OptionsXpress - Brokerage Review – Fee Structure And Tools
  1. OptionsXpress - Brokerage Review – Introduction
  2. OptionsXpress - Brokerage Review – Fee Structure And Tools
  3. OptionsXpress - Brokerage Review – Additional Features

OptionsXpress - Brokerage Review – Fee Structure And Tools

Commission / Fee Structure
Like many brokerages, commissions at optionsXpress are based in part on the magnitude and volume of an investor's business. Those investors who conduct more than 35 options transactions in a month are deemed "active investors." Active investors pay a flat commission of $12.95 for trades involving 1-10 options contracts, while regular customers pay $14.95. Beyond the 10 contract threshold, the commission shifts to a per-contract basis of $1.25 for active investors and $1.50 for others.


Figure 2: Overview of optionsXpress standard brokerage fees.


Spreads, straddles and combos offer broadly similar commissions. Penny options carry a flat commission of $4.95 for up to 10 contracts and 50 cents contract for more than 10 contracts. Stock trades carry a flat $8.95 commission, and the website does indicate if telephone-based or broker-assisted trading is available. Bond transactions cost $5 per bond, with a $9.95 minimum commission. Mutual fund transactions carry a $9.95 commission and any additional loads/fees.

Futures commissions, as well as commissions on options on futures, are based on the number of contracts involved. For futures, the first 40 contracts carry a $6.99 commission which steadily declines to $2.99 on trades involving 1,001 or more contracts. For options on futures, the commissions begin at $12.99 for the first 40 contracts and decline to $5.99 for trades of 1,001 or more contracts. (For related reading, see Paying Your Investment Advisor- Fees Or Commissions?)

Analysis Tools
OptionsXpress customers are given a variety of online tools to help them evaluate, execute, and monitor trades. Strategy scan identifies potential trades based upon an investor's pre-selected criteria and preferences, while an online trade/probability calculator assists in assessing the potential of a trade.

This brokerage also offers advanced charting and real-time quoting screens for stocks, options, and futures. OptionsXpress provides live educational webinars on an ongoing basis and access to free trading specialists. Investors can also test trading strategies with a free virtual trading account.

OptionsXpress - Brokerage Review – Additional Features

  1. OptionsXpress - Brokerage Review – Introduction
  2. OptionsXpress - Brokerage Review – Fee Structure And Tools
  3. OptionsXpress - Brokerage Review – Additional Features
RELATED TERMS
  1. Warrant

    A derivative that confers the right, but not the obligation, ...
  2. Bull Call Spread

    An options strategy that involves purchasing call options at ...
  3. Board Of Directors - B Of D

    A group of individuals that are elected as, or elected to act ...
  4. Markdown

    The difference between the highest current bid price among dealers ...
  5. Catalyst

    A catalyst in equity markets is a revelation or event that propels ...
  6. Crude Oil

    Crude oil is a naturally occurring, unrefined petroleum product ...
RELATED FAQS
  1. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  2. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  3. What is after-hours trading? Am I able to trade at this time?

    After-hours trading (AHT) refers to the buying and selling of securities on major exchanges outside of specified regular ... Read Full Answer >>
  4. What is the 'Rule of 72'?

    The 'Rule of 72' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of ... Read Full Answer >>
  5. What is a stock split? Why do stocks split?

    All publicly-traded companies have a set number of shares that are outstanding on the stock market. A stock split is a decision ... Read Full Answer >>
  6. How do hedge funds use equity options?

    With the growth in the size and number of hedge funds over the past decade, the interest in how these funds go about generating ... Read Full Answer >>
Hot Definitions
  1. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  2. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  3. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  4. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  5. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
Trading Center