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eOption

By on October 24, 2012
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Launched in 2007, eOption is a trading firm known for its attractive pricing and good trading features for options trading.

In this eOption review, I'll cover what eOption has to offer, who they're right for, and give you guys some links to the latest eOption promotions. If you've used eOption before, please add your own rating and review below.


eOption – The Basics:

Investments:

Stocks, options, ETFs, Mutual Funds, bonds, foreign securities, currencies and IRAs for individuals and small businesses. American Depository Receipts, Dividend Reinvestment Program (DRIP) and Certificates of Deposit (CD's) are also available.

Commissions:

Options are charged $3 per ticket and $0.10 per contract. Broker assisted orders are charged an additional $6 and Options Exercise and Assignment charges are $9. Unlimited shares can be purchased at $3 per trade. Foreign stocks are charged a commission of $39.

Broker assisted orders are charged same as for options. For extended hours trading, $25 is levied for up to 5,000 shares. Any share in excess of this quantity is charged $0.003. A fixed $14.95 commission is charged for all trades in Mutual Funds. For periodic investment or withdrawal, $5 is the fee. Traders can purchase the first 25 bonds at $5 per bond.

Every bond after 25 bonds is charged $3. The minimum payment for listed bonds is $39. Inactivity fee of $50 is charged annually if less than a couple of trades are made in one year and if credit or debit balance is less than $10,000.

Investor Education:

Basic options trading education resources.

Mobile apps:

None.

Joint accounts, individual account and traditional, Rollover, Roth and SEP IRA accounts are available. The firm offers three direct access trading platforms – eOption Direct, Omni Pro and Sterling Trader Pro. Each trading platform has a specific usage.

Advanced cash and risk management tools, comparison charts and real time price screening are included in these trading platforms. eOptions provides trading education.

The minimum to open an account with eOption is $0 for US trades, and $5,000 if you want to trade foreign investments. Apply for an account now.


Pros & Cons Of eOption:

Pros

Cons

  • One of the best choices for options traders.
  • Commission rates, especially for options, are some of the lowest in the industry.
  • Margin rates are good.
  • Choice of three trading platforms allows the trader to choose as per his trading strategies.
  • Reinvestment plans are very attractive.
  • Extended hour trade rates are one of the most expensive in the industry.
  • Research features are very limited.
  • Inadequate tools and charts.
  • The set up process could be quicker.
  • ACH activation is cumbersome and can take up to ten working days.

How Others Rated eOption In 2012:

Barron's: 2.5/5 Stars

          Highest rated category: Costs

          Lowest rated category: Mobile trading (facility unavailable), Trading experience and technology

Smart Money: N/A (not rated)

          Highest rated category: N/A (not rated)

          Lowest rated category: N/A (not rated)


Word On The Street Is…

eOptions is a great platform for options trading. It is very cost effective with low commissions and zero minimum balance. However, extended hours trading is extremely expensive. Users would like more responsive customer service.

Overall takeaway: Good choice for those of you looking for low cost option commissions and superior execution.


eOption Promotion Code:


Hit the link below to claim the latest eOption promotion. Click below to claim promotion code Get $30 in transfer fees reimbursed

 


Where To Open A eOption Account:

Open A Personal/Joint/Custodial/Business Account With eOption: Apply Here

Open An IRA Account With eOption: Apply Here

Open A Forex Trading Account With eOption: Apply Here

 

P.S. Don't forget, if you've used eOption before, please help us by adding your rating and review below!

About Peter Voga

Self-confessed coffee addict. Family man. Rage Against The Machine fan. Lover (and sometimes hater) of the stock market. Founder of BrokerChats. For more, follow me @petervoga or check me out on Facebook or Google+.

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