US Options trading from the UK

This is a discussion on US Options trading from the UK within the Futures & Options forums, part of the Markets category; Hi all. I live in the UK and want to start trading Options. I have looked at some brokers. * ...

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Old Jun 3, 2011, 1:27pm   #1
Joined Nov 2010
Question US Options trading from the UK

Hi all.

I live in the UK and want to start trading Options. I have looked at some brokers.

* Interactive brokers - Lots of commissions and charges for mundane things like modifying orders, and stream fees.

* OptionsXpress - Seems well known and reputable.

Which one is the best for UK traders that want to trade US stocks and options? I want to be able to sell to open, and buy LEAP options for risk-free Collars.


My main concern is having to convert my GBP into USD: I have been burnt before when using a GBP currency to buy US shares because of the conversion before and after purchase. Have any of you had this experience and how do you mitigate it?

Thanks.

Last edited by tradermic; Jun 3, 2011 at 1:43pm.
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Old Jun 3, 2011, 3:00pm   #2
Joined Dec 2003
Re: US Options trading from the UK

IB won't charge fees that aren't unreasonable so the fees you see are fair.
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Old Jun 4, 2011, 9:42am   #3
Joined Jun 2011
Re: US Options trading from the UK

Quote:
Originally Posted by tradermic View Post
Hi all.

I live in the UK and want to start trading Options. I have looked at some brokers.

* Interactive brokers - Lots of commissions and charges for mundane things like modifying orders, and stream fees.

* OptionsXpress - Seems well known and reputable.

Which one is the best for UK traders that want to trade US stocks and options? I want to be able to sell to open, and buy LEAP options for risk-free Collars.


My main concern is having to convert my GBP into USD: I have been burnt before when using a GBP currency to buy US shares because of the conversion before and after purchase. Have any of you had this experience and how do you mitigate it?

Thanks.
Hi there
I use OPTIONSXPRESS

To avoid conversion for each trade you can transfer an amount into the account in USD. Then for your trades you won't be charged currency commission.

Read the FAQ on the optionsXpress site about "seeding" your account. I do a one time Wired transfer to the Bank in Chicago

http://www.optionsxpress.eu/about_us/faq.aspx

Hope this helps

Don't pay currency commission charges for each trade -- the Banks have already taken TOO much out of the economy already.

You'll (as an EU / Non US resident) also need when opening an account at OptionsXpress to fill in an exemption from US witholding tax -- form will be supplied when opening the account. -- Also no UK stamp duty etc.

Remember when trading US options -- you can theoretically be "Called" or "Put" any time during the life of the option although this is rare -- and a contract is for 100 shares not 1000 as in the UK.

OptionsXpress also has WEEKLY option trading too -List of tradeable options for "Weeklys" as they are known can be got from the CBOE. These expire every Friday -- you can trade the following weeks stuff from the THURSDAY NIGHT before Friday expiration too.

Trade costs -- 9.95 USD for Shares / Stocks, 14.95 USD for Options.

Here's the link to the CBOE site for the weeklys so you can see what's tradeable.

http://www.cboe.com/micro/weeklys/introduction.aspx


Cheers
jimbo
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Old Jun 4, 2011, 11:12pm   #4
Joined Nov 2010
Re: US Options trading from the UK

tradermic started this thread
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Originally Posted by jimbo45 View Post
Hi there
Remember when trading US options -- you can theoretically be "Called" or "Put" any time during the life of the option although this is rare -- and a contract is for 100 shares not 1000 as in the UK.
Is it right that US Futures Options can only be exercised on the expiration date?
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Old Jun 4, 2011, 11:37pm   #5
Joined Jun 2011
Re: US Options trading from the UK

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Originally Posted by tradermic View Post
Is it right that US Futures Options can only be exercised on the expiration date?
US options can be exercised ANY TIME during their life time. This has advantages since with time value you can CLOSE a position quickly and then SELL / BUY another option.

In general however unless markets move massively its unlikely you will get CALLED or PUT until expiration. It certainly hasn't happened to me yet that I've been "PUT" or "CALLED" before expiration.

European options can only be exercised on Expiration date.

Cheers
jimbo
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Old Apr 17, 2014, 3:30am   #6
 
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Joined Nov 2013
Best site is Trademonster.com for options.

Best site is Trademonster.com for options.
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Old Apr 17, 2014, 3:48am   #7
 
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Joined Feb 2014
Yes I have account with a few different brokerages but TradeMonster is by far the best for options trading...I guess it depends on what you plan to trade but for trading spreads, TM has all the tools and very good commission rates.
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