eOption Review: eOptions provides the ability to trade ETFs, mutual funds, and bonds. Additionally, they offer extended hours trading. Pre-market sessions are available 8:00-9:28 a.m. EST, and post-market sessions run from 4:00-6:00 p.m. EST. They have options trading strategies for all market conditions. Hence the popularity of options trading.
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eOption Review Introduction
Created in 2007 by Regal Securities, Inc., eOption caters to options and stocks traders. Their low trading fees for stocks and options is nothing to sneeze at. That’s because eOption is a deep discount brokerage. Having a broker dedicated to options trading shouldn’t be underestimated. Therefore, our eOption review takes a look at all they have to offer you.
Options trading is much different than trading shares. They have more moving parts to them. As a result, they have the potential for more profit as well as loss.
It takes study and practice in order to master the world of options. However, once that happens, you’ll have a great skill set and a way to grow a small account.
Our eOption review takes a look at the different platforms they offer. Our trading service also takes a look at their auto trading.
eOption provides a platform that’s a bit more sophisticated than most platforms offered by brokerages. However, it’s not loaded with bells and whistles. Features include interactive charts, technical analysis indicators, and the ability to trade multi-leg options. Also, it offers watch lists, news, research data, reports, and the ability to compare stocks. The intuitive and customizable platform is easy to use.
If you’re an active trader, eOption also offers direct-access trading via Sterling Trader Pro, DAS|Web, or DAS|Pro. Indeed, these are advanced platforms used by professional traders. However, they incur additional fees.
Also, the company offers the eOption Paper Trader account for practicing simulated trades. And a 60-day, free trial is available.
eOption Mobile App
The eOption app is more robust than most mobile apps. It offers charting, real-time streaming quotes, and news. And it provides the ability to trade multiple types of orders and manage multiple accounts with one username. The app is available for Apple and Android devices.
Auto Trading
eOptions offers auto trading, which enables you to execute trades from newsletter recommendations automatically. First, you choose a newsletter that’s compatible with your trading strategy.
Then subscribe to any of the more than 40 newsletters. And set your account to place automatic orders from your chosen newsletter. To view the newsletters available, go here.
Accounts
Account are important, hence our eOption review. eOption offers individual, joint, trust and custodial accounts. Also, the brokerage offers corporate, Limited Liability Company (LLC), and Partnership accounts. And the retirement accounts that eOption accepts are individual, Roth, rollover, Coverdell, SEP, and SIMPLE.
The minimum amount required to open a domestic account is $500. And for an international account, the eOption minimum deposit is $25,000 equity.
If you open a margin account, then the minimum requirement is $2,000. Also, for certain options strategies, like spreads, the minimum is $2,000 as well.
Meanwhile, uncovered options, like naked puts or naked index, require a minimum from $25,000 to as high as $500,000.
Fund your new account via ACH, check, wire transfer, account transfer, or stock certificate.
If you need to contact eOption customer support, you may do so via phone, fax, email, or mail. Their office hours are 8:00 a.m. to 8:00 p.m. EST, Monday through Friday.
eOption is a division of Regal Securities, Inc., and a member of the SIPC (Securities Investor Protection Corporation). Additionally, eOption’s clearing firm, Hilltop Securities, Inc., carries excess SIPC insurance provided by Lloyd’s of London.
eOption Review Final Thoughts
This discount broker does offer good trading value to active traders. Especially day traders who are active with penny stocks because of the low commissions and fees.
eOption is also ideal for veteran traders looking for direct access trading. However, traders who are not comfortable executing their own stock trading strategies may have to spend time and money on training themselves before they go for a no-frills broker like eOption.
It just doesn’t have the research tools and sophistication of the popular and larger online brokers like TD Ameritrade and Interactive Brokers.
Frequently Asked Questions
- eOption is a low commission options broker, offering deep discount rates
- The rate for stocks and ETFs is $3 per trade
- The rate for options is $3 plus $0.15 per contract
- For mutual funds, the rate is $5 for all trades
- And for broker-assisted orders, the rate is $6.00
- Auto trade rates are higher at: $5.00 for equities $5.00 plus $0.15 per contract for options
- Margin rates range from a base rate of 7.25% to as low as 4.75% (base rate minus 2.5%)
- And the margin rates are tiered based on your debit balance
- Bonds cost $5 per bond for the first 25 bonds. Then the rate drops to $3 per bond for each additional bond. And the minimum is $39
