Is eOption a Scam? Is eOption Safe and Legitimate Brokerage Firm? Are Money and Investments Protected?
I'm sometimes being asked the following questions: Is eOption a fraud? Is it safe to use, keep money and investments at eOption? Is account SIPC/FDIC insured? The short answer - Yes, it's a legitimate
brokerage firm created in 2007. However, it does not look like the company has enough resources to even properly maintain its website, so we don't
recommend opening account there. Read more about it in eOption Review.
About eOption: eOption is a division of Regal Securities, Inc., a member of the Securities Investor Protection Corporation (SIPC), and as a
member of the SIPC, funds are available to meet customer claims up to a ceiling of $500,000, including a maximum of $250,000 for
cash claims. For additional information regarding SIPC coverage, including a brochure, please contact SIPC at (202) 371-8300 or
eOption's clearing firm has purchased an additional insurance policy through a group of London Underwriters (with Lloyd's of
London Syndicates as the Lead Underwriter) to supplement SIPC protection. This additional insurance policy becomes available to
customers in the event that SIPC limits are exhausted and provides protection for securities and cash up to an aggregate of
$600 million. This is provided to pay amounts in addition to those returned in a SIPC liquidation. This additional insurance
policy is limited to a combined return to any customer from a Trustee, SIPC and London Underwriters of $150 million,
including cash of up to $2.15 million. Similar to SIPC protection, this additional insurance does not protect against a loss
in the market value of securities.
eOption is a member
of FINRA/SIPC. FINRA (Financial Industry Regulatory Authority - http://www.finra.org/) is the largest independent regulator for all
securities firms doing business in the United States. Its chief role
is to protect investors by maintaining the fairness of the U.S. capital markets.
SIPC (The Securities Investor Protection Corporation
- http://www.sipc.org/) either acts as trustee or works with an independent court-appointed trustee in a missing asset case to recover
funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities that
are already registered in their names or in the process of being registered. SIPC is an important part of the overall system of
investor protection in the United States. While a number of federal, self-regulatory and state securities agencies deal with cases
of investment fraud, SIPC's focus is both different and narrow: restoring funds to investors with assets in the hands of bankrupt
and otherwise financially troubled brokerage firms.
eOption BBB rating: No rating
Total Closed Complaints - 0: Problems with Product/Service - 0, Advertising/Sales Issues - 0, Billing/Collection Issues - 0, Delivery Issues - 0, Guarantee / Warranty Issues - 0.
Read full eOption Review.
This article was updated on 11/06/2013.