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Is OptionsXpress Safe and Legitimate Broker? Is OptionsXpress a Scam or Fraud? OptionsXpress BBB Rating and Complaints.

Is OptionsXpress Safe?

We are sometimes being asked the following questions: Is OptionsXpress a scam? Is OptionsXpress safe to use, to keep my money, assets and investments? Is OptionsXpress account SIPC/FDIC insured? The short answer - Yes, OptionsXpress is a legitimate, safe online broker, and we have had account with them since 2009.

In 2011 OptionsXpress was bought by one of the largest, oldest, and best-known brokerage houses in the country - Charles Schwab - and is now a part of this firm. This acquisition should ease the fears of those prospective clients who are worried about trusting their money with a less-known company. You can read our complete review of the company here.

Is OptionsXpress Insured And Regulated?

OptionsXpress is a member of FINRA/SIPC. It means that OptionsXpress brokerage accounts are insured in case of brokerage firm failure, very similarly to the way bank accounts are insured by the FDIC. The insurance is limited to $500,000 per customer, including up to $250,000 for cash.

OptionsXpress BBB (Better Business Bureau) Rating

Since OptionsXpress is part of Charles Schwab, you have to look in Schwab's BBB Rating which is A+. To see detailed OptionsXpress BBB complaints information click on this link. Out of total 37 closed OptionsXpress complaints reported in Better Business Bureau, 28 were problems with service, and five were related to advertising issues. This is basically nothing considering that Charles Schwab has millions of customers.

OptionsXpress Review

We will begin OptionsXpress review with account fees. OptionsXpress does not have regular brokerage or retirement accounts charges: there is no fee for setting up IRA as well as no account maintenance charges (also called annual or custodial fees). There are also no fees for low volume or inactivity - you can completely forget about your account, come back in a few years, and see no charges.

Similar to almost all firms, OptionsXpress will impose a fee if you decide to close your IRA or move any brokerage account to another company. But that's a relatively rare event.

With account fees out of the way, let's review company's commissions. One investment retirement account holders care the most is mutual funds. OptionsXpress charges extremely low, $9.95 commission on no-load transaction fee mutual funds. There is also a large number of no-transaction fee (NTF) funds available for the clients. Total number of mutual funds available to OptionsXpress' customers is around 5,400 - everyone can find a fund that will please them.

OptionsXpress offers free Morningstar Quicktake Reports on mutual funds to all customers. Each Quicktake report includes price quotes, and detailed analysis of balance sheets, performance, and top 10 holdings.

While mutual funds transactions are very cheap with OptionsXpress, stock and ETF trades slighly below average. The company is charging $4.95 per trade flat rate. There are no surcharges no large-size orders, penny stocks and extended hours trades.

OptionsXpress provides its customers with a number of extremely valuable services for free: intuitive, easy-to-use trading tools, streaming and Level II quotes, instructor-led online classes, DRIPs (dividend reinvestment plan), and virtual trading. Many online brokers charge for some of these services or don't offer them at all.

In summary, we recommend OptionsXpress account for mutual funds investors. Anyone investing in stocks, ETFs, options as well as beginners and active traders should take a look at TradeStation (read review) or Ally Invest (read review).

Tradestation vs OptionsXpress Comparison

Tradestation has essentially the same commissions on stocks and ETFs as OptionsXpress by Charles Schwab: $5 per trade versus $4.95 per trade. Tradestation, however, gets much cheaper for active investors who use broker's pay-per-share plan with commissions dropping to as low as $1.00 per trade. Both companies don't impose surcharges on extended hours trading, large-size orders, and penny stock (stocks priced under $1) trades.

OptionsXpress is friendlier and offers more value to beginner and buy-and-hold investors than the competitor. It also provides free virtual trading environment which is great for novices who need to improve their skills as well as for more advanced investors who want to test new strategies without a risk.

Tradestation offers the best trading platform on the market with all the bells and whistles a day-trader needs. The firm is recognized for many years as the best broker for futures trading, and one of the best for stock and options trading.

OptionsXpress is clearly a better choice for buy-and-hold, mutual funds investors. Tradestation is our recommendation for stocks, options and futures traders as well as for hedge funds.

Updated on 8/18/2017.

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