by Susan Lyon
Are you looking to trade futures options? You should know that there’s a new online broker in town. Optionshop launched on January 7, 2013 and bills itself as a way to bring affordable options on futures trading to the masses.
If you’re looking for a better way to gain exposure to commodity markets than traditional futures trading, an Optionshop brokerage account could be for you. While this online brokerage doesn’t offer stock trading, it does specialize in options on futures.
- Pricing: $2.50 per contract per side
- Promotion: Fund a new Optionshop account and they’ll provide one month of Keene on the Markets trading room service – a $299 value.
- Features: Diversity of trading tools including SpreadBuilder, RequestForQuote, and a variety of educational materials and videos around futures options
Here is a brief overview of Optionshop’s current top futures options trading tools:
- RequestForQuote – “At the touch of a button, RequestForQuote gives investors a tool professional futures options traders have kept to themselves, providing them with a chance to get better pricing for their options spread orders.”
- SpreadBuilder – “Futures options spreads help investors define risk and reward levels they can live with, but creating and customizing them can be complicated. With SpreadBuilder, Optionshop streamlines the process with easy to use functionality and powerful visualization of profit and loss characteristics.”
- Futures Options 101 – “Over the past 10 years, millions of investors have learned to use equity options in their portfolio, and Optionshop offers easy-to-consume educational content to help them see how futures options compare.”
Not impressed yet? Optionshop’s website notes that these two additional tools and features are coming soon:
- BasketMaker – “Tired of your commodity ETF falling while the commodity it’s supposed to track is rising? BasketMaker will give you the power to build your own futures commodity basket – one that moves with the market, not against it. Whatever your idea, we will help you create a DIY futures options strategy at a fraction of the cost of an ETF or mutual fund.”
- GreekAnalyzer – “Do you know the trade you want to make but want a bit more information? GreekAnalzer will show you how your trade may react through a variety of changes in key variables, including time, volatility and underlying price.”
In Optionshop’s promotional video, CEO Bob Fitzsimmons states:
“Optionshop is all about going the extra mile to make it simple for you to use futures, especially options on futures, so that you can incorporate them into your portfolio. We believe that with our tools, education, and great customer service, Optionshop will be the best possible solution for you.”
OptionShop vs. Competitors
Before making the decision to open up a new brokerage account, you should also consider these top options and futures brokers:
Looking for a different type of brokerage account? Check out NerdWallet’s best online brokers cost comparison tool.