Discussion in 'Online Brokers' started by HowardS, Dec 1, 2016.
You mention that TOS would be charging less soon......where did your see that and how much less?
This is from TD Ameritrade
Alongside outstanding trading platforms, a strong track record of innovation, broad product choices, free education, and personalized support and guidance, we’re happy to bring even more value to your TD Ameritrade experience with lower pricing.
On Monday, March 6, our commissions for online equity and exchange-traded fund (ETF) trades were reduced to $6.95—and option pricing has been lowered to $6.95, plus $0.75 per contract. Option exercise and assignment fees still remain at $19.99.
For more information, view our press release or call 800-669-3900 to speak to one of our TD Ameritrade representatives 24/7.
Thanks. Just be aware that is the TD schedule. TOS uses a different schedule.
Not sure what you mean by different schedule
TOS used to have a different schedule than TD that was $1.xx per contract with no other charges. That was what I was referring to. There is a forum on here that compares TOS and IB commissions.
TDA offered a flat 1.50/contract for options. It was called the Dough rate until recently. The rate was not TOS specific. TOS is only a trading platform. TD Ameritrade is the brokerage firm.
The brokers seem to have entered a pricing war but that only affects the default rates offered.
Thanks for clarifying
I was referring to the TD Ameritrade schedule since I thought that is what Casey was asking about assuming that TOS and TD Ameritrade is interchangeable
That is the regular fee
Now if he meant some other brokerage using the TOS platform or getting some discounts for volume than it becomes more difficult to make a comparison Than it becomes more of an individual question as to what is the lowest rate you can get under what circumstances so that would require a more specific question
I now have an account at tastyworks but cannot still see any benefit over TOS for me. Since I trade mainly SPX butterflies, tastyworks commission is about 50% higher than my TOS (or almost double if you consider that most of my trades are allowed to expire without having to close them). I also do not see a risk graph in the platform or is that in the making? Without a risk graph I will be trading blindly! Not good.
Where is the tastyworks edge?
I think the major difference with Tastyworks boil down to whether you let your contracts expire or you close them manually. If you preference is to close them manually then obviously Tastyworks is better because there is no broker fees if you opened them at Tastyworks. You still have to pay the expensive SPX exchange fees. So it depends on your style of trading. $1.00 commission is not the lowest commission but if you close your positions it averages to .50 contract.
Thanks Edward, you are correct but for SPX adding the exchange fee of 75 cents each way adds $1.5/contract which is too high for me.
So, if I'm reading this correctly, it's $2.50 round trip per contract for SPX trades at Tastyworks?
To Open = $1.75
To Close = .75
Total = $2.50 per contract
Yes Casey, you are correct. For SPX it is $2.50/contract round trip at tastyworks. For regular stock options, it is $1.20/contract ($1.10 + $0.10) round trip
Hi, long time lurker, new poster. I have been researching this a lot too on what the advantages would be. I found a rather decent mixed review on reddit buried a few threads back. Some guy is updating it with their feedback and experience. Though clearly he/she is clearly hoping people click their referral link for some benefit or another, it's seemed a pretty useful and thorough review. Here's the link to the reddit thread:
I think it ultimately comes down to what you trade most, right? It seems like smaller, more frequent trades are best on tastyworks and think or swim is best for the bigger chunk trades on things like SPX like you're saying. Also, beta platforms sometimes scare me off. But it sounds like they are really pushing to capture customers and improve their system. I have mixed feelings other than it apparently doesn't cost anything to sign up other than you have to fund the account. Is it worth checking out? I'm tempted to open an account on reddit to ask him about the risk graph. That's a really good question. What do you think?
Yes I think it is worth checking out. I already have an account. Thanks for sharing the reddit thread. I can see that the Tastyworks advantage is in frequent trading and outside of SPX. I notice the platform is really easy to manipulate and also consumes little memory, therefore very stable. I am probably going to start with a small account and do relatively simple non-SPX trades like credit spreads, cash secured puts, etc and keeping my heaving trades at ToS
I have accounts with both and the comments here are spot on. If you are trading indexes and you've negotiated to $1 at TOS then it is cheaper than TW. TW has no risk graph and given how Tom and Tony approach options trading, I'd be surprised if it's on the road map. It feels like they wanted a platform tuned very well to how they trade on their show. For that - lots of small trades in regular stocks - TW is a better deal. TW doesn't have the historic data and OptionVue support you get in ToS/TDA which is nice for manual backtesting.
The thing I like about TW is the fact it is new and must attract more users to be successful. That means it has to improve. I've also heard from a friend that at least one of the other options groups out there is in talks with them to write specialty indicators for them. I think it's John Carter's Simpler Options group.
I'd bet if you contacted TW and asked them for a matched fee structure like TOS, they'd match.
I ended up following their referral link and setting up a small, few thousand dollar account to play with. The interface looks really stable, I agree. I really like the ease of use. I got used to ToS over the years, but I can see how easy a switch would be. I'm very curious to see where they take the platform. I kind of just wanted to have the account to be grandfathered in just in case they eventually add platform fees to new users. Thought that seemed like a good idea.
I could never sign up for a brokerage named Tasty Works.
Somehow I doubt that they are going to match it because their objective was that everyone should pay the same price so there is no game playing with the commissions based on volume or other factors
You are correct about John Carter but if you have a TOS account you should have those indicators already unless he has a totally new indicator that he just came up with recently
I got a new email from TW today and here is what it says
"Starting tomorrow, on Jan 2nd, 2018, tastyworks is introducing capped commissions for large option trades. This means the most commission you will pay for any single leg option trade is $10* (plus clearing fees). That’s right, just $10* per leg!"
Although I am not exactly sure what that means if I trade lets say 30 SPX contracts
So If I trade 30 puts with the $1 per contract it would be $30 but with this new plan it will be $10 ?
But what if I have the same trade as a condor that the $1 per contract is still $30 but with this new plan it will be $40 ?
I have to find out more detail about this
There was also this announcement
"On the technology side, tastyworks is releasing a new analysis tab, portfolio margin, options on futures, paper trading, an open API, a new scripting language and lots of new mobile features."
I am interested in the analysis tab to see how it compares to TOS or how it differs from the current one
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