WikiFX

Sagot

As an experienced trader, I approach cost analysis with care, especially when evaluating brokers like Options AI. For indices like US100, while Options AI’s fee structure is generally transparent, every cost component must be considered. Options AI charges a flat $5 commission per multi-leg or single-leg options trade, regardless of size or complexity. On top of that, there are additional, industry-standard regulatory and exchange fees. For index options such as the S&P 500 Index (SPXW)—which operates similarly to products like the US100—these include a $0.50 fee per contract, an OCC Options Regulatory Fee of $0.02685 per contract, a FINRA Trading Activity Fee of $0.00279 per contract (capped at $5.95), and an Exchange Proprietary Transaction Fee (e.g., SPXW) of $0.59 per contract. Clearing fees are also passed through at $0.05 per contract. It’s important to note that while the commission is predictable, the total cost for trading index options can add up as you increase your contract size or engage in multi-leg strategies. Because Options AI does not hold client funds directly and isn’t a regulated entity itself, these costs also include diligence on the user’s part regarding the policies of the connected brokerage. I always factor in all these costs together before entering trades; overlooking them could diminish returns, especially for active traders or those using complex spreads. I recommend confirming the precise index product, as costs may slightly vary, and always budgeting for the full scope of potential fees.