eOption review 2023: should you sign up with this broker?

eOption is an American-based brokerage trading company that started operating in 2007. However, its history is older than that. Its parent company, Regal Securities, came onto the scene in 1977.

eOption is a proud member of the FINRA (Financial Industry Regulatory Authority) and the SIPC (Securities Investor Protection Corporation). Being around for all these years, eOption has found a prominent spot among the top options trading brokers.

eOption homepage

eOption is famous for providing low-cost trading offers and fast order execution services to traders. Want to hear something amazing? In 2021, NerdWallet and Investopedia named it the best broker for options trading.

What are eOption regulations?

When I visit any broker’s website, I look for the regulations page. This was easy to find on eOptions. Let’s see what I found.

When you scroll to the bottom of the homepage, you’ll find the broker’s regulations. This is where we learn that eOption’s parent company, Regal Securities, is a member of FINRA and SIPC. They score 5/5 when it comes to regulations.

eOption regulations

How does eOption work?

You are now aware of what eOption is and its regulations. So, how does it work? Spoiler: You can trade forex. Let’s find out more.

The broker specializes in options trading, but you can trade several other assets too. There are a lot of tradable assets you can find on eOption. Here’s a snapshot of the assets available:

Stocks

• Chipotle (CMG)
• Roku (ROKU)
• Apple (AAPL)
• Nvidia (NVDA)
• Meta Platforms (META)
• Alphabet (GOOGL)
• Ford Motors (F)
• Exxon Mobile (XOM)
• Boeing (BA)
• The Walt Disney Company (DIS)
• Intel (INTC)
• Advanced Micro Devices (AMD) and many more.

Besides main stocks, there are also penny stocks, but you need to call eOption to trade penny stocks.

Bonds 

• Corporate
• Municipal
• Treasury
• CDs

In addition, the broker provides;

• Mutual funds
• Simple and multi-leg options

eOption does not allow traders to trade forex, commodities, and cryptocurrencies. It makes eOption a deal breaker for several traders.

How does the eOption platform work?

I liked the eOption trading platform. It was different from any other platforms I used. I want to tell you what the platforms available are and what features they have. Let’s dig in!

eOption has four trading platforms. These platforms are:

1. The eOption web portal

The web portal provides trader options, quotes, and streaming equity percentages. It also provides traders access to the latest financial news, OptionsPlay, trade ideas, daily charts, and strategies. I just loved the OptionsPlay feature.

OptionsPlay feature

2. Sterling trader pro

Sterling Trader Pro is a multi-purpose trading platform. eOption built this platform with the help of pro traders. Sterling Trader Pro provides direct electronic access to all exchanges.

Sterling Trader pro

3. DAS

The DAS platforms come in web and pro versions. Both versions integrate advanced analytics, multi-asset trading, and portfolio management into a single trading platform. They also provide

• straightforward market data
• order input panels
• real-time streaming news
• a customizable interface

DAS pro platform

4. eOption mobile

eOption has developed its mobile application to be intuitive for first-time traders by making it easy to understand and user-friendly. It provides faster transfer reliability, speed, and extended functionality.

eOption mobile app

eOption provides traders with easy-to-use option strategies. Here are some of the strategies eOption offers its traders.

• Bear Call Spread
• Bear Put Spread
• Bull Call Spread
• Bull Put Spread
• Cash-Backed Call
• Cash-Secured Put
• Covered Call
• Covered Ratio Spread
• Covered Put
• Covered Strangle
• Long Call Calendar Spread

As recommended by eOption, I used the covered call strategy initially. This strategy is more convenient for first-time traders. It allows the trader to buy or sell assets and write the call options equal to the amount earned without additional risks.

What trading tools are available on eOption?

eOption provides traders with five different trading tools:

OptionsPlay

OptionsPlay provides unbiased historical analysis. It analyzes thousands of stocks to give you the overall market trend. It also provides the trader with technical signals for buying or selling the asset. I think it simplifies options trading so you can find a strategy that works for you.

Auto-Trading

Auto-trading is one of the most famous trading tools eOption provides. As the name implies, the tool helps you to trade assets automatically. It finds the right proportionate time and interval for the trade and then sells or buys the asset contract.

eOption provides auto-trading through newsletters. Most newsletters are free for the signed-in traders, but a subscription fee is charged for third-party newsletters.

Direct Access Trading

Direct Access trading (DAT) is the second most commonly used tool on eOption. The tool allows active traders to look for reduced-cost assets and all-size trading operations. DAT allows the trader to trade directly with another trader.

eOption provides the trades with four different account types. These are cash accounts, individual retirement accounts (IRAS), corporate accounts and paper trading accounts.

Cash accounts

eOption cash accounts come in various forms including individual broker accounts and joint accounts. These trading accounts come with a trade condition. The trader must top up the balance within 60 days after activating the account. In this trading account, US traders are allowed to deposit $1, however, international traders need a minimum deposit of $25000.

Individual retirement accounts (IRAS)

eOption offers traders a savings account. This account is useful for planning a requirement package and higher education. It has several subtypes:

• Rollover
• Traditional IRA
• Coverdell Education individual accounts
• SEP — small business-based requirement accounts

Corporate accounts

These accounts are business accounts.  You can open these accounts if you have a corporation or an LLC. There are three types of corporate accounts:

• Corporate
• Partnership
• LLC.

A general set of steps to open an account on eOption are:

1. Visit the official eOption website https://www.eoption.com/.
2. On the main page, click on the Open Account button.
3. Enter your email address, choose your account type and create a password for your account.
4. Wait for one to two days for account activation.
5. Enter your name, address, date of birth, and the employer’s name, address, and telephone number in the registration form.

If you are a US resident, you must provide a taxpayer identification number. When I opened my account on eOption, I was living in the US but as I am not an official US resident, I was not eligible for the taxpayer identification number.  If you are a non-resident, you must provide a government-issued ID with a photo and the exact place of residence.

Also, international traders must fill in and mail the original form, bank statement, or utility bill for address and name confirmation. Citizens of the following countries can open an account with eOption:

• Austria
• Australia
• China
• Germany
• Ireland
• Luxembourg
• Mexico
• Netherlands
• New Zealand
• Singapore
• South Africa
• Switzerland
• United Kingdom (England, Northern Ireland, Scotland, and Wales)

I used the individual account for trading because, to me, it was easier and simple. You don’t want much hassle, right?

Does eOption offer a demo account?

You now know about the different account types that eOption offers. Here’s another good thing — eOption also offers a demo account. The broker calls it a paper trading account. Here you can get $100,000 virtual cash.

As I mentioned earlier, eOption’s parent company Regal Securities is a member of SIPC and FINRA.  As a member of these regulatory bodies, eOption offers a complete, secure, and safe trading experience for traders.

It can cover the trader’s net equity up to $200 million. So, nothing to worry about, we can tick that box. Regarding the security of the platforms, there is a two-factor authentication on the web and mobile platforms.

The broker’s address is 950 Milwaukee Ave, Glenview, IL 60025, United States.

eOption location

Who owns eOption?

I told you about the company ownership earlier. Do you remember? Let’s find out.

eOption is a subdivision of a security company. Regal Securities, Inc. owns eOption. It is a US-based security agency.

eOption deposit methods are

• Wire Transfer
• Electronic transfer (ACH)
• Check
• Account transfer
• Stock certificate

The minimum deposit amount for the eOption account for US residents is $1. For international traders, it’s $25,000. To deposit money into your account:

1. Click the “Fund your account” button
2. Choose the preferred deposit method from the list of earlier deposit methods mentioned
3. Enter the method information and hit enter
4. Boom, you have now deposited on eOption

If you are using the check deposit method, it may take up to three days for authorization.

How to withdraw funds from the eOption account?

eOption withdrawal methods are simple, convenient, and familiar because the withdrawal methods are the same as the deposit methods. Want to know more? You can withdraw your asses by using the following methods”

• Wire transfer
• ACH wire transfer and
• Checks

You cannot withdraw your assets via e-wallets or credit/debit cards. Withdrawal requests can only be submitted before 11:00 am EST. You can process requests on the same day.

The withdrawal is free for the auto clearinghouse, but there is a charge of $35 if you return the request. To withdraw money into your account

1. Click the “withdraw funds” button
2. Choose the preferred deposit method from the withdrawal list, as mentioned earlier
3. Enter your details and hit enter

eOption payment methods

You can mail eOption at their registration address: 950 Milwaukee Ave., Ste. 102 Glenview, IL USA 60025

You can also contact the eOption official helpline at 1-888-793-5333. This helpline number is only available for US residents. For international traders the helpline is 1-847-375-6151.

I have contacted the helpline several times. One time I was facing a problem with trading orders on the platform. I contacted the eOption helpline and the helpline staff gave me the proper order selection guide for the trade.

All you need to do if you are having problems, is call the helpline and explain your situation to the helpline staff. The helpline staff will help you resolve your query and give you the right trading advice.

The eOption representatives are available from Monday to Friday from 8 am to 6:30 pm EST. You can also fax your trading query to 1-877-367-8466.

eOption contact page

eOption’s promotional codes are available on their website. They vary from time to time, so you should keep checking back. I am very fond of these promotional services. In 2018, after using the eOption platform for six months, I got my first promo code. It offered me a 20% discount on every $100 or above asset purchase for a single time.

This is amazing, right? eOption also offers traders promo code offers via email, so don’t forget to read your email. A third place to find these promotional services is on other verified coupon websites, however beware of fraud coupons!

Does eOption offer bonuses?

To get maximum user interaction, brokers often offer bonuses. eOption offers bonus offers. Want to know about these bonuses? Let’s take a look at them.

eOption offers the traders a refund fee of up to $100 on account relocation from other brokerage companies. On full account relocation, this can be increased to $2,500. I once referred eOption to one of my friends and got $2,000 in return.

That’s insane, right? You can get this $2,000 if the referral deposits a total of $2,000 into their account within the first 15 days of account activation.

eOption charges tax on every trader’s profit. The tax form and schedule are sent to the trader via mail. A 1099 Composite for the eligible accounts is sent to the traders. The tax is deducted according to the trader’s asset profit.

eOption tax info page

I signed up with eOption in 2017. The main reason I opened my account on eOption was because of its focus on options trading. Note: You must be a US citizen to open an account online. More about that later.

I opened an account and deposited $2000, and the fees were surprising. They are lower than some of the competitors. The platform was intuitive and easy to navigate. However, I did notice that it could be a bit scary for beginners. This broker is more suitable for advanced traders.

I started using the web platform and enjoyed all the features. So, that was my experience with the broker. Let’s see what others say:

Is eOption free?

Yes, eOption allows you to open an account with zero dollar deposit. Also, the broker offers a demo account, aka a paper trading account. The account comes with $10,000 virtual cash, which you can use for free.

Does eOption paper trading have a mobile app? 

Yes, eOption has a mobile app for paper trading. You just need to download the app from the Apple or Play store, and you can sign up for the paper trading account.

Can I trade Pink Sheet stock through eOption?

eOption doesn’t allow Pink Sheet stocks. However, you can trade penny stocks.

Can I trade options in my IRA?

Yes, eOption allows options in IRA accounts. Trading options in IRA accounts can provide additional tax-free income, but it takes investment skills and is unsuitable for most individuals.

Final thoughts

So, there you go!  We have covered everything about the broker. While I do not deny that eOption is an excellent broker choice, it is only for options trading. If you want to trade other assets like cryptocurrency and forex, you must look for another broker and pay attention to taxes.

Also, the broker isn’t available in many countries. So, while the broker shines in regulations, lower margin rates, educational resources, and trading platforms, it lacks tradable assets and has limited availability.

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