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eOption USA Review & Rating 2021

Is eOption Scam Or Legit?

eOption is a division of Regal Securities, Inc., a brokerage firm in the USA. The parent company was founded in 1977 by George Bokios. He was one of the founding members of the Chicago Board Options Exchange.

George Bokios started Regal Securities as one of the first regional brokerage firms. Regal Securities then re-emerged as a deep national discount firm with specializations in stock and options transactions.

eOption USA is its online brokerage division. It is suitable for online investors and traders in search of low rates. FINRA regulates all subsidiaries and investment professionals under Regal Securities. Before options trading, an investor must have approval from the company. Not all investors are suitable for eOption’s trading since many do not understand its risk.

Options are simply a derivative and a contract that gives buyers the right (not an obligation) to sell and buy the underlying asset. Depending on option type, they can sell before or on the expiry date at a specific price (strike price).

eOption Pro and Con
  • A great way to reduce risk, since they are the most dependable form of hedge
  • Less financial commitment when compared to other investment opportunities
  • Options offer several strategic alternatives for investors
  • High percentage returns
  • Increased cost-efficiency
  • High-quality customer services
  • More time to develop a winning strategy
  • There could be periodic uncertainty of gains
  • All gains are taxed as short-term capital gains
  • The possibility of delays with online services such as risk parameters, system parameters, unavailability of market conditions and market data

Is eOption Scam Or Legit?

eOption USA is legit and not a scam. Accessing eOption in the US is secure and relatively straightforward. Regal Securities, Inc. legitimately created it in 2007. Under its parent company, it is a member of the Securities Investor Protection Corporation (SIPC). Members of the SIPC are insured for $500,000 for brokerage accounts, including cash claims of a maximum of $250,000.

Additionally, Regal Securities is legit with an SEC membership approved on 24/06/1977. Its I.D. is 8-21765. The registration tag does not guarantee a profit from your trade. It only ensures repercussions from a recognized regulatory authority. That means if there is any possibility of misconduct on the side of eOption, they are guided to operate legally and ethically.

Aside from the standardized trust verifications, there are also other reasons to trust a broker like eOption. The brokerage participates in deposit security schemes. These schemes are safety nets in a financial system that protects financial stability. As a well-respected provider, they also offer high levels of transparency for all investors.

Unfortunately, an eOption open account does not offer a wide range of assets to trade as some legit brokers do. The limited range would be disappointing for brokers ready to trade with a wide range of assets. There is also a risk of getting caught out by high inactivity fees.

As a subsidiary division, eOption USA alone presently generates $5.3 million of revenue. Throughout its history, they raised $0 in funding, while its parent company generated $24.9 million in revenue. This is an excellent broker choice for investors ready for highly technical platforms. Its quality customer service on a variety of channels supports its high level of technicality.

eOption Open Account Offers and Account Change

Brokerages usually offer attractive deals to encourage signing up with them. They do this by offering bonuses on sign up. Some also offer free money in a way when you begin trading with them. All such incentives aim at attracting prospective clients to their platforms

These various bonuses may seem attractive, but they come with their terms and conditions. An eOption open account in the USA also comes with these benefits. If eOptions were to expand operations throughout North America, similar benefits would follow suit.

Without locking funds away, your eOption open account can still earn interest. An eOption review would include how you can use $0 to open an account. It also comes with no transaction fees. eOption opinions favor flexible rate options as an attractive offer for prospective investors.

Domestic accounts need to have a minimum deposit of $500 within 30 days. For international accounts, however, there is a minimum of $25,000 equity required. This equity amount can be in a combination of U.S. exchange-traded securities and U.S. Dollars or either. International accounts can be kept empty for up to 30 days. Not meeting the minimum requirements within 60 days of account opening would lead to account termination.

It takes 24 to 48 hours to open an account after receipt of the completed paperwork. Completing paperwork does not guarantee an approval for options trading. After reading our review and test, you can start the process for an eOption open account.

However, some countries are still under eOption review for a change. The list of prohibited countries includes Balkans, Belarus, Burma, Côte D’Ivoire, Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, and Zimbabwe.

Changing Account With eOption

Aside from wire transfers, checks, and stock certificates, you can also fund your account via account transfers. It is possible to transfer an account to your eOption open account. You simply need to attach an account transfer form in the paperwork.

There are several reasons to change accounts, which means it is also not unusual to see investors switch online brokerages from eOption. An eOption USA  switch would also be possible to Questrade, if one were so inclined. Whatever the reasons are, they are all allowed, and this change is possible with no issues afterwards. Make sure to attach your most recent statement of the account you plan to transfer.

You can transfer an entire account or only part of your account. Fully automated customer account transfers typically take five to seven business days. A non-automated one may take as long as three weeks to complete.

Usability, Look & Feel

An adequate eOption USA review focuses on not only the design of its website but how easy it is to use too. Online brokerages are supposed to invest heavily in building a website. A well-built website makes it easier for all clients and prospective clients to understand the brokerages’ processes.

According to popular eOption opinions, it’s a convenient alternative for high volume and active traders. Their website is easy to maneuver. The issue present might be how difficult it can be to find more detailed information on the site. They make up for this by offering excellent customer services on various mediums.

Since there is significant variation among humans and different people want different things, the best way to make everyone happy is to make a high interaction site as customizable as possible. The customizations would not be ideal for every detail, but for the features that make it easier to use.

When you log into your eOption open account, you will observe a well secured and encrypted platform for account holders. An SSL certificate provides the eOption website’s security. It protects sensitive data on the site as it travels from the website to the server. It also secures all information from cybercriminals who could have accessed your information without this available protection. Websites with SSL security have an “s” attached to the ‘HTTP.’

For more protection, there is a trust seal that works with a security partner that offers more security, such as malware scans. There are also no defacements, suspicious pops, phishing kits, and advertising embedded in backends of the eOption site. The sole aim is for full use without interruption. A quality website that would score higher rankings than our rankings on JP Morgan review.

Their web-based platform, however, falls short on adding standard features. Even though the web-based platform might be underwhelming, its usability is not poorly regarded.

eOption USA Open Account

Creating an eOption account is simple and straightforward for citizens in the U.S. User accounts are easy to use and allow individuals to trade with relative flexibility and freedom. All eOption review content highlights the ease in account creation.

Even though eOption USA comes with no transactional fees, there is a low fee of $0.10 contract fees for an options trade, making it ideal for high volume and active options traders. It is obligatory for account holders to understand the following:

  • Pattern Day Trader (PDT) – It is a requirement for Pattern Day Traders to meet the $25,000 equity, which is the total value of an account before entering opening transactions. If a customer trades four-plus times in a rolling five business day period, Margin IRA can be flagged as a PDT. This is only possible when the Margin IRA is approved to cash-secured puts and open spreads.
  • Day Trading Buying Power – Pattern Day Traders are the only traders capable of accessing the use of Day Trading Buying Power. For Day Trade Call or Good Faith Violation, they can be assessed in cash accounts when trading with unsettled funds.
  • Trading Commission Free – Market or Limit (unlimited shares) have commission fees of $0 for stocks and ETFs.
  • Form 1099-S – The IRS matches 1099s with your tax return, and you will retrieve your annual 1099s from ‘Additional Services’ right after login. You can locate all kinds of statements, confirmations, and tax documents here.

Federal law ensures anti-money laundry rules are to be undertaken by all financial institutions. Therefore, anyone who opens an account would need to be processed by obtaining, verifying, and recording some information that thoroughly identifies the individual.

Aside from that, the account holder would also need to undergo a series of questions regarding an account. Some of the information needed are listed below:

  • Name and Address (home addresses since P. O. Boxes are not accepted)
  • Date of Birth
  • Social Security Number/Tax Identification Number
  • Employer’s name, phone number, address
  • Beneficiary’s name, date of birth and social security number
  • Other identifying documents such as passports and driver’s licenses

The U.S. Department of the Treasury, FINRA, SEC, and the NYSE would require the following additional details:

  • Your net worth
  • Occupation
  • Annual Income
  • Investment experiences and objectives
  • Level of Risk Tolerance

eOption Trading Platforms

According to our eOption review, the trading platforms are available on its website and phone app. There is no desktop app version for the eOption platforms yet. Our eTrade review points out commendable apps by its peers.

The website platform for eOption offers fast trading capabilities with an easy-access dashboard. Other brokerage tools are also available to try out. You get access to manage all your accounts linked to one User ID on your dashboard.

You can view real-time quotes, advanced and intuitive charts, and relevant market news on eOption’s trading platform. The integrated market data enables access to financial research which in turn leads to well-informed trades.

Mobile App

This generation has mobile apps for almost anything important. It is now the norm to have apps for brokerages since mobile apps are convenient for people. Available on both Android and iOS devices, eOption’s mobile app is comprehensive. It also features full capabilities from the website.

Even though the app is a reflection of the web platform, there are still some technical differences. The omission of technical explainers/ educational tools is not convenient for both new and old clients.

Besides that, you can access all accounts linked to your user I.D. You can also view Positions, Activities, Balances, and open orders.

The chances of being overwhelmed on the phone app are similar if you are overwhelmed by the various features on the website platform. However, those who are already familiar with the web-based platform can easily transition to the mobile version. Since eOptions require you to be more active, the phone app brings convenience for the times you are not behind a computer.

Once your interconnection is not faulty, you can get real-time mobile updates. These are second-by-second updates on the reduction and increase of prices. It also comes with viewing percentage changes, total gains and losses, bidding for volume, and many others. You can also watch news streams from various sources on the phone.

Favorites can be selected for real-time streaming. Depending on your preferences, you can view change in prices by either percentage (%) or amount ($). Have general access to manage your account from your smartphone or tablet with ease. Notifications and messages from the app make it easy to pay attention when the time is right.

The eOption USA app is free to download on Google Play Store and App Store.

eOption Payment and Trading Fees

In our Fidelity review, we highlight how diversified their investment brokerage is. An eOption review, on the other hand, explicitly highlights how eOptions is just about Options trading. This means all payment and trading fees are solely about options trading.

It is crucial to know about trading fees and payment methods extensively. Becoming familiar with this information will streamline your payment processes. You’ll also be aware of any hidden costs and how to reduce these costs over time.

Spreads, conversion fees, and many other fees that you may not even have considered are what make up the costs incurred when you trade. You incur these trading costs when you trade. Non-trading charges are the payments not directly connected to your trading.

Trading Fees

There are a couple of Trading Fees according to the eOption review USA. First off, eOption does not charge a fee for Auto Trading. However, there’s a commission rate of $5 for equities. For options per execution, there is $5 + $0.15 per contract, and it applies to orders entered and filed by eOption’s auto trade desk. The commission of the 10 cents per Option Contract (+$1.99 per trade).

Non-Trading Fees

Since broker-assisted orders are not mandatory, they can be grouped under non-trading fees. They come with an additional commission of $6. Examples of other non-trading fees come with withdrawals, wire transfers, and checks. Our eOption review USA also revealed that there is a list of applicable and non-applicable miscellaneous fees, depending on the type of account and account processes undertaken.

Customer Service

Our eOption review identifies two methods of contact to reach the customer service team. Customer service representatives are available Monday to Friday from 8 am to 6:30 pm EST. Their offices are also closed on market holidays.

By Phone – Customer service can be contacted on the provided toll-free number as well as by fax. International clients must use a different number to reach customer service. Customers with eOptions USA accounts that are overseas might need to use this contact method. New accounts share the same toll-free number for customer service but have a different number for fax.

By Mail – eOption provides both the option of sending to their mailing address and contacting via email. If you are contacting customer services by email, you would need to fill a contact request form first. Unfortunately, there are no extra options with hearing limitations aside from the mail option.

Regulation and Deposit Insurance

It is always important to know that your funds are secure. This extends to all online brokers and as such, we cover this topic in full – much like what you’ll find in our IG Broker review. Owning an eOption open account means that your funds are under insurance. As a member of FINRA and SIPC, eOptions finance is regulated regularly.

The SIPC potentially covers a total of $500,000 of the client’s claims. This comes with maximum cash amounts of $250,000. The SIPC, however, cannot shield you from losing your investment in the trading markets. They also do not protect your money against the decline in the value of securities.

FINRA also works towards ensuring that markets are fair towards investors. They do this by protecting each investor from malpractices by brokers and institutions by enforcing several regulations in institutional processes. Its website has a wide array of resources for brokers and investors to know if they were making the decisions. This prevents being deceived or swindled through malpractices.

Americans who find themselves overseas – who do not have access to eOption USA offices for money reassurances – should not fret. All international accounts are still regulated just as any account in local America.

Additional Offers

Aside from the regular trading of options, the broker offers comprehensive educational material. The options trading courses provided are free. They are suitable for both novice and advanced traders alike. Considering how complicated the eOptions platform can be, this offer is important.

With an eOption Open account, options traders often get an offer of the lowest competing options contracts. This offer makes it an affordable route to options trading since a trader is always looking forward to saving costs as well as making profits. They also offer Webinars that continually aim at improving the financial decisions of its clients, which is a recommended plus for an eOption review.

Trading on the eOption app is an added bonus. You can conveniently place ETF, stock, and options trades on the app from anywhere. Not having access to eOption services should not be an issue for Americans who happen to be outside of the country. The same process followed on the website platform is the same required to perform this activity. Advanced options trades can take place on your smaller sized screens.

All users also get an offer of extended hours for trading. For the pre-market season, trading is also available from 8 am – 9:28 am EST. For the post-market, it is from 4 pm to 6 pm.

Forex/Currency eOptions

Forex or currency options are more like trades on what a specific exchange rate would be at a specific time. This differs from the actual trading of foreign currency. This, on the other hand, would be referred to as Trading Forex.

Forex is the world’s largest and most liquid market, as daily average trading volumes exceed $5 trillion. For forex trading, our Interactive Brokers review, can adequately brief you on the subject.

Index eOptions

Index options are structurally similar to stock options, with the difference being the underlying asset since companies make the underlying asset for stock options. The asset here is the index such as nifty, bank nifty, and the S&P 500. SPX and VIX underlay the most liquid options available for index options.

Futures eOptions

With future options, the owner of the contract holds the right to enter a specified future contract. This is done at any time with a fixed price if the expiry of the contract has not been surpassed.

Commodity eOptions

The underlying asset for commodity options is simply commodities. Our eOption review lists futures contract commodities and physical commodities. These are the two types of commodities that can be used to secure a commodity options contract. The trading of commodities on eOptions USA is a great option for newcomers.

Basket eOptions

Like a basket that carries many items, the basket options contract is based on a group of underlying securities. They can be a variation of underlying securities in a basket option. Stock, currency, futures, and other financial instruments can be all together in this option contract.

eOption Bonds

eOption Bonds

While eOption provides a fully automated service for most investments, to trade bonds at this brokerage, you will have to place them at the brand’s bond desk. There is a telephone number that you must call to do this. While this might put eOption at a disadvantage, it should give you peace of mind that you are getting the expertise you need to buy and sell bonds successfully.

Bonds Trading Costs

The costs for trading bonds at eOption are broadly in line with what you can find at other online brokers. You can expect to pay $5 per bond on your first 25 bond purchases. After this you will be charged a standard rate of $3 per bond that you buy or sell. Bear in the mind that there will be a minimum of $39 for all listed bonds featured at eOption. We should also note that there may be trading activity fees for covered debt securities that could feature $0.00075 per bond with a maximum of $0.75 per trade.

Bonds Markets & Trading Places

eOption allows you to buy and sell a broad range of bonds. These include corporate bonds, municipal bonds, treasury bonds and CDs. This is a similar range of bonds options to what you should expect from the majority of online brokers. With over 10 year’s experience in catering to traders and investors, eOption will highlight the bonds trades that can be valuable assets to your investment portfolio.

Product Summary & Conclusion

Although you will have to consult the eOption bond desk to buy and sell these securities, the brand is still a good option for investing in bonds. This is because the brand features the full range of bond options from corporate bonds to municipal bonds. As an added bonus, you will enjoy relatively easy-going fees on your eOption bonds trades.

eOption Stocks

eOption Stocks

The securities market is a section of the vast financial market. Securities are simply tradable financial instruments that you trade to raise capital in private markets. Options often have many underlying securities. Stock options are popular among people.

Depending on stocks in your account, margin maintenance ranges from 30% to 100%. Investors use margin accounts to boost their portfolios continuously. A good eOption review would describe margin accounts as simply dedicated to providing funds to buy stock.

Leverage is the use of borrowed funds to increase the position of the trader. Since you can use margin accounts to borrow funds, traders can use leverages through margin trading.

Stock eOptions

With many stocks available on the stock market, the stock option is the most common form of options traded. Publicly traded shares of companies are used in the trading stock option. This makes the publicly traded shares of companies the underlying asset for stock options.

Employers of a company can use their eOption open account to trade various stock options. Trading stock options on their company would make them feel more connected to the business. They, in turn, reap benefits when their company grows. Thus, stock trading is hugely popular and certainly a financial instrument to take into account.

eOption Options

eOption Options

Options trading at eOption is made simple with the broker’s excellent trading platform. Trading in options can be a great way to start your trading endeavours or if you are a more experienced day trader, it is also a good way to add another trading avenue to your portfolio. That being said, it does carry its own set of risks. The broker appears to tailor its platform for users who are experienced in options trading and who can execute their own strategies.

There are a number of different types of option trading for users to partake in. eOption allows you to choose from strategies such as buy-writes, spreads, combos, straddles, butterflies/condors, iron butterflies/iron condors and rollouts. You will not find a shortage of types of options trading with eOption. You can use these options trading types on the web based platform or on the streamlined eOptions mobile app for trading on the go.

The pricing of options trading on eOption’s platform varies but for each contract you purchase there is a base $1,99 fee for each option and per contract fee $0,10. Should you purchase five options at a time the fee works out to be considerably cheaper than your average broker. Overall, eOption is great for your more experienced options trader but it does not neglect those who are new to trading.

eOption Funds

eOption Funds

eOption gives you a great way to execute your mutual funds trades automatically. You’ll receive regular alerts that allow you to access and trade an impressive range of mutual funds at eOption. This all comes through the brand’s free trading platform that means that you get a cost-effective and high quality way to manage your mutual funds portfolio. So although this brand has a reputation for options trading, eOption should definitely be factored in when looking to invest in mutual trades.

Funds Trading Costs

At eOption, you’ll get to enjoy an inexpensive way to trade mutual funds. This is because eOption will only charge you a flat rate of $5 for every mutual fund trade that you make. We should note that any periodic invest or withdraw that you make in mutual funds will also have a $5 commission charge. Such costs are broadly in line with what you can find at all good online brokerage services. Just bear in mind that eOption may occasionally put on a No Transaction Fee program.

Funds Markets & Trading Places

eOption will give you a chance to trade over 500 distinct no load mutual funds. Beyond this you may find that there will be around 8,900 other mutual funds at eOption.  While there is no kind of mutual funds screener, you should find it easy to research these investment packages thanks to the free trader platform that eOption provides.

Product Summary & Conclusion

Mutual funds trading is a great option for anybody who wants to decrease the risk of their investments. While this comes with the disadvantages of fees, eOption has managed to keep costs for mutual funds trading to a respectable level. When you factor in the brand’s user-friendly automated software, it’s clear that eOption provides a quality mutual funds trading service.

eOption ETF

eOption ETFs

eOption is an award-winning broker that gives you a low-cost way to enjoy ETF trading. The brand provides a powerful trading platform along with expert live support whereby you can make ETF trades with confidence. A key component of the eOption service is the way in which its trading software allows you to trade ETFs automatically. You’ll be able to research integrated market data to check the status of each ETF and plan your investments accordingly.

 

ETF Trading Costs

A key reason to sign up to eOption is the fact that the broker charges $0 commission on all of its ETF trades. However, we should note that if you use a broker-assisted order, then you might be subject to an additional $6 fee. Plus there will be a charge of $3 for all trades in extended hours trading. When it comes to trading activity fees, there will be costs of $0.000119 per share, and a maximum of $5.95 per trade. All of which makes eOption a cost-effective solution for anybody with an interest in ETF trading.

ETF Markets & Trading Places

eOption features a comprehensive range of ETFs on domestic and foreign markets. This is combined with a service that features over 10,000 stocks. Each ETF at eOption will feature a variety of assets. These could include stocks, bonds, commodities and currencies. All of which should offer plenty of diversification to help you manage your portfolio in a risk-effective manner.

Product Summary & Conclusion

It’s the fact that eOption offers a commission-free approach to ETF trading that could be its greatest asset. But with a user-friendly automated platform and a broad variety of ETF packages, it’s clear that eOption could be a sensible resource for anybody with an interest in ETF trading.

Overall Conclusion

Hopefully our eOption review has provided you with all you need to know on getting started with this provider. Getting an eOption open account might be a great step for traders who are interested in Options Trading. As one of the major U.S online brokerages available today, they have one of the lowest charged fees. eOption charges $0 on unlimited stocks and ETFs, 10 cents per option contract, plus a low $1.99 per trade. As Fidelity, eTrade, T.D. Ameritrade, and Schwab all charge 65cents per contract, eOption’s 10cents charges are the lowest.

Regulated by the SIPC, all eOption members have their brokerage accounts insured for $500,000. Also verified by the SEC under Regal Securities, they hold an identification number of 8-21765.

Unfortunately, eOption does not offer a wide range of trading opportunities besides that of options. With an eOption account, you can use the optimized app from anywhere in the world. There are also a few offers listed in our eOption review that makes trading options more attractive.

Options trading is based on underlying securities such as stocks, commodities, forex, and index. The most-traded option is, however, stock options. Due to their low fees, eOption USA is a convenient place to trade options.

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