OptionsHouse is an online broker that offers its customers the ability to trade equities, options, futures, mutual funds, ETFs, and bonds.
This OptionsHouse review will provide an in depth analysis of the broker’s trading platform; we outline its overall advantages and disadvantages, and take a look at the fee structure they offer.
The company is the result of a 2014 merger between stock brokerage giants OptionsHouse and tradeMonster. The merger sought to combine OptionsHouse’s low rates with tradeMonster’s notoriously practical trading platforms. On September 12, 2016, E*Trade acquired the parent company of OptionsHouse for $725 million and Karl A. Roessner was appointed CEO.
The resulting firm has fulfilled customer expectations by remaining the industry’s cheapest major options broker and offering continually improving trading platform technology.
The OptionsHouse Trading Platform
OptionsHouse’s trading platform is one of its major drawcard. Its reliability and functionality have been crucial in the success of the brokerage.
Whether you are an experienced trader, or just beginning your venture into the options world, OptionsHouse allows you to quickly and easily analyse data, purchase options, and create extensive notes on your trades. You are able to buy and sell multiple options simultaneously through the same window without having to leave your original search page.
The platform features include the option to automatically calculate the probability of different profit and loss ratios. The platform provides constant updates on a stock’s crucial information, including upcoming reports such as a company’s next earnings and dividend releases.
Another loveable feature included in the platform is the program StrategySEEK; after you input your forecast and risk priorities it scans live markets and identifies potential opportunities that fit your strategy. This increases your chances of finding hidden alternatives.
OptionsHouse Fees Structure
The OptionsHouse fees structure is probably the highlight of this company’s advantages.
In terms of large online brokerage, it is by far the cheapest options broker you can find out there.
- Stocks/EFTs (Flat): $4.95
- Options: 4.95 (base) + $00.50 per contract
- Futures (Flat): $1.50
- Mutual Funds: $9.95
- Outgoing Wire Fee: $25
|Online Broker||Options Base Fee||Price per Contract||Amount minimum||Trading Types Available|
Stocks, options,mutual funds, futures
|TD Ameritrade||$9.99||$0.75||$0.00||Stocks, options, futures,mutual funds, FOREX|
Stocks, options,mutual funds
|Merrill Edge||$6.95||$0.75||$0.00||Stocks, options,mutual funds|
|Stocks, options, ETFs,mutual funds, bonds|
OptionsHouse has some of the lowest rates in the industry. At $4.95 a trade it is over 25% cheaper than its cheapest major competitor – Scottrade. Its flat rate pricing ensures that your potential profit margins increase simultaneously with your purchase size. This is especially beneficial to investors who purchase high quantities of equities and options.
OptionsHouse is widely known for its practical and easy-to-use web-based trading program. It allows you the full functionality of a top-end trading platform without the need to download bulky software to your computer.
The amount of automatic analysis available to the customer means that both new and experienced traders can quickly make sense of the risks and rewards involved in a trade. Within the trading platform you can set triggers that notify you when an option and stock price reaches a predetermined level.
Free Reinvestment Of Dividends
A feature I really enjoy is the ability to reinvest your dividends at no additional cost.
OptionsHouse has free tutorials on their YouTube channel that teach you how to use their software.
This is especially advantageous to beginners. OptionsHouse gives you virtual money to practice trading with. This is a great way to start as it allows you to get a feel for the software and markets before risking your own capital.
While the overall optionshouse app is very functional, there is noticeable and frequent lag which may annoy some users.
Flat Rate Pricing (Beginners)
OptionsHouse’s flat rate of $4.95 may be disadvantageous if you are new to trading and want to purchase small amounts of equities. Other smaller brokerages offer small ‘per share’ fees which allow you significantly lower costs when not purchasing in large quantities.
Although the fees are low, the quantity on offer is not of the same pedigree that you will find at other competitors. In addition, you must order mutual funds over the phone.
Personally, I haven’t had any issues, but the internet is littered with complaints about poor customer service.
OptionsHouse Review Conclusion
You may be asking if OptionsHouse is truly the best broker for options. My OptionsHouse review has determined that the broker is extremely good value for money. With the lowest flat rates out of any of the major brokerages, OptionsHouse is great for a trader who wants a highly functional platform to trade large volumes of stock.
Trigger warnings, StrategySEEK, and a plethora of in-house tools to calculate risk makes OptionsHouse a great platform for increasing your margins.
To help you understand ho to use these tools, here;s a video overvie of the platform by YouTuber Patrick Wieland:
Despite this, if you are a new trader who wants to trade low volumes of stock, or primarily through your mobile phone, OptionsHouse may not be the premier option as mobile platform lag and flat rate pricing would be justifiable deterrents for such traders.
Check out reviews of other major options brokerages at https://www.personalincome.org/best-options-trading-platforms/