E*TRADE Adds Snapshot Analysis and Option Testing to Active Trading Platform

November 29, 2017 — 3:57 PM EST

E*TRADE, the New York-based online brokerage, added new technology to its ActiveTrader platform this week, including snapshot analysis and an option income backtester tool.

In an event that E*TRADE Financial Corporation (ETFC​) calls #TechTuesday, the firm announced on Twitter that, with the new snapshot analysis tool, traders can assess the potential risks and rewards of investments, including the probability of breaking even and other theoretical modeling. Traders can also see the probability for maximum profit and maximum loss.

On the options front, the online investing firm rolled out its options income backtester tool, which lets traders compare the performance of income-focused options strategies with owning the underlying stocks outright. Traders can choose from nine pre-defined strategies or create their own. E*TRADE said that it is also making it easier for traders to find options income investments with its Options Income Finder. E*TRADE explained that, with this tool, investors can find additional returns from their portfolios, individual stocks and even watch lists. Those too can be backtested.

[Ally Invest offers powerful charting tools and $4.95 trades. Read Investopedia's  Ally Invest review to learn more about this low-cost broker.]

These aren't the only enhancements that E*TRADE has made to its ActiveTrader platform in recent weeks. Earlier this month, it rolled out the ability to trade options on mobile devices and log into investment accounts with Apple Inc.'s (AAPL) Face ID. According to E*TRADE, futures trading should not be limited to desktop computers, which is why it is enabling futures trading on mobile devices via the OptionsHouse Mobile app for iOS devices. The options trading ability has been optimized for mobile, noted E*TRADE on Twitter. Meanwhile, by enabling customers to log into their accounts using Apple's Face ID, E*TRADE has become what it says is one of the first to use the facial recognition technology to provide access to accounts. Face ID was launched with Apple's latest iPhone, the iPhone X, and the move by E*TRADE to enable the new technology underscores the popularity the phone.

The updates come as Benzinga rated E*TRADE as the best overall options trading platform. "E*TRADE's OptionsHouse platform and mobile app are the gold standard of option trading platforms. OptionsHouse currently offers traders premium-quality tools without the premium price tag," Benzinga wrote in its review. Benzinga pointed to the speed, quality of tools and ease of navigation on the OptionsHouse platform as reasons for the top billing. What's more, the platform gives investors the ability to create virtual trades to test strategies and provides access to real-time streaming options chains that can be customizable with up to 30 columns. In addition, the tradeLAB Snapshot Analysis tool shows the risk and reward from a trade in an easy-to-understand manner, while the strategySEEK tool lets users search for potential trading strategies.