OptionsXpress Review – Read Before You Invest 11 Comments
Hey everyone, I’m Joshua Rodriguez…you know, Monday Money editor. Anyway, I’ve been really getting into writing reviews lately and, I’m definitely enjoying it. So, today, I’m going to keep the review trend growing by giving you my honest, no holds bared opinion of OptionsXpress.
Now, for those of you who aren’t quite sure who they are, OptionsXpress is one of the heavy hitters in the online brokerage arena. They trade in stocks, bonds, options, futures, ETFs, and mutual funds so, they seem to be a good fit for everyone, right? NO! If you’ve read my previous reviews, you know, there is no such thing as a financial option that is perfect for everyone. Each option you find will be designed for a specific type of consumer or, in this case, investor. But, they are a great company, as you’ll soon find out…
OptionsXpress Short Review
OptionsXpress Pros – When you sign up, you have the opportunity to do free virtual trading. Doing so helps you to ensure you have a solid strategy without losing a penny to see what your trades would do in the real market place. OptionsXpress also carries an arsenal of great tools that can provide assistance to everyone from the novice investor to the experienced guru! Finally, they don’t charge a broker fee for broker assisted trades. With many of those fees ranging from $25 to $50 and higher, this can really save you a ton in the long run.
OptionsXpress Cons – They have higher than average commission rates for stocks, options and ETFs. Also, in this case, the tools can be a bad thing for an easily overwhelmed novice. Although, they are great, easy to use tools by themselves, because there is no single platform that assimilates all the tools offered, it can be hard for a newbie to dig and find exactly what they are looking for.
Overall – Well, there is far more that I have to tell you. If you only have time for the short review, sure, but please come back to read the long version. That said, in the little bit that I’ve gone over here, OptionsXpress has amazing tools. However, for a novice investor that isn’t good with computers may want to start with a different platform as this one offers so many tools in such a complex way that it can be confusing at times. Overall, this really is a great investment platform for the right investor.
OptionsXpress Long Review
I’m glad you’ve got the time to get into the fine print details with me on this one. So…where do we start? You probably want to dig right into the fees so, here’s what I’ve got to say about the fees. OptionsXpress has pretty competitive fee structures on most trades. However, I have noticed that for stocks, options and ETF’s, the fees are a bit on the high side of the market. But, the value you get is well worth it.
OptionsXpress Fee Breakdown
With OptionsXpress, stock trading is a flat fee of $8.95 per trade no matter if it’s a broker assisted trade or not. Which can be quite the savings as broker fees are generally more expensive than a trade itself. Options trades are priced at $14.95 per trade as well as $1.50 commission per contract if you trade less than 35 times per quarter. If you trade more than 35 times per quarter, the cost reduces to $12.95 per trade and a per contract cost of $1.25. Usually, you find an Options base fee as well but, that fee is not charged with OptionsXpress. When it comes to mutual funds, you will pay $9.95 plus any fees that the mutual fund itself may charge. Bonds run at $5 a piece which, well it’s pretty good. When it comes to futures, there’s a pretty large fluctuation in price depending on your trade volume. They will run anywhere from $2.99 to $6.99. Options on futures are also available at a fee that ranges from $5.99 to $12.99 depending on your trade volume. Finally, covered calls are available in blocks of 10 contracts and will run $22.95.
As you can see, OptionsXpress does have a pretty decent fee structure. Although it may be a bit high in some areas, it is incredibly low or even $0 in other areas. As it pertains to most investors, novice, advanced or expert, OptionsXpress is priced pretty well. The only investors that may want to consider other options are the investors that trade only in stocks and options and never do broker assisted trades. Other than that, they seem to be priced for everyone!
Let’s Talk Educational Features
OptionsXpress has amazing educational tools that can help even the most novice investor wrap his or her mind around the algorithms revolving around profitable trade. That is, if the novice investor is not such a novice with computers. This is because although the tools provided are great, those who are not too good at online navigation may have a hard time finding the tools they need.
My favorite tool provided by OptionsXpress is the ability to run virtual scenarios with virtual money to test your strategy. Knowing that you could lose thousands of dollars over night with a bad move, this is a very valuable thing to have. With no risk at all, you are able to see how you will do in the live market!
Another great benefit of being an OptionsXpress investor is that you will have free access to regular live seminars, webinars and more. With in house experts and guest speakers sharing secrets that took years to obtain, these seminars can really help you get a leg up in the market.
My Overall Opinion Of OptionsXpress
I’ve been around the block when it comes to just about everything personal finance from bank accounts to credit cards, investment software and more. That being said, I am absolutely amazed at the model used by OptionsXpress. They are the closest thing to a one size fits all investment platform. However, there is a small demographic of those who should not use OptionsXpress. That demographic is consumers who trade in only stocks and options and never take part in broker assisted trades. Although the cost per trade is generally higher on stocks and options, if you take advantage of broker assisted trades, the fact that there is no broker fee will far more than pay the increased dollar or two per trade.
Thanks For Reading!
I really appreciate you taking the time to read my review of OptionsXpress. I hope it was as comprehensive as you were hoping for. However, if I’ve left any questions unanswered or, you’d just like to ask a question or make a comment, please leave a comment below. I’d love to know your thoughts and will surely respond! Thanks again for reading!
OptionsXpress Reviewed by Clarkgym on .