CBOE fees

Discussion in 'General Discussion' started by Edward, Apr 5, 2017.

  1. Edward

    Edward Well-Known Member

    I have noticed that the fees charges for SPX options by the CBOE very often differs each time even for the same amount of option contracts. For instance if you put on 5X condors on one occasion in the SPX and put on a 5X condors on another occasion the fees differ!! The broker confirm they charges based on a set per option fee schedule. I asked my broker and they said the CBOE fees perhaps include a formula based on whether you add liquidity or subtract liquidity but even he isn't sure about it.
    Everyone eats these same fees whether their broker is TOS, IB or Tastyworks. Can anyone shed some light on how the CBOE computes the SPX options fees? Sort of like buying a car and not knowing what the tax rate is.
    Last edited: Apr 5, 2017
  2. PK

    PK Well-Known Member

    I would also be very much interested in knowing more about how brokers make their final and real price per contract or operation. I have been trading SPX and ES futures options with two brokers that clear through IB. When subtracting their fee from the final price of the same operation (buy and sell SPX butterfly), the numbers for the additional fees turned out to be quite different and, moreover, in one account these additional fees were constant for different operations while in the account the non-broker extra fees varied from trade to trade. Thus, I am not sure about whether different brokers get the same CBOE fees and/or charge these fees 1:1 to the client. It appears difficult to me to compare brokers, despite their claim to offer transparent fees, before not having traded with them for a while and know the final and "real" cost for a specific type and number of operations.

    Thank you in advance for sharing your experience on this issue!
  3. Edward

    Edward Well-Known Member

    Update::: Finally after 2 Days I hear back from my broker apparently I was charged a higher commission rate on my 2nd account by accident even though I was assured by Lightspeed that the commission was the same as my old account from the beginning!!! In my inquiries I also called TOS and and asked them about SPX fees. They said that they will eat the CBOE fees if your commission is .55 cent or more. They didn't say how much of the Fees TOS will eat. I will have to figure out how the CBOE charges their fee to figure out TOS true cost. Maybe TOS is not so expensive after all when CBOE fees are subtracted! You get a good platform and good customer service.
  4. status1

    status1 Well-Known Member

    I would separate Tastyworks from TOS and IB and other brokers since their pricing is clear as far as the SPX goes
    They do not eat the fees they pass it along to the traders
    The SPX fee is always 0.65 cents
    There is also a 0.10 cents clearing fee that is charged regardless of the underlying
    The only thing that may vary slightly is the transaction fee which is around 4.5 cents

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