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eOption is an online brokerage firm specializing in low-cost options trading. Founded in 2007, it aims to provide traders with affordable and efficient trading solutions. While focusing on options, eOption also offers services for stocks, ETFs, mutual funds, and bonds. This review explores eOption’s key features, regulatory status, trading instruments, platforms, mobile app, and account types to help beginner traders understand what the broker offers.
eOption Key Features
- Low-Cost Options Trading: eOption charges $0.10 per options contract plus a $1.99 base fee per trade, making it cost-effective for active options traders.
- Commission-Free Stock and ETF Trades: Trades for stocks and ETFs are commission-free, appealing to equity traders.
- Automated Trading: Offers auto-trading based on third-party newsletter recommendations, allowing automated execution of strategies.
- Advanced Trading Platforms: Provides a web-based platform and mobile app with real-time streaming quotes, charting tools, and multi-leg options trading capabilities.
- Paper Trading: Features a free paper trading account with virtual funds for practice without financial risk.
eOption Regulatory Status & Licenses
eOption operates under the umbrella of Regal Securities, Inc., established in 1977. Regal Securities is regulated by the U.S. Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
Being a member of SIPC means that eOption’s clients are protected up to $500,000 for securities and $250,000 for cash balances in case of brokerage failure. This regulatory oversight ensures that eOption adheres to strict financial and ethical standards, providing a secure trading environment for its clients.
| Regulatory Authority | License Number | Fund Protection | Negative Balance Protection | Country |
|---|---|---|---|---|
| SEC | N/A | Up to $500,000 | Not Specified | USA |
| FINRA | N/A | N/A | Not Specified | USA |
| SIPC | N/A | Up to $500,000 | Not Applicable | USA |
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eOption Trading Instruments
eOption offers a variety of trading instruments suitable for different investment strategies. The primary focus is on options trading, but other asset classes are available to cater to diverse trading preferences.
| Asset Class | Number of Assets | Leverage | Spreads (Typical) |
|---|---|---|---|
| Options | Numerous | N/A | $0.10 per contract + $1.99 per trade |
| Stocks | Thousands (NYSE, NASDAQ, AMEX) | N/A | Commission-Free |
| ETFs | Various | N/A | Commission-Free |
| Mutual Funds | Various | N/A | $5 per trade |
| Bonds | Various | N/A | $5 per bond for the first 25 bonds, then $3 per bond |
The absence of leverage offerings indicates a focus on straightforward trading without the complexities and risks associated with leveraged positions. This approach can be beneficial for beginner traders seeking to manage risk effectively.
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eOption Trading Platforms
eOption provides several trading platforms designed to meet the needs of both novice and experienced traders. These platforms offer various features to facilitate efficient trading and analysis.
| Platform | Availability | Features |
|---|---|---|
| eOption Trader Platform | Web-Based | Advanced trading tools, customizable interface, real-time streaming quotes, charting capabilities |
| eOption Mobile App | iOS, Android | Real-time streaming quotes, charting tools, multi-leg options trading, account management |
| OptionsPlay | Web-Based | Options strategy analysis, trade ideas, risk analysis, educational resources |
The eOption Trader Platform is web-based and provides advanced trading tools, including real-time streaming quotes and customizable charting capabilities. The eOption Mobile App mirrors the desktop platform’s features, allowing traders to manage their accounts and execute trades on the go. OptionsPlay is a third-party platform integrated with eOption, offering in-depth options strategy analysis and educational resources to enhance trading decisions.
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eOption Mobile App
The eOption Mobile App is designed to provide traders with a seamless trading experience on their mobile devices. It offers a range of features to ensure that traders can monitor and manage their investments efficiently.
| Feature | iOS Rating | Android Rating |
|---|---|---|
| Real-Time Streaming Quotes | 4.0 | 3.8 |
| Interactive Charting Tools | 4.0 | 3.8 |
| Multi-Leg Options Trading | 4.0 | 3.8 |
| Account Management | 4.0 | 3.8 |
| Market News and Research | 4.0 | 3.8 |
The app’s real-time streaming quotes and interactive charting tools enable traders to stay updated on market movements and perform technical analysis directly from their mobile devices. The multi-leg options trading feature allows for executing complex options strategies with ease. Additionally, the app provides access to account management functions and the latest market news, ensuring traders are well-informed.
eOption Account Types
eOption offers a variety of account types to cater to different investor needs, including individual and institutional accounts. Each account type has specific features and requirements.
| Account Type | Minimum Deposit | Leverage | Spreads | Commission |
|---|---|---|---|---|
| Individual | $0 | N/A | Commission-Free | $0.10 per options contract + $1.99 base fee |
| Joint | $0 | N/A | Commission-Free | $0.10 per options contract + $1.99 base fee |
| IRA | $0 | N/A | Commission-Free | $0.10 per options contract + $1.99 base fee |
| Corporate | $0 | N/A | Commission-Free | $0.10 per options contract + $1.99 base fee |
| Trust | $0 | N/A | Commission-Free | $0.10 per options contract + $1.99 base fee |
There is no minimum deposit requirement for cash trading accounts opened with eOption. However, a minimum of $25,000 equity is required for margin accounts. This flexibility allows traders to choose an account type that best fits their financial situation and trading goals.
eOption Commissions & Fees
eOption is recognized for its competitive fee structure, particularly benefiting active traders. The brokerage offers low-cost options trading, commission-free stock and ETF trades, and reasonable fees for other investment products.
| Fee Type | Standard Account | ECN Account | VIP Account | Swap-Free Account |
|---|---|---|---|---|
| Options Trading | $1.99 + $0.10/contract | N/A | N/A | N/A |
| Stock Trades | $0 | N/A | N/A | N/A |
| ETF Trades | $0 | N/A | N/A | N/A |
| Mutual Funds | $5 per trade | N/A | N/A | N/A |
| Bonds | $5 per bond (first 25), then $3 per bond | N/A | N/A | N/A |
| Broker-Assisted Trades | Additional $6 | N/A | N/A | N/A |
| Inactivity Fee | $50 per year (if no trades in 12 months) | N/A | N/A | N/A |
| IRA Annual Fee | $15 | N/A | N/A | N/A |
| Margin Rates | 7.75% (<$25,000), 4.57% (>$25,000) | N/A | N/A | N/A |
| Foreign Stock Trades | $39 per trade | N/A | N/A | N/A |
| Wire Transfer Withdrawal | $35 | N/A | N/A | N/A |
eOption Deposit & Withdrawals
eOption provides multiple methods for funding accounts and withdrawing funds, catering to various client preferences. Processing times and fees vary depending on the chosen method.
| Payment Method | Deposit Fee | Withdrawal Fee | Processing Time |
|---|---|---|---|
| Wire Transfer | $0 | $35 | Same day (if before cutoff) |
| ACH Transfer | $0 | $0 | 1-2 business days |
| Certified Check | $0 | $0 | 1-2 business days |
| Cashier’s Check | $0 | $0 | 1-2 business days |
| Account Transfer (ACATS) | $0 | $0 | 3-5 business days |
| International Wire Transfer | Varies | $50 | 2-3 business days |
eOption Customer Support
eOption offers customer support through various channels to assist clients with their trading needs and account inquiries.
| Support Channel | Availability | Response Time | Languages |
|---|---|---|---|
| Phone Support | Mon-Fri, 8:00 AM – 8:00 PM ET | Immediate | English |
| Email Support | 24/7 | Within 24 hours | English |
| Live Chat (Platform) | Mon-Fri, 8:00 AM – 8:00 PM ET | Immediate | English |
| FAQs Section | 24/7 | N/A | English |
| Educational Webinars | Scheduled | N/A | English |
eOption Education & Research
eOption provides a range of educational resources and research tools to support traders in making informed decisions.
| Resource Type | Availability | Quality |
|---|---|---|
| OptionsPlay Platform | Available to all clients | High |
| Educational Webinars | Regularly scheduled | High |
| Market Newsletters | Daily | High |
| Research Reports | On-demand | High |
| Video Tutorials | On-demand | High |
| Blog Articles | Regularly updated | High |
eOption Google Reviews & Reputation
eOption’s reputation is reflected in various online reviews and ratings, providing insight into customer satisfaction.
| Rating Factor | Score (out of 5) | Trustpilot Rating | App Store Rating | Google Play Rating |
|---|---|---|---|---|
| Overall Customer Satisfaction | 3.4 | 3.4 (out of 5) | 4.3 (out of 5) | 3.4 (out of 5) |
| Platform Usability | 3.5 | N/A | N/A | N/A |
| Customer Support | 4.0 | N/A | N/A | N/A |
| Educational Resources | 4.5 | N/A | N/A | N/A |
| Mobile App Performance | 3.5 | N/A | N/A | N/A |
eOption Bonuses & Promotions
eOption offers several promotions to attract and retain clients. These include:
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Account Transfer Fee Reimbursement: eOption reimburses up to $100 for account transfer fees (ACATS) charged by another brokerage firm when completing a full account transfer of $2,500 or more.
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Referral Program: Clients can earn rewards by referring new customers to eOption.
eOption Advantages & Disadvantages
| Pros | Cons |
|---|---|
| Low-cost options trading | Limited investment options (no cryptocurrencies) |
| Commission-free stock and ETF trades | High mutual fund fees compared to competitors |
| Advanced trading platforms | Inactivity fee of $50 per year |
| Automated trading capabilities | No online chat support on the website |
| No minimum deposit for cash accounts | IRA accounts subject to a $15 annual fee |
Final Thoughts
eOption stands out as a cost-effective brokerage, particularly for active options traders seeking low fees and robust trading tools. The platform’s advanced features, such as automated trading and comprehensive educational resources, cater well to both novice and experienced traders. However, potential clients should be aware of certain limitations, including higher fees for mutual funds, inactivity fees, and a narrower range of investment options compared to some competitors. Overall, eOption offers a compelling package for traders prioritizing low-cost options trading and advanced platform capabilities.