Unique Original Articles » TradeMonster Review - Great for Complex Traders

The most economical advertised rates of online discount brokers don’t automatically tell you the most cost effective pricing for every strategy. When looking for a discount broker, one of the most critical pieces of information to pay close attention to is the Brokerage commission that the broker charges for buying and selling stocks and options. When incorporating complex strategies including both options and equities its critical to understand the firm's multi-leg strategy pricing as well.

There are many reasons why main on-line brokers simply show high-cost competitors on their commission comparisons: No one wants to tell people there are cheaper options available. Trying to understand the true commission schedules of these online brokers can be intimidating and even misleading. In searching at the various options out there for active option spread traders there seems to be large differences that could greatly impact a traders annual returns.

More and more investors are expanding their trading strategies to include multi leg option strategies. While all the discount brokers tout cheap single leg commission pricing, the range of commission charges for complex active options trading is wide and often confusing. If your online strategy requires two legs or more (covered call, married put, protective put, iron condor, butterflies) or any two three or four leg trades, then good luck understanding how your commission is calculated.

While TradeKing advertises $4.95 per trade and $0.65 per contract, a ten contract spread will cost $22.90 because they will charge you the base rate twice for a spread, four times for a condor. optionsXpress touts great option pricing but the same spread will cost $30 there. While they advertise spreads at $14.95 flat, for twenty contracts the minimum $1.50 kicks in and they charge for both legs. For large spread trades, say 500 contracts, optionXpress will charge $1500 while many of its competition comes in at one half or even one third of that price, saving up to $1000 per trade!

The one bright spot in the online option brokerage market is fast growing tradeMONSTER. The firm recently announced a reduction in commissions for active spread and complex option traders that places them far in the lead. While other firms put minimum per contract overrides as high as $1.40 per contract and often charge per leg, tradeMONSTER has simplified commission structures for active traders and treats the trade as what it is - one trade. Spreads, Straddles, Condors and other complex trades are considered no differently than a single leg option execution. The result: fast executions on a fantastic state of the art platform at substantially reduced pricing per trade. Remember that $1500, five hundred contract trade at optionXpress? The same trade executed on the tradeMONSTER platform is just $500.

A ten contract spread at tradeMONSTER is now only $15.00, a 20 contract trade crosses over their low minimum of $0.50 per contract and is just $20.00. A seller executing just ten spreads per month at 10 centracts per trade will preserve $948 per year if they switch from TradeKing to trademonster. If the identical trader is executing 20 contract trades they will save a gigantic $4800 per year if he switched from optionxpress to tradeMONSTER.

For the majority of traders a savings of between $1000 and $5000 per year will greatly increase their profit margin. For hyper active option spread traders this number could be literally huge! One trader making just ten 100 contract spreads a month will save a jaw dropping $2000 per month, $24,000 per year in commission rates if they execute with tradeMONSTER versus trading with optionXpress.

To see the comparisons and open an account visit http://www.trademonster.com

Trade Stocks, Bonds, Mutual funds and Options with a powerful web based platform and become a better trader with tools and information at tradeMONSTER.
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