Best Broker for Volume Options Traders

Discussion in 'Retail Brokers' started by VixTrader7, Oct 12, 2016.

  1. Can anyone recommend a broker that accepts international clients and is focused on good commission structures?
    Interactive Brokers is terriable with their new 'Exposure Fee'
    was thinking Trade Station??

    God bless your assistance :)
     
  2. Robert Morse

    Robert Morse Sponsor

    I'm happy to discuss your needs if you send me an email with your contact information. We accept foreign accounts and have great rates. Check out our website.

    Bob
     
  3. CyJackX

    CyJackX

    "Interactive Brokers imposes a daily "Exposure Fee" on a small minority of IB customer accounts that have a very high worst-case loss risk exposure. This is to attempt to partially protect IB and its customers from those accounts that have very risky positions that currently satisfy exchange margin requirements, but nonetheless could suffer excessive losses in the event of a significant market move (for example, accounts with high exposure to short option positions)."

    @_@ reduce your exposure?
     
  4. Robert Morse

    Robert Morse Sponsor

    How does charging this fee protect your account or their firm if the activity is still allowed?
     
  5. atrp2biz

    atrp2biz

    Would it discourage excessive exposure without disallowing it outright?
     
  6. newwurldmn

    newwurldmn

    They prob use that money to buy protection in the market for themselves. Not for the account causing the stress limit.
     
  7. Robert Morse

    Robert Morse Sponsor

    newwurldmn,

    We both know they don't do that. It is my expectation it is a form of self insurance to be paid for the extra risk rather than just making clients reduce to lower levels. It provides revenues not protection.

    bob
     
  8. CyJackX

    CyJackX

    I assume they just want some extra coin for their risk, yeah.
     
  9. Palindrome

    Palindrome

    I was talking to Niederhoffer about it, he told me it was a 10% fee of capital... I believe that was what he was referring to. I'm referring to IB.
     
  10. newwurldmn

    newwurldmn

    I would think that they were buying cliquets in the market. So a terror event happens and market falls 20perxent. You are wiped out and have creditors chasing you. While IB collects on their insurance policy that you paid for.

    That's my speculation.
     
    #10     Oct 12, 2016