OptionsHouse Editor’s Review

[Update 6/6/2010] OptionsHouse is offering free personalized coaching program to new accounts. Check out the details at OptionsHouse Free Coaching

[Update 6/6/2010] OptionsHouse is offering free Subscription to Morningstar for 90 days. Check out the details at OptionsHouse Free MorningStar Subscription

[UPDATE 2/7/2010] OptionsHouse is offering 100 free trades with new accounts. I talk more about the offer in my blog post: 100 Free Trades with OptionsHouse

Trading at OptionsHouse is different from usual stock trading. There are two unique features in options house trading different from other discount brokers.

1. You can trade in stocks by paying a flat fee of $2.95.
2. You can also avail some great online trading tools.

OpitonsHouse is the cheapest online discount broker in the virtual world right now. At other online brokerage houses, you can get some free trades also. To get the same, you have to be either a heavy trader or are required to maintain a minimum balance. Even if you qualify, all your trades are still not going to be free.

OptionsHouse states that its professional grade software tools make online trading easily accessible and efficient for the traders. The financial instruments which can be traded in at OptionsHouse include mutual funds, equities and options on equities.

OptionsHouse System Features

1. The trading platform on which OptionsHouse is based is PEAK6, which is used by institutional investors as well as retail traders. OptionsHouse integrates its trading tools very well, allowing traders to trade easily in real time with updated information. The trade execution at OptionsHouse is very fast and easy.
2. OptionsHouse offers $500,000 in account protection, since it is SIPC member. The clearing firm of OptionsHouse provides additional SIPC insurance as well.
3. There are numerous opportunities to interact with experienced traders, as well as other tutorials and educational resources available at OptionsHouse web site. The trading tools and tutorials can easily transform you into knowledgeable traders.
4. Traders at OptionsHouse can be sure of the amount they have to pay for a trade, nothing in fine print here. You just need to pay $2.95 for stock trade and $9.95 for options. The rates remain affordable for everyone; irrespective of whether they trade heavily or not.

The account holders at OptiosHouse are allowed to try before they open an account with the company. There is facility called virtual trading in which you are allowed to trade with virtual money to find out how OptionsHouse’s trading platform actually performs. In this facility you can place virtual orders, track your performance and use risk management and idea generation tools.

As you do with any new financial deal, you must understand the rules given in fine print. You are only allowed to trade maximum 4000 options contracts or 50,000 shares per trade. If you trade beyond these limits you will have to pay extra charges.

OptionsHouse History

OptionsHouse started its operation with public in 2007, though it was already founded in 2005 by some PEAK6 officers. The virtual trading tool of OptionsHouse was also launched in 2007.

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