Is OptionsHouse Scam? Is OptionsHouse Safe and Legitimate Brokerage Firm?
Are Your Money, Assets and Investments Protected?
Is OptionsHouse Safe?
Over the years some of Brokerage-Review.com readers asked us the following questions:
- Is OptionsHouse a scam?
- Is OptionsHouse safe firm to keep money, assets and investments?
- Is OptionsHouse FDIC/SIPC insured?
- Is it a member of FINRA/SIPC?
We get these questions for ALL brokerage firms, even for the largest brokerage houses such as TD Ameritrade or Fidelity Investments, and
OptionsHouse is not an exception.
The short answer to all these questions is that OptionsHouse is a very safe, legitimate investment firm. We have had account with them since
2009 (our job is to review online brokers), and never had any problems. We also transferred one of our IRA accounts to this company - which shows
the level of our trust and comfort with the firm.
OptionsHouse Inc. is a member of FINRA/SIPC. FINRA (Financial Industry Regulatory Authority - http://www.finra.org)
is the largest independent regulator for all securities firms doing business in the United States. Its chief role is to protect investors by
maintaining the fairness of the U.S. capital markets.
SIPC (The Securities Investor Protection Corporation - http://www.sipc.org) either acts as trustee or works with an independent court-appointed
trustee in a missing asset case to recover funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all
non-negotiable securities that are already registered in their names or in the process of being registered. SIPC is an important part of the overall
system of investor protection in the United States. While a number of federal, self-regulatory and state securities agencies deal with cases
of investment fraud, SIPC's focus is both different and narrow: restoring funds to investors with assets in the hands of bankrupt
and otherwise financially troubled brokerage firms.
The membership in these organizations means that all OptionsHouse's clients accounts are insured in case of brokerage firm failure, very similarly
to the way bank accounts are insured by the FDIC. The insurance is limited to $500,000 per customer, including up to $250,000 for cash.
OptionsHouse was founded by PEAK6 Investments, LP in 2005. The firm utilizes tools and methods created by PEAK6′s trading platforms -
the same technology used to trade large-scale positions on every U.S. exchange.
PEAK6 Investments, LP was founded in 1997 and is headquartered on the original Chicago Board of Trade trading floor. PEAK6 Capital
Management LLC, an affiliated market making and proprietary trading firm, is a provider of liquidity to the options market.
OptionsHouse BBB Rating
After 2014 merger with TradeMonster, OptionsHouse is now doing business as OM Securities. OM Securities/OptionsHouse BBB (Better Business Bureau)
Rating is A+ (link).
Total Closed Complaints - 31: Problems with Product/Service - 15, Advertising/Sales Issues - 4, Billing/Collection Issues - 9, Delivery Issues - 2,
Guarantee / Warranty Issues - 1.
OptionsHouse offers very low stock, ETF, options, and mutual fund commissions: $4.95 per trade for stocks and ETFs, $4.95 plus $0.50 per contract
for options, and $20 for no-load mutual fund transactions.
Read more about the company in OptionsHouse Review under this link.
Promotion for New Accounts
Trade Free For 60 Days when you Open a New OptionsHouse Account.
Updated on 1/28/2016.