$1.50 options trades in dough
Update 3/30/2017: tastytrade just released tastyworks, their own options trading platform with $1 commissions and $0 to close.
I’ve recently been getting some questions about how I am able to get the discounted commission rate of $1.50/contract from TD Ameritrade and dough. Rather than respond to each individually, I’ve decided to post the information here:
Here’s the question/answer from the dough support site:
What is the commission rate offered by TD Ameritrade when opening an account using the link found within dough?
If you use the link found within dough to open a new brokerage account with TD Ameritrade and fund the account with a minimum of $2,000, TD Ameritrade is offering the following commission rates:
– $1.50 per contract option trades with no ticket charge.
– $7 flat rate for equity trades.
You basically create a free account on dough.com and then use the link found within dough to open an account with TD Ameritrade. Once the account is funded with a minimum of $2000, you’ll qualify for the $1.50/option contract & no ticket charge and a $7.00 flat rate on stock trades.
Schwab, my other brokerage account, charges $8.95 commission plus $0.75 per contract; the breakeven point comes out to around 12 or 13 options contracts, at which point Schwab becomes cheaper. But, for my size of account and for how few contracts I currently trade, the $1.50 commission has been incredible.
It also appears that the parent company, so to speak, tastytrade, also has a dough offer website that explains this in more detail. (This is essentially the same page you’ll see when clicking on the TD Ameritrade link from your new dough account.)
If you are already a TD Ameritrade user, visit the dough offer website above and either call TD Ameritrade’s 800 number or speak with a representative via the web during regular business hours. Mention that you are a dough user and would like the $1.50 commissions. Of note, the $1.50 pricing is also then valid for use in TD Ameritrade’s other platforms, including thinkorswim.
One thing that does appear to have been changed in this deal is the stock trades commission. When I signed up the deal was $0.0125/share online equity with a $5 minimum. Now that has been changed to a flat rate of $7, still not too bad. I have only bought and sold options so am not even sure if I truly have that rate in place; it is something I’ll have to check. The only mention of the $0.0125/share pricing that I can find is from this page advertising thinkorswim.