What is the most cost effective way to buy options on currencies and equity shares?

[alanbrenton]

Hi,

I've read some posts here on RFD on interactive brokers being a good bet for trading options on equities. Are there other alternatives out there in terms of low commission and good execution?

I am looking into trading options on both currencies and underlying equity shares. It seems the foreign exchange rates have gone more volatile the last few months and may be a profitable play with US reaching new lows.

Has anyone tried opening an account with the Chicago Mercantile Exchange? The Montreal Exchange only offers European style options on the USDCAD which I don't think is suitable for my purpose.

Thanks in advance everyone.

[monty613]

The USX options on Montreal are terrible - no liquidity and huge price spreads.

There's a bunch on PHLX that are easily accessible at any discount broker, much better liquidity and depth on them.


The Philadelphia Stock Exchange (PHLX) offers U.S. dollar-settled options on the Australian Dollar (XDA), British Pound (XDB), Canadian Dollar (XDC), Euro (XDE), Japanese Yen (XDN) and Swiss Franc (XDS).


http://www.phlx.com/products/wco_faq.html

[pitz]

You can't actually open a CME account per se (unless you are a big player and have enough to become a member/buy a seat), but you can execute trades through a member such as Interactive Brokers.

So yeah..IB supports the CME, the MX, Globex, and a few other commodities/forex exchanges. There are various contracts on currency, both futures and options, available.

[alanbrenton]

Thanks Monty and Pitz for your advices.

[alanbrenton]

You can't actually open a CME account per se (unless you are a big player and have enough to become a member/buy a seat), but you can execute trades through a member such as Interactive Brokers.

So yeah..IB supports the CME, the MX, Globex, and a few other commodities/forex exchanges. There are various contracts on currency, both futures and options, available.

Is there a minimum to open an account with IB for options trading?

[pitz]

$5k i believe.