Options trading pros and cons

Pros & Cons Of Day Trading Vs Swing Trading.

Active traders often group themselves into two camps: the day traders and the swing traders. Both seek to profit from short-term stock movements (versus long-term investments), but which trading strategy is the better one? Below, we explore the pros and cons of day trading versus swing trading.

Day trading, as the name suggests, involves making dozens of trades in a single day, based on technical analysis and sophisticated charting systems. The day trader's objective is to make a living from trading stocks, commodities or currencies, by making small profits on numerous trades and capping losses on unprofitable trades. Day traders typically do not keep any positions or own any securities overnight.

[Day trading involves a very unique skillset that can be difficult to master. Investopedia's Become a Day Trader Course provides an in-depth overview of day trading complete with over five hours of on-demand video. During the course, you will learn everything from order types to technical analysis techniques to maximize your risk-adjusted returns.]

Swing trading is based on identifying swings in stocks, commodities, and currencies that take place over a period of days. A swing trade may take a few days to a few weeks to work out. Unlike a day trader, a swing trader is not likely to make such trading a full-time career.

Day Trading Pros and Cons.

Potential to make substantial profits : The biggest lure of day trading is the potential for spectacular profits. But this is may only be a possibility for the rare individual who possesses all the traits—such as decisiveness, discipline and diligence—required to become a successful day trader. Be your own boss : The day trader works alone, independent from the whims of corporate bigwigs. He can have a flexible working schedule, take time off whenever needed, and work at his own pace, unlike someone on the corporate treadmill. Never a dull moment : Long-time day traders love the thrill of pitting their wits against the market and other professionals day in and day out. The adrenaline rush from rapid-fire trading is something that not many traders will admit to, but is a big factor in their decision to make a living from trading, compared with spending their days selling widgets or poring over numbers in an office cubicle. Expensive education not required : For many jobs in finance, having the right degree from the right university is a prerequisite just for an interview. Day trading, in contrast, does not require an expensive education from an Ivy League school. While there are no formal educational requirements for becoming a day trader ( see Best Undergraduate Degrees for Day Traders), courses in technical analysis and computerized trading may be very helpful. Self-employment benefits : As a self-employed individual, a day trader can write off certain expenses for tax purposes, which cannot be claimed by an employed individual.

Risk of substantial losses : In an investor publication titled "Day Trading: Your Dollars at Risk," the U. S. Securities and Exchange Commission points out that "days traders typically suffer financial losses in their first months of trading, and many never graduate to profit-making status." While the SEC cautions that day traders should only risk money they can afford to lose, the reality is that many day traders incur huge losses on borrowed monies, either through margined trades or capital borrowed from family or other sources. These losses may not only curtail their day trading career, but also put them in substantial debt. Significant start-up and ongoing costs : Day traders have to compete with high-frequency traders, hedge funds, and other market professionals who spend millions to gain trading advantages. In this environment, a day trader has little choice but to spend heavily on a trading platform, charting software, state-of-the-art computers, and the like. Ongoing expenses include costs for obtaining live price quotes and commission expenses that can add up because of the volume of trades. Be your own boss : To really make a go at it, a trader must quit his day job and give up his steady monthly paycheck. From then on, the day trader must depend entirely on his own skill and efforts to generate enough profit to pay the bills and enjoy a decent lifestyle. High stress and risk of burnout : Day trading is stressful because of the need to watch multiple screens to spot trading opportunities, and then act quickly to exploit them. This has to be done day after day, and the requirement for such a high degree of focus and concentration can often lead to burnout.

Swing Trading Pros and Cons.

Does not have to be your full-time job : Anyone with the knowledge and investment capital can try swing trading. Because of the longer timeframe (from days to weeks as opposed to minutes and hours), trades do not have to be constantly monitored. A swing trader can even maintain a separate full-time job (as long as he or she is not checking trading screens all the time at work). Potential for significant profits : Trades generally need time to work out, and keeping a trade open for a few days or weeks may result in higher profits than trading in and out of the same security multiple times a day. Constant monitoring not required : The swing trader can set stop losses in place. While there is a risk of a stop being executed at an unfavorable price, it beats the constant monitoring of all open positions that is a feature of day trading. Less stress and risk of burnout : Since swing trading is seldom a full-time job, there is much less chance of burnout through stress. Swing traders usually have a regular job or other source of income from which they can offset or mitigate trading losses. Expensive investment not required : Swing trading can be done with just one computer and conventional trading tools. It does not require the state-of-the-art technology of day trading.

Higher margin requirements : Since swing trading usually involves positions held at least overnight, margin requirements are higher. Maximum leverage is usually two times one's capital. Compare this with day trading where margins are four times one's capital. Risk of substantial losses : As with any style of trading, swing trading can also result in substantial losses. Because swing traders hold their positions for longer than day traders, they also run the risk of larger losses.

Day Trading or Swing Trading?

Day trading and swing trading each have advantages and drawbacks. Neither strategy is better than the other, and traders should choose the approach that works best for their skills, preferences, and lifestyle. Day trading is better suited for individuals who are passionate about trading full-time, and possess the three Ds—decisiveness, discipline, and diligence (prerequisites for successful day trading). Day trading success also requires an advanced understanding of technical trading and charting. Since day trading is intense and stressful, traders should be able to stay calm and control their emotions under fire. Day trading involves risk—traders should be prepared to sometimes walk away with 100 percent losses.

Swing trading, on the other hand, does not require such a formidable set of traits. Since swing trading can be undertaken by anyone with some investment capital and does not requires full-time attention, it is a viable option for traders who want to keep their full-time jobs, but also dabble in the markets. Swing traders should also be able to apply a combination of fundamental and technical analysis, rather than technical analysis alone.

Day trading and swing trading should both be left to experienced traders who can accept the risks of trading. Day trading is a full-time job that requires complete concentration and intense focus. Swing trading is far less demanding. It’s the appropriate choice for those who want to try their hand at trading without becoming totally immersed in it.

The Pros and Cons of Binary Options Trading.

Binary options trading is highly popular these days, drawing participants from every sector of the investment community to try their hands at the latest new way to trade. Obviously, there must be something rather unique going on with this investment vehicle to attract so much attention in so short of a timeframe. Beginners and seasoned veterans are both drawn to this new genre, indicating that the appeal is widespread and not some fluke of human nature. Where there is so much smoke, there must surely be a fire blazing for several reasons.

What exactly are the pros and cons of binary options trading? Here are a few “pros”:

First and foremost, there is a potential for a quick payoff . Where else can you get a 70% or more return on your capital in hours, if not minutes? Payoffs can actually be higher, and there is always a possibility for a rebate percentage amount if you guess wrong. Many brokers also offer special weekly “one-touch” options with astronomical payoffs in the 500% range. Simplicity is the next factor that is appealing. The decision tree is straightforward. You pick your asset class, expiration point, and amount of your position. All that is left to do is to pick the correct direction versus the targeted value provided by the broker. No other decisions are necessary, unless you want to take advantage of more complex betting strategies that your broker supports. Ease of execution is right next to simplicity. You do not have complex timeframes to consider, leverage decisions to ponder, or correlations to find. You set a few variables, look at how other traders are betting, and then execute from a single “dashboard.” No angst or anxiety over when to close a position is especially a benefit for beginners. It is easy to open a position in any investment vehicle, but the real test comes when it is time to sell. Most all investors stumble at this point, but binary options fix the endpoint for you. Adrenalin may flow, but you will not have to make a crucial decision late in the game, unless you elect to use more advanced features. There are no fees or commissions . The entire costs are borne by the spreads contained within the payoff/rebate structure. Risk management is not a problem because you set your risk tolerance at the pint of execution, based on the size of your position. There is no additional downside risk. Some brokers may vary the amount of the rebate they offer based on how close you come to the correct direction, but these amounts are just a few percentage points in the overall scheme of things. You will never get a margin call . You can only wager what is in your account. There are no decisions related to leverage or margin, no chance that, if the market moves against you and you do not react quickly, you may lose a small fortune in the blink of an eye. Most brokers offer a host of advanced features for more experienced traders, such that a beginner can grow as he learns the business. In other words, your mind can expand as experience grows , and there is always a higher level to ponder, once you have achieved a modicum of success at a lower level.

As with most things in life, however, binary options trading is not all “peaches and cream”, so to speak. Brokers are in this arena for the money. Make no doubt about that, and the preponderance of new weekly entrants in this field suggests that somebody has got to be making quite a bit of money off of someone else, which leads us to the following list of “cons”:

Current odds are highly biased in favor of the brokers . Competition from so many brokers trying to win your favor has improved the odds lately, but for a common payoff ratio of 70%, including a 15% rebate feature, a trader must still win 55% of the time to break even, let alone record a gain. This situation is often referred to as a “negative reward/risk proposition”. Your odds are better at a roulette table. The added “cost” pays for commissions, the simplicity of the investing format, and the limiting of risk exposures. High payoffs mean there is high risk . Short timeframes also mean that consistent predictions of market movements will be harder to come by. The majority of binary options brokers are in foreign jurisdictions , most likely an accepted “tax haven” where casino betting is a local industry. Due to the uniqueness of the trading platform and the back-office professionals required to operate binary option offerings, the preponderance of brokers will more than likely not include any of your existing brokers. If the “fad” continues and the traditional broker community begins to lose material business to these new entrants in the field, then we might see local brokers get into this business. Only time will tell if this happens. Most traders will want more trading tools to support their decisions. While binary option brokers provide a wealth of learning materials, commentary, and support, the primary “dashboard” does not present the tools that you may need to make a carefully guided investment decision. You can easily get caught up in what you see and react quickly, without checking your favorite indicators, Fibonacci levels, key support and resistance, or key patterns that might influence your judgment.

At the end of the day, binary options trading offers a high payoff potential with risk fixed on the front end. The best advice is to invest considerable time practicing on a free “demo” system before risking your hard-earned capital. Everyone may not be cut out for this fast-paced trading environment. Let caution be your guide!

In Archive.

One of the most popular trading vehicles to come along in quite a while has been Binary Options. Newcomers can now trade currencies, commodities, indexes, and some of the most heavily traded stocks from across the globe without the hassle of margin calls, stop loss orders, leverage, downside risks, or even complicated rules for prudent money management. This new “one-stop-shop” kind of investing removes confusing rules of the road and substitutes in their place a simplified trading platform, specific payoff and loss rules, and a continuous flow of opportunities hour after hour. This is why we at BinaryTradingWorld have fallen in love with binary trading. Our mission is to give you everything you need to start trading binary in a highly successful way!

Traditional brokers, unfortunately, do not routinely offer Binary Options. The proprietary trading platform is one reason, but the problem for investors is how do you find a capable and reputable Binary Options broker in such a new industry? With new entrants arriving every week, how does an investor locate the best of the lot? The answers to these questions are best found with support from industry professionals that have already reviewed the many offerings and narrowed them down to a few leaders. The brokers below have passed our “litmus test” and are worthy of your review:

Top 20 Trading Tips when trading binary options.

Success in trading binary options, however, is not assured, even if simplicity is the name of the game. Market knowledge, experience, and controlling one’s emotions are still the three factors that must be mastered, but the importance of the latter item, emotional control, has been greatly reduced due to the general structure of the process.

Preparation, strategy development, and execution remain key activities that all require an investment of time to build proficiency. Here are a number of trading tips, segregated into these three categories.

Preparation.

Which genre is best for you – currencies, commodities, indexes, or stocks? It is best to choose one and focus your studies on a single arena; Research your chosen area extensively, reading articles on the Internet, related commentaries on market action, or books on the topic. Knowledge is power in the world of investments; Take advantage of online tutorials and support materials provided by your broker. Enroll in a formal class in your local region, often provided by brokers for free in their continuing search for new clients; Prepare a daily calendar of events for economic releases and other scheduled activities. Your broker will be one source, but there are many sites on the Net that specialize in this process; Understand and follow various market correlations in your chosen area that may give hints as to market direction.

Strategy Development.

Seek advice from a “mentor” or industry professional. The only shortcut for experience is to “borrow” hard-earned insights from another; Develop a straightforward decision-making strategy that you will follow to the letter before entering into any binary option contract. Avoid complex strategy suggestions until you are comfortable with this medium; Practice on free demo systems to perfect your strategy, modify it based on experience, and build confidence before you trade real time; Continually review the Internet for new trading ideas. Binary options are in their early development stage. New ideas will be common; Experiment with new ideas during your practice sessions. The nature of the market is that what works one day may not work the next. It is best to have several strategies that have been tested to allow for greater flexibility.

Never risk more money than you can afford to lose on binary options; Never trade when you are in emotional turmoil. It is best to have a positive attitude that can focus on the task at hand; The size of your position should not exceed 3% of your account value. Losing streaks will occur. You need to have sufficient room to lose in order to benefit when the “tide” reverses direction; The second rule of prudent money management is that you never have more than 2 to 3 transactions at play at any one time. Focus is key; When you start to trade in real time, start with small positions. Your emotions must adjust to the possibility of a real loss. You might as well keep these losses small during your initial introduction; Keep a journal listing each of your trades. On the weekend, review your results to determine the clear causes for both winning and losing trades; As they say on Wall Street, “Don’t fight the tape!” Your emotions may push you to buck the prevailing trends in the market, but your probability for losing is enhanced under these circumstances; Losing is part of the game. If you have three losses in a row, walk away from your trading desk and take a break. After calm is reached, return invigorated, but only if you are feeling confident; Always trade in your chosen arena when liquidity is highest; If you miss a big market move, determine why you missed it, and then realize that there is always another opportunity just around the corner.

These tips are common sense, designed to keep you in the game to benefit from a future move in the market. Keep in mind that enjoying the process is also important, too!

Forex Trading Pros And Cons.

The first decision a new trader has to make is which market to trade.

Stocks, futures, mutual funds, options, exchange traded funds are all good candidates but unfortunately require trading accounts that are too large, at least initially, for many beginning traders.

For these traders the foreign exchange market (Forex) may be the best starting point.

Is Forex trading profitable? Let’s look at the pros and cons of Forex trading.

The Plus Side Of Forex Trading.

High Trading Leverage.

This is the big advantage and profit of the Forex for many traders. Brokers will allow traders to take trades with up to 50:1 margin (country dependent).

Compare this to the stock market where the broker may grant you 2:1 margin. With a small account you can control a large trading position in Forex and when you have a winning trade the payout can be huge.

“Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, that money is usually borrowed from a broker.” – Investopedia.

Unfortunately high leverage also means high risk and we’ll cover this when we talk about the Forex trading cons.

Ability To Scale.

One of the most attractive features of Forex is that you have great flexibility in position sizing which makes the Forex trading profitable. Most brokers allow you to trade full sized lots, mini lots or micro lots.

Trading full sized lots each pip in a USD pair is worth $10, Trading minis each pip is worth $1 Trading with micros each pip is $0.10.

Depending on the size of the trading account this allows the trader to control and limit his risk.

For example when entering a Forex swing trade with a 500 pip risk the trader can limit his risk to $500, or $50, or as little as $5 depending on the type of position taken, so even a small account can take advantage of large moves in the currencies.

Around the Clock Forex Trading.

No matter where you live or what hours you work the Forex market is up and running. As long as you have a computer and an internet connection you can trade.

Low or No Fees.

Most brokers don’t charge commissions on Forex trades. Instead they are compensated by taking the spread between the bids and ask on the buy side.

Depending on the broker, currency pair and time of day this can be as low as one or two pips, although it can go significantly higher. Of course the impact of this pricing will depend on the size of the trades you take.

A one or two pip spread is quite modest when taking a 100 pip trade, but can be significant if scalping five or ten pips on each trade.

Free Trading Software and Data.

Almost all Forex brokers provide free real time Forex data, free charting, and trading software. Traders can obtain the free MetaTrader platform and a demo account from most brokers, and once ready can open a funded live account and continue to use the same software. This is not the case with most other trading instrument types, so this is a big plus for Forex traders.

Free Web Resources.

A search on the internet brings up page after page of resources for the Forex trader, including brokers, educational materials, calculators, software and manual strategies, etc. Some of these are quite good and can help the new trader learn about this market, others unfortunately are scams or sales pitches. Buyer beware!

The Downside Of Forex Trading.

High Leverage.

The dark side of high leverage is high risk. Sure a trader can tally up huge wins using 50:1 margin, but what happens when the first losing trade comes along?

The broker will in all likelihood force an exit to the trade and the trading account will be wiped out.

The fact that brokers are offering insane margin levels doesn’t mean that they should be used. The key to surviving and thriving in the Forex markets is being able to survive a series of losing trades. No matter what system is being used, losing trades will come, and they will come in streaks of three, four, or more losing trades in a row.

The prudent trader will therefore limit the amount of his trading capital that he risks on each and every trade.

Our recommendation is to risk no more than 2% of the trading capital on any single trade. By limiting the risk on each trade even a series of ten losing trades in a row won’t destroy the trading account, instead the account will only suffer a 20% drawdown which, while still painful, can easily be recovered.

And thanks to the scalability of Forex trading, everyone, even traders with small accounts, can control the risk they assume with each trade.

Around the Clock Trading.

Just because Forex can be traded 24 hours a day doesn’t mean that it should be traded 24 hours a day.

The reality is that markets move differently throughout the day: at peak hours moves can be large and have follow through; at off-peak times price will chop around with little direction.

As it turns out each time zone has its own trading session, from the Asian to the UK and the US, and each of these tends to exhibit the most activity during the early parts of the trading session.

Instead of just trading any old time of the day the successful trader will observe the major markets in his time zone and focus his trading on their peak hours.

No Centralized Exchange.

Unlike stocks or futures the Forex market has no centralized exchange or clearing house.

Instead each broker acts as its own exchange and the broker in effect becomes the market maker. This can lead to abuse on the part of the broker or worse.

Fortunately regulations in major markets like the US have greatly reduced the risk but some traders still get drawn in by brokers from locations with little or no regulation and get scammed.

Because of the lack of a centralized exchange we also see price variations from broker to broker. When dealing with major brokers in well regulated countries these differences will be small but traders need to be aware of this fact especially if their charting data provider is not the same as their broker as it can lead to inconsistencies between intended and actual execution of trades.

Competition.

The major traders in Forex are the large financial institutions. They have departments staffed with highly paid traders and millions of dollars invested in the best trading software and hardware.

That’s the competition for the individual trader, and these large institutions can push prices around (within limits of course) simply because of the volume that they control.

The best way for the individual to compete is to use a well-tested and profitable trading strategy, tight risk management and a focused and disciplined attitude towards the business of trading.

Trading Forex can be a very profitable business for the individual trader, but like every high reward business it also has significant risks. Research and study the markets and paper or demo trade before placing your first live trade.

And put the odds in your favor by trading with a large reputable broker in a well regulated country, and maintaining focus and discipline while trading a tested strategy with solid risk management.

OptionsHouse Review: Pros and Cons.

Is OptionsHouse a Smart Choice for Beginner Investors?

OptionsHouse is one of the lesser known online brokerages, but we think it deserves attention. Read our in-depth review to see if it's right for you.

12/8/2017 Update : We're sorry, OptionsHouse is no longer available on CreditDonkey. This offer may have been discontinued or may no longer be available to new customers.

Overall Score.

Stock Trading.

Options Trading.

Mobile App.

Commissions and Fees.

Ease of Use.

Trading Platform.

Pros and Cons.

Low fees Trading platform Extensive options tools Limited mutual fund selection Limited in-depth research Complicated for novices.

Bottom Line.

Cost effective trading platform for experienced investors.

OptionHouse's fee structure is among the lowest around, and the platform offers great support for investors wanting to get into options. This more complicated investment type is often overlooked or marginalized by some of the more mainstream platforms.

But beginners beware: the site isn't as user friendly for anyone without a solid background of investment experience and knowledge.

Benefits: Why We Like It.

Low Fees : Most trades on the OptionsHouse platform will cost you $4.95, which is on the low end of the spectrum for transaction fees charged by online brokerages. For those looking to trade options, there is an additional 50 cent fee per contract, but that's still lower than competing low cost brokerage Ally Invest's 65 cent fee per contract.

Mutual funds trade at $20, but the broker doesn't provide any mutual funds with no transaction fees.

Opening an account with OptionsHouse is also easy and cheap. There are no required minimum deposits for trading, although the company recommends at least $1,000. Opening a margin account does require a minimum deposit of $2,000 to get started.

Virtual Trading Platform : Beginning investors can take advantage of the Virtual Trading Platform and virtual broker bucks immediately upon signing up for an account. This feature lets you pretend-invest up to $5,000 in securities to learn the ropes of investing before risking real money. It's a nice way to get introduced to the world of investing.

Options Trading : Given its name, you'd expect OptionsHouse to be particularly useful for options trading, and for the most part that's true. There are a number of investment tools on the site to help you track investments you're interested in and execute trades, and the comparatively low cost per contract for options investing makes this an attractive brokerage.

Low cost IRA Accounts : When it comes to individual retirement accounts, OptionsHouse provides one of the lowest cost solutions around. Investors can choose between a Traditional, Roth, SEP, or Educational IRA, all with no setup or maintenance fees. However, the broker will charge you a $60 fee if you decide to close your account.

An OptionsHouse IRA makes sense for investors who plan to fund their retirement primarily through stock and options trading. Those who would like to build a portfolio with mutual funds should consider another broker.

Disadvantages: Why You Might Want to Look Elsewhere.

Research : There's not much in the way of research tools. The tools provided by OptionsHouse are fine if you already have a general idea of the type of security you want to purchase, but if you're looking for more guidance or need the input of investment professionals, you'll probably have to look to third-party sources like Morningstar and Bloomberg.

The broker does offer webinars on investing, and users can take advantage of OptionsHouse's sister site OptionsMONSTER and its ResearchLAB platform, but it lacks significant third-party research. Also, it doesn't make it straightforward for an options newbie to get up to speed. New investors may be better off using another online brokerage that caters to them with in-depth "how to" videos.

Limited Availability of Mutual Funds : OptionsHouse doesn't have a great selection of mutual funds available for purchase through its site.

Not Beginner Friendly : Despite the Virtual Trading Platform and $5,000 in virtual dollars, there's not much else in the way of assistance for new investors. They can test whatever knowledge they do have in the Virtual Trading Platform and start playing around with trades, but those who feel a need to read up on the basics before getting involved might find the platform unhelpful and perhaps even intimidating.

Who It's Best For.

OptionsHouse is a great choice for investors with experience, and it's an especially good choice for those who want to get involved in options investing. It has low prices and no hidden charges that are going to eat up the money you earn.

Beginners should be wary, though - to get the most out of the platform, you'll need at least a basic understanding of the different types of securities, an idea of what you're looking to invest in, and a list of third-party financial sites that you trust for reference.

TRADING PLATFORM.

OptionsHouse uses a customizable trading platform that can show as much - or as little - information as you want. This flexibility will be helpful for first-timers who might be overwhelmed by the amount of real-time information flying across their screen.

The platform comes with a number of proprietary tools meant to help traders quickly find and purchase new investments. Unfortunately, several of these tools (like the Trade Generator) are more for trading options than for stocks, ETFs or mutual funds.

These tools are mostly intended for investment tracking as opposed to discovery. They're useful in helping you evaluate a specific stock or ETF or deciding between two similar companies, but they are not as great if you're doing more general research and don't yet have a clear idea of the stock or ETF that you'd ultimately like to invest in.

MOBILE APP.

The OptionsHouse free mobile app is available on Apple and Android devices and lets investors make trades, set order quantities and get real-time information. The app is well designed, easy to use, and was rated four and a half stars by Barron's.

CUSTOMER SERVICE.

OptionsHouse provides customer service on weekdays from 7 a. m. to 7 p. m. Central Standard Time. During those hours, you can call, or live chat. During other times, customer support is limited.

How it Compares.

TradeKing (now Ally Invest) : Another lesser known online brokerage with a very similar fee structure, Ally Invest has some more support for beginning investors and more robust research tools. A big point in OptionsHouse's favor, though are lower per contract fees on options trades (50 cents vs. 65 cents at Ally Invest).

OptionsHouse vs Scottrade : Scottrade charges more to trade stocks and options, but you get an easier to use platform, banking services, and over 500 branch locations to help you out.

No review of OptionsHouse would be complete without taking a look at two of the most popular online brokers: E-Trade and TD Ameritrade.

BOTTOM LINE: Why OptionsHouse.

To review, here are the pros and cons when considering OptionsHouse:

Virtual trading platform.

Limited mutual fund selection.

Lack of in-depth research/education.

Options trading might be too complicated for novices.

When it comes to costs, few can compete with OptionsHouse. This discount broker is built around the idea that it's not how much money you make, it's how much money you keep. This low-cost emphasis has helped OptionsHouse stand out in an increasingly crowded marketplace of online brokers.

The broker offers some of the lowest rates on stocks, ETFs, mutual funds and retirement accounts. It's also one of the largest options trading firms in the country, so you can get a lot of investing done through its site.

OptionsHouse's lack of research and limited range of offerings make it hard to recommend as your sole brokerage account. Instead, OptionsHouse works best as a companion to a larger broker like E-Trade or Scottrade, which will give you access to significantly more investments for higher commissions.

Still, for a new trader, OptionsHouse is great way to test the investment waters, especially with the Virtual Trading Platform. And as you learn more, you'll likely want to explore other, well, options for your investment future.

12/8/2017 Update : We're sorry, OptionsHouse is no longer available on CreditDonkey. This offer may have been discontinued or may no longer be available to new customers.

Disclaimer: Opinions expressed here are those of the author's alone. Please support CreditDonkey on our mission to help you make savvy financial decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.

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