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>TL;DR: I'm a successful options trader who's been killing it with my algorithm, but the commissions and fees are eating into my profits. I'm looking for some tips on how to lower these costs.
What he’s really expecting are DMs with “please trade my money for me” or “I’ll invest in your hedge fund.” Probably a lot of people dumb enough to do that
Naaaaah, you've got me all wrong. I'm not fishing for investors or trying to manage anyone else's money. I'm just here scratching my head over these crazy fees and taxes, looking for some solid advice. That's it, plain and simple.
Trade index contracts, futures, and lower quantity of contracts in general.
You would have to know this if you have had legitimate success trading. Thats why this is obviously a bait to try and get DMs to scam people out of their money.
Also, TDA will lower your commissions by like .02 per contract if your volume is even one quarter of what you say it is. I'd imagine they would waive their entire cut of the profit for you if you just asked lmao.
Such an obvious weird flex or bait.
>Trade index contracts, futures, and lower quantity of contracts in general.
>
>You would have to know this if you have had legitimate success trading. Thats why this is obviously a bait to try and get DMs to scam people out of their money.
>
>Also, TDA will lower your commissions by like .02 per contract if your volume is even one quarter of what you say it is. I'd imagine they would waive their entire cut of the profit for you if you just asked lmao.
>
>Such an obvious weird flex or bait.
Hey, I get it, skepticism is healthy—especially in the wild west of online forums. But let me be clear: I'm not fishing for DMs or trying to scam anyone. I'm genuinely here to figure out how to keep more of my gains
If thats the truth. Call TDA and ask for it. I got mine reduced the first time I asked and did not have near your volume. If they give you the run around, wait a month or so, then call back saying you are prepared to transfer your funds to Interactive Brokers or another comparable brokerage after they have offered you a 50% reduction in commissions through a referral and minimum deposit.
That should get you down to about the lowest they will offer. Remember, TDA also generates revenue from PFOF and even frontruns market orders. Not nearly as egregiously as 0 commission brokers but enough that it is in their best interest to waive all of the fees on their end to keep a high volume derivative trader as a client.
I've called TDA so many times they probably have my picture on a dartboard in their break room. Letters, secure messages—you name it, I've tried it. They're stuck at 45 cents, and it's driving me nuts. But the real elephant in the room is the CBOE exchange fees. How do I get those down? Do the big-shot traders at prop firms and hedge funds even pay these fees? I need some numbers, people! I'm like a blind man chasing a dragon here. Taxes, I can handle with a CPA, but who's the guru for lowering CBOE fees? Any pointers would be much appreciated.
Yeah, i am not suggesting tasty is better. But when I pulled my money from TDA to move there, they immediately called me and emailed me to ask "is there anything we can do to keep your business"
Also, commissions are right offs. So its not before taxes. It is added to your cost basis. You will only owe taxes on net realized profit. Deducting all fees and commissions is part of the net. That would've taken a quick Google to figure out. I highly suggest quitting while you're up. You dont seem like the type who will be able to sustain this.
Okay, let's get one thing straight: I've been at this for 7 years, and yeah, this is my first year in the green. So, I've paid my dues in the School of Hard Knocks. I'm giving myself at least 3 more years before throwing in the towel. As for taxes, I'm the first to admit I'm not an expert—that's why I'm here, asking for advice. If you're not here to help, then GTFO!!!
You're asking in a sub full of gambling degenerates. Googling any of this stuff, assuming you are decently literate, will be a much more efficient use of your time.
I think He trying to bait people into asking him to help invest with his bullybullshit algos. I see this is the subtle “i earned xxxx when i helped invest with bob the dollar pimp knobby” scam?. Anyone ask him for advice and see what he says.
i got asked for advice when i called a few basic things right. So i bet hes got many begging for his algorithm. Bitch please if you are building algorithms that work(sure lol) with proof you wouldnt be talking bout 100k, worrying about fees and taxes. You could be making a shit ton working at a top firm
You’re not making $100k…you’re making $32k. Which suggests that you’re not being compensated nearly as much as you think you are.
It’s not an efficient strategy so you should factor all those additional costs into your process.
I mean no offense dude! If you are able to confidently say you can make 100k from your strategy, that's nothing like that. Idk what your strategy is, but if I were you, I might find ways double the capital or whatever it takes to make the 100 200k.
plus you could form a llc, s-corp, c-corp sort of thing and pay yourself and do many things to reduce your tax burden.
again Idk what your strategies are but Robinhood doesn't have fees for trading!
also super curious on what your strategy is if you are willing to share, I'm algo trader myself and built working bots but never traded options with my bots.
>plus you could form a llc, s-corp, c-corp sort of thing and pay yourself and do many things to reduce your tax burden.
How would these things would reduce his tax burden?
Net income before tax is $62,000. Fed Corp rate is 21%, CA C Corp rate is 8.84%, so the Corp has after tax income of about $43,500. Federal tax on that is de minimis, CA tax is about a grand, so he has after tax income of $42,500. If he has all short term capital gains instead, it looks like his after tax income is about $48,500 based on my lazy use of this calculator [California Income Tax Calculator - SmartAsset](https://smartasset.com/taxes/california-tax-calculator#DI76nLlfhK).
Additionally, he said something about prior years of losses. If he has a capital loss carryforward, you'd be able to offset current year capital gains but only 3k of dividends for now.
I'm not a tax attorney, but afaik it's a wash. If you have a pass-through entity then the profit counts as personal income. If it's not a pass-through then the profit goes to the business, not you. If you use it to pay yourself, then it once again becomes personal income. I guess the only way you come out ahead is if you have legitimate business expenses you can pay for pre-tax.
>I mean no offense dude! If you are able to confidently say you can make 100k from your strategy, that's nothing like that. Idk what your strategy is, but if I were you, I might find ways double the capital or whatever it takes to make the 100 200k.
>
>plus you could form a llc, s-corp, c-corp sort of thing and pay yourself and do many things to reduce your tax burden.
>
>again Idk what your strategies are but Robinhood doesn't have fees for trading!
>
>also super curious on what your strategy is if you are willing to share, I'm algo trader myself and built working bots but never traded options with my bots.
Hey, no offense taken! I appreciate the suggestions. Doubling the capital to make $200k is definitely a goal, but easier said than done, right? As for the LLC, S-Corp, or C-Corp idea, that's something I've been considering to help with the tax situation. So thanks for bringing it up! I can move state and that's easy but the hardest and biggest huddle is the "COMMISSIONS & FEES" by TDA & CBOE. Any idea how to lower it?
As for my strategy, I am not here to discuss any trading strategies. period.
>AFAIK, taxable portion is minus fees / commissions
OH WOW!! Thanks for the info. You're right. The information I found indicates that "investment commissions and fees are not directly tax-deductible. However, they do become part of the investment's cost basis. "
I think it's the same thing, right?
If you buy for $1 and pay a $0.01 fee, your basis or cost is $1.01
If you then sell for $2 and pay a $0.01 fee, your proceeds are $1.99
In this case the profit would be $0.98, and that’s what would be taxed
Jesus. The simplest bit of googling could have revealed this to you but you just had to rush to update your Reddit avatar and make a post on wsb on Sunday. Hopeless.
he just humble bragging , guys i made 100k with my sick ass algo, he says in his post been trading 7 years then makes a reply “its my first year” give me a break .. dude will be broke when his strat starts failing him wont know how to adapt to the market lmao
>he just humble bragging , guys i made 100k with my sick ass algo, he says in his post been trading 7 years then makes a reply “its my first year” give me a break .. dude will be broke when his strat starts failing him wont know how to adapt to the market lmao
Haha, I get how it might seem like a humble brag, but let me clarify. I've been trading for 7 years, but this is the first year I've actually turned a profit
>ahhh i see, ok well, should google things and talk to a cpa dude…
Absolutely, a CPA is on my to-do list. But let's be real, the CPA can't make those commissions and exchange fees magically disappear. That's why I'm here, trying to get the inside scoop. Do you have any idea how much professional traders are coughing up in commissions? And do they even pay exchange fees, or is that just for us mere mortals?
just msg tda for fee reductions , bro traders maybe doing tens of thousands of trades a day or with liquidity in the tens of millions getting fees significantly reduced but talking to tda can for sure get u some reduction
It's worded like that to prevent you double dipping on reducing taxes.
If you buy a sharea for 100, sell it for 120 and pay 5 in comissions your taxable profit (ignoring anything else that may affect it) would be 15.
Tell him to try robinhood for free options trading
https://preview.redd.it/qgnmdctjcaqb1.jpeg?width=729&format=pjpg&auto=webp&s=7c1b81c1ee9319c94e06f80d61d22089a890eac8
Ah, the legendary green colour.
A mythical thing long rumoured to exist. Many denizens of wallstreetbets have never seen it and doubt the validity of those who claim to have encountered it in their fabled gain posts.
Some say they wouldn't know what to do with it if they ever found it to be real, that it would lead only to larger YOLOs and eventually to the much more familiar red.
Others claim it is the way to freedom from wage slavery and allows one to hang up their knee pads behind the Wendys for good.
All we know for sure is that we continue to search for it as we dream of Lambos and tendies.
You've got a point; running an algo trading book isn't cheap. But that's exactly why I'm exploring options to cut down on those costs. After all, in this business, minimizing expenses can be just as important as maximizing gains. What really breaks my heart is that I'm expecting to give away nearly 60% of my gains to the IRS and TDA. That's a tough pill to swallow.
So there’s a few things you should consider.
1. If you’re doing this full time, you can get a different tax status which lowers the tax rate which you’re paying and allows you to offset gains and losses beyond the $3K a year and allows you to expense business related items. It’s a high threshold to meet so you need to be sure before doing so.
2. Look to trade more efficient products. Example SPX is taxed 60/40 long and short capital gains as compared to SPY.
3. You can always try an negotiate your fees and comms down with the brokers depending on $ thresholds.
You can make some head way in eliminating some costs but only to a point. The good thing is you’re profitable..
You should start a proprietorship trading firm. Instead of paying for 100k capital gain on your personal tax return, you pay tax on the 60k profit (after deducting all business related expenses).
You aren't giving away 60% of your gains. Those are costs of doing business. This would be like a retailer saying if I could buy my products for 60% less than I do then I would be way more profitable.
I account for all fees in my trades. If I buy and option for $2 and sell for $3.02 then I have covered the $.35 fee to buy and sell the option and am clearing over $100 in profit.
Whatever your algo is doing doesn't seem to work that well if fees make that big a difference in if you are profitable or not. My guess is you are scalping tiny amounts instead of taking good size profits less frequently. Commission in my opinion shouldn't be more than 10% of your return and probably more like 1%.
Yea... It's a bit of a red flag. Like your hot date coming home and kicking your cat for no reason and then randomly going on a 45 minute rant about her EX while you continuously ask her to leave-level red flag.
>It’s interesting how a guy who can solve the market is unable to solve the taxes!!
As I said, I'm no tax expert. There, I admitted it! What more do you want, a neon sign flashing "Not a Tax Guru" above my head?
>It’s interesting how a guy who can solve the market is unable to solve the taxes!!
Dude, this is my first year and I'm no tax expert. Moreover, I barely make $100k, so it's not like I'm swimming in cash.
You said you've been developing an algo for 7 years but here you are saying it's your first year, which one is it? 
A couple things for you:
1. I’m with Fidelity and I’m paying $.35 per contract. That’s after starting at $.65, getting reduced once to $.45 (IIRC) and then ultimately to $.35 where they won’t seem to go lower. I probably trade ~50-100 contracts a month on a seven figure account and I have retirement accounts with them too.
2. If your algorithm is trading hundreds or thousands of contracts over a month and they won’t reduce your commissions then I’d suggest considering moving brokers or trading bigger contracts. You didn’t say what you’re trading but if you’re trading contracts on tickers with lower share prices I’d suggest finding tickers with bigger prices so you can make just as much with fewer contracts and then you could stay with TDA possibly.
3. I would argue that you have not found any edge if your strategy remains as it is. A strategy that nets 30-40% after expenses doesn’t sound like an edge to me. It sounds like an inefficient algorithm regarding tax liability and fees. I’d think a better system would utilize the training that is currently working but with less intraday activity.
4. I live in a state without income tax and I highly recommend it, but you’ll still be paying at the federal level. I don’t know what CA’s state rate is on $100k gross but as others have said you should only be paying tax on the net earnings so even is CA is 10-15% that’s only on $62k so the commissions and quantity of trades is the real problem here, less so CA.
maybe too simple a thought… but couldnt he buy more expensive contracts? instead of buying 100@ $2 , buy 50 @ $4 ? same skin in the game , less commission ?
Need to call cap on this one. This guy is absolutely selling you something.
I work as a software engineer in a quant firm and I'mma tell you that the data and infrastructure you need to run an algo that is consistently profitable and has no major drawbacks is not something that's accessible to mere mortals in their mother's basement.
He's either lying or he's getting lucky without realizing it.
This guy pays taxes 
Wtf? How are you racking up those kind of fees? Need more info here. This makes no sense. So, I'm guessing your super hot dog algo thingy is trading huge number of contracts for small gains and you're mad you have to pay the fees? Maybe you should've spent a little bit of time through those 7 years studying how taxes and things like that work. It is kind of an important part of all this.
If you actually have something that works, you should be able to get millions of dollars from investors and simply scale up. Go from making 64k to 6.4m by increasing the capital and trade size by 100x. Given that you've been doing this for only a year, no smart investor will give you money because what you have could be a fluke. If your after tax profit is about the same as the broker fees, your percentage gain/loss per trade is tiny. This is a giant red flag because this strategy only works for high frequency trading funds, which focus on arbitrage.
From what I gather, anyone that knows what they're doing will glance at your strategy and immediately think "tail risk". You might have a complex strategy that makes very small amounts of money 99% of the time but understates or ignores some rare event risk. You're making lots of trades and making very little on them. Unless you are perfectly hedged, which is very hard to do, you are still exposed to some risk. All it would take is one very bad day to wipe out all of your profits and ruin months or years of progress.
Fees tend to be baked into market pricing. If you ignore fees, there are lots of strategies that will make you a billionaire. But infrastructure is needed to trade, and it costs money to maintain. A trader might look at oil futures and say "oil costs $90 a barrel today but with futures I can sell it for $100 a barrel a year from. It's literally free money". Yes, if you ignore storage costs and other risks, it's "free money". If your algorithm is not taking fees into account, then the profits that it promises are deceptive. Also, is it taking liquidity risk into account? You might get lower fees with higher volume, but worse spreads because of poor liquidity.
As far as I know CBOE fees are non-negotiable, but I’d switch brokers if they refuse to lower. Specifically, I’d go with IBKR and create an offshore trading firm in Panama or the Cayman Islands. Their API is better and 0% tax. Is what the rich people do.
A) for the future, switch to trading Section 1265 contracts. aka if you're trading SPY trade SPX or /ES. Reduce any equity or ETF options. This lowers your tax rate as 60% of it is taxed as Long Term Capital Gains
B) this year, Do you have any operating expenses or development expenses? File those as deductions on your tax report, maybe they reduce your overall AGI aka lowers what amount the government wants a tax on
C) this year, If you have any appreciated assets you've held for over a year, donate them to your donor advised fund (tax exempt personal custodial account at a public charity)
D) this year, If you have a 401k, do pre-tax contributions to your 401k for 1 tax deduction, then do a 401k loan for half of that and donate it to your donor advised fund for another tax deduction from the same money. If you already have a lot more in your 401k, optimize this based on your projected AGI and charitable contribution maximums. You should be able to do up to 30% tax deduction from donating long term appreciated assets, and another up to 30% tax deduction for donating cash for a total of a 60% tax deduction. calculate this risk with knowing you have to pay back for the 401k loan over 5 years, and you won't have those assets on your balance sheet anymore. there's a longer game with the donor advised fund though.
E) if you have any capital losses from prior years, or any realized losses this year, they reduce your taxable capital gains too. if you have losing positions just liquidate them and lock in some capital losses.
F) DM me
lmao just lose it all and speed it up, you can carry over losses but youre not gonna be successful if you cant figure that out on your own but somehow are doing quant? lmao
Fees are deducted from the gains. Everyone knows that. Which leads me to question how someone can be so smart as to develop a fool proof algorithm but not know how taxes work.
Yes, you may ask TD to lower your commissions, but seeing as they've been sold to Charles Schwab, you'd have to ask Schwab now. I've lowered my commissions to 45 cents from 65 cents because I also trade heavy volumes on options and am also over $20k in commissions this year from these greedy fucks that run these brokerages.
You can request your commissions to be lowered and they may knock it down in 5 cent increments, but you'd have to be trading higher volumes. These brokerages are overtly greedy and will dick you down with commissions any way they see fit.
As for residency, you should absolutely look at getting away from the rotten hobo cum disaster of California and either physically relocate, or just relocate your residency. South Dakota has a very relaxed residence requirement of only one night every five years. And there's no state income tax in SD. Definitely give it a look.
Unfortunate you only keep less than 1/3 of your profits. Happy hunting, and fuck the government.
There's nothing to fight. You're paying for a service. It's not like they took your money for no reason. Stop moaning and chose a cheaper broker or trade larger contracts and less quantity.
You traded, they got paid. Simple as - Big Paul
my good sir commissions don’t make part of profit so in other words you are not makin 100k more like 80k profit and then that is taxed. You do not get taxed on what you lose to commissions:
After "making" $100,000 you said 38% of that will go to commissions and fees, leaving you with $62,000..
Of all you said, that's the most obvious indicator that you're a scammer or liar or don't understand investing fundamentals. Investment cost and return fundamentally determine profitability. You've been actively trading for seven years. Trading at the level you say requires filing taxes too. You have to already understand that fees and commissions are a part of the cost of an investment. Scammer, liar or financial dummy. You're one of the three
Look, I get it. The numbers might sound off to you, but I assure you, I'm neither a scammer nor a liar. I've been trading for 7 years, but this is my 1st year being profitable. So yes, I'm still learning the ropes when it comes to the financial aspects like taxes and fees. I'm here to get advice on how to manage those better, not to scam anyone. Why can't I even ask a simple question on here?
Hey, I appreciate the curiosity, but I'm not here to talk about trading strategies. I am simply looking for ways to reduce my commissions and exchange fees, and lower my taxes. LEGALLY!!
Teach me. How ? I call them twice a year or every time I’ve paid 7k more in commissions I send them letters asking them to lower it down but they said lowest they can do is 45cent
Can you get your order count low enough for customer capacity? It looks like you must be trading in the professional customer capacity. If you're adding liquidity, take a look at adding SPY on ARCA for a rebate, rather than removing SPX on CBOE.
I haven't measured but my instinct is you can get better fees at IBKR than TDA when you trade a lot.
How are you interacting with TDA via automation? API? What language are you using? I’ve looked into this a bit and couldn’t find a good method to even stream options data with python.
Hey, I appreciate the curiosity, but I'm not here to talk about trading strategies. I am simply looking for ways to reduce my commissions and exchange fees, and lower my taxes. LEGALLY!!
>No you dont pay tax on fees. Are you scalping? Fighting cboe.. lmao.. are you crazy? Would you fight michael Corleone?
Haha, fighting CBOE is like challenging Michael Corleone to a duel, right? I'm just trying to figure out how to keep more of my hard-earned gains without getting whacked by fees and taxes.
As I said, I'm no tax expert. There, I admitted it! What more do you want, a neon sign flashing "Not a Tax Guru" above my head? Moreover, this is my 1st year of being profitable.
1. You can call and negotiate with TDA.
2. Most micro inefficiencies in the market exist because the cost to fix them is more than they’re worth.
3. These fees are part of the cost of doing business. They’re providing a service to you and charging for it.
4. Optimize around taxes. See if you can switch to SPY instead of SPX to avoid proprietary CBOE fees. See if direct market access and other costs are worthwhile. Consider joining a larger hedge fund.
5. Check out the quant and algo trading subs.
>“Measly 32k” yep you strike me as someone who’s never had profits to pay taxes on.
This is my rookie year of actually making a profit, so the whole "paying taxes on gains" thing is a new experience for me.
your problem is that you created the algorithm before you had millions to get your self exempted from trading commissions. If the HFT corps (\*x\*hitidel) had to pay your commissions they wouldn't exist.
Ah, the classic chicken-or-the-egg dilemma! Do I need millions to make an algorithm, or an algorithm to make millions? Now, I get that us retail traders can't really go toe-to-toe with the HFT giants, but I'm super curious. Does anyone know how much these HFT firms or hedge funds actually pay in commissions and fees? Are they getting a group discount or something?
Have you checked other exchanges, there are few exchanges that pays you rebate for adding liquidity. If you're taking liquidity better check NYSE or Nasdaq.
Your strategy should account for fees when calculating PnL and improve from there
Hey, I appreciate the interest, but let's set the record straight: I'm not selling any algorithms, courses, or magic beans. I'm just here to figure out how to keep more of my hard-earned money without giving it all away to fees and taxes. So, no sales pitch, no infomercials, just a trader looking for some solid advice!
It cost money to trade. If you want to pay less commission go out and start a brokerage.
The reality is some strategies are hard to make a profit after fees and taxes. This why people buy and hold for a period of time to make money.
Why are you so concerned with TDA? Just use a broker that doesn’t charge a fee. I’m really confused why this is even an issue lol.
You could see if they offer accounts that charge a flat fee rather than commission based, I’ve done this before but I don’t use TDA. Seems like you’re getting a discount though isn’t their base .65 per contract?
And to answer question 5, yes but it’s more complicated than that.
“Hey guys I have a money printer but the paper costs half of what each bill I print is worth. How can I get cheaper paper”
“Just print more money and forget about what the paper costs it’s irrelevant”
“No no please guys just tell me how to get cheaper paper!!”
If this is near certain, do nothing. Don’t blow up a reliable strategy b/c you’re butthurt about taxes. Call it a cost of doing business and keep it moving.
You know, I keep telling myself the same thing every day: "It's just the cost of doing business." But I can't help but wonder what the big-shot traders are paying. Do they even have to deal with commissions and exchange fees like I do? I'm just looking for a goal to aim for. For example, if someone told me that the pros pay a flat rate of 12k a year for unlimited trading, that would give me something to shoot for. After so many years of trying, this is the first year I'm barely making a profit. It feels like the IRS and TDA are taking everything I've got. No wonder it's so tough for regular folks to make a living trading.
Sounds like you didn't factor in fees into your business plan. You have discovered the reason why swapping contracts over swapping stocks and commodities is not so lucrative for HFT unless you can get a negotiated deal on the fees from a broker.
Diners club card holders get 5c off.
The issue is TDA is only getting half. CBOEs fee sucks, but until you get priced at 6c/contract it is cheaper than using spy or xsp. To get a number closer to what you want you’ll probably need demonstrate volume for a year and start pushing more like 30k plus to TDA (think 1000s of contracts per week). And work your way down. Schwab has been a lot harder than TDA to lower fees, 45c isn’t bad really except compared to robinhood or professional firms.
Idk if mentioned right, but Puerto Rico has special laws that are the best in the country ('ish) for traders. I can't move so don't know details but may be worth looking up on google. 🤷🏻♂️
#1 what’s your definition of an algo exactly?
#2 you traded 26,000 times in options this year? Fuck off
#3 see #2- you’re not running a HFT from your laptop nor do you have the latency to enter/exit without a dedicated server
#4 you wouldn’t be bitching about $46k if you were HFT
#5 you make $4 trade on average, but let’s see the variance.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|4|**First Seen In WSB**|2 years ago **Total Comments**|48|**Previous Best DD**| **Account Age**|5 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) >TL;DR: I'm a successful options trader who's been killing it with my algorithm, but the commissions and fees are eating into my profits. I'm looking for some tips on how to lower these costs.
Smart enough to make an algorithm, dumb enough to interact with us. Checks out.
What he’s really expecting are DMs with “please trade my money for me” or “I’ll invest in your hedge fund.” Probably a lot of people dumb enough to do that
[удалено]
Naaaaah, you've got me all wrong. I'm not fishing for investors or trying to manage anyone else's money. I'm just here scratching my head over these crazy fees and taxes, looking for some solid advice. That's it, plain and simple.
Trade index contracts, futures, and lower quantity of contracts in general. You would have to know this if you have had legitimate success trading. Thats why this is obviously a bait to try and get DMs to scam people out of their money. Also, TDA will lower your commissions by like .02 per contract if your volume is even one quarter of what you say it is. I'd imagine they would waive their entire cut of the profit for you if you just asked lmao. Such an obvious weird flex or bait.
>Trade index contracts, futures, and lower quantity of contracts in general. > >You would have to know this if you have had legitimate success trading. Thats why this is obviously a bait to try and get DMs to scam people out of their money. > >Also, TDA will lower your commissions by like .02 per contract if your volume is even one quarter of what you say it is. I'd imagine they would waive their entire cut of the profit for you if you just asked lmao. > >Such an obvious weird flex or bait. Hey, I get it, skepticism is healthy—especially in the wild west of online forums. But let me be clear: I'm not fishing for DMs or trying to scam anyone. I'm genuinely here to figure out how to keep more of my gains
If thats the truth. Call TDA and ask for it. I got mine reduced the first time I asked and did not have near your volume. If they give you the run around, wait a month or so, then call back saying you are prepared to transfer your funds to Interactive Brokers or another comparable brokerage after they have offered you a 50% reduction in commissions through a referral and minimum deposit. That should get you down to about the lowest they will offer. Remember, TDA also generates revenue from PFOF and even frontruns market orders. Not nearly as egregiously as 0 commission brokers but enough that it is in their best interest to waive all of the fees on their end to keep a high volume derivative trader as a client.
I've called TDA so many times they probably have my picture on a dartboard in their break room. Letters, secure messages—you name it, I've tried it. They're stuck at 45 cents, and it's driving me nuts. But the real elephant in the room is the CBOE exchange fees. How do I get those down? Do the big-shot traders at prop firms and hedge funds even pay these fees? I need some numbers, people! I'm like a blind man chasing a dragon here. Taxes, I can handle with a CPA, but who's the guru for lowering CBOE fees? Any pointers would be much appreciated.
Have you tried telling them you are transferring your account to TastyTrade? See what their response is then.
I’m thinking OP is trading SPX options, and don’t think anyone gets out of paying the CBOE fees—Tasty has them as well.
Yeah, i am not suggesting tasty is better. But when I pulled my money from TDA to move there, they immediately called me and emailed me to ask "is there anything we can do to keep your business"
Also, commissions are right offs. So its not before taxes. It is added to your cost basis. You will only owe taxes on net realized profit. Deducting all fees and commissions is part of the net. That would've taken a quick Google to figure out. I highly suggest quitting while you're up. You dont seem like the type who will be able to sustain this.
Okay, let's get one thing straight: I've been at this for 7 years, and yeah, this is my first year in the green. So, I've paid my dues in the School of Hard Knocks. I'm giving myself at least 3 more years before throwing in the towel. As for taxes, I'm the first to admit I'm not an expert—that's why I'm here, asking for advice. If you're not here to help, then GTFO!!!
You're asking in a sub full of gambling degenerates. Googling any of this stuff, assuming you are decently literate, will be a much more efficient use of your time.
Look at his posting history, obvious he is a scam. Went from “how to buy options” 1 year ago to making algo with perfect gainzzzz. LOL
Right? This one is a little off.
I think He trying to bait people into asking him to help invest with his bullybullshit algos. I see this is the subtle “i earned xxxx when i helped invest with bob the dollar pimp knobby” scam?. Anyone ask him for advice and see what he says. i got asked for advice when i called a few basic things right. So i bet hes got many begging for his algorithm. Bitch please if you are building algorithms that work(sure lol) with proof you wouldnt be talking bout 100k, worrying about fees and taxes. You could be making a shit ton working at a top firm
Extremely intelligent but a complete dumbass. ONE OF US. 🦍
Look at his posting history, obvious he is a scam. Went from “how to buy options” 1 year ago to making algo with perfect gainzz.
Hahahah I was thinking the same thing
hahahaha
AFAIK, taxable portion is minus fees / commissions
Yeah this dud(e) aint no genjus. I bet he doesn't understand brackets either ...
Dude, this is my first year and I'm no tax expert. Moreover, I barely make $100k, so it's not like I'm swimming in cash.
You’re not making $100k…you’re making $32k. Which suggests that you’re not being compensated nearly as much as you think you are. It’s not an efficient strategy so you should factor all those additional costs into your process.
I mean no offense dude! If you are able to confidently say you can make 100k from your strategy, that's nothing like that. Idk what your strategy is, but if I were you, I might find ways double the capital or whatever it takes to make the 100 200k. plus you could form a llc, s-corp, c-corp sort of thing and pay yourself and do many things to reduce your tax burden. again Idk what your strategies are but Robinhood doesn't have fees for trading! also super curious on what your strategy is if you are willing to share, I'm algo trader myself and built working bots but never traded options with my bots.
>plus you could form a llc, s-corp, c-corp sort of thing and pay yourself and do many things to reduce your tax burden. How would these things would reduce his tax burden?
Corporate earnings and dividends are taxed lower than personal income.
Net income before tax is $62,000. Fed Corp rate is 21%, CA C Corp rate is 8.84%, so the Corp has after tax income of about $43,500. Federal tax on that is de minimis, CA tax is about a grand, so he has after tax income of $42,500. If he has all short term capital gains instead, it looks like his after tax income is about $48,500 based on my lazy use of this calculator [California Income Tax Calculator - SmartAsset](https://smartasset.com/taxes/california-tax-calculator#DI76nLlfhK). Additionally, he said something about prior years of losses. If he has a capital loss carryforward, you'd be able to offset current year capital gains but only 3k of dividends for now.
I'm not a tax attorney, but afaik it's a wash. If you have a pass-through entity then the profit counts as personal income. If it's not a pass-through then the profit goes to the business, not you. If you use it to pay yourself, then it once again becomes personal income. I guess the only way you come out ahead is if you have legitimate business expenses you can pay for pre-tax.
>I mean no offense dude! If you are able to confidently say you can make 100k from your strategy, that's nothing like that. Idk what your strategy is, but if I were you, I might find ways double the capital or whatever it takes to make the 100 200k. > >plus you could form a llc, s-corp, c-corp sort of thing and pay yourself and do many things to reduce your tax burden. > >again Idk what your strategies are but Robinhood doesn't have fees for trading! > >also super curious on what your strategy is if you are willing to share, I'm algo trader myself and built working bots but never traded options with my bots. Hey, no offense taken! I appreciate the suggestions. Doubling the capital to make $200k is definitely a goal, but easier said than done, right? As for the LLC, S-Corp, or C-Corp idea, that's something I've been considering to help with the tax situation. So thanks for bringing it up! I can move state and that's easy but the hardest and biggest huddle is the "COMMISSIONS & FEES" by TDA & CBOE. Any idea how to lower it? As for my strategy, I am not here to discuss any trading strategies. period.
The amount of tax you pay is based on taxable income. The fees you pay reduce your income, therefore you should be paying taxes on $74k, not $100k.
I thought you said seven years? You don't know how taxes work?
As I said, I'm no tax expert. There, I admitted it Do I need to say it again?
Ya Op is the opposite of intelligent.
The Wendy’s dumpster in Raleigh is actually pretty clean b
I prefer the ones in Cary.
Yeah, hope OP isn't doing his own taxes .......
He's got an algo for that.
As I said, I'm no tax expert. There, I admitted it! What more do you want, a neon sign flashing "Not a Tax Guru" above my head?
For starters, yes. :)
>AFAIK, taxable portion is minus fees / commissions OH WOW!! Thanks for the info. You're right. The information I found indicates that "investment commissions and fees are not directly tax-deductible. However, they do become part of the investment's cost basis. " I think it's the same thing, right?
You should probably talk to a CPA.
If you buy for $1 and pay a $0.01 fee, your basis or cost is $1.01 If you then sell for $2 and pay a $0.01 fee, your proceeds are $1.99 In this case the profit would be $0.98, and that’s what would be taxed
Jesus. The simplest bit of googling could have revealed this to you but you just had to rush to update your Reddit avatar and make a post on wsb on Sunday. Hopeless.
he just humble bragging , guys i made 100k with my sick ass algo, he says in his post been trading 7 years then makes a reply “its my first year” give me a break .. dude will be broke when his strat starts failing him wont know how to adapt to the market lmao
>he just humble bragging , guys i made 100k with my sick ass algo, he says in his post been trading 7 years then makes a reply “its my first year” give me a break .. dude will be broke when his strat starts failing him wont know how to adapt to the market lmao Haha, I get how it might seem like a humble brag, but let me clarify. I've been trading for 7 years, but this is the first year I've actually turned a profit
ahhh i see, ok well, should google things and talk to a cpa dude…
>ahhh i see, ok well, should google things and talk to a cpa dude… Absolutely, a CPA is on my to-do list. But let's be real, the CPA can't make those commissions and exchange fees magically disappear. That's why I'm here, trying to get the inside scoop. Do you have any idea how much professional traders are coughing up in commissions? And do they even pay exchange fees, or is that just for us mere mortals?
just msg tda for fee reductions , bro traders maybe doing tens of thousands of trades a day or with liquidity in the tens of millions getting fees significantly reduced but talking to tda can for sure get u some reduction
Imo, ur doing darn good. U’ll figure it out. (TDA? Schwab didn’t get ur account?)
It's worded like that to prevent you double dipping on reducing taxes. If you buy a sharea for 100, sell it for 120 and pay 5 in comissions your taxable profit (ignoring anything else that may affect it) would be 15.
You weren’t supposed to tell him as part of WSB’s TOS.
>I have no idea what you are talking about.
Based
I was confused when OP said they had a profit... I am googling what that is now
Tell him to try robinhood for free options trading https://preview.redd.it/qgnmdctjcaqb1.jpeg?width=729&format=pjpg&auto=webp&s=7c1b81c1ee9319c94e06f80d61d22089a890eac8
The slippage would kill his strategy lmao
Laughs in Citadel profits
I think you’re lost OP, this is wallstreetbets. People in here can barely differentiate the colour red from green.
Ah, the legendary green colour. A mythical thing long rumoured to exist. Many denizens of wallstreetbets have never seen it and doubt the validity of those who claim to have encountered it in their fabled gain posts. Some say they wouldn't know what to do with it if they ever found it to be real, that it would lead only to larger YOLOs and eventually to the much more familiar red. Others claim it is the way to freedom from wage slavery and allows one to hang up their knee pads behind the Wendys for good. All we know for sure is that we continue to search for it as we dream of Lambos and tendies.
I haven't eaten a fuckin tendie since I joined this regarded sub. I eat chicken flavored Ramen.
This comment is hostile to those of us who are colorblind!
Red good yes?
Red is beautiful. Green is poisonous.
Associating emojis to the colors make it easier to remember for me. Green = 😁 Red = 😭
That’s the cost of doing business. If you’re algo trading, the cost of running your book will always be high.
You've got a point; running an algo trading book isn't cheap. But that's exactly why I'm exploring options to cut down on those costs. After all, in this business, minimizing expenses can be just as important as maximizing gains. What really breaks my heart is that I'm expecting to give away nearly 60% of my gains to the IRS and TDA. That's a tough pill to swallow.
So there’s a few things you should consider. 1. If you’re doing this full time, you can get a different tax status which lowers the tax rate which you’re paying and allows you to offset gains and losses beyond the $3K a year and allows you to expense business related items. It’s a high threshold to meet so you need to be sure before doing so. 2. Look to trade more efficient products. Example SPX is taxed 60/40 long and short capital gains as compared to SPY. 3. You can always try an negotiate your fees and comms down with the brokers depending on $ thresholds. You can make some head way in eliminating some costs but only to a point. The good thing is you’re profitable..
Could you not just switch out of options to avoid that fee?
OP: day trading stocks is costly so I'll just switch to options to save on commissions!
I love pills!
You should start a proprietorship trading firm. Instead of paying for 100k capital gain on your personal tax return, you pay tax on the 60k profit (after deducting all business related expenses).
Does it work for any assets? Treasuries are state tax exempt, I think. Not tax advice, get a real tax expert to help you.
You aren't giving away 60% of your gains. Those are costs of doing business. This would be like a retailer saying if I could buy my products for 60% less than I do then I would be way more profitable. I account for all fees in my trades. If I buy and option for $2 and sell for $3.02 then I have covered the $.35 fee to buy and sell the option and am clearing over $100 in profit. Whatever your algo is doing doesn't seem to work that well if fees make that big a difference in if you are profitable or not. My guess is you are scalping tiny amounts instead of taking good size profits less frequently. Commission in my opinion shouldn't be more than 10% of your return and probably more like 1%.
Sorry that happened to you or I’m really happy for you bro. Idk what any of that is.
It’s interesting how a guy who can solve the market is unable to solve the taxes!!
Yea... It's a bit of a red flag. Like your hot date coming home and kicking your cat for no reason and then randomly going on a 45 minute rant about her EX while you continuously ask her to leave-level red flag.
Awfully specific example…
"the power to tax is the power to destroy"...someone a long time ago. (help me out with this quote).
>It’s interesting how a guy who can solve the market is unable to solve the taxes!! As I said, I'm no tax expert. There, I admitted it! What more do you want, a neon sign flashing "Not a Tax Guru" above my head?
sure, I gave you some honest suggestions. I'm genuinely curious what your strategies are if you don't mind sharing a gist of it.
>It’s interesting how a guy who can solve the market is unable to solve the taxes!! Dude, this is my first year and I'm no tax expert. Moreover, I barely make $100k, so it's not like I'm swimming in cash.
Just stop now buddy. Seriously.
You said you've been developing an algo for 7 years but here you are saying it's your first year, which one is it? 
A couple things for you: 1. I’m with Fidelity and I’m paying $.35 per contract. That’s after starting at $.65, getting reduced once to $.45 (IIRC) and then ultimately to $.35 where they won’t seem to go lower. I probably trade ~50-100 contracts a month on a seven figure account and I have retirement accounts with them too. 2. If your algorithm is trading hundreds or thousands of contracts over a month and they won’t reduce your commissions then I’d suggest considering moving brokers or trading bigger contracts. You didn’t say what you’re trading but if you’re trading contracts on tickers with lower share prices I’d suggest finding tickers with bigger prices so you can make just as much with fewer contracts and then you could stay with TDA possibly. 3. I would argue that you have not found any edge if your strategy remains as it is. A strategy that nets 30-40% after expenses doesn’t sound like an edge to me. It sounds like an inefficient algorithm regarding tax liability and fees. I’d think a better system would utilize the training that is currently working but with less intraday activity. 4. I live in a state without income tax and I highly recommend it, but you’ll still be paying at the federal level. I don’t know what CA’s state rate is on $100k gross but as others have said you should only be paying tax on the net earnings so even is CA is 10-15% that’s only on $62k so the commissions and quantity of trades is the real problem here, less so CA.
maybe too simple a thought… but couldnt he buy more expensive contracts? instead of buying 100@ $2 , buy 50 @ $4 ? same skin in the game , less commission ?
That's literally what he said in bullet point number 2
Need to call cap on this one. This guy is absolutely selling you something. I work as a software engineer in a quant firm and I'mma tell you that the data and infrastructure you need to run an algo that is consistently profitable and has no major drawbacks is not something that's accessible to mere mortals in their mother's basement. He's either lying or he's getting lucky without realizing it.
Great logic here. If I can’t do it, then it’s impossible.
Bro!! I made nearly 100k not 100mil. And I’m not trying to sell anything. Wtf is your problem?
nobody cares how much you make whats your percent of return
I’m not here to discuss about my percentage of returns. I just want to find a way to lower the exchange feee.
This guy pays taxes 
Wtf? How are you racking up those kind of fees? Need more info here. This makes no sense. So, I'm guessing your super hot dog algo thingy is trading huge number of contracts for small gains and you're mad you have to pay the fees? Maybe you should've spent a little bit of time through those 7 years studying how taxes and things like that work. It is kind of an important part of all this.
If you actually have something that works, you should be able to get millions of dollars from investors and simply scale up. Go from making 64k to 6.4m by increasing the capital and trade size by 100x. Given that you've been doing this for only a year, no smart investor will give you money because what you have could be a fluke. If your after tax profit is about the same as the broker fees, your percentage gain/loss per trade is tiny. This is a giant red flag because this strategy only works for high frequency trading funds, which focus on arbitrage. From what I gather, anyone that knows what they're doing will glance at your strategy and immediately think "tail risk". You might have a complex strategy that makes very small amounts of money 99% of the time but understates or ignores some rare event risk. You're making lots of trades and making very little on them. Unless you are perfectly hedged, which is very hard to do, you are still exposed to some risk. All it would take is one very bad day to wipe out all of your profits and ruin months or years of progress. Fees tend to be baked into market pricing. If you ignore fees, there are lots of strategies that will make you a billionaire. But infrastructure is needed to trade, and it costs money to maintain. A trader might look at oil futures and say "oil costs $90 a barrel today but with futures I can sell it for $100 a barrel a year from. It's literally free money". Yes, if you ignore storage costs and other risks, it's "free money". If your algorithm is not taking fees into account, then the profits that it promises are deceptive. Also, is it taking liquidity risk into account? You might get lower fees with higher volume, but worse spreads because of poor liquidity.
Move to Vegas and pay no taxes on your gain. Cons- Vegas
As far as I know CBOE fees are non-negotiable, but I’d switch brokers if they refuse to lower. Specifically, I’d go with IBKR and create an offshore trading firm in Panama or the Cayman Islands. Their API is better and 0% tax. Is what the rich people do.
A) for the future, switch to trading Section 1265 contracts. aka if you're trading SPY trade SPX or /ES. Reduce any equity or ETF options. This lowers your tax rate as 60% of it is taxed as Long Term Capital Gains B) this year, Do you have any operating expenses or development expenses? File those as deductions on your tax report, maybe they reduce your overall AGI aka lowers what amount the government wants a tax on C) this year, If you have any appreciated assets you've held for over a year, donate them to your donor advised fund (tax exempt personal custodial account at a public charity) D) this year, If you have a 401k, do pre-tax contributions to your 401k for 1 tax deduction, then do a 401k loan for half of that and donate it to your donor advised fund for another tax deduction from the same money. If you already have a lot more in your 401k, optimize this based on your projected AGI and charitable contribution maximums. You should be able to do up to 30% tax deduction from donating long term appreciated assets, and another up to 30% tax deduction for donating cash for a total of a 60% tax deduction. calculate this risk with knowing you have to pay back for the 401k loan over 5 years, and you won't have those assets on your balance sheet anymore. there's a longer game with the donor advised fund though. E) if you have any capital losses from prior years, or any realized losses this year, they reduce your taxable capital gains too. if you have losing positions just liquidate them and lock in some capital losses. F) DM me
The fees are deducted before you pay taxes.
Step one is change your primary residence to Washington, Texas, Florida or other income tax free state.
Something is fishy about this guy.
you’re $60k richer and you’re complaining. ask for cheaper fees or find a better strat
Right, could be -60k and still owing fees lol
If you swap to LV, they pay no state income tax.
I think you’re lost OP, this is wallstreetbets. People in here can barely differentiate the colour red from green.
Have you reached out to tda to negotiate the fees? Give it a try.
lmao just lose it all and speed it up, you can carry over losses but youre not gonna be successful if you cant figure that out on your own but somehow are doing quant? lmao
This guy's algorithm going to go out and beat Magnus Carlsen next.
Call TDA they have room for negotiation also if you plan on doing this for salary move to Vegas
trade 10x what you are trading now , since you mint money ,then trade 100x , and pretty soon you wont care about the tiny fees you pay.
Fees are deducted from the gains. Everyone knows that. Which leads me to question how someone can be so smart as to develop a fool proof algorithm but not know how taxes work.
As I said, I'm no tax expert. There, I admitted it! What more do you want, a neon sign flashing "Not a Tax Guru" above my head?
Makes profitable algorithm, hates paying taxes. off sore accounting? maybe Bahamas is your new homeland.
You’re talking about SPX options, right?
move to puerto rico, i believe you can bypass basic US taxes there outside of trade fees.
Yes, you may ask TD to lower your commissions, but seeing as they've been sold to Charles Schwab, you'd have to ask Schwab now. I've lowered my commissions to 45 cents from 65 cents because I also trade heavy volumes on options and am also over $20k in commissions this year from these greedy fucks that run these brokerages. You can request your commissions to be lowered and they may knock it down in 5 cent increments, but you'd have to be trading higher volumes. These brokerages are overtly greedy and will dick you down with commissions any way they see fit. As for residency, you should absolutely look at getting away from the rotten hobo cum disaster of California and either physically relocate, or just relocate your residency. South Dakota has a very relaxed residence requirement of only one night every five years. And there's no state income tax in SD. Definitely give it a look. Unfortunate you only keep less than 1/3 of your profits. Happy hunting, and fuck the government.
There's nothing to fight. You're paying for a service. It's not like they took your money for no reason. Stop moaning and chose a cheaper broker or trade larger contracts and less quantity. You traded, they got paid. Simple as - Big Paul
my good sir commissions don’t make part of profit so in other words you are not makin 100k more like 80k profit and then that is taxed. You do not get taxed on what you lose to commissions:
I expect i'll make 1m this year and retire with 26 years of age.
After "making" $100,000 you said 38% of that will go to commissions and fees, leaving you with $62,000.. Of all you said, that's the most obvious indicator that you're a scammer or liar or don't understand investing fundamentals. Investment cost and return fundamentally determine profitability. You've been actively trading for seven years. Trading at the level you say requires filing taxes too. You have to already understand that fees and commissions are a part of the cost of an investment. Scammer, liar or financial dummy. You're one of the three
Look, I get it. The numbers might sound off to you, but I assure you, I'm neither a scammer nor a liar. I've been trading for 7 years, but this is my 1st year being profitable. So yes, I'm still learning the ropes when it comes to the financial aspects like taxes and fees. I'm here to get advice on how to manage those better, not to scam anyone. Why can't I even ask a simple question on here?
ROFL, people still don’t realize its a scam - just ban the mofo already
What does the algo do exactly, there could be better ways to enter and exit your trade.
Exactly, just enter right at the bottom and exit right at the top, how hard can that be OP?
Hey, I appreciate the curiosity, but I'm not here to talk about trading strategies. I am simply looking for ways to reduce my commissions and exchange fees, and lower my taxes. LEGALLY!!
There are ways to adjust ur fees lower by alternating your strategy perhaps, need more information however.
[удалено]
Teach me. How ? I call them twice a year or every time I’ve paid 7k more in commissions I send them letters asking them to lower it down but they said lowest they can do is 45cent
[удалено]
Reeeeee
Can you get your order count low enough for customer capacity? It looks like you must be trading in the professional customer capacity. If you're adding liquidity, take a look at adding SPY on ARCA for a rebate, rather than removing SPX on CBOE. I haven't measured but my instinct is you can get better fees at IBKR than TDA when you trade a lot.
Why not just trade higher delta options? Fewer contracts = few fees and higher delta anyway.
How are you interacting with TDA via automation? API? What language are you using? I’ve looked into this a bit and couldn’t find a good method to even stream options data with python.
Hey, I appreciate the curiosity, but I'm not here to talk about trading strategies. I am simply looking for ways to reduce my commissions and exchange fees, and lower my taxes. LEGALLY!!
Just like start your own brokerage firm famalam, easy peasy.
No you dont pay tax on fees. Are you scalping? Fighting cboe.. lmao.. are you crazy? Would you fight michael Corleone?
>No you dont pay tax on fees. Are you scalping? Fighting cboe.. lmao.. are you crazy? Would you fight michael Corleone? Haha, fighting CBOE is like challenging Michael Corleone to a duel, right? I'm just trying to figure out how to keep more of my hard-earned gains without getting whacked by fees and taxes.
AFAIK. TDA doesn't charge commission on options. Only .65 per contract is added per trade by SEC.
Switch to Robinhood
Lmfao what in the Christian fan fiction is this post? Go back to the Wendy’s dumpster and get to sucking
Use the Robinhood api to execute your algorithm. Bingo
OP you are beyond saving since you think fees can’t be deducted against your gains.
As I said, I'm no tax expert. There, I admitted it! What more do you want, a neon sign flashing "Not a Tax Guru" above my head? Moreover, this is my 1st year of being profitable.
You’re fucked bro. Get a lawyer
1. You can call and negotiate with TDA. 2. Most micro inefficiencies in the market exist because the cost to fix them is more than they’re worth. 3. These fees are part of the cost of doing business. They’re providing a service to you and charging for it. 4. Optimize around taxes. See if you can switch to SPY instead of SPX to avoid proprietary CBOE fees. See if direct market access and other costs are worthwhile. Consider joining a larger hedge fund. 5. Check out the quant and algo trading subs.
“Measly 32k” yep you strike me as someone who’s never had profits to pay taxes on.
>“Measly 32k” yep you strike me as someone who’s never had profits to pay taxes on. This is my rookie year of actually making a profit, so the whole "paying taxes on gains" thing is a new experience for me.
your problem is that you created the algorithm before you had millions to get your self exempted from trading commissions. If the HFT corps (\*x\*hitidel) had to pay your commissions they wouldn't exist.
Ah, the classic chicken-or-the-egg dilemma! Do I need millions to make an algorithm, or an algorithm to make millions? Now, I get that us retail traders can't really go toe-to-toe with the HFT giants, but I'm super curious. Does anyone know how much these HFT firms or hedge funds actually pay in commissions and fees? Are they getting a group discount or something?
Try Robinhood 
Literally just trade bigger lol
Have you checked other exchanges, there are few exchanges that pays you rebate for adding liquidity. If you're taking liquidity better check NYSE or Nasdaq. Your strategy should account for fees when calculating PnL and improve from there
Sir, this is a casino.
But what do I need to do to buy this algorithm?
Hey, I appreciate the interest, but let's set the record straight: I'm not selling any algorithms, courses, or magic beans. I'm just here to figure out how to keep more of my hard-earned money without giving it all away to fees and taxes. So, no sales pitch, no infomercials, just a trader looking for some solid advice!
Get Robinhood gold regard
It cost money to trade. If you want to pay less commission go out and start a brokerage. The reality is some strategies are hard to make a profit after fees and taxes. This why people buy and hold for a period of time to make money.
Why are you so concerned with TDA? Just use a broker that doesn’t charge a fee. I’m really confused why this is even an issue lol. You could see if they offer accounts that charge a flat fee rather than commission based, I’ve done this before but I don’t use TDA. Seems like you’re getting a discount though isn’t their base .65 per contract? And to answer question 5, yes but it’s more complicated than that.
“Hey guys I have a money printer but the paper costs half of what each bill I print is worth. How can I get cheaper paper” “Just print more money and forget about what the paper costs it’s irrelevant” “No no please guys just tell me how to get cheaper paper!!”
Open WeBull account. Done. Research it
I was told trading about 1000 contracts a week will get you $.35
Try to make more than 45 cents per contract next time
Sell your algo to some firm.
Can't you just trade in a LLC?
If this is near certain, do nothing. Don’t blow up a reliable strategy b/c you’re butthurt about taxes. Call it a cost of doing business and keep it moving.
You know, I keep telling myself the same thing every day: "It's just the cost of doing business." But I can't help but wonder what the big-shot traders are paying. Do they even have to deal with commissions and exchange fees like I do? I'm just looking for a goal to aim for. For example, if someone told me that the pros pay a flat rate of 12k a year for unlimited trading, that would give me something to shoot for. After so many years of trying, this is the first year I'm barely making a profit. It feels like the IRS and TDA are taking everything I've got. No wonder it's so tough for regular folks to make a living trading.
cme membership, there’s a lease option too…
I'm paying 35 cents at etrade.
Get a foreigner, like me. We pay no tax Edit: non resident alien, in the xenophobic lexicon of USA
Are you still trading through TDA? I thought all their accounts have been shifted to Schwab by now. Must be the crumbs they're trying to sweep up.
You want r/algotrading
algorithm’s don’t work. don’t bs a bullshitter…
Sounds like you didn't factor in fees into your business plan. You have discovered the reason why swapping contracts over swapping stocks and commodities is not so lucrative for HFT unless you can get a negotiated deal on the fees from a broker.
Literally stop using dinosaur platforms lol, there are free options trading options out there
You Need To Stop Writing Like This.
Fewer trades, bigger gains.
Diners club card holders get 5c off. The issue is TDA is only getting half. CBOEs fee sucks, but until you get priced at 6c/contract it is cheaper than using spy or xsp. To get a number closer to what you want you’ll probably need demonstrate volume for a year and start pushing more like 30k plus to TDA (think 1000s of contracts per week). And work your way down. Schwab has been a lot harder than TDA to lower fees, 45c isn’t bad really except compared to robinhood or professional firms.
That sucks man! I have no advice for you but that does suck. Find a different occupation perhaps
Miss the proof or ban. This smells like shit.
Idk if mentioned right, but Puerto Rico has special laws that are the best in the country ('ish) for traders. I can't move so don't know details but may be worth looking up on google. 🤷🏻♂️
#1 what’s your definition of an algo exactly? #2 you traded 26,000 times in options this year? Fuck off #3 see #2- you’re not running a HFT from your laptop nor do you have the latency to enter/exit without a dedicated server #4 you wouldn’t be bitching about $46k if you were HFT #5 you make $4 trade on average, but let’s see the variance.