OptionsXpress Fees and Commissions
We created our optionsXpress fee analysis presented to you in the following article with you in mind detailing some of the main charges that you need to know about as well as be aware of before you begin trading.
OptionsXpress by Charles Schwab platform fees could be challenging to understand at first but in our overview below we do our best to simplify this process for you.
In the past, optionsXpress fees have been a little bit higher for stock transactions. However, recently the company has lowered it's stock commissions in order to to bring the trading fees in line with other discount brokers.
The company also makes it easier for investors to diversify their portfolios as well as consolidate investment funds by offering close to 5,400 no-load mutual funds.
OptionsXpress made a name for itself by offering futures as well as options trading. However you can also trade mutual funds, stocks and ETFs by using optionsXpress as your brokerage firm. In order to learn more about fees charged by optionsXpress please read our quick overview below.
OptionsXpress Trading Fees
It's fair to say that OptionsXpress Fees are not the cheapest. If you trade very small volumes, then the higher trading fees could prove to be costly. If you happen to trade in very high volumes then the relatively high fee per contract will also prove to be expensive. Medium volume traders the ones that are probably getting the best value for their buck, but there are still cheaper online trading services out there. However, this broker does have a lot to offer and you shouldn't necessarily rule them out judging by the trading costs alone.
It should also be noted that OptionsXpress doesn't have a minimum deposit amount for opening an account with the company. There is no charge for assigning or exercising options which is something that most brokerage firms will charge a fee for. Broker assisted trades are available as well for the relatively low cost.
OptionsXpress Broker Fees
OptionsXpress recently dropped its base fee for stock and ETF trades to $4.95 in order to have more competitive fee structure with other discount brokerage companies.
They have also dropped the cost of options to $0.65 per contract, on top of the base. The company also offers penny options for a $4.95 flat rate if you trade between one and 10 contracts. When you trade more than 10 contracts, it goes back to a rate of $0.50 per contract.
Futures contracts cost of $3.50 per contract. Bonds are also available for purchase with a minimum order of $9.95 for $5.00 per bond.
Mutual funds are available for $9.95, plus a load fee. In order to keep your trading transaction costs down, it makes sense to look for no-load funds in order to avoid paying the load. Please keep in mind that you will still be charged for the expense ratio on top of other fees for mutual fund trading.
OptionsXpress Commissions
The truth of the matter is that optionsXpress is not the cheapest online brokerage company out there and if you are only looking to minimize your trading cost it might not be the best suited for your needs.
However, if you are willing to spend a little more in order to gain access to a wide range of powerful trading tools then optionsXpress is definitely a worthwhile option to consider. Our humble opinion is that what this broker has to offer is of great value for any online trader and that the higher cost is justified.
OptionsXpress Margin Account
Finally, no optionsXpress Fees Review is complete without covering the margin account. You can open a optionsXpress margin account even if you don’t fund it right away. The rates start at 6 percent for accounts of $1 million or more, and go up to 8.25 percent for smaller accounts.
Please be aware that if If you currently have a Charles Schwab online trading account, you can access the optionsXpress trading platform with the same login information. Otherwise, you will need to create a new account. It’s a fairly easy and straightforward process and it doesn’t take too long to setup.
Our Conclusion
OptionsXpress by Charles Schwab offers a comprehensive trading platform at a very reasonable cost compared to other trading services out there that is well suitable for beginners, advanced traders as well as seasoned market trading professionals.
OptionsXpress has a legacy of offering versatile trading services with a lot more investment options with very competitive fees when compared to some of the other online discount brokerage firms.