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By Meg Flippin, Benzinga
Many brokerages don’t charge commissions for trading stocks, mutual funds and ETFs, but that is not as common a practice when it comes to options trading. Despite the growing popularity of this type of trading, some investors still pay anywhere from $0.65 to $1.00 per contract.
Many brokers are passing along regulatory fees, tacking on costs to trade through their platforms, and making active options traders pay to access tools, research and educational materials. This directly impacts any investor as it eats away at their profits, but it particularly impacts option traders engaging in complex trades that require time, knowledge and the ability to demonstrate market savvy and financial preparedness. Success is possible but not
guaranteed, and risk is generally higher.
Driving Price Innovation
Tradier, the trading brokerage built for serious traders, is driving price innovation by offering active option traders low-cost, subscription-based plans that provide flexibility and convenience.
Options traders using Tradier’s brokerage have choices depending on how much they trade. Traders opting for the Pro plan pay $10 a month, which includes no commissions on equity and ETF options contracts and $0.35 for index option contracts; The Pro Plus plan costs $35 per month, which includes free equity and ETF options and $0.10 index options contracts. With the company's free Lite plan, traders pay $0.35 per contract for equity and ETF options and $0.35 per index options contract. Tradier says that thanks to its pricing plans, traders can benefit from more predictable, commission-free and overall capped costs.
All the plans are priced below the average cost per options contract and are far less than other popular multi-asset brokerages, reports Tradier. TradeStation charges $60 per month for 100 contracts, $120 per month for 200, $300 per month for 500 and $600 per month for 1,000. Plus, the margin interest on $25,000 is 13.5%. Meanwhile, Tastytrade, another popular options trading platform, charges $1 per contract and 11% margin interest on $25,000. Over time and with more trades, these costs add up quickly for active traders.
On the contrary, Tradier is just $10 per month regardless of how many contracts are traded and only charges a margin interest of 9.5%. The chart below illustrates this pricing edge compared to competitors.
Image source: Link
Click here to learn more about Tradier’s platforms and pricing plans.
Reliability And Flexibility
Tradier says its pricing model enables options traders to preserve more money that can be put to work in the markets. Fixed costs are predictable and can impact the profits and losses for serious options traders – creating an opportunity to more predictably reduce costs and drive profits. After all, the less traders pay in fees, the more traders stand to make investing in options. Plus, traders know clearly how much they have to pay in fees when they trade with Tradier. Tradier is also reliable, a key attribute of any respectable trading platform.
Modern Technology And Platform Choice
Beyond offering a cost-effective way to buy and sell option contracts, Tradier empowers active traders by offering them a customizable trading experience based on their needs. That includes enhanced trading features and capabilities via their suite of native platforms, including simple to advanced desktop apps and mobile, or even through other integrated platforms or tools with their seamless API functionality. Traders can easily access and use 100+ different integrated and popular third-party tools like AI, alerts, scanners, trade automation and advanced charting tools to make more informed trading decisions and even automate execution based on a set of rules determined by the trader. Dan Raju, CEO of Tradier, explains how this technology paired with their pricing really makes them an overall appealing choice for retail options traders in his recent interview with Benzinga.
Tradier: Empowering Options Retail Traders
Options trading has been growing in popularity ever since the pandemic, but many online brokerages haven’t moved to low-cost or commission-free options trading like they have with stocks, mutual funds and ETFs. Tradier is challenging that with its low-cost, subscription-based plans that provide active options traders with reliable pricing and the ability to keep more of their profits. Interested in learning more about Tradier? Click here.
Featured photo credit: Cori Sickman, Benzinga
Options carry a high level of risk and are not suitable for all investors. Please read the Characteristics and Risks of Standardized Options before trading in options. Risk of loss in trading can be substantial and you should carefully consider the risks associated with trading options and using leverage as it relates to your investment objectives, time horizon and expenses.
Securities products are offered through Tradier Brokerage Inc. Member FINRA/SIPC - Not FDIC Insured - No Bank Guarantee - May Lose Value
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.
Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders.
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