eOption, a platform for option, stock, and fund trading that focuses on low-cost options trading, is called. Options trading is extremely affordable, at $0.10 per contract and $1.99 for each transaction. The broker offers a comprehensive options trading course that is free and educational for both beginners and experts. eOption’s best trading platforms are not as user-friendly as its competitors, particularly for novice traders.
Futures and forex trading are not currently possible. Daily market updates are filled with jargon, and the platform has very few intuitive features. The customer service options are poor, and mutual fund transactions can be expensive. We recommend other platforms to beginner traders primarily interested in ETF and stock investing.
Why choose eOption over others?
Why should you trade with the eOption platform? Let’s look at 3 of the biggest benefits that eOption offers.
- The most affordable trading options eOption offers the best at $0.10 per contract or $1.99 per transaction. eOption saves you money if you buy more than four contracts in one transaction.
- Comprehensive options education if your interest is in options trading, you should take eOption’s options trading course. Everyone can benefit from this course, which covers everything you need about options trading.
- $0 account minimums eOption lowered its minimum account requirement to allow you to start investing as low as $1.
According to eOption reviews, eOption offers stock and ETF trades at $0 commissions, just like most modern brokerages. eOption’s main selling point is its low-cost options purchase. You’ll pay $0.10 per contract and a $1.99 base rate per trade. This is significantly less than other brokerages that charge up to $.65 per contract.
Unfortunately, eOption’s other fees are not as good. The company charges $5 per mutual fund purchase and has high commissions on foreign stocks. Look at what you can expect to pay when trading with eOption.
eOption offers margin trading. Its margin rates are comparable to those offered by Fidelity and other brokerages. The APR for any money borrowed on margin will be between 7.75% to 4.75%. The lowest rates are extended to traders who borrow $250,000 in the margin. Margin funds cannot be used to buy stocks worth less than $3. You must also have $2,000 in tradable securities and at least $3,000 in stocks before you are eligible for margin trading.
eOption’s platform has average functionality. It offers a few options for indicators and screening tools. The broker is geared towards more experienced traders and offers few instructional tools. eOption offers a series of video tutorials to help you learn how to trade on the platform.
You can find instructional videos for both single-leg and multi-leg options trades. They also cover basic buy and sale orders and basic charting. A video tutorial teaches you how to navigate the platform’s tabs and provides a basic overview. You’ll have to explore the platform at your own pace. This can quickly become overwhelming for new traders or people who don’t know the tools available to them in most brokerage accounts.
eOption’s platform instructions leave much to be desired. They offer traders nothing more than a series of webinars that help them navigate the broker’s tools.
Automated newsletter recommendation trading is an exclusive feature of eOption. This is how it works: first, you will need to sign up for one of the 60 newsletters that are participating. After authorization, eOption will execute the buy or sell orders suggested by your newsletter. After authorization, you can set your preferences for auto-trading. This includes instructing eOption not to buy or sell more than a certain number of shares, percentages or contracts, and limiting the amount of cash on hand.
This automated trading feature is not recommended for beginners. The platform will automatically execute the trade once eOption receives the recommendation from your newsletter. You won’t be able to review trades before they are live, so you will likely not have the time. This feature can save time if you carefully read and follow popular newsletter recommendations.