Options house Review and Guide: Is It the Right Platform for Options Trading?

When I first started exploring options trading, I quickly realized how overwhelming the number of platforms can be. Every broker promises “the best tools,” “the lowest fees,” or “the most user-friendly interface.” Back then, one name that came up a lot was OptionsHouse, a platform that many active traders swore by. Even though OptionsHouse eventually merged with E*TRADE, its reputation still lives on in discussions about accessible and affordable options trading.

This article will walk you through what OptionsHouse was, what made it popular, and how it compares to today’s leading brokers. I’ll explain features, fees, pros and cons, and also share some insights on options trading in general. Whether you’re brand new to trading or looking for a deeper dive, this guide aims to break things down in simple terms so that even a beginner can follow along without feeling lost.

History and Background of OptionsHouse

OptionsHouse began as an independent brokerage focused on making options trading cheaper and more efficient. At a time when big brokers were charging steep commissions for every single trade, OptionsHouse attracted traders with low-cost fees and powerful tools. It wasn’t fancy or overly complicated—it simply gave traders what they needed without unnecessary fluff.

In 2016, ETRADE acquired OptionsHouse for about $725 million. This merger was a big move, because ETRADE wanted to strengthen its options trading game and appeal to more active traders. For users, it meant that the OptionsHouse platform was integrated into ETRADE’s system. Many of the beloved features remained, but over time, the brand name “OptionsHouse” disappeared, and what survived was its technology and pricing model within ETRADE.

If you hear someone talk about OptionsHouse today, they’re likely referring to the legacy of that platform inside ETRADE. For practical purposes, if you want to use OptionsHouse tools now, you’d be opening an account with **ETRADE**.

Features and Trading Tools

One of the reasons OptionsHouse earned such loyalty among traders was its combination of affordability and functionality. Unlike some budget platforms that strip away useful features, OptionsHouse managed to keep costs low without sacrificing depth.

Here are some of the standout features:

1. Options Trading Tools
OptionsHouse specialized in options, so naturally, it had built-in strategy scanners and calculators. You could set up multi-leg trades like spreads, straddles, or iron condors with just a few clicks. For someone learning options, this was a lifesaver because you didn’t need to build complex strategies manually.

2. Charts and Analytics
The charting wasn’t as fancy as platforms like Thinkorswim, but it was practical. You could run technical analysis, check historical prices, and use customizable indicators. For most traders, this was more than enough.

3. Customizable Dashboards
A big plus was how easy it was to personalize the trading screen. You could organize watchlists, monitor positions, and set alerts without being buried under a messy interface.

4. Paper Trading
For beginners, this was a gem. Paper trading (also known as simulated trading) let you practice without risking real money. OptionsHouse gave you fake funds to test strategies, which meant you could experiment, make mistakes, and learn before committing actual dollars.

5. Mobile App
When trading on the go started to become popular, OptionsHouse rolled out a solid mobile app. It wasn’t flashy, but it got the job done—you could place trades, monitor your account, and track markets without being glued to a desktop.

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Fees and Commissions

OptionsHouse built its reputation on being affordable for active traders. Before commission-free trading became the norm, OptionsHouse stood out by charging much lower fees than big names like Charles Schwab or Fidelity.

• Options Trades: OptionsHouse used to charge $4.95 per trade, plus $0.50 per contract.

• Stock and ETF Trades: $4.95 per trade.

• No Account Minimums: You could start small, which was a big deal for beginners.

Today, most brokers (including E*TRADE, which absorbed OptionsHouse) offer commission-free stock and ETF trading, but the influence of OptionsHouse is clear. It pushed the industry toward more competitive pricing and made it possible for smaller traders to participate without being eaten alive by fees.

Account Setup and Ease of Use

Opening an OptionsHouse account back in the day was straightforward. The sign-up process was digital, funding your account could be done via ACH or wire, and there weren’t high minimums to worry about.

The user experience was also a big selling point. Unlike clunky old brokers that felt like they were designed in the 1990s, OptionsHouse had a cleaner, more modern layout. For someone like me—who gets overwhelmed when screens are overloaded with data—that simplicity was refreshing. It made the learning curve less intimidating.

When OptionsHouse merged into ETRADE, some of that simplicity was absorbed into ETRADE’s interface. While E*TRADE added more bells and whistles, many traders appreciated that it kept a balance between professional-level tools and beginner-friendly design.

Options Trading for Beginners

If you’re completely new to options, let me pause here and explain what they are. An option is basically a contract that gives you the right (but not the obligation) to buy or sell a stock at a set price before a set date. There are two main types: calls (which let you buy) and puts (which let you sell).

Why would anyone trade options instead of just buying stocks? Because options can give you leverage, flexibility, and ways to profit whether the market goes up, down, or sideways. Of course, this also makes them riskier.

OptionsHouse helped beginners because it had strategy tools built in. Let’s say you wanted to set up a covered call (a common strategy where you own a stock and sell a call option on it). Instead of calculating everything by hand, the platform would walk you through the process.

When I was first learning, I found that kind of guidance invaluable. Without it, options trading can feel like trying to learn a new language with no teacher.

Paper Trading and Practice Accounts

Paper trading deserves its own spotlight because it’s one of the most underrated features for new traders. With OptionsHouse, you could trade in a simulated environment that looked just like the real platform. You could buy, sell, and test strategies—but with fake money.

The first time I tried paper trading, I made every mistake you can imagine. I chased momentum trades, ignored risk management, and over-leveraged. But because it was a practice account, none of it hurt my wallet. That experience taught me lessons I carry to this day.

If you’re new to trading now, I’d still recommend starting with paper trading before going live. Most brokers (including E*TRADE, TD Ameritrade, and Interactive Brokers) offer some version of it.

OptionsHouse vs Competitors

Since OptionsHouse is now part of E*TRADE, the better question is how the old OptionsHouse tools stack up against other brokers today.

OptionsHouse (E*TRADE) vs Robinhood

• Robinhood is easier for beginners and completely free.

• But Robinhood lacks advanced options strategies and deep analytics.

• OptionsHouse gave you more professional tools, even if the learning curve was steeper.

OptionsHouse (E*TRADE) vs TD Ameritrade (Thinkorswim)

• Thinkorswim is hands down more powerful for serious traders.

• But it’s also more overwhelming. OptionsHouse was friendlier for people who wanted a balance.

OptionsHouse (E*TRADE) vs Interactive Brokers (IBKR)

• IBKR is amazing for professionals with global market access.

• But for beginners, IBKR can feel intimidating. OptionsHouse sat in the middle ground.

Tips and Strategies for Success

Trading options is not about hitting home runs every time. It’s about managing risk and building consistency. Here are some practical tips I learned:

1. Start Small – Don’t risk too much money on your first few trades. Even experienced traders lose.

2. Learn One Strategy at a Time – Master a covered call before trying advanced spreads.

3. Use Stop-Loss Orders – Protect your downside.

4. Keep a Journal – Write down your trades and lessons learned. This sounds boring, but it’s the fastest way to improve.

5. Don’t Chase “Hot Tips” – Options trading is risky enough without following hype. Stick to your plan.

Pros and Cons of OptionsHouse

Pros:

• Low commissions (back in its day)

• Strong options tools

• Beginner-friendly layout

• Paper trading available

Cons:

• Brand no longer exists (merged into E*TRADE)

• Not as powerful as Thinkorswim or IBKR

• Limited research tools compared to bigger brokers

Who Should Use OptionsHouse (E*TRADE)?

If you’re a beginner who wants an easy entry into options trading, E*TRADE (with OptionsHouse roots) is still a solid choice. If you’re a day trader who craves advanced analytics, you might prefer TD Ameritrade or IBKR.

The key is knowing your own goals. Personally, I think OptionsHouse was perfect for people like me who wanted affordability, a clean interface, and strong options tools without being buried in complexity.

Alternatives if OptionsHouse Isn’t for You

If E*TRADE doesn’t fit your style, here are some other good options:

• Robinhood – Simple and free, but limited.

• TD Ameritrade (Thinkorswim) – Great for advanced traders.

• Fidelity – Strong research and customer service.

• Interactive Brokers – Best for professionals.

Conclusion

OptionsHouse may no longer exist as a standalone brand, but its influence is still alive inside E*TRADE. It helped push the industry toward cheaper trades and gave everyday traders access to options strategies that used to feel out of reach.

If you’re just starting your trading journey, don’t get caught up in finding the “perfect” platform. What matters most is practicing, learning, and staying disciplined. Platforms will come and go, but the skills you build will last.

For me, OptionsHouse was a stepping stone. It gave me the confidence to trade options without drowning in fees or complicated tools. If you’re considering E*TRADE today, know that you’re benefiting from the legacy of a platform that changed the game for many traders.

FAQs

1. Is OptionsHouse still available?
Not as a standalone broker. It was acquired by E*TRADE in 2016.

2. Can I still use OptionsHouse tools?
Yes, through E*TRADE. Many of the features were integrated.

3. Is OptionsHouse good for beginners?
Yes. It had a simple interface and paper trading, which made it great for learning.

4. What happened to OptionsHouse fees?
E*TRADE now offers commission-free stock and ETF trades, with low-cost options fees.

5. What’s the best alternative to OptionsHouse?
It depends on your needs. Robinhood for simplicity, Thinkorswim for power, and IBKR for professionals.