Optionshouse Experience
- Thread starter SmithTheTrader
- Start date
I'm thinking about trying these guys out. Has anyone experienced any other situations where they were clearly unable to trade against a posted bid or offer due to a poorly routed "smart order"? Also, when working a spread order, are you typically able to execute somewhere in the middle of the bid/ask spread?
Thanks
Thanks
(Note: I have updated my experience with OH beginning in the 4th paragraph, if that doesn't detour you then you must be a masochist. Please do your homework! So far I have found recent reviews at http://moneyning.com/review/optionshouse-review/)
I trade stocks so I have no experience with their options tools, however, since I trade extended hours, futures information is extremely important AND they do not offer futures info.
Over the last 4 years I have used TD, Scottrade, Etrade, Schwab, Fidelity, OptionsXpress, and OptionsHouse; with the exceptions of Fidelity, Schwab and OptionsHouse, I found that each offered something that excelled above the others. HOWEVER, I have to say, that OptionsHouse is the most pathetic of them all. Although I experienced that every single one of them was deceptive in one way or another, OptionsHouse takes the cake. For me, it is simply not worth it to pay $2.95 a trade when you really canât get the trades you want because of poor execution, mishandling of funds, extremely limited customer service and extended hour trading.
FURTHERMORE, I found that OH âconversionâ and âunjust enrichmentâ by withholding ACH deposits for 3-5 days after they have âclearedâ or by holding your funds for 3-5 days after you request them (disregarding any settlement issues which would delay even further). As far as I am concerned, they are outright crooks.
Did I mention their stock trading tools are so elementary that they are virtually useless?
UPDATE: When I opened the account, I got 100 free trades; with 42 free trades remaining, I withdrew my funds for reasons stated above. However, in April 2010, I decided to give them another shot. Since I hadn't used the account since Dec. 2009, I called to see if the account was still open and active and they said "yes". On April 8, 2010, I utilized their online ACH transfer and initiated an ACH deposit; since we both utilize JP Morgan, OptionsHouse received the funds on April 9, 2010. Then, in an email that I received dated April 12, 2010, at 10:38 p.m. (presumable CDT since they are in Chicago), they tell me that the account will not be "reopened" AND that they will not return my funds until April 19, 2010.
In a nutshell, 1) they had closed the acct. but said it was open, 2) allowed me to do an online ACH deposit, 3) they received my funds on April 9, 2010, 4) now they say the acct. was closed and won't be reopened, AND 5) they won't return my funds until April 19, 2010. SO they use my money, for free, for 10 days! I trade between 10k - 40k shares of C usually several times a day and C has been on the move - you do the math.
I trade stocks so I have no experience with their options tools, however, since I trade extended hours, futures information is extremely important AND they do not offer futures info.
Over the last 4 years I have used TD, Scottrade, Etrade, Schwab, Fidelity, OptionsXpress, and OptionsHouse; with the exceptions of Fidelity, Schwab and OptionsHouse, I found that each offered something that excelled above the others. HOWEVER, I have to say, that OptionsHouse is the most pathetic of them all. Although I experienced that every single one of them was deceptive in one way or another, OptionsHouse takes the cake. For me, it is simply not worth it to pay $2.95 a trade when you really canât get the trades you want because of poor execution, mishandling of funds, extremely limited customer service and extended hour trading.
FURTHERMORE, I found that OH âconversionâ and âunjust enrichmentâ by withholding ACH deposits for 3-5 days after they have âclearedâ or by holding your funds for 3-5 days after you request them (disregarding any settlement issues which would delay even further). As far as I am concerned, they are outright crooks.
Did I mention their stock trading tools are so elementary that they are virtually useless?
UPDATE: When I opened the account, I got 100 free trades; with 42 free trades remaining, I withdrew my funds for reasons stated above. However, in April 2010, I decided to give them another shot. Since I hadn't used the account since Dec. 2009, I called to see if the account was still open and active and they said "yes". On April 8, 2010, I utilized their online ACH transfer and initiated an ACH deposit; since we both utilize JP Morgan, OptionsHouse received the funds on April 9, 2010. Then, in an email that I received dated April 12, 2010, at 10:38 p.m. (presumable CDT since they are in Chicago), they tell me that the account will not be "reopened" AND that they will not return my funds until April 19, 2010.
In a nutshell, 1) they had closed the acct. but said it was open, 2) allowed me to do an online ACH deposit, 3) they received my funds on April 9, 2010, 4) now they say the acct. was closed and won't be reopened, AND 5) they won't return my funds until April 19, 2010. SO they use my money, for free, for 10 days! I trade between 10k - 40k shares of C usually several times a day and C has been on the move - you do the math.
I'm sure OH is not alone in their changes to the margin requirements on leveraged ETFs.
Regulatory Notice 09-53
Effective Date: December 1, 2009
Executive Summary
Effective December 1, 2009, FINRA is implementing increased customer
margin requirements for leveraged ETFs and uncovered options overlying
leveraged ETFs, in accordance with NASD Rule 2520 and Incorporated
NYSE Rule 431.
Regulatory Notice 09-65
FINRA Delays the Effective Date for Increased Margin Requirements for Options on Leveraged ETFs and Day-Trading Requirements for Leveraged ETFs; New Effective Date: April 30, 2010
Executive Summary
In August 2009, FINRA issued Regulatory Notice 09-53 (Non-Traditional ETFs), announcing increased customer margin requirements for leveraged ETFs and uncovered options overlying leveraged ETFs effective December 1, 2009. To accommodate ongoing changes in options symbology and other systems-related concerns, FINRA is deferring the effective date for increased customer margin for uncovered options overlying leveraged ETFs, as well as the application of day-trading margin requirements for leveraged ETFs to April 30, 2010. Firms should be aware, however, that the increased maintenance margin for leveraged ETFs will take effect as originally scheduled on December 1, 2009.
Usually less than 20.
Many thanks for your reply and insights.
I am wondering what the approximate total volume of contracts traded at the strike price you entered your option trades with such good fills.
For example, was the volume quite high say well over 1000 or was it in the hundreds of contracts traded say 300 for the strike price you entered
I am trying to determine whether these very good fills are largely the result of trading option strikes with very high daily trading volumes eg. c or aapl or ge. That is, option strikes that trade thousands of contracts per day.
Thank you for any insights.
I am wondering what the approximate total volume of contracts traded at the strike price you entered your option trades with such good fills.
For example, was the volume quite high say well over 1000 or was it in the hundreds of contracts traded say 300 for the strike price you entered
I am trying to determine whether these very good fills are largely the result of trading option strikes with very high daily trading volumes eg. c or aapl or ge. That is, option strikes that trade thousands of contracts per day.
Thank you for any insights.