Understanding option commission costs
In Interactive Brokers, they charge an option commission cost of 1.50 per contract. So this means if I sell an option, I only pay 1.50 and collect the full premium? It seems a bit too good, coming from the world of stocks with a minimum commission of 5 $ per trade.
(2)2 Comments
Sorted by latest first Latest Oldest Best
From what I see, it is more like .70 per contract, with a minimum (for options that trade over a dime.)
IB does not provide any help, at all, so you have to know what you are doing. I use tradeking, which charges about for a contract, but you can call them for help if needed.
There looks to be other fees for IB, like when you cancel an order, but that can be offset by other trades.
It is one of the reason the Motley Fool Stock Adviser service has recommended IB for an investment.
The option commissions with IB for trading in the US market are between [CO].25 to [CO].70 per contract. However if you are looking to trade in Canada, where you are from, their option commission for Canada are .50 per contract (as you mention in your question).
Note that each contract is for 100 shares, so if you wanted to trade the equivalent of 1000 shares, you would need to trade 10 contracts, so you would have to multiply the above commissions by 10 to get your final costs. (i.e. .50 to .00 in the US and .00 in Canada).
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2025 All Rights reserved.