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Additionally Robinhood self clears options (or for some other reason?) and does not charge the Options Clearing Corp fee of $0.055/contract or the Options Regul

Additionally Robinhood self clears options (or for some other reason?) and does not charge the Options Clearing Corp fee of $0.055/contract or the Options Regulatory Fee of $0.0388/contract which all other brokers charge (incl. ones with $0 or flat rate commissions/fees like WeBull, Gatsby, Tradier). All you pay is the FINRA and SEC fees on sells of about a penny each for small trades. Actually, if anyone knows of another broker who _doesn't_ charge these, please let me know. If you're first for the broker I'll give you $20 for the tip.

Itsdijital 7y ago
Trust me, please trust me, you really really really want to be paying a competent broker when trading options. If it's chump change you're trading, sure, use RH. If it's serious money, the $0.65/contract or whatever pays for itself many times over. Even if it's just the ability to regularly get filled between the spread it pays for itself.
- jzl 7y ago
  Yeah, there seems to be no end to the horror stories of options trades on Robinhood having significant delays before being filled, costing people far, far more than 65 cents. You get what you pay for.
- dehrmann 7y ago
  I've always been told trading, but especially trading options, is asking the big boys to take your money.
  - manigandham 7y ago
    Options are a derivative, meant for hedging. It's relatively recent that they've gained so much attention as a primary security for speculation. There are decent strategies to make consistent income, especially in selling options, but it takes discipline and capital. Most people just want the high leverage and quick wins which usually ends badly.
  - throwaway9d0291 7y ago
    It's not at all so straightforward. There's definitely money to be made trading. In particular, there's plenty of opportunity to find a successful strategy that just doesn't scale. It won't make you rich but it will make you money.
    - dehrmann 7y ago
      > there's plenty of opportunity to find a successful strategy that just doesn't scale. True.
kccqzy 7y ago
What kind of options are you trading such that the fee of a few cents per contract is noticeable? The bid-ask spread is wider than that.
- benmanns 7y ago
  I don't want to reveal too much, but basically undervalued far OTM spreads. I usually net -$0.02 on each trade but occasionally earn $1-10. If I use a "real" broker and pay $0.10-$0.65 per contract the math just doesn't work.

Itsdijital 7y ago

Trust me, please trust me, you really really really want to be paying a competent broker when trading options. If it's chump change you're trading, sure, use RH. If it's serious money, the $0.65/contract or whatever pays for itself many times over. Even if it's just the ability to regularly get filled between the spread it pays for itself.

jzl 7y ago
Yeah, there seems to be no end to the horror stories of options trades on Robinhood having significant delays before being filled, costing people far, far more than 65 cents. You get what you pay for.
dehrmann 7y ago
I've always been told trading, but especially trading options, is asking the big boys to take your money.
- manigandham 7y ago
  Options are a derivative, meant for hedging. It's relatively recent that they've gained so much attention as a primary security for speculation. There are decent strategies to make consistent income, especially in selling options, but it takes discipline and capital. Most people just want the high leverage and quick wins which usually ends badly.
- throwaway9d0291 7y ago
  It's not at all so straightforward. There's definitely money to be made trading. In particular, there's plenty of opportunity to find a successful strategy that just doesn't scale. It won't make you rich but it will make you money.
  - dehrmann 7y ago
    > there's plenty of opportunity to find a successful strategy that just doesn't scale. True.

kccqzy 7y ago

What kind of options are you trading such that the fee of a few cents per contract is noticeable? The bid-ask spread is wider than that.

benmanns 7y ago
I don't want to reveal too much, but basically undervalued far OTM spreads. I usually net -$0.02 on each trade but occasionally earn $1-10. If I use a "real" broker and pay $0.10-$0.65 per contract the math just doesn't work.