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Pricing > International Trading - North American Options Commissions > How much does it cost to trade options?

 

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North American Option Commission & Pricing Information

 Canada     Mexico     United States   

 

Commission & Pricing - Options Trading 

Looking for the best broker with the lowest commissions on options trades along with great trading tools, excellent client service and one of the highest rated trading platforms? We offer some of the lowest overall investment costs along with smart routing, net best execution, and a pass-through of available exchange rebates/credits (instead of using them to pad our bottom line). It is easy to see why more people are making the switch to Place Trade... The Smartest Place to Trade Options! Who has the best trading platform and tools for options?

What do you charge for the "Base" Commission? What is the cost per contract? What do you charge for the "Base" Commission? How much is an option?
                    

 

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How Much do you charge to trade options? What are your option rates? How much does it cost to trade options? What is your base fee? What is your per contract fee? Price to trade options? Price per contract?

 

*We do not charge a "Base Fee" or use a "Base Plus Commission" Fee Structure.

 

We do not charge a "Base Fee" or use a "Base Plus Commission" fee structure! Our highest option commission prices start at USD 0.75 per contract and are even lower for higher volume traders! Although we show our minimum commission per transaction of USD 1.50 for transparency, it is simply a minimum commission and NOT in addition to the cost per contract! Many other firms charge a base fee and a per contract fee. That's not how we roll!
 
You may notice that some firms actually only show the "per contract fee" in a side by side comparison with the base fee noted separately. In these cases, these firms may appear as if their total cost is the same or lower than at Place Trade when making comparisons. You may also notice that these do not discuss Net Best Execution or Credits/Rebates available on executed orders. Don't get tricked by what looks like a lower commission only to potentially end up paying more for your entire trade! The only extra thing that you may see is the pass-through of any exchange fees or rebates and sell side regulatory transaction fees. We believe in transparency, not trickery!
 
Our minimum commission per transaction of USD 1.50 applies to all executed orders.

 

   

 

 

What does the "minimum" mean to me?

It simply means that all orders must meet the minimum amount of USD 1.50. 

 
For Example:
    
   

Commission for 1 contract = USD 0.75

However, since the commission is below the minimum, the commission would actually be USD 1.50 - NOT  USD 2.25.

Please review the table below for more options' pricing examples.

 

    

 

 

 

  Example US Option Commissions with No Base Fee: 
This example assumes that you are trading (buying or selling) United States Options with a premium of USD 0.50, that you trade between 1 - 10,000 Monthly Contracts and that your order is Smart Routed (not directed to a specific exchange). Transaction and Exchange Fees are additional. These fees (as well as rebates) are passed directly back to you. Commissions, fees, and rebates may be included together in your trade confirms under commissions. 
 
  
 
 

 Number of Contracts 

 

 Commission Per Contract (USD)

 

 Total Commission* 

  
  1    $0.75    $1.50  
  2     $0.75    $1.50  
3     $0.75    $2.25  
  5    $0.75    $3.75  
10    $0.75    $7.50  
  25    $0.75    $18.75  
 
  *Including Minimum per Order. Excluding exchange fees, rebates or regulatory transaction fees. Assumes client trades less than 10,001 Contracts per Month.Exchange, Regulatory Transaction Fees are not included in commissions displayed. Additionally, credits are not included in commissions displayed. When charged, Exchange and sell side Regulatory Transaction Fees will increase your total cost. When received, credits will reduce your overall cost! (Instead of using credits to pad our bottom line, we actually pass available credits on to you!)

 

 

 

 

  
 

Benefit from Unbundled Option Commissions

 

Our option commissions are unbundled which means that we offer true transparency in pricing! We are not nickel and diming you; we are doing our best to break down the pricing and offer you the lowest overall cost possible. We charge the commission rates listed below and we also pass through any exchange, regulatory and/or transaction fees associated with your transaction (also listed below).1 In addition to offering transparency in pricing and volume discounts, our clients have the opportunity to participate when credits/rebates are available (for adding liquidity to the market).

 

 

How Much do you charge to trade options? What are your option rates? How much does it cost to trade options? What is your base fee? What is your per contract fee? Price to trade options? Price per contract?

United States - Option Commissions  

Option Commissions are Unbundled showing the commission alone. Transaction and Exchange Fees are additional. These fees (as well as rebates that we give back to you when available) are passed directly back to you. Commissions, fees, and rebates may be bundled together on your trade confirm under commissions. With the total transaction cost being bundled together, it may appear to as if you are paying more or less (due to rebates) in commissions than the actual commission that you are charged for your transactions.

 

US Flag  United States - Smart Routed: 1 - 10,000 Monthly Contracts 5

  Commissions Minimum Per Order*
All Premiums USD 0.75 per contract USD 1.50

1 Contract @ USD 2 Premium = USD 1.50 (Due to Minimum)
2 Contracts @ USD 5 Premium = USD 1.50 (Due to Minimum)
3 Contracts @ USD 5 Premium = USD 2.25
 

US Flag  United States - Smart Routed: 10,001 - 50,000 Monthly Contracts 5

  Commissions Minimum Per Order
All Premiums USD 0.60 per contract USD 1.50

1 Contract @ USD 2 Premium = USD 1.50 (Due to Minimum)
2 Contracts @ USD 4 Premium = USD 1.50 (Due to Minimum)
3 Contracts @ USD 3 Premium = USD 1.80
 

US Flag  United States - Smart Routed: 50,001 - 100,000 Monthly Contracts 5

  Commissions Minimum Per Order
All Premiums USD 0.30 per contract USD 1.50

1 Contract @ USD 2 Premium = USD 1.50 (Due to Minimum)
2 Contracts @ USD 5 Premium = USD 1.50 (Due to Minimum)
3 Contracts @ USD 0.03 Premium = USD 1.50 (Due to Minimum)
5 Contracts @ USD 0.03 Premium = USD 1.50
10 Contracts @ USD 0.03 Premium = USD 3.00
 

US Flag  United States - Smart Routed: > 100,000 Monthly Contracts 5

  Commissions Minimum Per Order
All Premiums USD 0.15 per contract USD 1.50

1 Contract @ USD 2 Premium = USD 1.50 (Due to Minimum)
2 Contracts @ USD 5 Premium = USD 1.50 (Due to Minimum)
3 Contracts @ USD 0.05 Premium = USD 1.50 (Due to Minimum)
5 Contracts @ USD 0.03 Premium = USD 1.50 (Due to Minimum)
10 Contracts @ USD 3 Premium = USD 1.50
100 Contracts @ USD 3 Premium = USD 15.00

 

United States - Directed Orders

 

US Flag  United States - Direct Routed: (Any number of contracts per month)

  Commissions Minimum Per Order
All Premiums  USD 1.25 per contract USD 1.50

1 Contract @ USD 2 Premium = USD 1.50 (Due to Minimum)
2 Contracts @ USD 5 Premium = USD 2.50
3 Contracts @ USD 0.05 Premium = USD 3.75

 

US Flag  United States - Click to View Exchange Fees  

*We do not charge a "Base Fee" or use a "Base Plus Commission" Fee Structure.

Our minimum commission per transaction of USD 1.50 applies to all executed orders.

 

   

 

 

What does the "minimum" mean to me?

It simply means that all orders must meet the minimum amount of USD 1.50. 

 
For Example:
    
   

Commission for 1 contract = USD 0.75

However, since the commission is below the minimum, the commission would actually be USD 1.50 - NOT  USD 2.25.

Please review the table below for more options' pricing examples.

 

    

 

 
  Example US Option Commissions with No Base Fee: 
This example assumes that you are trading (buying or selling) United States Options with a premium of USD 0.50, that you trade between 1 - 10,000 Monthly Contracts and that your order is Smart Routed (not directed to a specific exchange). Transaction and Exchange Fees are additional. These fees (as well as rebates) are passed directly back to you. Commissions, fees, and rebates may be included together in your trade confirms under commissions. 
 
  
 
 

 Number of Contracts 

 

 Commission Per Contract (USD)

 

 Total Commission* 

  
  1    $0.75    $1.50  
  2     $0.75    $1.50  
3     $0.75    $2.25  
  5    $0.75    $3.75  
10    $0.75    $7.50  
  25    $0.75    $18.75  
 
  *Including Minimum per Order. Excluding exchange fees, rebates or regulatory transaction fees. Assumes client trades less than 10,001 Contracts per Month.Exchange, Regulatory Transaction Fees are not included in commissions displayed. Additionally, credits are not included in commissions displayed. When charged, Exchange and sell side Regulatory Transaction Fees will increase your total cost. When received, credits will reduce your overall cost! (Instead of using credits to pad our bottom line, we actually pass available credits on to you!)   
Low-Cost Option Trading
 

  

 

United States - Exchange, Regulatory & Transaction Fees

 
 

 

     US Flag  United States - Exchange Fees
     AMEX      ISE
     BATS      MIAX
     BOX      NASDAQOM
     C2      NASDAQ OMX BX Options Exchange
     CBOE      NYSE Arca (PSE)
     GEMINI      PHLX
   
 

 

     US Flag  United States - Regulatory Fees
       Regulatory Fees Included in Total Commissions
     Options Regulatory Fee ("ORF") 2, 3      USD 0.0415 per contract
   
 

 

     US Flag  United States - Transaction Fees
       Transaction Fees Included in Total Commissions
     Transaction Fees 4      USD 0.0000231* Value of Aggregate Sales
     FINRA Trading Activity Fee      USD 0.002 * Quantity Sold
   
 

 

     US Flag  United States - OCC Clearing Fees
     Tier      Fee
     Trades of 1 to 1,100 contracts      USD 0.05 per contract
     Trades of > 1,1000 contracts      USD 55.00 per trade
   

The Options Regulatory Fee ("ORF") is charged by the following exchanges:

AMEX, BATS, BOX, CBOE, CBOE2, ISE, GEMINI, MIAX, NOM, NASDAQBX, PCX, PHLX.

 

 

Canada Flag Canada - Option Commissions 

 

Canada Flag  Canada: <=10,000 Monthly Contracts 5

  Commissions Minimum Per Order
All Premiums CAD 1.50 per contract CAD 1.50
 
 

Canada Flag  Canada: 10,001 - 50,000 Monthly Contracts 5

  Commissions Minimum Per Order
All Premiums CAD 1.15 per contract CAD 1.50
 
 

Canada Flag  Canada: 50,001 - 100,000 Monthly Contracts 5

  Commissions Minimum Per Order
All Premiums CAD 1.05 per contract CAD 1.50
 
 

Canada Flag  Canada: > 100,000 Monthly Contracts 5

  Commissions Minimum Per Order
All Premiums CAD 1.00 per contract CAD 1.50
 

 

 

Mexico - Option Commissions 

 

Mexico Flag  Mexico

  Commissions Minimum Per Order
AMXL MXN 25 per contract MXN 25
NAFTRAC MXN 20 per contract MXN 20
QQQQ MXN 30 per contract MXN 30
All Others MXN 40 per contract MXN 40

1 AMXL Contract = MXN 25
1 NAFTRAC Contract = MXN 20
1 QQQQ Contract = MXN 30

 

     
 

Please Note:

 

  • Commissions apply to all order types.
  • Commissions are not charged for US exercise and assignment.
  • Commissions are not charged for US cabinet buy-to-close trades.
  • PT considers exchange fees and/or rebates in determining where to route an order. Under certain circumstances, PT may route a marketable order to an exchange that is not currently posting the national best bid or offer (NBBO) but which may be willing to “step up” and execute the order at the NBBO, in order to avoid or reduce the exchange fee for executing the order. If this routing method is used, then the client generally will pay a lower execution fee than the client would have otherwise paid. In those cases where PT routes to an exchange that is not currently posting the NBBO in order to reduce or avoid exchange fees, PT will guarantee the client a fill at the NBBO at the time that PT routed the order.
  • Volume breaks are applied based on monthly cumulative trade volume summed across all options contracts at the time of the trade. Contract volumes are summed for the purpose of determining volume breaks. These fees are applied on a marginal basis for a given calendar month.

 

If for example, you execute 12,000 US contracts in a month, your execution costs would be:

10,000 contracts at USD 0.75

2,000 contracts at USD 0.60

 

  • Modified orders will be treated as the cancellation and replacement of an existing order with a new order. On certain exchanges, this may have the effect of subjecting modified orders to commission minimums as if they were new orders.

 

For example, if an order for 200 contracts is submitted and 100 contracts execute, then you modify the order and another 100 contracts execute, a commission minimum would be applied to both 100 contract orders.

 

  • Orders minimums will be applied to the individual legs of a COMBO order.

 

1PT's Tiered commission models for options include a pass-through of exchange, regulatory and transaction fees charged by the associated exchanges, regulatory bodies and our clearing firm. PT does not participate in these fees or rebates however our clearing firm may receive a portion of these fees. Costs passed on to clients in PT’s Tiered commission schedule may be greater than the costs paid by our clearing firm to the relevant exchange, regulator, clearinghouse or third party. For example, our clearing firm may receive volume discounts that are not passed on to Place Trade or our clients. Likewise, rebates passed on to clients by PT may be less than the rebates that our clearing firm receives from the relevant market. For example, our clearing firm may receive enhanced rebate payments for exceeding volume thresholds on particular markets, but typically will not directly pass these enhancements to clients. Likewise our clearing firm does not pass to clients all of the rebates they may receive for liquidity taking orders, complex orders or orders executed in price improvement auctions. Traditional exchange payment for order flow programs result in payments to specialists or primary market makers, some portion of which may be paid on to our clearing firm. Our clearing firm does not pass these payments directly to clients. Place Trade does not receive any portion of these fees and passes the fees as well as the available rebates/credits directly on to you.

2The Options Regulatory Fee ("ORF") is charged by the following exchanges: AMEX, BATS, BOX, CBOE, CBOE2, ISE, GEMINI, MIAX, NASDAQBX, NOM, PCX, PHLX.

3Fee applies to executions which clear in the "Customer" account with OCC. This will generally include Public Customer and Professional Customer transactions.

4Transaction fees are only charged for sell orders.

5Volumes on both US and Canadian markets contribute to sliding scale.

*Stocks directed to foreign markets may incur additional fees charged by the markets themselves.

*If our minimum commission per order is less than that of our clearing firm (Interactive Brokers), then you will be charged our clearing firm's price.

 All asset types and products from around the world are held and reported in a single account.

There is no guarantee of execution.

Orders will be routed to US options exchanges.

 

  
     
 
 
 

Options involve risk and are not suitable for all investors.

For more information; please read “Characteristics and Risks of Standardized Options” before investing in options. For a free copy call 1-800-50-PLACE or 1-919-719-7200 or visit the OCC.
 

 

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