I know many of you are interested in beginning a taxable investing account and so I’m back with a quick review of another online stock broker to help you do your cheap stock trading. OptionsHouse is an options-focused broker that also offers extremely cheap stock trades.
As you may or may not know, options trading isn’t for everyone. An option is basically a financial instrument that gives you the right to engage in a transaction later. Therefore, a stock option, would give you the right to buy (or sell) a stock at a later time. If this type of advanced trading strategy appeals to you, then you should likely give OptionsHouse a chance. Here’s my review.
You won’t see many advertisements for the options-focused, discount broker OptionsHouse. Some of you may never have heard of them. That’s because it seems they spend their advertising dollars on offering you one of the cheapest stock trading fees online. You can trade stocks at OptionsHouse for only $3.95. That probably got your attention.
The financial services firm and options powerhouse PEAK6 Investments, LP founded OptionsHouse, LLC in 2005. PEAK6 is likely the reason OptionsHouse was recently recognized by Barron’s as the top online broker for trading experience. One of their main goals with OptionsHouse is to help take traders from a basic level to a more professional level. They aim to do this by offering a professional level platform and a slew of educational tools, including free training courses. See the current promotions below.
Fees and Pricing at OptionsHouse
The pricing is pretty simple. Like I said above, you pay $3.95 for every stock trade. Even broker-assisted trades. But what about options? Options can be traded at $8.50 + .15 per contract. There’s also a plan where you can make 5 option trades for $5 each. There are no maintenance costs, minimum trade requirements, or account balance minimums.
The OptionsHouse Technology and Platform
No download is needed. All you need is your web browser to access the trading platform. OptionsHouse seems to pride themselves on keeping the platform fast, simple, and user-friendly. I’ve seen reviews that say it’s simply one of the most intuitive platforms out there.
OptionsHouse also has several trading tools for you to utilize when doing your research. These include a risk view to evaluate your portfolio risk, streaming charts and news, a stock screener, and more.
In addition, they also have a virtual trading platform where you can learn the ropes of options trading without risking any capital. By the way, you don’t even need to fund an account to check this feature out.
Funding Your OptionsHouse Account
You can fund your account a number of ways: personal or cashiers check, online transfer (ACH) from a bank, wire transfer, or through what’s known as an ACAT from an existing broker. See promotion below for an ACAT transfer freebie. You have to initially fund your OptionsHouse account with at least $1,000. After that, there is no minimum balance requirement.
Current Promotions at OptionsHouse
- 100 Commission-Free Trades – Open your account with at least $3,000 and you’ll get 100 free trades. Use the promo code FREE100.
- 90 Days of Free Investment Coaching – Open your account with the minimum funding requirement of $1,000 and they’ll give you 90 days of their Investment Coaching program. This is a $440 value. Nice perk for a beginner. Use the promo code COACH.
- ACAT Transfer $100 Rebate – Switch to OptionsHouse from another broker and they’ll pick up $100 in fees, as long as you fund with at least $3,000. Use the promo code ACAT100REFUND.
- Free 90-Day Subscription to Morningstar – Get instant access to Morningstar’s OptionInvestor and StockInvestor by funding your account with just $1,000. Use the promo code MSFREE90.
As a whole, I’d say OptionsHouse is an excellent place to do your online trading. It’s hard to beat those low fees. And if you’re looking to get into options trading there’s likely no smarter place to start down that path.
To sign up with OptionsHouse just visit their official website at www.OptionsHouse.com.