A new era of investing has dawned with the advent of technology, and it’s simpler than ever to study how to buy stocks on the internet. But where can one find the best online broker? It is a question only you can answer, as it depends on your investment style and the features you value most.
To assist you in locating the best online trading platform for stocks, Traders Union conducted an in-depth analysis of the industry’s leading participants. To compare and contrast the best options, visit the link.
EOption Quick Review
Although EOption provides a full range of brokerage services, options trading is the company’s forte, reflected in the broker’s competitive pricing structure. Compared to other brokers, who charge nothing, this one charges $1.99 per trade. However, the total cost per trade is competitive at just 10 cents for those trading four contracts or more.
In 2020, eOption lowered its minimum investment to zero dollars and now offers commission-free stock and exchange-traded fund trades. New promotions have also been added, such as a free stock for signing up and a recent profit and loss performance analytics feature that provides traders with a deeper understanding of their success and profitability. eOption is ideal for:
- Skilled investors.
- A global group of investors.
- Reduced cost for options contracts.
- Margin interest rates are relatively low.
- Trading robots.
Cases where eOption Excels
- Low options contract fee: Contract fees for options trading are typically around $0.65, and many brokers now offer trades with no base commission at all. Options trades at eOption cost $1.99 plus 10 cents per contract. As a result, eOption is a good choice for investors who routinely trade four or more contracts at once.
Broker-assisted trades for stocks, options, and ETFs cost an extra $6 in most cases, which is cheap compared to the $20 to $25 surcharges charged by other brokers.
- Automated trading: Investors that engage in automated trading based on newsletter recommendations are a subset of eOption’s target market. Anyone interested in using this feature must sign up for one of the 60 or so participating newsletters and enable eOption to make trades based on the recommendations made in that newsletter. To customise their auto-trading experience, customers can choose a maximum trade size in dollars, contracts, or a percentage of their account balance. Stock trades cost $2, while options trades cost $2 basic + 10 cents per contract.
Should we proceed with this plan? One may argue both sides of that. Investors who rely on newsletter trading alerts to place their trades have yet to have an opportunity to inspect their orders before they are executed. However, putting things on autopilot might be appealing if you regularly follow the instructions of investing newsletters that are part of eOption’s service.
- Paper trading: eOption’s free paper trading tool is a great perk, as it allows even nonclients to practise trading without risking any of their own money. This provides investors with $100,000 in play money to analyse trading ideas, try out different techniques, track the success of a fictitious portfolio, and build a watch list without risking any of their own money.
- Margin rates: Note that eOption’s margin rates are among the industry’s most competitive. Rates for balances below $25,000 were 7.75% as of late 2020. If you have a balance of $250,000 or more, you can get a rate as low as 4.75%.
- International investors: The broker accepts international accounts from several nations whose citizens are not U.S. citizens. Included in this group are the nations of Australia, Austria, China, Germany, Ireland, Luxembourg, Mexico, the Netherlands, New Zealand, Singapore, South Africa, Switzerland, England, Northern Ireland, Scotland, and Wales. You will need $25,000 in cash or securities to start an account.
It is widely agreed that eOption is among the best ten brokers. Let’s take a look at the broker from a high level and if you want to read a more in-depth review of eOption including its account opening process, fees & commissions, pros and cons, available options and much more, click the link.
EOption accomplishes its goal of providing a low-cost environment for active traders, particularly options traders. Customers willing to pay higher commissions to switch brokers have access to more advanced platforms and expert investment advice. However, eOption is one of the best options for frequent and frugal options traders.