OptionsHouse vs TradeKing: Two Low-Cost, No-Balance Traders

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    This website and its content are not intended to provide professional or financial advice. The views expressed here are based solely on the writer’s opinion, research, and personal experience, and should not be taken as factual information. The author is not a financial advisor and lacks relevant certifications in that regard. We highly recommend consulting a qualified financial advisor before making any investment decisions, as the information presented on this site is general in nature and may not be tailored to individual needs or circumstances.

    NOTE:

    1. OptionsHouse, an online stock and option broking company, has long been renowned for its robust trading platforms catering to both retail and institutional options traders. In a significant development, the company was acquired by ETRADE, a leading online brokerage firm, in a strategic move to expand their offerings and enhance their customer experience. The acquisition not only bolstered ETRADE’s position in the competitive online brokerage landscape but also brought forth a wealth of advanced trading tools and resources to their clients, solidifying their commitment to providing cutting-edge solutions and superior trading experiences.
    2. TradeKing, a popular online brokerage, experienced a significant milestone when it was acquired by Ally, a leading digital financial services company. This strategic move aimed to combine the strengths of both companies, offering customers a more comprehensive range of investment opportunities and resources. As a result of the acquisition, TradeKing clients can now benefit from the competitive pricing, cutting-edge tools, and exceptional customer service that Ally Invest is known for, while continuing to enjoy the familiar features they appreciated with TradeKing.

    Please note that the comparison between OptionsHouse and TradeKing on this page is no longer relevant, as both companies have undergone significant changes following their respective acquisitions. OptionsHouse was acquired by ETRADE, while TradeKing was acquired by Ally. For an updated comparison and to explore the features and benefits of each platform, we recommend visiting the ETRADE and Ally Invest websites. This will help you make a well-informed decision regarding your investment needs and preferences in light of the new offerings and services provided by these two renowned companies.


    Online stock trading can be a pricey enterprise, which leaves many of us looking for the online stock platforms that will save us the most money in fees and account minimums. OptionsHouse and TradeKing are two titans in the world of low-cost trading, and we compare them here to see who wins out.

    Features, Fees & Ratings Comparison Table

    FeaturesOptionsHouseTradeKing
    πŸ’° Account Minimum$0$0
    πŸ’Έ Commission Fees$0 per trade + $0.65 per contract$0 per trade + $0.50 per contract
    πŸ’Ό Investment OptionsStocks, ETFs, Options, Futures, Bonds, Mutual FundsStocks, ETFs, Options, Mutual Funds, Bonds, Futures
    πŸ€– Robo-AdvisorNoNo
    πŸ“Š Research and AnalysisFree research from Morningstar and The StreetFree research from Morningstar, S&P Capital IQ, and MarketGrader
    πŸ“± Mobile AppAvailable for iOS and AndroidAvailable for iOS and Android
    🏦 Retirement AccountsTraditional IRA, Roth IRA, SEP IRA, Simple IRA, 401(k), Solo 401(k), 403(b)Traditional IRA, Roth IRA, Rollover IRA, SEP IRA, Simple IRA
    πŸŽ“ IRA AccountsAvailableAvailable
    πŸ“ˆ Trading PlatformWeb-based platform, desktop platform, mobile appWeb-based platform, desktop platform, mobile app
    πŸ“ž Customer ServicePhone and email support available 24/7Phone and email support available during market hours
    πŸ“š Educational ResourcesFree webinars, online courses, and trading toolsFree educational resources including webinars, articles, and tutorials
    πŸŒ• Fractional SharesYesNo
    🌱 Socially ResponsibleNoYes
    🌎 International InvestingLimited international tradingLimited international trading
    πŸ’³ Cash ManagementChecking account with debit card and ATM fee reimbursementChecking account with debit card and ATM fee reimbursement
    πŸ” Margin TradingAvailableAvailable
    βš™οΈ Options TradingAvailableAvailable
    β‚Ώ Cryptocurrency TradingNoNo
    πŸ›‘οΈ Account SecurityFDIC-insured up to $250,000 per account, SIPC-insured up to $500,000 per accountFDIC-insured up to $250,000 per account, SIPC-insured up to $500,000 per account
    πŸ’Ή LeverageUp to 2:1 for stocks, up to 4:1 for optionsUp to 2:1 for stocks, up to 4:1 for options
    βš– RegulationRegulated by SEC, FINRA, and OCC in the USRegulated by SEC, FINRA, and OCC in the US, and FCA in the UK

    OptionsHouse vs. TradeKing

    Choosing the right online broker is a critical decision for individual investors looking to navigate the world of investment opportunities. In this comparison, we will examine two well-established online brokerage firms, OptionsHouse and TradeKing. Both companies offer a wide range of investment products and services, but they also have notable differences in terms of fees, platform usability, research tools, and additional services. By comparing the pros and cons of each broker, we aim to provide a comprehensive analysis that will help investors make an informed decision based on their unique needs and preferences.

    OptionsHouse

    OptionsHouse

    OptionsHouse is an online brokerage firm specializing in options trading, as well as stocks, ETFs, and mutual funds. In this module, we will explore the pros and cons of OptionsHouse for individual investors looking to open an account and compare them with TradeKing, another well-known online broker.

    Pros
    • Advanced trading tools
    • Low trading fees
    • Comprehensive educational resources
    Cons
    • Limited investment options
    • Higher margin rates

    OptionsHouse is a suitable choice for options traders who prioritize advanced trading tools, low trading fees, and comprehensive educational resources. However, for those looking for a broader selection of investment options or lower margin rates, TradeKing may be a better fit.


    TradeKing

    TradeKing Logo

    TradeKing is an online broker offering a range of investment products and services, including stocks, options, ETFs, and more. In this module, we will discuss the pros and cons of TradeKing for individual investors and compare them to OptionsHouse, another popular online brokerage firm.

    Pros
    • Wide range of investment options
    • Low trading fees
    • User-friendly platform
    Cons
    • Limited advanced trading tools
    • Limited educational resources

    TradeKing is an excellent choice for investors who value low trading fees, a wide range of investment options, and a user-friendly platform. However, for those prioritizing advanced trading tools or comprehensive educational resources, OptionsHouse might better fit this need. When deciding between the two brokers, individual investors should consider their specific needs and preferences to make the best choice.


    Features & Primary Uses

    Both OptionsHouse and TradeKing are low-cost online investment brokers, meaning users have the ability to trade within their networks of available funds of stocks, options, mutual funds and other financial instruments.

    When we say low-cost in this context, we mean low-cost β€” OptionsHouse’s and TradeKing’s primary features are their incredibly low $4.95 rate for trades and options, with low per-contract fees to boot. These lower fees create a more cost-efficient experience for both frequent traders and newer traders who want to start off slow without spending too much on fees.

    Companies like these live or die on their online platforms β€” the interface by which their customers can buy, sell, trade and research their potential trading strategies. In this respect, TradeKing’s platform is quite reasonable and robust, providing streaming quotes and custom charts, investment research and more.

    TradeKing allows you to trade both on their desktop platform and on their website, giving you a bit more flexibility than OptionsHouse, which features no website-based interface. TradeKing’s primary platform, TradeKingLIVE, is distinctly user-friendly and innately readable, with all manner of information from β€” market indices, position information and account watchlists β€” available at a glance.

    Both OptionsHouse and TradeKing also offer mobile apps to allow their customers to make trades and track their investments no matter where they are. Each platform has a decent set of features and is fairly user-friendly, making mobile trading a snap. If we had to pick, OptionsHouse’s feels a bit more streamlined.

    One particularly nice feature of TradeKing’s online platform is their Autotrade setting, which will automatically place trades according to your preset parameters, regardless of whether you’re at your computer. Also, they allow for Extra Hours Trading, for traders who want to make trades outside of the normal opening/closing times for the markets.

    TradeKing’s Trader Network is also quite advantageous from a research standpoint. Acting as a trader-centric social network, it allows users to compare strategies and talk about what trades they think others should make.

    OptionsHouse’s features are nothing to sneeze at, either. Chief among their best features is their Trade Generator, an online tool that shows traders customized recommendations for trades, depending on their risk management or time horizons.

    In addition to that, OptionsHouse features a Spread Investigator that scans all available equity options and automatically places debit spreads on the stocks that are predicted by the technology to offer the highest returns.

    Features-wise, OptionsHouse and TradeKing mostly equal out. Their fees and features are largely identical, particularly when it comes to their online platforms β€” each has specialized tools to help you anticipate good trades, automatically place advantageous trades, and more. Whatever your investment needs may be, you’ll likely find your solution with either platform.

    Investment Options

    When it comes to mutual funds, both companies sport similar selection sizes (approximately 12,000), with more than 4,000 of those mutual funds requiring no load fees. In this respect, OptionsHouse and TradeKing are more or less even, though OptionsHouse’s commissions for mutual funds are slightly higher.

    Options trading is also quite prevalent with both platforms, as both TradeKing and OptionsHouse offer them at record-low base trade fees and extremely affordable per-contract fees. However, OptionsHouse provides 150 no-commission ETFs, while TradeKing does not.

    Interestingly, OptionsHouse and TradeKing both share some of the same shortcomings with their investment options. Neither platform features both forex and futures trading. While this isn’t a dealbreaker for many traders, those who want to try their hand in futures and forex will have to determine which company to go for. (TradeKing offers forex, while OptionsHouse provides futures trading.)

    Fees

    The rock-bottom fees and $0 account minimums of both companies make them pretty much equal on this front. Both OptionsHouse and TradeKing offer flat fee structures that don’t change no matter how many times you trade β€” each charges $4.95 per trade, which is just about the lowest rate you’ll get in this business.

    One thing to keep in mind, however, is that TradeKing actually charges up to $9.94 for options exercises, while OptionsHouse keeps the $4.95 rate for both exercises and options assignments.

    OptionsHouse and TradeKing also sport identical rates in most other areas. As mentioned, both charge no monthly fees for maintaining accounts, and there is no minimum balance to maintain for either. However, TradeKing does charge a $50 inactivity fee if you don’t trade for an entire year, and your accounts total less than $2,500.

    However, there are a couple of areas in which their prices differ. TradeKing’s options trade contract fee ($0.65) is slightly higher than OptionsHouse’s $0.50 fee, while OptionsHouse sports a higher mutual fund fee of $20 (compared to $9.95 with TradeKing).

    When going outside the normal purview of options trades, there are a few differences. Their IRA accounts, for instance, provide closing fees of $50 (for TradeKing) and $60 (for OptionsHouse). Furthermore, TradeKing charges 9% for a sub-$5,000 loan, while an OptionsHouse client would pay 7.75% for that same amount.

    Asset Allocation

    For allocating your assets to get the most out of your trades, both OptionsHouse and TradeKing offer similar solutions. Which is to say, not much at all.

    Granted, both companies will help you with some asset allocation through the aforementioned online platforms in an indirect manner, but there are no specific tools for asset allocation provided on their websites.

    Instead, OptionsHouse and TradeKing include asset allocation tips and articles on their sites, including within their educational resources. TradeKing, for instance, offers community forums and an online glossary to educate and guide traders and customers to manually check their allocation against other users’ portfolios.

    OptionsHouse’s blog offers some top tips for diversification, as well, which is just about the extent of the asset allocation information we can find on their site, other than trading webinars that are admittedly useful. In this respect, TradeKing offers a few more direct resources to help with asset allocation, though both platforms make it easy to do it yourself.

    That said, one advantage OptionsHouse has in this regard is the ability to perform virtual trading β€” you can test out trading strategies without risking real money, a feature that TradeKing lacks.

    Which Should You Pick? Who Is Each Good For?

    While OptionsHouse and TradeKing have their differences, they both appeal to essentially the same kind of trader β€” newer traders who are hoping to dip a toe in the water and maintain low-cost trading without the pressure to maintain a high account balance.

    TradeKing’s worth lies in its online trading community, which offers an interactive, socially minded experience for traders who want to learn from others in the market. OptionsHouse’s research and education features are not nearly as robust, leaving newer traders a bit more on their own.

    Even so, OptionsHouse does sport some better features, such as a slightly lower per-contract fee and marginally better mobile experience. Despite these small differences, though, they largely offer a similar feature set for the discerning high-volume, low-experience trader who wants to get started with a minimum of fuss.

    With their nearly identical flat fee structures plus robust online platforms, mobile connections and interesting research options, OptionsHouse and TradeKing alike seem to offer plenty of resources for the intermediate trader who knows what they’re doing and want to frequently trade. TradeKing’s Autotrade feature, in particular, is useful for traders who have a clear plan for their investments.

    Traders looking for stellar customer service might want to look elsewhere altogether. While both services offer decent phone support during regular business hours, their non-phone customer service options are sparse, and there are many other brokers out there who will assist you more directly if you need it.

    No matter which of these online brokers you go with, you probably won’t be disappointed. With some of the lowest rates on the market, and a bevy of features to go with them, TradeKing and OptionsHouse are two solid competitors in an industry where every consumer advantage counts.

    Conclusion

    In conclusion, both OptionsHouse and TradeKing are reputable online brokers with distinct offerings that cater to different investor needs. OptionsHouse stands out for its advanced trading tools, low trading fees, and comprehensive educational resources for options traders. On the other hand, TradeKing shines with its wide range of investment options, low trading fees, and user-friendly platform.

    Ultimately, the decision between OptionsHouse and TradeKing will depend on each individual investor’s priorities and preferences. It is essential to carefully consider factors such as trading fees, investment options, research tools, and platform usability when making this important choice. By taking the time to compare these two brokers, investors can ensure they select the platform that best aligns with their financial goals and investment strategies.


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