Robinhood vs Charles Schwab for trading option?
I do weeklies cash secured puts or covered calls. I do it in huge volume. I am using charles schwab but the commission fee is 0.65/contract. Robinhood has 0 commission fees on options. I am thinking to switch at this point as I am spending 10k+ on commission a year. Need advice from experienced here.
I think you just answered your own question if you spend over $10K a year (holy shit) in commissions. RobinHood is limited in scope for deeper analysis, but I think anybody seriously doing that would be on a PC or laptop to begin with. I use RobinHood only as a long options gambling account, but as far as usability and stability is concerned it gets the job done, and very well. It has a bad rep because of GameStop but it’s a legitimately well designed product. Should note too that if you get RobinHood gold ($5 a month), you get 5.25% APY for any spare cash you have hanging around, which is nice and I don’t feel such a sense of urgency to move cash around as I go in and out of trades
You’ve clearly never heard of this little thing called PFOF
I checked it out. Seems like it matters a ton with large numbers of trades over time, but barely for casual trades where it matters more to be directionally correct with a few trades than it does to squeeze profits over smaller movements in machine gunning trades. Sound about right? Might convert my Fidelity account to margin just to observe and confirm pricing diffs
Hood may give you bad trades or delayed trades. Check with Interactive Brokers and negotiate for better price. IB has much better platform and order fills, execution
If you ever have a problem, you can call or chat with Schwab easily, especially with that kind of volume. For Robinhood, you can expect a long wait time and maybe get someone who can help.
You’ll get better fills on Schwab which could make up for the fees. It’s a wash really
How much better fills?
Thats what I thought. I am also building trade bot…