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Options broker for small trader?

  • #21
  • Aug 9, 2015 4:52am Aug 9, 2015 4:52am
Quoting love.l0ve
IG offer trade size of FX option is 100.000/ contract. But i want lower. I dont like to put too much my hard earn money in high risk market. It's safer to put small amount money -> trade -> profit -> compounding. If things gone wrong, it wont effect my life
If you are making money in spot fx that's the best place for the small account holder, trading options is prohibitively expensive unless you can work up your size and the most interesting options strategies require lots of margin
"If The Fool persists in his Folly he will become wise." - William Blake
  • #22
  • Aug 9, 2015 4:59am Aug 9, 2015 4:59am
Quoting The Fool
The call started out $80 or 80 pips in the hole so fiber has to move that far up for the call to b/e. That's at XDE $110.65 or spot $1.1065. Then you have to factor in what the spot position has lost to find the break even for the pair. Above that, the call is making 50c a pip.
so the problem you face using options is their time dependence. What if fiber just moved up a little? Your fiber short would lose money. And if fiber didn't move up enough to put your long call in the money you'd lose money on it, too.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #23
  • Aug 9, 2015 6:20am Aug 9, 2015 6:20am
Spreading in options will require at least level3 and not going to be easily approved for new and small accounts.
Couple of years ago to test options trading I opened two accounts - one with TD and one with MB trading. As TD ameritrade not charging any data or inactivity fees - I just have very small position to have access to their platform. Actual options trading is done via MB trading. Their platform is a disaster, but I only use it for trades execution. So its OK. Their requirements is at least $25 in commissions per moths to get free data, otherwise they will charge $7.5 per moth for data. And they charge $0.95 per options contract per trade. So $1.90 RT. When trading one contract on small account- I would say it's a good deal.
  • #24
  • Aug 9, 2015 6:37am Aug 9, 2015 6:37am
Quoting johnnycash
Spreading in options will require at least level3 and not going to be easily approved for new and small accounts.
nah, I started spreading a few months after I started trading options. All US brokers just ask you to report your experience & there's no verification. Account size irrelevant so long as you are meeting their minimum, which is typically $2,500 for margin trading.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #25
  • Aug 9, 2015 6:51am Aug 9, 2015 6:51am
It's just my experience and as I mentioned before - with small account which not even reaching margin account requirement
But for a small directional bets - it's more or less OK.
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