Overview of Options Trading Commission Pricing In this section we compare the commissions and fees associated with options trading. Trading in options is generally for more advanced investors for many reasons one of which is that there are many more complex transactions that can take place using options contracts. If you would like to learn more about options trading, we highly recommend you visit the Options Industry Council OIC website here.
While all Canadian discount brokerages offer options trading capabilities, the pricing between brokerages varies substantially. In addition, options commission pricing is also very complicated compared to equity stock trading commission pricing.
The fee that is charged per contract can be a fixed dollar amount, or the fee can vary depending on the price of the option itself. Be aware that while most discount brokerages have the same pricing for US or Canadian options commissions, certain brokerages have different per contract pricing depending on whether the option is Canadian or American. In addition to commission fees for buying or selling options contracts, Canadian discount brokerages also charge fees for exercising or being assigned an options contract.
In our pricing table, we are assuming the underlying instrument of the option contract is a stock. Canadian offerings are substantially more expensive than our American brothers. Do these platforms all offer Level2 pricing , direct routing and non-affressor volume rebates.
Additionally, with such an acute customer demographic base, it is simply hilarious that these firms attempt to be rigid in their pricing models regarding commissions and fees.
An elementary equation of supply of potential customers minimal and available broking platforms plenty make the decision to select a broker that is very simply for the client to offer the prospective broker what they are prepared to pay NOT for the broker to state this is what the fees and commissions are.
At best these brokers can attempt to close their platform sale with a client at their offered rates, but ANY sophisticated trader will simply counter offer what they are willing to pay and the broker that meets those rates, secures the clients business. It sure does suck to be Canadian when it comes to online brokerages for commissiions.
When will the rules loosen up and let the u. Its high time the Canadian Brokerages thought about becoming more competitive with the Americans. Its a matter of time only, American brokerages will open their doors for the Canadians and at that point there will be a large exodus from the Canadian brokers. Canadian exodus to US owned brokerages is already happening. Check out the competitive commissions offered by Interactive Brokers of Chicago Canada has Montreal office.
Your email address will not be published. January Overview of Options Trading Commission Pricing In this section we compare the commissions and fees associated with options trading.
Marcel April 13, at 5: Malith October 22, at Buffett January 6, at 8: George August 5, at 8: Leave a Reply Cancel reply Your email address will not be published.More...