My Online Stock Option Brokers (Part 1)

In the previous post, I pointed out some factors you should consider when you�re choosing online broker for you.
To help you find some more info for consideration, I�ll share with you here what I know about my own brokers. I personally use OptionsXpress (OX) and Interactive Brokers (IB). Hope the following info can be quite helpful.

OptionsXpress (OX):

• Good for beginners. The system guides you step-by-step what you need to do when you�re placing a trade.


• Nice charts. They provide real-time streaming chart (powered by Prophet.Net) and real-time streaming quotes & option chain for free. I like their charts. It�s clean and easy to use (e.g. apply indicators / studies). You can use the charts once you apply to open an account with them.


• They have a lot of great tools like Options Pricer, Historic vs. Implied Volatility Charts, Strategy Scan, Trade Calculator, Screener, and many others. I personally like to use their Options Pricer and Historic vs Implied Volatility Charts.


• OX also allows you to do virtual trading (paper trading) even before you fund the account yet. So, you can fund the account when you are ready for real trading.


• Minimum initial deposit to open an account: No minimum deposit is required to open an account, but the account must have enough buying power to pay for a trade before it is placed. And for margin account, a USD 2,000 minimum is required to maintain a margin account. (Check out here).


• Fee and Charges for Option Transaction: USD 1.50 / contract.
  Minimum commission charges per order is USD 14.95.
  Hence, even though you only buy 1 contract, they will charge you USD 14.95. And when you sell to close your position, they will charge you another USD 14.95.
  But if you�re an active option trader, they can charge you less, i.e. USD 1.25 / contract with minimum commission charges per trade of USD 12.95.
  For more details, you can check out here.


• OX does not charge any monthly subscription fee or minimum charges. There are no charges when you make any modification / cancellation for your order as well. The only charges you have to pay is the commission charges when your order is filled.

Continue to "Part 2".