eOption is well-known for being a no-frills broker which prioritizes advanced tools and low costs. It has the functionality required by an experienced trader at a discounted price. It is the ideal choice for active traders, experienced and knowledgeable traders and international traders. This platform offers extremely cheap stock and options trading commissions, having low margin rates that put it among the best in the category.
Its parent company is Regal Securities Inc, which is part of the SIPC. Hence, the assets of all trader accounts are covered by the SIPC. The clearing company is Hilltop Securities Inc, which offers Express SIPC Insurance.
When it comes to tools, this is one of the weak points for eOption. Nevertheless, its app is quite easy to use and offers real-time quotes, advanced order types, charting and market news. The users may not find the app so great, but it serves the basic purpose and meets the needs of most mobile traders.
The online platform has a limited number of features which include technical analysis indicators, multi-leg trading capabilities and watchlists.
Auto Trade Feature
eOption offers an auto-trade feature which is good for those traders who cannot spend every hour monitoring the market. They can choose to set up the auto-trade after they select from a wide range of third-party investing newsletters. Once the trader sets up this feature, the trading desk at eOption will start placing orders based on their trade alerts and newsletter recommendations.
The options for research are not so great at eOption. It does not have much to offer in its education center except for a handful of general tips on investing and some links for third-party content. Traders who do not know much about trading should look elsewhere for educational tips and information.
The tradable securities offered by eOption are those that most traders are looking for in a discount broker. Some of these securities are:
- Mutual funds
It does not offer any futures trading or support forex.
It offers customer support throughout the week, Monday to Friday from 8 a.m. to 8 p.m. Email support is also available.
- It offers a flat rate and competitive commissions
- It is ideal for international trading as it allows international investors to create accounts
- Various trading platform options are provided
- Low margin rates are provided at 3.25% to 5.75%
- Hidden, extra costs as inactivity and data fees are charged
- There are no research or educational resources available to facilitate the process of investment
- Lengthy process of opening an account
This platform is ideal for option traders with its low commission rates, various platforms and tools. Most of the services of this firm are aimed at targeting and attracting option traders. This platform is not so great for inexperienced investors since it does not provide too many tools for research and education. Overall, eOption is good for self-reliant and experienced traders but not so much for beginners.