Get 100 Commission-Free Trades at OptionsHouse.com!
OptionsHouse’ (aka Options House) trading platform is excellent and they offer one of the least costly ways to get into options trading compared to all other options brokerages. This discount trading platform is owned by PEAK6 Investments, L.P. This financial firm is based in Chicago alongside the the Chicago Board of Trade.
In the Barron’s 2009 Online Broker Survey OptionsHouse was ranked number 1 in trade experience, ahead of the competition such as thinkorswim, optionsXpress, E*Trade and Charles Schwab. The holding company has been trading options and derivatives for many years, and is in the top one hundred of Chicago’s best companies to work for. There is substantial capital behind OptionsHouse and as they continue to offer the lowest costs around they will continue to grow their market share helping drive down costs further.
As mentioned, OptionsHouse is worth checking out because of those extremely low trading fees, and the lowest in options trading period. It is of course SIPC insured. Changing brokers is a rather simple process anymore. OptionsHouse is offering to reimburse new customers up to $100 for transferring accounts, which is a good incentive to move, but the flat fee of $2.95 per stock trade is an overwhelming reason to at least give the company a look.
OptionsHouse (OptionsHouse, LLC) is currently offering new sign-ups 100 free commission trades within the first 60 days following the funding of the account with minimum start up cash of $3,000. So that means with all stock trades at $2.95, $295 in fees will be waived free. This offer is only available through the OptionsHouse special link. Outside of this offer there is a minimum account funding requirement of $1000.
The trading platform itself is pretty standard and you will very quickly familiarize yourself with it once you’ve opened an account. In fact, it is just as good or better than all those other higher charging brokerages. The truth is, with brokers like these, it really is all about the fees. Stock trades are genuinely $2.95, end of story. So how can this company make money at these prices? Volume, volume, volume.
With regard to options trading:
When you trade at OptionsHouse, you not only get one of the lowest, most competitive rates available, you also get the flexibility to pick the rate that works best for you. Trade less than 10 contracts? Then pick the Up To 5 for $5 rate where your first five contracts are only $5. Trade over 10 contracts? Maximize your value with our low $8.50 +.15/contract rate. And best of all, you can change your rate when your trading behavior changes.
There are no hidden fees or any other kind with this options broker. So no monthly minimums, no maintenance fees and broker-assisted fees are the same at just $2.95. Just what any savvy trader likes to see.
Talking of things you see, on the home page, you can view an account summary and do quote lookups, order status reports, any open positions, and all the detail needed on any particular securities you maybe interested in learning more about. For the less experienced trader, there are some very good ‘webinars’ and tutorial seminars. The company specializes in options trading, so all the education is focused in that area but it will inevitably grow into stock trading and other areas in due time.
The speed and accuracy of order fills can be an issue with all brokers. The best way to ensure you get what you see when it comes to order fill, is to avoid using lots of ‘market orders’ and auto limits, instead work your own trades.
An important thing to be aware of with OptionsHouse is that it only takes commissions at the close of the trading day. This is unlike other platforms that take their fees with each trade. It is possible some accounts could be negative at the end of the day so OptionsHouse hold a $100 cushion in every account. For the trader this means that they cannot trade right up to the value of their funding rather only up to $XXXX (being the account total) minus $102.95 (being the cushion plus the trade fee). This is spelled out in the terms and conditions and the FAQs.
OptionsHouse is the cheapest way to make your money, make more money when it comes to options trading. The customer service support is at least as good as the other discount broker platforms. Applying and opening an account is very straightforward, just be prepared to hold a minimum $100 account balance. The bottom line is that if you plan to trade options and the like, you would be crazy not to give this company a chance. By trying them out you are also encouraging competition in this all too ‘cozy club’ of brokerage services. This is a frugal buy with regards to brokerages as Options House has the lowest rates in the business!