Hi everyone, I’m Jamie Bush from Jamie’s Money Advice and today I’m going to give you a review of a service that I prefer for all of my options trading. In fact, I switched over to them after using both Scottrade and TD Ameritrade for years. Read what I have to say to see why you too should make the switch to Optionshouse.
Optionshouse Short Review
Optionshouse offers some decent tools to help you succeed as an options trader. If that wasn’t enough, they also have some of the lowest pricing in the industry.
- They have full support for all Apple phones, Android phones and tablets so you can trade and monitor your account on the go.
- Easy to use graphic interface with easy point and click commands.
- Low pricing with flexibility depending on the number of contracts you trade.
- You need at least $10,000 to open an account.
- Not as many charting tools as other providers.
- Their software makes utilizes many pop up screens.
Optionshouse Long Review
They have a tool called Trade Generator which searches the options market to find new trade ideas that match inputs that you can select. It’s like having a personal assistant hand you trade ideas after hours of research, except it’s free!
Their Risk Viewer uses complex algorithms to figure out the risk level you’re taking based on your portfolio. This can help you adapt to better fit your risk personality.
The Spread Investigator looks for call or put spreads with high theoretical returns. You set the criteria and then this tool will provide instant results based on your inputs. For spread options traders, this is a huge time saver.
The Probability Calculator will tell you the probability that an underlying stock hits a certain target price of your choice in the future. Options trading requires that you get it right 70-80% of the time and this tools allows you to succeed without having to do all of those calculations yourself.
Volatility Charts are built in to help you research historical volatility patterns that a stock might follow. By following this data, you can make some profitable trading decisions by finding volatility swings in a stock.
Optionshouse offers two pricing models:
- $5 for up to 5 contracts
- $8.95 plus $0.15 per additional contract
This blows many other brokers out of the water. Many competitors start at $9.99 just for the trade and then can charge up to $1.25 per contract in addition to that. Optionshouse is much cheaper and performs just as well. In addition, assignments and exercises only cost you another $5. Compare that to the $30 or more that other brokers will take.
My Overall Opinion of Optionshouse
Based on their pricing, trading 5 contracts costs only $5. Trading 10 contracts costs $10. Trading 100 contracts is a steal at a total cost of only $23.50. Optionshouse has some of the lowest prices I’ve seen for options traders that trade large lots but is also affordable for smaller traders. Their low price commission model makes sure that their fees don’t eat at your profits. If you like to use margin to trade, they also have some of the lowest margin rates I’ve ever seen at anywhere from 1.50% to 4.00%, depending on the amount that you’ll be borrowing. That’s between 2 and 4 points below most other brokers which allows you to use leverage to amplify your returns even more. I would recommend Optionshouse to all options traders. Their tools get the job done and are easy to use and their pricing is hard to beat when you compare it to other online brokers that specialize in options trading.