OptionsXpress Australia

[Mofra]

Howdy,

Whilst browsing I happened upon this online broker, and seem to remember one or two regular posters have some experience using this broker for trades both in Australia and the US.

Does anyone use this company and if so are they happy with the service?

Cheers

 

[sails]

Hi Mofra,

I've found them OK for the Aussie market and mainly trade options. Here are the pros and cons as I see it:

Competitive pricing, however, it is based per contract for options so could be more expensive than a percentage based fee on small priced shares if trading large quantities.

Reasonable support - emails usually replied to within 24 hours. Phone calls returned fairly promptly. They have followed up on a few problems with satisfactory outcomes.

Option orders can be placed two at a time online, eg calendars, vertical spreads, etc. Butterflies, condors, etc with more than two legs cannot be done in one order on the Aussie market - only the US.

Once an order is in the system, it's easy to adjust the pricing, etc. The downside is that codes have to be typed in manually or copy and paste from an option chain (unless I am missing an easier way!). However, once the order has been executed, it's easy to adjust or close the trade.

They have a lot of charts, IV charts, etc for the US options market, but the only charts available for the Aussie market is just a six month daily bar chart with volume and a 21 day MA. No IV charts for the Aussie market either.

I believe that to open an account, you have to open both a US and an Aussie account.

Re trade execution (again with options) - sometimes it's straight through processing, but mostly goes to a manual DTR. Have never been able to work it out - seems random. I have had option spreads occasionally go straight through and othertimes a single options trade, near the money and front month (eg BHP) goes to manual processing with the inevitable delay caused by the manual intervention I have no experience of trading straight shares with them, so don't know what they are like on that one.

I have accounts with other brokers as I find OX are not suitable for all my trading needs, however, I do use them regularly enough to get the frequent traders discount and just accept the good things that they offer. I also use Iress from another broker to get dynamic options data and charts, etc and find that the combination works OK for me.

Hope this makes sense and helps a bit. Have rushed the reply as it's been a busy week for me, but let me know if you have any other questions.

Cheers.

 

[Jake Hall]

Have had experience with OX US - fairly good brokers, but few moments really make me mad for instance:

I place an order with some stock. Everything is good, order placed you confirmation # is blahblah. Once I refresh "orders" page.. what do I see there? Order is CANCELLED! Then after 10-20 mins it becomes "pending-cancelled" BUT in few days it OPENS and gets filled

 

[Mofra]

Sails,

Thank you very much for your detailed response, I have to admit part of the attraction was being able to log on from work and have Aussie Market IV charts available, disappointing that it is US only as the website doesn't make this clear.


Jake, now that is a concern.

 

[sails]

Mofra, yes I thought I would get IV info, intraday charts etc for the Aus market, so it was quite disappointing to find the bells and whistles are only available for the US. This is why I still pay for Iress to get what I need for options trading in Aus. I find the saving on fees with OX more than pays for the software each month.

Have had experience with OX US - fairly good brokers, but few moments really make me mad for instance:

I place an order with some stock. Everything is good, order placed you confirmation # is blahblah. Once I refresh "orders" page.. what do I see there? Order is CANCELLED! Then after 10-20 mins it becomes "pending-cancelled" BUT in few days it OPENS and gets filled

Jake, while it's been rare, I've also had the "pending cancel" status happen a couple of times when trading the Aus market. I don't let up until it's fixed. Firstly, there is a button next to the trade that says "get status" and I click on that and send the request if anything seems amiss. If that doesn't work, I'm on the phone before the end of the trading day to make sure it's fixed - and if still concerned, will back it up with an email confirming my online or phone instructions.

 

[Fool]

Does anyone use "OptionsXpress"?

does anyone use "optionsXpress"???

any feedback??

 

[sails]

Re: Does anyone use "OptionsXpress"?

does anyone use "optionsXpress"???

any feedback??

Yes, they are one of the brokers I use. Have already written a fairly detailed post earlier in this thread, however since that time, while I have found them to be generally OK, there have been a few frustrations lately. There have been the occasional option codes which have not been recognised by their system which means those orders have to be phoned. Sometimes a broker will pick the phone up straight away, other times they phone back - whenever

Also, not uncommon to be overcharged on fees. Apparently the lower rate for frequent trading has to be applied manually on combo trades, so it often gets charged at the higher, single leg price. While they do refund the money, it is a nuisance factor to have to keep sending the overcharge details.

Good luck!

 

[VolTracker]

I had a similar problem with the 'cancel order pending' response to cancelling an order for the sale of some Barrier Warrants a couple of weeks ago.

I placed a sell order, the market moved, I tried to modify the order to the mkt price, and was met with Cancel Pending. I naively assumed the order had been fully executed, just that OX's sytems hadnt updated due to the amt of volume that day. Turned out I had only been partially filled with 80% of the order unfilled and expiry worthless on hitting the barrier. It cost me big time. Yet another lesson learned. I dont trade barrier warrants with OX anymore.

Have traded ASX and US options with them for 2 years and never had a problem. I recommend asking for frequent trader discount as soon as you can.

 

[sails]

I have also had the occasional scary "pending" issues with OX orders, but fortunately no nasty outcomes.

I've been finding Trader Dealer a good alternative for larger positions (their fees are higher than the OX base fee, but they offer a flat fee for up to 100 contracts- more info is on their site for specific conditions on fees). Combo orders need be phoned or emailed until WebIress provide the facility online, however, once they are set up in the system, price can easily and quickly be adjusted online through WI.

 

[legout]

I set up an account with OX Australia, and found it to be a nightmare. It took three weeks, no one seemed to know what they were doing. I had to speak with US and Australia, everyone had different answers. Finally it's done.

It made me so nervous, that I searched the internet to find out what their rep was, and found this board. I mean, if they can't even take your money, how on earth are they going to fill your orders?

I was so excited to find out about them because they had virtual trading for options. This is really unusual.

But when I set up the account a few months ago, (I haven't used it yet - been tied up with other stuff) I found the Virtual Trading was only available for US.

Checking their website .au right now, seems to indicate that it may now be available on the ASX symbols, too...

Does anyone know? Has anyone used Virtual trade for ASX? Or even for U.S. for that matter? How good a simulator is it???

legout

 

[legout]

Just got off the horn with them. They said nothing has changed. Big surprise. Still no virtual trade for ASX symbols, and no IV or any other interesting data for the option chains...

All the reasons I signed up with them are now gone...

Where can I go to get a good trading platform, with excellent execution, AND excellent data, like real-time volatilies, OI, real-time bid ask, volume, all the good stuff...

I'm lost

 

[sails]

Hi Legout - welcome to ASF!

Sorry for the delay in posting as I had a partial reply typed out earlier today, but due to interruptions, it never got posted. No need to tell you now that Aus options don’t work on OX virtual trading, so have deleted all that now. Here is the remainder of what I wrote:

I'm not trading with OX at this stage. They were having technical problems a few months ago where some of the Aus option codes weren't being recognised by their website. Then, days after letting them know, they still weren't fixed - they said I was most welcome to phone my orders through. However, that's not easy when their brokers are often too busy to take the call and have to phone back – whenever they are free. And then when the price needs adjusting – we repeat the whole delay thing again. So, phoning trades through was never going to work, IMO.

Are you familiar with WebIress for dynamic Aus options data? Several brokers use it and, depending on the number of trades you make per month, it can become free of charge.

Cheers

 

[legout]

Hi Legout - welcome to ASF!

Sorry for the delay in posting as I had a partial reply typed out earlier today, but due to interruptions, it never got posted. No need to tell you now that Aus options don’t work on OX virtual trading, so have deleted all that now. Here is the remainder of what I wrote:

I'm not trading with OX at this stage. They were having technical problems a few months ago where some of the Aus option codes weren't being recognised by their website. Then, days after letting them know, they still weren't fixed - they said I was most welcome to phone my orders through. However, that's not easy when their brokers are often too busy to take the call and have to phone back – whenever they are free. And then when the price needs adjusting – we repeat the whole delay thing again. So, phoning trades through was never going to work, IMO.

Are you familiar with WebIress for dynamic Aus options data? Several brokers use it and, depending on the number of trades you make per month, it can become free of charge.

Cheers

Thank you very much for this information, and the welcome. I'm glad to be here. If this forum can even just get me hooked up with a good broker and tools, I will be indebted.

I Googled 'webiress, and found their site. Then learned they supply technology only, I must find a broker who repackages their tools.

So, I will be searching this forum for threads on brokers. The tools should provide in the very least OI, IV, and risk profiles at the very minimum. If I can trade right from the platform, that will be a real boost. Thanks for your help.

legout

 

[sails]

Hi Legout,

You were asking about an Aussie options broker and I didn't have time to give more info last night. I really like Trader Dealer - they use WebIress (and includes Aus options) - free WI demo (delayed data) can be found on their site : http://www.traderdealer.com.au/

I've been extremely impressed with their service - phones are actually answered by a human - and usually one of the brokers
They have recently reduced both their equities and option trading fees - here is an excerpt:

Exchange Traded Options
Trader Dealer charges $2.42 (incl GST) per option or LEPO contract with a minimum brokerage of $26.40 (incl GST) for all transactions same side, same series, same day. Confirmations (trading statements) are issued at the end of a trading day.

Option exercise/assignment is charged at the same rate as an equity trade, where the total trade value is the option premium.

In addition to the above, all ASX/ACH fees incurred on your behalf will be charged to your account.

The above was copied from http://www.traderdealer.com.au/clients/fees.php where there is more info on the cost of software (WebIress) and how many trades per month to get it free. There is also information on reduced charges for light users of WI.

Personally, I rely heavily on WebIress for dynamic options info and wouldn't be without it - it has so many useful features. I don't know of any paper trading facility for Aus options - I just use an excel spread sheet to test out new ideas, etc.

We have accounts with several different option brokers (IB is the only one I have closed) - however, Trader Dealer is by far the best I have come across at this point in time.

I like the fact that funds are held in an interest bearing CMT account in your own name - as opposed to being in a brokers trust account.

If you are interested, have a chat to Robert on (02) 8917 2800 or 1300 769 380 as the level of option trading depends somewhat on the level of experience and knowledge.

Hope this helps!

PS. I am not financially affiliated with TD - simply a satisfied customer

 

[legout]

Hi Legout,

You were asking about an Aussie options broker and I didn't have time to give more info last night. I really like Trader Dealer - they use WebIress (and includes Aus options) - free WI demo (delayed data) can be found on their site : http://www.traderdealer.com.au/

I've been extremely impressed with their service - phones are actually answered by a human - and usually one of the brokers
They have recently reduced both their equities and option trading fees - here is an excerpt:



The above was copied from http://www.traderdealer.com.au/clients/fees.php where there is more info on the cost of software (WebIress) and how many trades per month to get it free. There is also information on reduced charges for light users of WI.

Personally, I rely heavily on WebIress for dynamic options info and wouldn't be without it - it has so many useful features. I don't know of any paper trading facility for Aus options - I just use an excel spread sheet to test out new ideas, etc.

We have accounts with several different option brokers (IB is the only one I have closed) - however, Trader Dealer is by far the best I have come across at this point in time.

I like the fact that funds are held in an interest bearing CMT account in your own name - as opposed to being in a brokers trust account.

If you are interested, have a chat to Robert on (02) 8917 2800 or 1300 769 380 as the level of option trading depends somewhat on the level of experience and knowledge.

Hope this helps!

PS. I am not financially affiliated with TD - simply a satisfied customer

Wow, that was REALLY helpful. Very kind of you indeed. :santa:
If I may, what is 'WI' and 'TD'?

I will definitely give Robert a call, and start tinkering around with their implementation of iress.

I was using OptionVue 5, which I loved, accept I couldn't get it in 'real-time' mode, but would have to manually type everything in. A real pain when you are trying to trade live, and make quick decisions. Plus, it's EXPENSIVE

I'm hoping to come close with a broker's included tools.

BTW, ASF does not have a forum entitled 'Brokers'. Within that forum could be sub forums on brokers for stocks or options or FX, or futures, etc.

Just a good idea IMHO.

Thanks a million!!!

legout

 

[sails]

You're welcome, Legout!

WI = WebIress
TD = Trader Dealer

Unfortunately WI won't replace Optionvue - I use the Hoadley tools http://www.hoadley.net/options/options.htm for risk graphs and their comparisons. I have the "add-in" (LOL - much cheaper than optionvue) as I also like to use the positions manager and implied volatility - especially the volatility surface. Still requires some manual data entry - but it has served me well. Lots of demos on the site to show what it can do.

One thing I wish Iress did have is a way of measuring your position greeks - rather than getting an estimate through the Hoadley Positions Manager. Nothing's perfect - that's for sure - and we don't get all the frills here in Aus available to US option traders.

The features I like in WI are as follows:

1. It updates dynamically.

2. If you click on the market depth "detail" button, it brings a new window up the second level of depth. This doesn't update, dynamically but is rather useful if requesting a Market Maker quote where they only leave it for a few seconds and then it disappears. I click on the detail as soon as I get the quote which then holds it while I work out an approx. entry price.

3. The "Option Valuation" window is also quite helpful. That gives an idea of the individual IV levels and greeks for that particular option. Various imputs can be changed to see what might happen to that option with the passing of time, a change in IV, change in price of the underlying, change in interest rates, etc. (I had trouble making this work with Java - so I removed Java and the "Option Valuation" window works better without it on my PC. Just mentioned that in case you have problems making it work!)

Anyway, that's all I can think of now - and am pretty busy. Will add more as I think of it!

Cheers

PS - perhaps put your idea of a brokers thread in the suggestions thread: https://www.aussiestockforums.com/forums/showthread.php?t=334

 

[legout]

You're welcome, Legout!

WI = WebIress
TD = Trader Dealer

Thanks

Unfortunately WI won't replace Optionvue...

Is there ANY TRADING PLATFORM that will show the option chain with all IVs, and allow you to graph risk profiles? Is there nothing???

I know your busy, Sails, so don't stress. Maybe someone else will reply...

I'm going to keep looking. There must be some gig in town that does this. For crying out loud! Maybe ETrade???

PS - perhaps put your idea of a brokers thread in the suggestions thread: https://www.aussiestockforums.com/forums/showthread.php?t=334

Done. Thanks again.

legout

 

[sails]

Thanks

Is there ANY TRADING PLATFORM that will show the option chain with all IVs, and allow you to graph risk profiles? Is there nothing???

I know your busy, Sails, so don't stress. Maybe someone else will reply...

I'm going to keep looking. There must be some gig in town that does this. For crying out loud! Maybe ETrade???

Done. Thanks again.

legout

Let me know if you find it!! IB may eventually have it, but they didn't during my brief stay.

There is OptionGear put out by Hubb that may do what you are looking for with the Aus market, however, it is expensive, and I have heard (don't know if it's still true) that it only works with their on-going data subscriptions. Not sure if it works intra day though.

I'm sure this is one of a few reasons so many Aus options traders snub the Aus market in favour of the US. I feel brokerage (for lots of 10 or more) is becoming more in line on the higher priced shares, especially as we have 1000 lots per contract vs. 100 in the US.

But ASX fees on top of brokerage + hefty data fees still needs improvement, IMO. I don't like the night shift and so have worked with the Aus market - and and just use what is available to make it work. That said, I would love to have something like TOS (Think or Swim) provide for their clients in the US which would make life so much easier!

Cheers

 

[RichKid]

Let me know if you find it!! IB may eventually have it, but they didn't during my brief stay. ..........

Hi Sails

Thanks for sharing all that great info! I'm thinking of opening an IB account (including eto's)- was it recently that you closed your account and if so any particular reason? I thought I'd seen a post somewhere where you said you'd be opening an IB ac....not sure. If you do have time and some feedback on IB please feel free to post in the IB thread as I'm investigating them atm, mainly due to their very low Aussie share & eto brokerage rates.

Thanks in advance!

 

[RichKid]

Hello Legout, welcome to ASF and congrats on doing due diligence on the various brokers out there, it's good when we conduct research ourselves as it helps reduce some of the risks involved.

As for a sub-forum for brokers, you'll find a lot of threads in the 'Beginners Lounge- Trading and Investing Resources' dealing with brokers and broker trading platforms. The derivatives thread would have more specialised threads as well. Joe is sure to note your response in the suggestions thread.

RichKid
moderator