Scottrade Options First Review
- Discount Stock Broker:
Scottrade OptionsFirst options trading platform offers multiple tools, including enhanced charting and free online classes, to educate investors to become better options traders. The commission for options trade is $7 plus $1.25 per contract. OptionsFirst requires $500 minimum to open an account and there's no account minimum and no monthly fee.
As I have discussed many times here before, I am using Scottrade as my main broker for stocks and ETFs trading. For that, Scottrade has multiple platforms that make trading easy for investors, whether you are at home (ScottradeElite stand alone platform), away from your residence (Scottrade web interface), or on the go (Scottrade mobile app for iPhone and Android). But Scottrade isn’t just a stock broker. If you are an options trader, Scottrade also has another platform just for that. It’s called Scottrade OptionsFirst.
Scottrade OptionsFirst Commission Rates and Fees
When I researched for my stock brokers, the first thing I always looked at was the cost of trade, i.e., the commission for making a trade online. I use Scottrade for most of my stock trades, but to be fair, it doesn’t have the cheapest commission among popular discount brokers. For example, the cost to make one stock or ETF trade online, buy or sell order regardless the number of shares, is $7 at Scottrade, which is higher than what other brokers, such as TradeKing and Options House, charge. The same thing can be said for Scottrade options trading. Currently, Scottrade charges $7 for options orders per ticket plus another $1.25 per contract, no matter how many legs are involved. And with Scottrade OptionsFirst, there is no volume requirements and no monthly minimums. Of course, there’s also no hidden fees or account maintenance fees. You can open an OptionsFirst account with only $500 initial deposit for cash account or $2,000 for margin account.
Scottrade OptionsFirst Trading Platform
As I mentioned above, Scottrade offers more than one platform for stock trading, which is very convenient. For options, Scottrade OptionsFirst is the web interface where trading takes place. Like its counterpart for stock trading, OptionsFirst is also full of features that include:
- Easy navigation: Finding your account information is easy in OptionsFirst, where you can see your account balance, current positions and detailed quotes. The three navigation tabs in OptionsFirst, Account Info, Powerful Options Chains and Tools, make it very easy to go from one task to another.
- Enhanced research tool: With OptionsFirst, you can easily compare your target stock against benchmarks as well as its peers. Scottrade Enhanced Charting tool also lets you customize your research with different time frame, chart type and various indicators.
- Unlimited watch list: Whether you want to keep an eye on just one stock, or many of them, you are able to monitor unlimited stocks and track number of contracts at the same time in Hot List and Watch List in OptionsFirst.
- Fast execution: Options trading in Scottrade OptionsFirst is fast and accurate with its Point-and-Click execution system. Before placing your order, you can easily configure it with Scottrade Smart Order Tickets and view the Execution Report for status of your order once it was filled.
- Virtual Trading: If you are a new options trader, before using real money in real trades, you can practice the techniques you just learned with Scottrade Virtual Trading, a tool that lets you practice and test the market in real-time, but with virtual money instead of real money. With the virtual trading, you won’t lose anything but do gain valuable experience that will help you in real trading when you are ready.
- Free education: It doesn’t matter whether you are a new or experienced options trader, there are free educational resource available to help you become a better investor. With contents from The Options Industry Council, you can learn both basic options trading strategies and advanced trading techniques. Free online options classes are also available to enhance your knowledge.
I am also new to options trading and there are plenty for me to learn. As I know more about options trading in general and Scottrade OptionsFirst in particular, I will share my experience. But right now do you think Scottrade OptionsFirst is the right tool to trade options?
- $7 + $1.25 per contract
- editor rating4
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