OptionsHouse, LLC was founded in 2005 and is owned by PEAK6 Investments, a market maker that has been in the options and derivatives business for years. At $3.95 for stock trades, they come in at a slightly lower price point than most brokers, and their options trading tools are second to none (Evidence: for the past 3 years, they have been ranked “Best for Options Traders” by Barron’s Annual Broker Survey).
What they offer: As of January 13 of last year, $2.95 trades are dead. It was good while it lasted, but trades are still only $3.95. Let’s be fair though, $3.95 is still dirt cheap any way you slice it, especially considering OptionsHouse released a slick new platform with plenty of new features (see “trading tools” section below) in early March of 2011. OptionsHouse also offers a solid iPhone app, great options trading education and high end professional level options trading tools. It might also interest you to know that they have by far the best promotions running of any brokers right now (click here to see them all).
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The Verdict: OptionsHouse seems to have positively impressed many investing pundits, and it looks as though they are slowly climbing their way to the top of the Barron’s annual list (they were 4th overall in 2011). If you’re an options trader, your two main enemies are spreads and fees. OptionsHouse is uncontested when it comes decreasing your costs without sacrificing quality.
Where to join: Open an account at OptionsHouse now (<-- use this special link to get a free DELL monitor when you open your account)
In-Depth Optionshouse Review
Setting Up An Account:
Signing up at OptionsHouse is straightforward, and if you do need help, their LiveChat service is available from 7am – 6pm Central Time. OptionsHouse requires a minimum funding level of $1,000 to open a cash account and $2,000 to open a margin account. You can fund your account via wire transfer, ACAT from another broker, Electronic Funds Transfer (ACH), or personal check.
Fees/Commissions:
- OptionsHouse has a tiered commission structure for options, and a flat fee for stocks.
- Stocks: $3.95 per trade (no extra fee for broker assisted trades – this is a huge bonus and can save you big money).
- For stocks priced $2.00 or less that are not options eligible, add $0.005 per share for the entire order.
- Options: $5 for 5 contracts, plus $1 per additional contract – OR – $8.50 + $0.15 per contract.
- Spreads: Up to 10 for $10, plus $1 per contract after, – OR – $12.50 plus $0.15 per contract.
- Bottom line: Whether you’re trading 5 or 100 contracts, OptionsHouse is the cheapest place to do it.
- No account maintenance fees.
Table Source: www.optionshouse.com/rates/
Investments Offered:
OptionsHouse offers stocks, options, ETFs, mutual funds, and retirement funds.
Ease Of Use:
If there is anywhere you would expect OptionsHouse to be lacking, it would likely be their interface. However, their new platform offers an exceptional user experience. It’s intuitive, easy to maneuver, customizable, and the time it takes from finding trades to populating a trade to execution is quick and seamless.
Trading/Investment Tools:
- The education resources at OptionHouse are very option trading centric, which isn’t surprising, since that’s their niche.
- Their free webinars are exceptional, allowing you to capitalize on the PEAK6’s extensive options trading experience and expertise.
- Real time quotes, risk calculator for different market situations, solid charting and graphing tools, and watch lists are handy.
- Maxit tax-management tool is free, and allows you to calculate the tax consequences of your trades.
- Conditional orders, informative streaming-options chains and portfolio performance reports are great features.
- Virtual trading accounts are available if you’d like to test the service before funding an account (without real time quotes).
- One-on-one coaching, which is customized to an your experience level, is available for $150 per month.
Customer Service/Support:
Customer service is a huge part of picking a broker, because there’s nothing more frustrating than waiting for support when it can affect your pocketbook. Some customers have complained that waiting times to get in touch with an OptionsHouse representative weren’t always lighting quick, and sometimes took 15 minutes plus. Looks like they need a little work in this department.
Awards:
#1 for Trading Experience (Barrons 2009)
#1 for Options Traders (Barrons 2009, 2010, 2011)
The Final Word…
For $3.95 per trade you would expect a few hiccups from the platform, slow order filling, delayed quotes, and below par tools. This is NOT the case with OptionsHouse. They offer a stellar trading experience for unmatched value. Look for OptionsHouse to become more and more popular in the years to come simply because they make it profitable to trade options, and they are constantly improving the value they offer from their service.
Current OptionsHouse Promo Codes:
(Note: You must click on only one of the links below in order to claim that promotion.)
- Open an account @ OptionsHouse today and receive a free wide screen DELL monitor
- Open and fund an account @ OptionsHouse today and pick a free one-year subscription to the premium Morningstar newsletter of your choice
- Open and fund an IRA account @ OptionsHouse today and receive 100 commission-free trades and up to $125 in transfer fees
Also Read: OptionsHouse reviews by Kipplingers, SmartMoney and Barrons.
Recently switched to them from Scottrade and very glad I did. I have an E-trade account too and I can honestly say that the guys at OptionsHouse provide the best value around. Service is good, fills are good, execution is fast… they treat you more like a partner than a customer.
Here’s a great example. Last year Scottrade changed their site layout. I called my local broker and asked… “what if I like the old layout, is there a setting somewhere to indicate I want to keep using the old layout?” Scottrade said there was no such setting, they never even considered giving the customer a choice to keep the old layout. Thanks a lot Scottrade… I’m just another number to you.
Here’s a hint to Scottrade… real investors don’t like unjustified volatility… in their portfolios or in their GUI interfaces. Now, OptionsHouse recently changed their layout too… but guess what: you can still keep using the old layout if you want.
No need to call them, no need to argue why you like the old layout… they thought about it ahead of time and decided to respect the desire of their old customers who like the old layout.
Now that’s first class service! They thought ahead and did the right thing. Very happy now… better service *and* at a lower price… you can’t beat it!
Posted by High Frequency Trader | March 19, 2011, 1:22 amGood review but I failed to see what the account minimum would be.
Posted by Michael Warwick | April 23, 2011, 3:23 pmSorry for the confusion Michael. OptionsHouse requires a minimum funding level of $1,000 to open a cash account and $2,000 to open a margin account.
We’ve updated our review. Thanks for your comment!
Posted by Editor's Choice | April 23, 2011, 6:36 pmI would like to start investing. I already have a retirement account, but I would like to invest some on my own as well, not specifically designated for retirement. But there are so many choices. I was thinking of going with OptionsHouse. Is it a good place to start for someone who has little prior investing knowledge?
Posted by Katie | May 7, 2011, 2:34 pmHi Katie,
If you’re new to investing on your own, it’s a very good idea to open up a virtual trading (paper trade) account before you start investing real money. This will give you a little bit of experience and a chance to get the hang of things before risking any real coin.
If you’re keen on learning, I highly recommend opening a free virtual trading account at OptionsXpress. They have outstanding free educational resources for beginners and it’s a great way to learn.
OptionsXpress is a tad more expensive than OptionsHouse, so if you’re after low commissions, then once you get the hang of things over there, you can switch over to OptionsHouse to save some money on trades…
Posted by Editor's Choice | May 10, 2011, 3:08 pmhello
you said that there is No automatic trading at optionhouse. What exactly does that mean and how would it effect a new investor.
Posted by max | May 17, 2011, 5:07 pmHi Max,
Automatic (or automated) trading is simply setting up trades at some point in the future (for example, with automatic trading you can set up a buy (or sell) order on a stock when it hits a certain price, or on a specified date). Some brokers offer automatic trades for more advanced traders.
This feature won’t necessarily effect you much (if at all) if you’re just looking for a simple platform to buy and sell stocks.
*EDIT: OptionsHouse DOES offer automatic trading. You can set limit orders, triggers, order cancels/trigger other orders, 2 orders, etc.
Posted by Editor's Choice | May 17, 2011, 6:48 pmHi,
I’m a college student and interested in investing around $2,000 to $7,000 in stocks/etfs through OH. Assuming at the end of this Summer that I am in need of money for fall semester, would I incur any charges or penalties for withdrawing a substantial portion if not all of my money invested through OH?
I am still feeling out the waters here and am unsure if I will be able to invest a substantial portion of my savings without hindering its liquidity. If I do decide to invest, however, OH seems to be my best option.
Posted by Nate | May 21, 2011, 12:08 amHi Nate,
It’s important to keep in mind when investing your money you are taking on risk. So if you’re feeling “out of the water” and it’s not money you can really afford to lose right now, it might be best for you to open up a practice account somewhere where you can get the hang of things before you start risking real money. As I’ve mentioned above, one place you can open a practice account with $5,000 to “play” with is OptionsXpress – they also have top notch free education resources that you can take advantage of, then move over to OH for the cheaper trades once you’ve got some experience.
In regards to your first question, ACH transfers from your OptionsHouse account to your bank account are free, and take 1-2 business days depending on your bank. The minimum to open an account is $1,000, but there is no minimum to maintain an account.
Hope this helps.
p.s. – If you decide to go with OH and you’re planning to deposit $5k or more, make sure to check out their free DELL monitor offer.
Posted by Editor's Choice | May 31, 2011, 3:38 pmOptions House very much so has auto trading, as you have defined above. You can set limit orders, triggers, order cancels/trigger other orders, 2 orders, ect… For your standard trader or investor, it will work fine.
Posted by options house user | June 2, 2011, 11:09 pmI would to like to open an account
Posted by otis benn | June 6, 2011, 10:39 amI like your review,but what is the margin account exactly mean?
Posted by lily | July 21, 2011, 5:44 pmHi Lily,
Investopedia has a good explanation of margin accounts, and some good articles below about how to use them!
Here’s the link – http://www.investopedia.com/terms/m/marginaccount.asp
Posted by Editor's Choice | July 21, 2011, 6:22 pmWould I be able to day trade using optionhouse?
Posted by Joe | August 3, 2011, 3:47 pmYes Joe, many day traders use OptionsHouse. Although it does say in their disclaimer “System response and access times may vary due to market conditions, system performance and other factors” so keep that in mind.
Any other day traders care to share their experience?
Posted by Editor's Choice | August 3, 2011, 6:07 pmI see it says no international trading. I know you can’t use OH if you live in a foreign (non-US) country. Does that statement also mean you’re not allowed to invest in foreign stocks through OH? As part of my portfolio, I was planning to invest in a WisdomTree International ETF. Would that be possible?
Posted by Stephanie | August 12, 2011, 7:16 pmHi Stephanie,
Unfortunately “no international trading” means that you can only trade U.S. traded equities and funds. It’s one of the major drawbacks of most online discount brokers.
One discount broker that does support international trading is E*Trade.
Hope that helps.
Posted by Editor's Choice | August 15, 2011, 4:39 pmMy questions:
Is money not invested, deposited to a money market fund.
Can I make limit and stop loss orders.
I am very interested. Thanks
Posted by Donna LaPorte | August 14, 2011, 8:18 pmHi Donna,
The available cash balance in your OptionsHouse account is currently swept nightly into the Scudder Money Market Portfolio. The interest rate on this fund fluctuates daily.
And yes, OptionsHouse does offer those types of orders.
Posted by Editor's Choice | August 15, 2011, 4:57 pmYou say there is no Automatic trading available, but does that mean I am not able to do limit trading?
Posted by Matt | August 15, 2011, 4:59 pmSorry for the confusion Matt. OptionsHouse DOES offer automatic trading. Review has been updated, terribly sorry for the oversight.
You can set limit orders, triggers, order cancels, etc.
Posted by Editor's Choice | August 15, 2011, 6:05 pmI would like to know more about setting ira accounts; anybody with some advise? thanks
Posted by fab | September 10, 2011, 1:11 amHi,
Thanks for your insights. I was wondering by “no international trading”, does this also mean that I will NOT be able to participate in the US markets if I live abroad? I have a US bank account, but don’t reside in the US and probably won’t be going back for a while. I don’t know if foreign IP addressses will still allow me to trade via OH’s platform. There is always the VPN option but that can always drop utilization rates down, cause lags in systems etc. and I am hoping to avoid this route. Otherwise, TD Ameritrade looks more attractive in this regards despite its relatively more expensive fees.
Thanks,
Brian
Thanks,
Posted by Brian Sy | September 22, 2011, 6:55 amBrian
Hi Brian,
“International trading” in this case means that OptionsHouse does not offer access to foreign markets and investments. But they also do not offer service to foreign residents outside the U.S.
From their site:
So you’re right, TD Ameritrade sounds like a good alternative for your situation, especially since you will now get access to thinkorswim when you open an account.
Cheers!
Posted by Editor's Choice | September 22, 2011, 3:09 pmI called to speak to customer service about an ACAT transaction. I was #11 in the queue. 15 minutes later I was #6 in the queue. This does not bode well for a company who ostensibly wants me to open an account with them.
Posted by Cory | September 22, 2011, 7:22 pmDecent brokerage firm with the lowest fees I’ve found anywhere.
Posted by Vale | October 18, 2011, 7:11 amI’ve been an optionshouse user since 03/2011, and I have not had any problems with them. The trades happen instantaneously and I have been able to buy stock, sort stock, and use margin all to my advantage. I have never had a problem with their platform and I use it almost every trading day. They have great prices, and they are just what I needed.
Posted by DJ | October 29, 2011, 5:01 pmFees are the lowest you can get. Customer service needs improvement very badly. Platform does not show everything I need to know like the commission I am paying. It said zero (availed of their promo), but apparently it’s not free (pink sheets) and I ended up losing $$$. I am not looking for superb service, but at least decent enough for my money’s worth. Disappointed. This is to help others make informed decisions when choosing a brokerage firm.
Posted by Guest | January 10, 2012, 1:46 amOptionsHouse has very user friendly interface.
Posted by David | February 1, 2012, 4:20 pmBest place to have a retirement account.
But definitely this is not a place to play margin account.