location is here:
https://earlyretirementnow.com/forum-3/
Policies – please read!
- Everyone can read posts, but to start a new topic or add a reply you’d need to register. To create an ID, please verify your email address. You will get a link at that email address and you can then pick a password.
- Be courteous to others. Treat others like you like to be treated. Discuss the issues. No ad-hominem attacks!
- It’s OK to include external links if they are relevant. But please avoid spamming! Please no affiliate links.
- Before starting a new topic, please check if that question/topic has been discussed before already and add to that discussion instead of starting a new topic.
- If you’ve written a cool blog post that you want to share with others please post this in the “Self-Promo” category only!
- Please read the usual Disclaimers and the Privacy Policy!
- The forum policies may be amended in the future!
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.
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 ?
Thank you
@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.