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Posted by ltloan@gmail.com on December 30, 2006, 5:42 am
Thank you very much for the information and the links, they are very
useful to me. I would like to ask one more thing:
I am trying to figure out all the commission fees when trading options:
Assuming that:
a: option/stock fee per trade
b: option fee per contract
c: option exercise/assignment fee (per contract or per activity? I'm
not sure about this)
If I buy one call/put contract, and I want to exercise the option, buy
and resell the underlying stocks, is the commission fee a+b+c+2*a
or just a+b+c?
Thank you in advance for any answer, and have a happy new year!
>
> > Now as for sogoinvest.com, I can't see the catch here and I can't
> > figure out why they're so cheap. They have their own clearing house so
> > any trades that happen inside themselves don't incur standard
> > transaction fees. How much volume they have and if they're losing
> > money by offering trades for $3? I don't know but it sure sounds
> > tempting.See Oct 17 USA Today article
@http://www.usatoday.com/money/perfi/columnist/krantz/2006-10-17-free-...
>
> As it points out, the cost to the broker is around $2, so even at $3,
> SogoInvest is making money. More than that, however, is the pittance many
> places pay for cash. (Despite what the article says about Schwab paying
> good rates, this year they moved most of their customers from a fair
> yielding MMF to a lower paying Schwab bank account.)
>
> The article also points out that there are various ways to get free trades,
> including Zecco.com. (Another site is critical of the ads that you have to
> endure at Zecco.)
>
> There's also the matter of quality of execution - get a couple of cents
> price improvement and that can more than make up for a few bucks difference
> in commission.
>
> Here's a BusinessWeek article from July, discussing these differences and
> more. If you click on the SlideShow, you'll get the price improvement
> statistics (and more) for 15 different
brokerages.http://www.businessweek.com/magazine/content/06_31/b3995118.htm
>
> Then there is the matter of the IRA. Many brokerages charge an annual
> maintenance fee; several others do not. SogoInvest doesn't even offer an
> IRA account yet!https://www.sogoinvest.com/accountsetup/accounttype.aspx
>
> Judging from the slides (and the fact that it has no IRA maintenance fees),
> Firstrade might be something to look at. Not being an options trader, I
> can't comment too much on that aspect (beyond observing that you can trade
> options there).
>
> > ltl...@gmail.com wrote:
> >> I am fairly new in stock trading. I would like to know if I can
> >> buy/sell stocks within a tax-friendly account like IRA or 529? If I
> >> can, do you know of any good brokerage service, i.e. one that is
> >> cheap,offer options, and has decent option trading activities?Mark Freeland
> BnetOne...@sbcglobal.net
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