Is eOption a Scam? Is eOption Safe and Legitimate Brokerage Company? Is Your IRA Account Insured?

Is eOption Safe?

We are sometimes being asked the following questions: Is eOption scam or fraud? Is it safe to use, keep money and investments at eOption? Is money/investments/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. For this reason we don't recommend opening account there. Read more about this in eOption Brokerage Review »

Is eOption Insured And Regulated?

eOption is a division of Regal Securities, Inc., which is a member of the Securities Investor Protection Corporation (SIPC), and as a member of the SIPC, brokerage accounts are insured for $500,000, including a maximum of $250,000 for cash claims.

eOption BBB Rating

eOption BBB (Better Business Bureau) rating is A+. See details under this link.

eOption's Top Competitor Overview

In the world of amateur and professional stock market trading, one of the most well known and respected firms is Interactive Brokers. Designed with the professional in mind, but easy to learn and use as an amateur, the brokerage firm offers a full suite of trading tools that an investor interesting in trading any type of market around the globe could ask for.

To better understand the broker, the company’s mission put in place by Chairman Thomas Peterffy is a good place to start:

"Create technology to provide liquidity on better terms. Compete on price, speed, size, diversity of global products and advanced trading tools."

They have remained true to this mission since their inception 39 years ago. With approximately 1000 employees in offices including USA, Canada, Hong Kong, Russia, China, and Japan their worldwide reach is massive.

Suite of Tools

A discount broker is only as good as the tools they offer. Even with the lowest commission rates, if the broker does not have solid investing tools that professionals and amateurs can rely on then they are essentially useless.

Interactive Brokers has invested heavily in their trading tools. They have three versions available, including a mobile app, a web app, and full-featured desktop version. The desktop version is a fully customizable software package that can be tailored to exactly what the trader or investor needs to see on their trading computer. Want to trade using two, four, or six (or more) monitors? The Trader Workstation can be customized to display all the trading tools and charts across all these screens so information is always available to make the best decisions possible.

What Can Be Traded?

A lot of retail level discount brokers only offer the standard collection of financial products that can be traded. For example, traders will often see a number of brokers only providing access to stocks and options.

Interactive Brokers provides access to all of the major financial products that traders, investors, and even institutions like to have access to in order to make as much money as possible. This includes full access to trading stocks, bonds, options, futures, forex, and mutual funds.

Keep in mind that some of these products require special permission to trade, but Interactive Brokers walks clients through what is required.


Interactive Brokers can be intimidating for non-professional traders and investors at first. The advanced trading tools, access to multiple markets, and variety of products that can be traded is vast and overwhelming.

However, at the end of the day they are a discount broker like any other broker and if ultra low commissions and solid trading tools are important to you then Interactive Brokers is definitely a broker to check out.

Updated on 9/20/2017.

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