Et Tu OptionsHouse?

OptionsHouse Rates Going Up!For anyone new to investing I always recommended OptionsHouse for their quick trade executions and and their low trade commissions. Having used ShareBuilder, Scottrade, Vangaurd, Fidelity, WellsTrade, OptionsHouse and Zecco, I found OptionsHouse a better choice for a frugal investor.

Zecco seemed like a good option when they were offering 10 free trades a month for a $2,500 balance. But soon then they pulled a bait-and-switch and upped the limit to $25,000! Trades with OptionsHouse are a flat $2.95. Which I think is probably one of the lowest with the least amount of strings attached.

But that was not to be! OptionsHouse sent an email to all its members that they are raising their stock commission rate to $3.95 starting Jan 13 for new customers. Still better than the rest, but tactics like this makes me wary!

Like Zecco, but different!
When Zecco pulled a bait-and-switch, people were livid as was apparent from their message boards. But with OptionsHouse, they are going to offer the same price of $2.95 for existing members! I have to give credit to OptionsHouse for doing this!

But I believe if you do sign up before Jan 13, 2011, you can lock in the $2.95 rate. If you sign up after, the rate is still one of the lowest at $3.95.

You can read my detailed 2 part review of OptionsHouse including a slideshow for the impatient!

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17 thoughts on “Et Tu OptionsHouse?

  1. Wow, $2.95 is really good.

  2. Great notice! I didn’t realize optionhouse had such rock bottom prices. That’s great! Too bad they are raising their prices, but even then $3.95 isn’t that bad…

  3. @MoneyReasons: They have an unfortunate name! Most would walk away thinking OptionsHouse is only for options!

    Their trading screens are a little cluttered (I actually used the iPhone to log in to OptionsHouse to get rid of the clutter), but the executions are fast and reliable.

    Agree, $3.95 is still better.

  4. Thanks for sharing. I have been thinking about looking at a low-cost, bargain basement-priced online broker. $2.95 is a great deal, and $3.95 isn’t bad either. Those crafty terms changes are annoying.

  5. $3.95 is excellent. How are their rates on pink sheets and over the counter stocks?

  6. @101: It is $0.005/share for pink sheets

    @Robert: I personally never used their research tool.

    @Squirrelers: If you want to lock in at $2.95, you have to do it before the 13th.

  7. That is a great rate. I have used for cheap stock purchases. They charge a monthly fee (I think around 7 dollars) and the first 2 trades are free. They are geared toward people that dollar cost average and plan to make purchases every month.

  8. @College Investor, their tools are not spectacular and not bad either. Better than trade king though.

  9. I thought Zecco was good. I would try options house, but I have so much stuff in Zecco, it would be too much of a hassle to move it over. Plus I don’t trade so often that I would need to save a buck a trade.

    I do love trading options though! :)

  10. Thanks for the heads-up.

  11. @Kevin: Moving brokers is always a hassle! If you are happy with Zecco, no reason to switch

    @suba: Thanks for the input. I haven’t used TradeKing; always thought they were a decent broker. Interesting you say that TradeKing is worse than OH.

  12. Yeah that name is awful, talk about scaring away a lot of potential customers. A huge lesson on picking a good company name… 3.95 is a steal. I’ve used Wells Trade (14.95), TD Ameritrade (9.99), and Fidelity (7.95). Time for a new trading account! :)

  13. LOL. Good post. Optionshouse is one broker that I am unfamilar with.

  14. @Buck, @Mark: OH is actually a decent broker. I don’t use it actively, but for the time I was with them, I really don’t have any complaints.

  15. The commission rate at OH is great, but small potatoes compared to the 4.45% margin interest. That’s why I’m there.

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