OptionsXpress

(888) 280-8020
Chicago, IL, USA

optionsXpress is a publicly traded company that's headquartered in Chicago, Illinois. It is a well-known online broker for options, stock, ETFs, futures, bonds and mutual funds in the US and worldwide. This brokerage firm is truly a pioneer in bringing sophisticated online options and futures trading to individual investors since it was founded in 2000. OptionsXpress has been consistently rated (by Barron's, Kiplinger etc) as one of the best online brokers in the US, and it's not hard to see why.

PROS / With its focus on education, this service and its platform can help you understand how to best trade options.

CONS / Options trading starts to get pricey when you trade a large number of contracts.

New traders find the education and resources helpful, but experienced investors who trade in high volumes may find optionsXpress less cost effective than other online options services.

While the optionsXpress platform by Charles Schwab allows you to trade many kinds of securities, it specializes in options, making it a great choice for traders new to these complex investments. This online options trading service puts strong focus on education so you can understand what to expect and which trading tactics should work best with your strategies. While the platform itself is an excellent choice, some of this broker's fees are higher than with other services, and those fees become more noticeable the more contracts you trade.

or active options traders, there is a minimum cost of $12.95 per order. Once you exceed that minimum, each option contract is $1.25. Unlike other services, there is no base rate fee, but $1.25 is the highest – tied with one other service – per-contract fee of brokers we reviewed. Charging fees this way is better for you if you are trading less than 40 or 50 contracts, but if you trade more than that, optionsXpress becomes one of the priciest online brokers. However, the fee for an exercise or assignment is $8.95, which is lower than a lot of services charge.

optionsXpress does not charge a broker-assisted fee, which is consistent with the service's dedication to help you learn how to trade; if you need help, you can receive assistance free of charge. For margin accounts, you must maintain a $2,000 balance, which is typical of online options brokers, and its rates are average, starting at 8.25 percent for balances below $50,000 and dropping to 6.00 percent for balances over one million dollars.

In terms of buying and selling options, optionsXpress has tools for creating simple and complex trade orders. You can use preprogrammed strategies or easily create butterfly, condor, OCO, combo, straddle, strangle, spreads and contingent orders, among others. If you're new to trading options, the intuitive layout of the platform is beneficial, and if you're an experienced options trader, the order-placement tools are exceptionally simple to use.

optionsXpress includes useful research tools to help you make educated trade decisions, including the online education center that covers basic trade principles using tutorials, webinars and workshops. You can view market overviews or filter down to exactly what you want to see. Using your account tools, you can create highly customized screeners, watchlists, alerts and strategy scanners. The site also provides advanced tools, such as its spread book, streaming charts, volatility view and options calculator.

For mobile trades, you can either use the website, which is optimized for mobile devices, or download apps for the iPhone, iPad and Android devices. You have access to your account, real-time quotes, watchlists and trade tickets so you can order and monitor your trades.

This service put great weight on its educational resources. In addition to the already mentioned help, there is standard help and support available via email, telephone during normal business hours and live chat available during the week 24 hours a day, starting Sunday evening and ending Friday evening.

Summary

With its focus on options and education, optionsXpress is a good choice for traders wanting to break into higher-risk investments than just stocks or mutual funds. The options trading system is easy to use, and there are great resources both within the program and on the website to help you along the way. The main downside of this service is that if you choose to trade large numbers of contracts, you end up paying more with this service than you do with most online options trading services.

Founded in: 2000
Licensed:
Platforms: Virtual Trade, Walk Limit®, Idea Hub®, Trading Patterns, Streaming Charts, Chains, All-In-One Trade Ticket, Trade and Probability Calculator, Volatility View, oX Social, optionsXpress Mobile
Capital:
Fees:
Broker: 8.95
Exchange:
Withdrawal:
Minimum Deposit:

Mobile Trading Seminars, Education

User Reviews

JamesHalsell

Like currency brokers, do they offer a practice account?

AntonioRodriguezJr
They do have a Virtual platform.
KevinHung
Did you open an account to have access to the virtual platform? If you did, I was wondering, what is the downside of putting your SSN just to try the virtual platform?
Paul

Terrible, terrible service. They used to be cheap but provide good service, now they're just cheap all around. Been with them for 15 years so Ive seen the place fall apart over time. These guys are the pits. Today I initiated what I thought would be a quick and painless funds transfer request chat .WRONG. Chat guy, nice guy, knew nothing . So I called 5 times, twice put on hold forever, last time rep assuring me client services would call me back they never did. I even sent them an email with the info they requested. Some character from cashier services,a Karl Feret replied back with some rude email ; anyhow I still havent been able to get my funds out of there.

PS. They were running some scam where if I requested a transfer of funds from my personal account to my business entity account(both accounts at optionxpress) they would hold the funds for like 3 weeks. Al Capone might say why didn't I think of that

Anyhow with as many online brokerage houses out there today STAY AWAY, all caps. Like I said they used to be cheap but provide good service. Now they're just cheap all around and their rates are no longer low

Alex

If you are not a USA resident, the commissions will be very high for you! Higher than many other brokers have!