Trading evolved: unveiling new opportunities with our updated pricing structure

Old pricing structure

• Cost to enter the trade: USD 3 per contract per leg × 4 legs = USD 12

• Cost to exit the trade: Same as entry, USD 12

• Total cost for a single contract iron condor: USD 12 (entry) + USD 12 (exit) = USD 24

New pricing structure

• Cost to enter the trade: USD 1 per contract per leg × 4 legs = USD 4

• Cost to exit the trade: Same as entry, USD 4

• Total cost for a single contract iron condor: USD 4 (entry) + USD 4 (exit) = USD 8

In this example, the credit earned per contract is USD 9.10. Comparing the costs under the old and new pricing, a Platinum account holder now pays USD 16 less in total to enter and exit a single contract Iron Condor, significantly enhancing the profitability of such trades.

For a Platinum account a lot size of 10 contracts would not be uncommon and savings on a single trade (of 10 contracts) quickly build up to considerable savings of USD 160 in the above example.

If we take the same iron condor example from above and look at the impact for a VIP account, we get the following outcome: 

Old pricing structure (VIP account)

• Cost to enter the trade: USD 1.50 per contract per leg × 4 legs = USD 6

• Cost to exit the trade: Same as entry, USD 6

• Total cost for a single contract iron condor: USD 6 (entry) + USD 6 (exit) = USD 12

New pricing structure (VIP account)

• Cost to enter the trade: USD 0.75 per contract per leg × 4 legs = USD 3

• Cost to exit the trade: Same as entry, USD 3

• Total cost for a single contract iron condor: USD 3 (entry) + USD 3 (exit) = USD 6

Again, we see a considerable price/commission reduction of 50%!

Key Takeaways:

With the above examples fresh in our minds, these are the key advantages for you as a trader:

1. Direct cost savings: you'll see a noticeable reduction in your trading costs, making your investments more efficient and cost-effective.

2. Complex strategies are made more accessible: advanced strategies like Iron Condors and Broken Wing Butterflies (and many other multi-leg strategies) are now within easier reach, thanks to lower commission fees. This opens a new realm of trading opportunities that were previously more expensive.

3. Boosted profitability: with reduced costs, your profitability could see a significant boost, especially in strategies involving frequent trades or multiple contracts.

4. Diverse trading tactics: the affordability to execute a variety of strategies allows you to diversify your trading approach, potentially leading to better risk management and improved returns.

5. Empowering smaller accounts: if you’re working with a smaller account, these reduced rates make options trading more accessible, allowing you to participate more actively in the market.

6. Increased liquidity opportunities: lower transaction costs could encourage higher trading volumes, potentially resulting in better liquidity for certain options.

7. Enhanced learning curve: the ability to try different strategies without high commission costs promotes continuous learning and skill development, sharpening your trading acumen.

8. Advantage for active traders: as an active trader, you'll find these price reductions particularly beneficial, as they allow you to adjust positions frequently at a lower cost.

9. Stimulating market innovation: the new pricing may lead to novel trading strategies and methods, as traders like yourself find creative ways to maximize returns under this cost structure.

10. Improved trading experience: overall, these changes are likely to enhance your satisfaction and confidence in your trading platform, knowing that it supports more cost-effective trading strategies.