TD Ameritrade 300 Optionshouse rating

OptionsHouse IRA Review 2017: Fees, Pricing, Minimums, and Promotions for Traditional IRA, ROTH, SEP, Simple, Rollover IRA Accounts



Acquisition By ETRADE


July 2017 update:

ETRADE (review), which acquired OptionsHouse last year, plans to fully integrate OptionsHouse and discontinue the brand in August of this year. For this reason it makes more sense to open an account with ETRADE directly and skip possible transition inconveniences.


OptionsHouse IRA Fees


  • IRA setup fee: $0
  • Annual (maintenance, custodial) IRA fee: $0
  • IRA termination fee: $60
  • Account inactivity fee: $0
  • Outbound Full Account Transfer: $75
  • Outbound Partial Account Transfer: $25


Recent Merger With TradeMonster


In 2014, OptionsHouse and TradeMonster merged, combining into one trading titan. OptionsHouse has phased out its old trading tools and adopted the TradeMonster's platform. Customers now get award winning TradeMonster tools, but still pay OptionsHouse’s low commissions. The best of both worlds makes the new OptionsHouse one of the best online brokerages in the industry.


OptionsHouse Minimum IRA Deposit and Balance


The minimum initial OptionsHouse deposit is $0 for both non-retirement and retirement accounts, including ROTH IRA. There are no OptionsHouse IRA minimum account balance requirements of any kind.


Pricing and Fees


OptionHouse’s charge for trading stocks and ETF’s is $4.95, placing the broker squarely in the low-cost category. Options are an extra $0.50 per contract. Placing a trade with a living, breathing broker tacks on an extra $25.

Mutual fund transactions at OptionsHouse carry a $20 charge. Margin debits of less than $25,000 cost 6.5%.


Research


Research tools at OptionsHouse are on the meager side. Data from TradeMonster is given for stock research, and Lipper provides data for mutual funds. Compared to other brokers, such as Fidelity and Schwab, that provide information from multiple sources, the amount of research information at OptionsHouse is on the low side.


Customer Service


OptionsHouse can be contacted via an on-line chat system, phone, fax, or e-mail. The chat and phone service are available 7:00 AM to 7:00 PM (CST), Monday through Friday.


Trading Tools


Since the merger with TradeMonster, OptionsHouse has adopted the former’s professional level trading platform. It offers charting, options research, order entry, account and position data, market news, plus a tool for strategy testing. The platform is launched from the OptionsHouse web site and generates a new window from the web browser.





Within the platform, there is extensive search capability for option chains and strategies. Traders can navigate through straddles, butterflies, strangles, and other option tactics. Clicking on an option produces an appropriate trading ticket, making the process simple and user friendly.

The platform is customizable and easy to learn. Clicking on the bond button takes the user back to the original web browser. Some issues have to be handled in the original browser, while others are viewed in the platform window, a characteristic which some users might find distracting.


Mobile Trading


OptionsHouse has applications for iPhone, iPad, Android phones and tablets, and mobile web. The interface is intuitive and user friendly. Users can place an order, read market news, search for options, and look over account and position data. Investors can even select virtual trade on the mobile app to practice trading. Unfortunately, right now funds transfer isn’t available, nor is mobile check deposit.

OptionsHouse IRA Review


Promotions


Right now, customers who open and fund an OptionsHouse IRA with at least $5,000 within first 30 days will receive 60 days of commission-free trading.

The brokerage firm also has a refer-a-friend program offering current clients $150 cash or 30 free trades when someone they refer to the broker funds an account.


OptionsHouse IRAs


OptionsHouse does not charge an IRA account setup fee. Unlike many competitors, it does not have an annual (maintenance, custodial) IRA fees. There is only one fee pertaining to IRAs - $60 for closing a retirement account. Another potential expense is the Outbound Full (Partial) Account Transfer fee of $75 ($25 for partial transfer) which will only happen if client decides to move account (IRA or non-IRA) to another firm.


Is OptionsHouse Safe?


Like with all other online brokers listed on our website, all customer brokerage accounts at OptionsHouse are insured by SIPC, http://www.sipc.org/ 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.

Cons


The lack of 24/7 customer service, inadequate research tools, and limited investment education create a perception that OptionsHouse is only appropriate for seasoned and experienced traders who don’t need a lot of hand holding.

Without international trading, OptionsHouse is at a serious disadvantage in an age where investors are looking beyond their borders in search of financial opportunities. For a little extra money at E*Trade, Fidelity, or Schwab, investors can tap into global markets, creating more possibilities in today’s global economy.

OptionsHouse offers no ETF’s that are commission-free, a major failure in an era in which traders expect their broker to offer at least a handful of ETF’s commission free. With OptionsHouse at $4.95 per trade and no free ETF’s, and Schwab at $4.95 and more than 175 free ETF’s, the wise investor has to wonder who really is the low-cost broker at the end of the month.

Many brokerage firms offer no load mutual funds with no transaction fees — Fidelity, TD Ameritrade, and Scottrade just to name a few. OptionHouse’s $25 charge for mutual fund trades is a big turn off to investors who are accustomed to trading them for free.

Extra features such as forex, futures, and actual brick-and-mortar branches cannot be found here. Unfortunately, there isn’t an account designed for cash management, a common feature nowadays with many brokers.

Conclusion


In 2017 stock broker survey, OptionsHouse got top scores in Mobile and Portfolio Analysis & Reports categories as well as got rated near the top in Usability, Research Amenities, Trading Technology, and in Customer Service & Education categories.

Because of low commissions and no IRA fees, OptionsHouse is a great brokerage firm for both ROTH IRA and traditional IRA accounts.


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OptionsHouse IRA Reviewed by Brokerage-Review.com on . Rating: 4



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