Is OptionsHouse Scam? Is OptionsHouse Safe and Legitimate Brokerage Firm?
Are Money and Investments Protected?
Readers sometimes ask me the following questions: Is OptionsHouse a fraud? Is it safe to use, keep money and investments at OptionsHouse? Is OptionsHouse FDIC/SIPC insured?
The short answer is that OptionsHouse is a very
safe, legitimate online broker. I have had account with the firm since 2009 (my job is to review online brokers), never had any problems,
and also transferred one of my IRA accounts to this company.
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.
It means that brokerage accounts are insured by the government 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, LLC was founded by PEAK6 Investments, LP in 2005.
OptionsHouse utilizes tools and methods derived from PEAK6′s extensive trading platforms; the same state-of-the-art 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: A-
Total Closed Complaints - 17: Problems with Product/Service - 15, Advertising/Sales Issues - 1, Billing/Collection Issues - 0, Delivery Issues - 1, Guarantee / Warranty Issues - 0.
OptionsHouse offers very low stock/ETF/option/mutual fund commissions:
$4.75 per trade for stocks and ETFs, and $10 for no-load mutual fund transactions. Read more about the company in
Get 100 commission-free trades at OptionsHouse.
This article was updated on 11/06/2013.