When you trade an option, the value of the trade is generally lower than if you were to trade the same number of the underlying shares. Because of this, options are generally a cost efficient way to trade your view of a stock. The costs involved in trading an option are:
Brokerage charged by brokers varies and can be:
- a flat fee, charged on a per transaction basis
- on a percentage basis i.e. a percentage of the gross value of the order, or
- a combination of these two, such as a flat fee for orders up to a certain dollar value, and then a percentage charge thereafter
ASX Clear fees
ASX Clear charges a transaction fee of $0.13 plus GST per share option contract. If you exercise a share option, ASX Clear charges an exercise fee of $0.05 plus GST per contract. If you are assigned on an option position, ASX Clear charges a fee of $0.05 plus GST per contract.
In the case of index options, ASX Clear charges a registration fee of $0.45 plus GST per contract and an exercise fee of $0.35 plus GST per contract.
No stamp duty is payable on option transactions or securities transactions arising from options exercise.