Friday, August 17, 2012

OptionsHouse Review


OptionsHouse.com is a brokerage site for stocks, options, spreads, etc.

It is one of the low brokerage fee firms I have seen, with almost no hidden costs. It is mainly well suited for option traders with very low and flexible fee for options.

Fees:
Stocks - $3.95 flat (There may be extra fee for penny stocks less than $2)
Options - Either $5 for 5+$1 per contract over 5 or $8.50+.15 per contract
(In other words, if you will be mostly trading 10 or less options, $5 for 5 works best)

Pros:
The interface looks very convenient with most information available on the same page. So you would not need to go from one page to other or switch browser tabs. I personally like the interface very much. And it is well known for its mobile application.

Some inconveniences which I have seen with stock trading:
If you place an order without selecting "all or none", you cannot later modify the order (while its still open) and select "all or none". In order to do this, you will have to cancel the existing order and place a new order with the option enabled. Also there is no way to make the "all or none" option selected by default. If you forget to select during the order, chances are that it gets partially filled and you would end up paying the same fee for a very small portion of the order.

What I have heard from other reviews (NOT my views):
- The daily, monthly and yearly profit/loss is some times not correct
- Most of the orders are partially filled
- No proper intimation of over usage of margin funds and fees being deducted from the account

Note: Please check the optionshouse.com site for accurate information

I shall add more details as and when I find them.

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