OptionsHouse is a brokerage that has been around for a while. It was founded in 2005 by PEAK6 Investments, LP and it has the advantage of the PEAK6 professional trading platform technology. PEAK6 has been around even longer and was named one of Chicago’s 101 best and brightest companies to work for. Even though the software is advanced, the beginner option trader can use the trading platform because it is relatively easy to learn. This options brokerage is SIPC insured so you can have peace of mind when you deposit your money with them.
Why Is OptionsHouse So Popular?
Depositing and Withdrawing from My OptionsHouse Account
When you first deposit money with a broker you will probably want to trade right away. OptionsHouse accepts wire transfers so you can get trading right away. What about nasty fees that banks charge for wire transfers? No problem, OptionsHouse will reimburse your wiring fee for the initial deposit. Initial minimum funding is only $1000 for a cash account but if you want to trade on margin, the minimum initial deposit is $2000. Make sure you use the wire reimbursement code, WIRE25REFUND. It’s also easy to take a withdrawal. If you sent money via wire, you can withdraw the next business day. If you used an ACH transfer, it will take a little longer because the funds have to settle in your account before they are allowed to release them. So just keep that in mind when you are getting ready to withdraw. Also remember that if you sell stocks, the sale takes 3 days to settle before cash is in your account. Then you will be able to withdraw pretty easy by wire, ACH or physical check. There is no minimum account balance so you don’t have to worry about getting charged if your account drops below a certain amount.
What Can I Trade In My OptionsHouse Account?
Options and Stock Trading with OptionsHouse
OptionsHouse allows you to trade stocks, ETFs and of course options. They also offer mutual fund investing and free DRIPs. A DRIP is a dividend reinvestment plan. When you receive cash dividends in your OptionsHouse account, based on your choice, they will automatically reinvest that dividend without charging a trading fee. Reinvesting dividends allows your investment to compound over time. There are several options for trading options. You can trade weeklies, quarterlies and the standard monthly options as well as LEAPs. If you decide to open an IRA with OptionsHouse, you have several trading choices. Once your IRA account is approved and funded, you can buy shares of stock and buy call and put options. You can also sell covered calls and cash-secured puts.
What are OptionsHouse Fees?
Low Commissions and no Hidden Fees
With all of these features, you would think that OptionsHouse charges the same as a full service broker. Well the good news is that although you will get the service and attention that a full service broker would give you, you won’t have to pay an arm and a leg to get it. OptionsHouse is a discount broker that offers stock trades for as low as $3.95. Need to call a broker to place your trade? That’s also only $3.95. There are many brokers that charge upwards of 20 dollars for broker assisted trades. For options trading, up to 5 contracts are only 5 dollars. For more, there is a flat fee of 8.95 plus 15 cents per contract.
OptionsHouse Account Types
Pratice accounts, IRAs and Individual accounts
- Roth IRAs
- SEP IRAs
- Traditional IRAs
- Investment Clubs
- Educational IRAs
Ready to switch? They will cover any account closing fees that your old broker might charge. Start your investing journey with Options House today! Options involve risk and are not suitable for all investors. In addition, electronic trading poses unique risk to investors. System response and access times may vary due to market conditions, system performance and other factors. OptionsHouse provides neither investment nor tax advice. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (ODD). Copies of the ODD are available from your broker, by calling 1-888-OPTIONS , or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606.