eOption Review and Ratings 2022» An Affordable Option Trading Platform
When you look for an online trading broker, what features would you want? Of course, lower trading costs, faster operations, and efficient executions should be your top priority.
These days, many proprietary trading platforms are offering these facilities. And so does eOption, one of the best entrances on this ever-growing market. But eOption traders are different from other platforms for the ultra-low commission rates.
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Until then, the following 3 alternative brokers have been highly recommended by AtoZ team for anyone looking to make an informed decision when picking out a broker.
With eOption, traders gain access to multiple trading platforms. As a result, they get multiple trading opportunities like mutual bonds, option trading, equities, and much more. Here, the biggest advantage of eOption is you don't need any deposits to start trading as no minimum deposit ensures traders starting from beginner to expert can trade seamlessly. Thus, It can become the best broker for your trading needs.
In this eOption review, our research team tried to give you an unbiased picture revolving around the platform. AtoZ Markets is in no way responsible for any opinions given by the writer.
eOption Review: Company
Founded in 2007 by the Parent company Regal Securities
Headquarters: Glenview, Illinois, USA
Services offered: Stock, fund, and option trading platform.
Minimum investment: $0
Trading option: Interest on cash, margin trading, stock loan program, portfolio margining, etc.
Tools and resources: Research option, news, charting, cash management, third-party research, etc.
eOption Website: https://www.eoption.com/
Details of eOption
The company offers the most affordable option trading and education. It features a modern system with multi-asset brokerage facilities. So, users get easy entry to the various financial marketplace.
Generally, the multi-asset brokerage platform offers two unique facilities. First, you get an affordable trading option, and second, you gain learning opportunities.
Here are the trading services eOption offers for its users.
Range of Offerings
Coming with plenty of investment products on the platform, it is a web-based platform giving users the ability to trade stocks, EFTs, option trading, mutual funds, and fixed incomes.
The trading scopes missing here are forex trading, international assets, futures trading, futures option, and fractional stock share for its users. So, what can you trade using eOption? First, let's have a small recap of trading.
Simple and multi-leg option
Mutual funds with no transaction fees
OTCBB/Penny stocks using only phone orders
Corporate, Treasury, Municipal, CD Bonds
Long and short stocks
Stocks, ETFs and Mutual Funds
You can access the whole US stock market and gain access to more than 10,000 stocks and EFTs without paying any commission. Moreover, unlike most modern brokerage platforms, they never claim any commission for ETF trades.
Furthermore, users can access more than 500 mutual funds. Even though the EFTs claim no commission, you have to pay $5 for each mutual fund transaction. Even bond traders also have to pay a $5 commission to buy or sell the first 25 bonds. After the first 25 bond transactions, bond traders need to pay $3 per transaction.
Also, it lets you enter various order types like markets, stop, stop limit, OCO/OTO conditional order, etc. The platform also has a mobile trading option, which does miss some orders mentioned above.
Offering a well-integrated mobile trading service for its users is another facility to mention. But the drawback here is the mobile app suffers from a lack of technical explainers and educational tools.
And so, a lot of users are overwhelmed by the web version's offerings. They are likely to feel uncomfortable using the mobile app. Anyway, eOption mobile trading features an integrated trading facility for option trading, stocks, and EFTs. The fast and responsive interface keeps its users updated.
Just as we said, eOption gives you access to a wide stock market within the US. The platform accepts unsolicited accounts from non-US users too.
Currently, the platform accepts accounts from Australia, Austria, China, Germany, Ireland, Luxembourg, Mexico, Netherlands, New Zealand, South Africa, Switzerland, Singapore, and the United Kingdom.
Even though they accept unsolicited accounts, they are likely to miss some features and products offered in the US region. But, again, it's because of certain country-based legal restrictions on those regions.
Furthermore, eOption also lets investors make auto trading on their accounts. The system can execute newsletters published trade alerts after receiving a trade. It is an efficient service offering users to stay in and out of the trading opportunity.
Interestingly, you don't have to sign up for anything or register for a newsletter. Traders can set the minimum and maximum accounts from the auto trading option. They can even cancel the trade anytime they want.
Another positive side is margin trading. However, some may speculate the margin rates to be over-priced, in reality, which is not. Rather, the margin rates are on par with some modern brokerages.
A keynote is users can't purchase stocks using the margin profit.
eOption overwhelms its user with numerous offerings along with being suitable for beginner to expert level traders. In order to ensure a better trading ecosystem, eOption gives a wide array of educational strategies, including corporate earning reports explainers. Well, some of the research options may not be suitable for beginners.
For beginners, you have (1) option strategy and education, (2) webinars (3) daily commentaries. And the educational services are completely free. This gives eOption an edge over other modern brokerage platforms.
On the other side, there are a handful of articles on option trading and general trading and other educational facilities for expert traders.
Pros and Cons of eOption
Users get a wide array of trading facilities from eOption. The offerings can easily please even an expert trader. In contrast, the platform does have its share of lackings too.
But eOption makes up for the lacking using some essential features. So, let's have a closer look at the pros and cons of eOption.
Proprietary trading platform
Plenty of educational resources for beginners
Offers great value for frequent option traders
Auto trading feature from the newsletter trade alerts
Multiple financial instruments for better trading
International accounts require high account minimums.
Free education is not that great for beginners
No standalone trading tools
They do not provide any investment advice
Accepted in limited countries
So, what are your thoughts on eOption? If you are frequently doing option trading, this platform is an affordable trading solution. It has already bagged some of the well-known industry awards of recognition too.
As true as that, the platform also has some disadvantages, like not having Forex trading. So if you do forex trading and want more countries to be associated with the platform, we suggest you look for other platforms.
Is eOption Trusted?
First of all, this trading system has industry-standard security settings. In 2020, the Anti-Theft Research Center reported there hadn't been data breaches from the website. Furthermore, the company is maintaining a $3 million cybersecurity insurance policy even though there are no cases of severe outrages.
So, eOption is serious about its security. Users need to complete 2FA to use the platform. And they even have security measurements for the mobile app too. Biometric authentication may help you reduce mobile app risk in this case.
Besides, the platform is keen on providing transparency. You will get a clear outline of the rates and fees on its website. Unfortunately, even most modern brokers lack transparency these days.
eOption Trading Platform
image credit: eOption
Their proprietary trading platforms are designed to access the available financial markets seamlessly. Also, the innovative and responsive platform enables users to maximize their experience with the most popular trading scopes. In addition, traders gain access to free option trader tools and built-in trading tools in some cases. What's more, the auto trading option allows traders to stay in and out of the platform.
Summing those facts, eOption is basically a web-based trading arena. However, there's a facility for mobile trading, which lacks some features as mentioned before.
This app is available for both Android and iOS users. If you are a regular trader, you can download the desktop application.
Optionsplay for Options Trading
You will also get access in OptionsPlay which is the biggest platform for traders to learn about trading. You can make your unique trading strategy using OptionsPlay which is included in eOption. And, it is made for traders of stocks and options. If you are active options traders, it's good for you.
Direct Access Trading
Having direct access trading ensures one and one trading for any traders. If you are active you may seek this feature. After opening an account you can contact their representative to get the best suitable option for direct access trading. However, it is not recommended for newcomers.
Types of Account Available in eOption
This company only had a live trading account function. Creating an account is pretty straightforward, with zero deposit at the beginning.
There is even a way for paper trading too. But you don't need to create an account for this. You can register for a 60-day trial. Aside from that, every user needs to create a live trading account on the site.
What You Will Get from the Account?
eOption comes with just a live trading account. Now, broker fees can change anytime, depending on the marketplace. There may be additional fees, but we opt not to include them. You can find all the information on the platform's website.
The website has a section called "Rates and Fees." Before opening an account, make sure you check all the information on the platform. Mainly, the system orders routers to prioritize price improvements.
What are you Missing?
Truly, eOption offers a smooth option trading experience for any type of user. But, somehow, the platform lacks a bit in supporting new traders. At first, the whole thing may seem a bit confusing. Newbies get confused by getting too many features and functions.
And because of the eOption mobile app being less-feature, It's a complicated thing to operate accounts and trades for beginners. So the best way to get this company's support is using the web application.
Reminding you again, you'd be missing forex and futures trading on the platform. It's just a good platform for option traders. Passive retirement investors and newbies should think twice before starting their trade with eOption without studying enough about it.
Fees and Commissions
In October 2019, the platform introduced $0 equity trading fees. But the platform still charges a per-leg fee for option trading. Well, the per-leg contract fee is quite low ($0.10). It gives high-volume option traders an edge over the market. Now, let's have a look at the fee structure from the platform:
ETT and option trading: $0 commission
Must place an OTCBB/penny stock trade with live brokers: $6
Per-leg option base commission: $1.99
options trading fee per contract: $0.10
Single-leg order fee (50 contracts): $6.99
Four-leg order fee (10 contracts): $11.96
Account closure fee: $0
Account Transfer fee: Full $60; Partial $50
Wire fees: $35
Paper check send fee: $35
Paper confirmation fee: $1
Live broker fee: $6 per transaction
Exercise and assignment fee: $9
Inactivity Fee: $50/year
Deposits and withdrawals with eOption
With eOption, you can use wire transfer, ACH, account transfer, and checks for withdrawals and deposits.
eOption Review: Customer Support
Currently, the platform provides customer support in two ways.
You can contact the customer support team via phone or email. The phone line is available Monday to Friday, 8 am to 8 pm, eastern time. The response time is quick, and they have built a reputation for an impressive hold time of four seconds.
Along with that, the authority helps via online chat, but the live chat is only available for desktop users. And the biggest issue is there are no chatbots to answer your inquiries.
And talking about creating accounts, people outside the US can create an account by filling in $25000 equity.
Is eOption Regulated?
eOption is a regulated broker that is registered with the CFTC and is a member of the NFA. This means that the company is held to the highest standards of professionalism, and your money is protected. eOption is also registered with the SEC, so you can be sure that your money is safe with this broker.
The company is also audited regularly by an independent accounting firm, so you can be sure that your money is being handled in a responsible and professional manner.
It is one of best online retail brokerage firms that allows users to access multiple financial markets. The platform comes with several useful trading tools alongside a low-cost brokerage service. Not just that, the website is designed with plenty of learning resources. Even a responsive support team is there to solve all your problems.
It's the right choice for any option trader. However, recommend new traders think twice before choosing this platform. eOption involve risks, and the trade is not suitable for everybody. That's why you should check all the important information regarding the platform.
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