OptionsHouse Review – Online Discount Broker

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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.

About OptionsHouse

$2.95 Flat-Rate Stock Trades @ OptionsHouse.comYou 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 Trading Platform

OptionsHouse Trading Platform

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.

OptionsHouse Tools

OptionsHouse Tools

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.

OptionsHouse




Last Edited: January 20, 2012 @ 11:46 am
About Philip Taylor

Philip Taylor, aka "PT", is a husband and father of two. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.

5 comments
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maryjo48sti
maryjo48sti

they are absolute morons, thieves, and belligerent customer agitators!  who also steals your pennies when your not looking!  they have a very abrasive customer service manner.  its like they are hired literally right off the street without any training.

Contact the legal authorities and peak 6 investments and give them how fraudulent they are with customer service!  And also report to BARRON to remove their ratings.  because they are definitely not even close to the 4 stars it was given or falsely given!  there nothing but a bunch of jackasses, literally.

Bil T
Bil T like.author.displayName 1 Like

DO NOT PUT YOUR MONEY HERE! I don’t know where to start with this online broker. The customer service here is awful. I have been a customer here for a couple of years and it has only gotten worse. I consider myself an active trader and make 20 trades per week. The brokers here are not properly trained or educated with margin trading, trading rules, order execution and options in general. They have EXCESSIVE hold times when you try to call in and talk to someone. I have tried a few times in the past week and was on hold for at least 30 minutes +. This is unacceptable and the manager who is in charge obviously does not care. I have tried to get a hold of this company and asked to speak to a supervisor and they always say that no one is available. They are in clear violation of rules. They also get payment for their order flow from the market makers and exchanges that they route their orders too. That is why many have previously said that their order execution is awful. I also have an account at ETrade and their orders route a lot quicker. OptionsHouse has a horrendous trading platform and is very outdated. Their charting is also horrible. I learned the hard way being here. Don’t waste your time with this company.

Dennis
Dennis like.author.displayName 1 Like

Options House are crooks... They sold my shares without my knowledge. They sent a message to my message box about the transfer house not carrying foreign currency stocks anymore. They did not even bother to send out regular mail or email. Take your money and go somewhere else! I was in a buy and hold situation on these stocks. These guys are outright crooks! Go somewhere else! Or better yet buy silver and gold.

Dave
Dave like.author.displayName 1 Like

There is a $100 minimum balance. Check the FAQ.

Split Cents
Split Cents

That does seem like a great deal... I swear, it seems like every time I open a brokerage account (most recently at TradeKing), a cheaper and better option pops up! Hard to beat $2.95 for stocks. It seems like TradeKing might still be a touch cheaper for options trades ($0.65 per K), but that's probably not a big worry for most folks.