eOption Broker Review
eOption Broker is a discount online broker that focuses on providing very competitive commission rates with excellent execution speeds. As the name implies, eOption focuses on providing superb services for the option trader while still offering the abilities to trades stocks as well. They have built sophisticated software that offers clients an easy approach to trading options whether trading a simple strategy like cover calls or more complicated strategies like 4 legged iron condors. With eOption you can trade stocks, options, ETFs, bonds or mutual funds depending on your trading style and needs. They also offer platforms that have direct market access for traders looking for that feature in a broker and their website is well laid out and easy to navigate.
eOption offers an auto-trade account which is basically an investment system for executing trade alerts, when subscribing to a third party newsletter that has been researched and chosen by the investor. The newsletters will have different strategies so you can go through them and decide which one best fits your financial goals and risk tolerance. When you have selected the newsletter that you want to follow, they will send out trade alerts that the trade desk will automatically execute for you and an alert email will be sent out notifying you of trades. This is basically hands-off approach to investing and is great for persons who cannot be at their computer all day watching the markets or for anyone who really doesn’t know what they are doing and would rather have someone else doing it for them. They have a ton of different newsletters to choose from so if you would like to see what they offer and to learn more about their auto-trade accounts you can click this link.
Commission & Fees
eOption offers a competitive commission schedule with equity trades costing just $3 per trade and options starting with a $3 base plus $0.15 per contract. Broker assisted trades are also on the low end of the spectrum costing only an additional $6.00 per order while most other brokers it will cost upwards of $20 per order. If you have an auto-trade account set up with eOption, then you will have to pay a little bit more for commissions with stocks at $5 per trade and options will be $5 per trade plus the $0.15 per contract. These are some of the lowest commission rates I’ve seen so if you’re looking to save money on commissions, then this will be a broker you will want to check out.
Platform & Tools
For the price, eOption offers a solid trading platform that will meet the need of most traders and investors. It has streaming quotes and charts with watch lists and advanced order entry. The charting isn’t as robust as say eSignal with all the bells and whistles but it still gets the job done. The one thing I wish it did have though is hotkey capabilities so I can get in and out of trades more efficiently. However, eOption offers the ability to trade more sophisticated platforms that are much more robust and powerful and they have direct market access with hotkey capabilites. You have the option between Sterling Trader Pro, DAS|Web or DAS|Pro. All of these platforms are great and will meet the need of any trader but you have to keep in mind that each platform has a fee that can get quite expensive and usually range above $100 per month. So you’ll have to keep that in mind when deciding which platform to choose or if you should just stick with the eOption platform that is free.
eOption has some great offerings for their price points. They have access to a solid platform that is free or you can opt to trade one of the more powerful platform that they have for the added cost. They also have extremely competitive commission rates that are some of the cheapest I’ve seen so if commissions are your main concern then you really need to check this broker out.
As always, if you have any questions or comments regarding eOption, please leave us a message below!