S. Wade Hansen

Broker Review: optionsXpress

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This article is brought to you by LearningMarkets.com.

Before we get started, I feel I should disclose that I have used optionsXpress as one of my brokers for a few years now. I say "one" of my brokers because I have my portfolio diversified across a few different brokers, but my evaluation of optionsXpress is based on first-hand knowledge and experience.

Publicly traded optionsXpress (OXPS) is one of the more mature online brokerages.

It consistently ranks highly in broker comparisons conducted by Barron's and others. However, we are not too concerned with outside ratings. We are more concerned with how optionsXpress may or may not fit with your trading objectives and style.

Let's take a look at who may benefit the most from opening an optionsXpress account and who may find better luck elsewhere. (Learn more about Choosing a Stock and Options Broker.)

Target Audience

The target audience for optionsXpress seems to be active investors who are looking to diversify their portfolio across a broad range of investing products.

For instance, if you are a trader who places a few options and futures trades per month while holding some longer-term investments in stocks, exchange-traded funds (ETFs) and mutual funds, you would be an ideal candidate to open and optionsXpress account, because you can manage everything within one account.