Re: Best online Options Brokers for Aussie?
Hi guys,
There's no ability to place combination orders for options (straddles, spreads, etc). At the moment it seems you would have to place combination trades manually, by buying the different parts of the trade individually. This would mean separate executions and fees for each leg, instead of the bulk execution/fee that Optionsxpress had for these types of trades.
Very good point Investedz! Ive got a big issue at the moment along these lines.......
Im using Comsec to trade options too. The costs REALLY mount up quickly, and Im wondering if anyone knows of another method or broker who can let me do this more cost effectively
without having to expose myself to currency risk by going offshore:
Heres a very basic example writing a covered call:
1. Write 1 x $10.00 Calls on XXX at 50C: Cost: $35
2. Brokerage on $10,000 purchase of 1000 XXX shares: $20
4. Option Exercised on expiry at $10.00: 0.35% Allocation Brokerage Cost: $35
TOTAL Revenue $500
TOTAL Cost $90 (or
18% of the revenue from the options sale
)
You see how the costs would mount up, especially writing more complex strategies than a simple covered call.
If the purchase of the equity comes out of a margin loan the costs get higher again, plus interest. Costs get marginally better on larger orders, but not much as once you get over a $25K Equity order Comsec goes onto 0.12% purchase brokerage.
So.....is there a more cost effective Australian based alternative (brokerage wise...I'm not interested in writing longer term or higher risk) or is this just another case of "we're in Australia, so we just have to take it"?
Thanks in advance!