Looking for a new brokerage

Discussion in 'Online Brokers' started by status1, Jan 4, 2018.

  1. status1

    status1 Well-Known Member

    What a bummer
    I wanted to place a trade at my former Optionshouse account today and the trade was kept getting rejected saying there is insufficient funds so after looking into it more deeply I found out that over the new year my account was converted from margin to cash account
    The guy who I talked to on the phone was saying that they did a yearly review and found that I already have a margin account at Etrade
    Apparently this wasn't a problem when they merged the 2 companies and I was trading from both accounts all last year Now all of a sudden they wake up and decide they can't do that anymore

    So now I have to look for another brokerage which is getting harder to find as a lot of them got consolidated
     
  2. garyw

    garyw Well-Known Member

    While not trying to "defend" your "merged" brokerage... I think there are rules which effectively restrict multiple identical account registrations at a single brokerage, that they may have been slow to enforce.
    I still like TDA/TOS, but have not tried many others. (I did have Etrade a few years back, but transitioned those accounts to TDA)
     
  3. status1

    status1 Well-Known Member

    Yes the rules are that you can't have 2 margin accounts with the same name at one brokerage but you could have one margin and one cash account at the same brokerage
    I am not sure what difference that would make since they are separate accounts with separate account numbers
    Whatever the loss is in one account would have no effect on the other
    Unless maybe they are trying somehow to protect themselves or the consumer from loosing in both accounts

    What is not clear is what happens when there is a merger where 2 margin accounts at different brokerages get merged into one brokerage
    I have one account that was merged with another years ago and I still have both working as margin accounts and hopefully (knock on wood) will stay that way
    Maybe it's at the brokerages discretion as to whether they enforce that rule
     
    Mark17 likes this.
  4. Harry

    Harry Well-Known Member

     
  5. status1

    status1 Well-Known Member

    I have not heard about this scenario
    By the time they merged Etrade lowered their rates to compete with the other brokers except starting in November
    they started adding in the index option fee so effectively for SPX traders they actually raised the fees from the lows
    Either way I can't keep this account here if I want to trade SPX and I can't do that in a cash account

    I stumbled across Eoptions and I am thinking of transferring it over there
    Anyone here trade with Eoptions or had any experience with them ?
     
  6. G...

    G... Member

    The review for eoptions is not so good, their commission is not as cheap as they advertised, (actually very expensive for options). you can try their paper trading.

    Why don't you consider Tastywork? their commission structure is best for options.:p
     
    Last edited: Jan 11, 2018
  7. status1

    status1 Well-Known Member

    I am not sure why you are saying that their commissions are not as cheap as they advertise
    How much do you think it is in reality ?
    On their website they are showing $3 +$0.15 per contract
    That seems reasonably cheap to me

    I already have an account at Tastyworks so I can't have another margin account there unfortunately
     
  8. G...

    G... Member

    $3 ticket charge is for each leg.
     
    Last edited: Jan 11, 2018
  9. status1

    status1 Well-Known Member

    Thanks for pointing out the fine print

    While not as cheap as it seamed it's not any more expensive than I am paying now
    At Optionshouse for a 20 contract condor I paid 27.90 to get in and 31.45 to close it after they added the index option fee
    So for the same trade I would pay 3*4=12 per trade plus 0.15*20=3 per contract so if my calculation is correct that would be $15
    Am I missing anything ?
    Of course because I am trading SPX I would have to add the SPX fee Assuming it's 0.75 that would be another $15 so $30 So it's pretty much in the same price range range
     
  10. G...

    G... Member

    you are correct, it should be similar. I only have their paper account, I don't know their exact live account rate.
     
  11. status1

    status1 Well-Known Member

    As I mentioned the rate is $3 per trade (per leg) + 0.15 per contract
    Here is a link to the other fees http://www.eoption.com/rates/

    I stumbled upon another one called Investrade but their commissions were a lot higher $6.95 per trade (per leg) + 0.50
    per contract plus the SPX index fee so close to $50 just to enter the trade compared to about $30 for Eoptions
    I guess they don't want to compete with the other brokers commissions
    Interestingly they have the same exact platform as Eoptions so they don't offer anything extra for the higher commissions
     
  12. G...

    G... Member

    Did you tried Tradeking ( Ally) ? it's my first brokerage.
    Currently they offer special fee $3.95+0.5, and I think they also lowered index exchange fee to 0.35 ( Probably I should keep my account open:))
     
  13. status1

    status1 Well-Known Member

    I tried it many years ago when they were Tradeking and I closed it for some reason I did not like something about it

    Now that is with Ally I may want to take a second look at it
    I looked at it recently as I was looking for a brokerage but that was after I started the process to open an account at Eoptions
    They seem to have a sort of risk graph that is not as good as TOS but it's a lot better than most brokerages
    I may move my Trade station account that I just recently opened to Ally if it doesn't work out over there
     
  14. Mark17

    Mark17 Well-Known Member

    This is interesting because I asked recently about opening a new account to trade a new strategy and they said they'd have to check with the PM department. I had no idea why.

    So if I wanted to open a new account to trade a new strategy, it can't be done under the same name? Do you know what (whose) rule that is, specifically?


     
  15. status1

    status1 Well-Known Member

    I would say that is probably industry wide rule but maybe they are not always enforcing it
    At least not when 2 companies merge (until now that is) I still have a couple of them (Hopefully nobody notices)
    I am not sure if it's up to the brokerage or the clearing house
    You could have more than one account but not margin that is the key
    So as long as you only trade stocks or covered calls or cash secured puts you could trade those in a cash account but anything that requires margin that is a problem for them
    The fact that they did it for a year without realizing I am not sure what that means
    Even though it's the same name they have separate account numbers so I am not sure what the actual problem is
     
  16. status1

    status1 Well-Known Member

    Well I got the account transferred to eOptions but it doesn't look like I will be here for long term
    It's very difficult to near impossible to trade BWB options

    When I try to do that it gets rejected saying that they don't except ratio spreads so I figure maybe I can place 2 separate spreads a balanced fly first and than a short spread but when I look at the fly spread they are showing margin requirement even on a balanced butterfly trade which is ridiculous
    At this point they may as well charge margin on a short spread as if it were a naked put since they don't consider the debit side as part of the trade

    So now I have to keep looking for another brokerage
    I am looking at Ally next
     
  17. G...

    G... Member

    Good news, Robinhood is going to release options trading, commission -free:):D
     
  18. status1

    status1 Well-Known Member

    What's the catch ?
     
  19. G...

    G... Member

    I don't have Robinhood account, but I'm going to get one, they have a lot of positive reviews.

    [​IMG]
     
  20. status1

    status1 Well-Known Member

    From what I understand this is just for mobile phones but I heard this year will be coming out with a web version so I will look at it when it comes out
     

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