Home >> Resources >> Brokerage Firms >> OptionsHouse

OptionsHouse

OptionsHouse is an online brokerage firm that offers inexpensive transactions without sacrificing speed and stability. OptionsHouse is a bright spot in the online brokerage firmament and has proven that there's no need to give up quality just because a product is offered at a lower cost.

OptionsHouse has a value-based package of fees. There is a flat rate of $2.95 per stock transaction, $9.95 per option transaction, and $14.95 for spreads with up to four legs. The minimum initializing account is just $1,000 for a cash account and $2,000 for a margin account. The account balance is only $100. Active traders can save hundreds of dollars in transaction fees per month. OptionsHouse will also reimburse traders up to $100 for transferring their brokerage accounts.

Traders have been taking notice, too. OptionsHouse was voted No. 1 in trade experience in Barron's 2009 Online Broker Survey. That may be because the company's motto is "Fast Matters" and that can be accurately applied to everything on the site from populating an order to executing the trade.

OptionsHouse has a virtual trading platform that mirrors the real thing. You can get comfortable with placing trades on the platform and become accustomed to the nuances before putting real money on the line. OptionsHouse allows traders to fund their practice account with as much virtual money as they want, which makes it possible to try a variety of strategies and fund numerous practice trades at the same time. And it doesn't matter if your virtual trade goes bad; just load it up with more imaginary money and try again.

OptionsHouse has an array of tools which make it even more valuable to a trader. There are streaming charts and news, a risk viewer, a probability calculator, a profit and loss calculator, a stock screener, volume charts, a put spread and call spread investigator, and a covered call investigator. The company has software that keeps track of trading activity, and a tool called "Maxit" which makes it simple to account for profits and loss for tax purposes at the end of the year.

The company has live online help available. OptionsHouse also makes it easy to fund accounts and transfer funds via the Internet.

You can't buy and sell stocks without a brokerage firm or an online trading account. Brokerage firms like E-Trade, Fidelity, OptionsHouse and Scottrade are all reputable firms that offer a trading platform and additional information about stocks. Their range of price and services may vary, so it's important to shop around to ensure the brokerage firm you choose will match your needs.