optionsXpress
Is This Your Business?1.0
1.0
LAST UPDATED: June 27th, 2019
OptionsXpress is a leader among online brokerage firms and is known for its intuitive, innovative, and easy-to-use tools. It has been consistently ranked as one of the best online brokers in the US by the likes of Barron's magazine and Kiplinger magazine. Founded in 2001, the brokerage firm is currently a subsidiary of The Charles Schwab corporation and it caters to a variety of traders from casual options traders to futures traders. While some of its fees are higher compared with other discount brokerage firms, it offers discounts in other areas to make up for these costs. However, users don't mind the fees since they usually agree that the quality of the platform and the company is worth the additional costs.
Top Ranked Companies
The Good
- Tools
- Tailored resources
- Client support
Tools
The company is also constantly innovating new ways to make the investing process as seamless as possible and their website is a prime example of this fact. It's user-friendly and boasts a clean design. The tools featured on the website are organized by experience level and type, making the brokerage firm the only broker to streamline their services to accommodate varying experience levels. Additionally, the brokerage firm is also known for its all-in-one trade ticket, which means investors can trade stocks, ETFs, options, futures, and future options from a single page. Another coveted tool is their Walk Limit, which automatically updates options orders to garner the most favorable prices. This means that investors don't have to manually modify their options orders based on changes in the market. Instead, they can rely on the Walk Limit feature to gain the most favorable price within the National Best Bid or Offer (NBBO). If these features weren't enough to brag about, in 2014, the company launched IRIS, which is a notifications assistant icon that sits in the upper right corner of the investor's desktop. It notifies users of important alerts, trades, and tools updates.Tailored Resources
The online platform is customizable so investors can tailor their dashboards to see specific windows and views. The platform also offers educational resources and tools for beginner investors who might need extra help in the investing process. One such tool is the Idea Hub. Our research uncovered that it's a scanning tool that considers trade ideas based on market activity and risks. For instance, the tool takes trade ideas and automatically compares them to profit and loss charts and probability factors.Client Support
In addition to these highlights, we found that the brokerage firm's customer service is very efficient. Whether communicating via live chat, email, or telephone, optionsXpress representatives are quite knowledgeable and friendly, well above the industry average for customer service quality. Furthermore, for investors on the go, the brokerage firm provides a trading app so traders can trade stocks and options, access real-time quotes, and manage watch lists all from their favorite smartphones or devices. This adds yet another competitive edge to the brokerage firm's arsenal.The Bad
- Fees
- Premier platform limitations
- Owned by another firm
Fees
When it comes to options trades, the brokerage firm charges a flat rate fee of $14.95 for up to 10 contracts and then $1.50 per contract for any number above 10. These fees apply to traders who make less than 35 options trades per quarter. If investors make more than 35 options trades per quarter, their status changes to active traders and they face a minimum charge of $12.95 for up to 10 contracts, and then $1.25 per additional contract. This means that if investors trade only one single option, the commission on that option would be at least $12.95, which is pretty costly compared to other discount brokerage firms like ETRADE's $10.74, Scottrade's $8.25, and OptionsHouse's $5.45.Premier Platform Limitations
Another drawback to the brokerage firm is its premier platform, Xtend. The platform is offered in two forms as a tool on the website and as a desktop feature. The desktop version, while visually stunning, is slow and difficult to use. The layout has preset variables, which means users can't customize their windows as they would like to. The charting feature is also considerably weaker compared to charting tools that can be found elsewhere.Owned By Another Firm
Another slight drawback is the fact that optionsXpress is owned and operated by Charles Schwab. If an investor is a Charles Schwab client, then he/she can freely log in and use the optionsXpress site. However, an optionsXpress investor will need a Charles Schwab account to access the Schwab benefits. These benefits include financial advisors, additional brokerage services, and banking services, advantages that optionsXpress doesn't provide on its own. Thus, investors with optionsXpress should realize that in the next several years, the brokerage firm will be shut down and fully integrated into its parent company, Charles Schwab. So, it would be in their best interests to migrate to Charles Schwab in order to continue enjoying the benefits of optionsXpress.The Bottom Line
Was this content helpful?
Yes
No
Filter by:
Sort by:
Tom Ward
I had authority to trade in an account. A large account. When Schwab took it over all the rules and practices changed. My pasword changed at least six times in three months. I had, then lost, then had, then lost the authority to trade. They can make whatever rules they want, but they ought to be able to explain them. An explanation took three months. All through that time the account was frozen. OK, I understand not allowing new positions to be established, but they would not even let me liquidate existing positions. Now access is shut down and I cannot even get an account statement to get a comprehensive list of securities to move the account.
If you want to give someone trading authority in your account, O ELSEWHERE. These guys are a mess and have cost us at least $20,000 by preventing us from liquidating existing positions. WHAT A MESS!
7 years ago
