eOption Review

Education is limited for beginner traders, and is more focused towards advanced traders. True beginners could find themselves lost even amongst the impressive collection of educational resources eOption offers. eOption gives advanced traders access to analyst reports, calendars of earning/economic reports, and a news aggregate service.

Although technically eOption offers retail investor accounts, the target investor is a professional or semi-professional options trader who is trading outside a brokerage firm or other RIA (Registered Investment Advisor).

The trading platforms assume a fairly extensive experience with options trades. Although active stock traders could use eOptions $0 stock commissions to trade stocks, the stock trading platform is not setup for extensive public securities analysis and trading.

Common questions I get asked about eOption

These are the most common questions I get asked about eOption, so I will try to answer these as best I can, to give you a better view on whether eOption is the right investment choice for you.

Who is eOption Bank owned by?

eOption is a division of Regal Securities, Inc., a member of the Securities Investor Protection Corporation (SIPC).

Is eOption a legitimate company?

eOption launched in 2007, but its parent company, Regal Securities, has been around since 1976.

Does eOption have Zelle?

Although eOption Bank does not have the Zelle integration directly on its platforms, users are able to use the application to transfer money quickly as long as you have a credit card from this bank and associate it with the application.

Does eOption have monthly maintenance fees?

The account comes with check writing privileges and debit card access and has no monthly fees that apply.

Does eOption limit withdrawals and transfers?

Federal law limits the number of withdrawals and transfers from all U.S. savings and money market accounts to six (6) transfers per statement cycle. For each transaction that exceeds this limit, users will pay a $10 fee. Business Deposit Account Agreement and Schedule of Fees or eOption’s customer service team can provide more information.

Does eOption charge any other fees?

There are $0 Monthly Maintenance Fees, $0 ATM Withdrawals, $0 Overdraft Fees, and $0 Returned Item fees. Only $0.10 per contract of each leg of an options trade.

Is eOption self-directed?

For several years, eOption Invest has operated as a low-cost robo-advisor option. But it has recently added support for Self-Directed Trading of thousands of stocks, ETFs, options, and mutual funds as well. That makes it more of a legitimate competitor to other stock brokers providing a full service.

Is eOption good?

While eOption is a good choice amongst online brokers for active options traders, you’ll have to look elsewhere if you want a forex trading account, futures, commodities, or crypto. For forex trading, a user may want to consider finding forex brokers that allow users to trade forex, an online broker, or other brokerage firms that offer these services. Also, it’s not the broker for you if you’re a passive (long-term) investor, or need assistance in understanding basic option strategies.

Is eOption’s auto trading easy to setup?

eOption trading automatically executes trade (Auto Trading) from the newsletter of your choice. Never miss a trading alert from your newsletter. Your newsletter trade alerts are also sent directly to eOption for Auto Trading.

Is eOption the best?

eOption offers options trades margin rates similar to other online brokers and their trading platforms (between 7.75% and 4.75% APR). Therefore, eOption is an excellent choice for active traders if you want to trade U.S. options, stocks and ETFs.

Is eOption legit?

eOption is a top broker for low-cost trading options trading, with $0.10 options fees per contract and $0 stock/ETF trades. The eOption Trader platform has options-oriented tools (including OptionsPlay), streaming real-time data and news, and customizable charts.

What is OptionsPlay score?

The OptionsPlay Score is a proprietary indicator evaluating the strategy and letting users know whether the level of risk they are taking is appropriate for the reward they may receive. An OptionsPlay score below 100 means users are potentially taking too much risk.

How do I fund an eOption account?

Accounts may be funded by check, ACH, wire transfer, stock certificate or account transfer. Money orders, third party checks, credit card checks, home equity line checks and starter checks are not accepted. Some checks may require a 3 business day hold. Cashier’s Checks must have the remitter’s name electronically printed directly on the check by the issuing bank. Wired funds are usually available to users upon their receipt of the funds.

What is the options expiration policy?

Expiring long and short option positions may be closed as early as 2:00 PM EST on the last trading day prior to expiration if users do not have the funds or buying power to buy or short the underlying security. eOption will allow customers to take action on their position until 3:30 PM EST but users must contact them with their intentions. Customers may still get assigned even if a short option is out of the money. Therefore, if there is risk to the account, short options may be closed out even if it is out of the money. The firm may close out positions without prior notice. The company may also elect not to exercise or close the resulting stock position in the aftermarket hours on Friday or pre-market hours on Monday.