OptionsHousemisuse of funds

R
This review was posted by
a verified customer
Verified customer
Review updated:

These people are unethical, in the least, and possibly even criminals.

Please do your homework! So far I have found recent reviews at http://moneyning.com/review/optionshouse-review/)

I trade stocks so I have no experience with their options tools, however, since I trade extended hours, futures information is extremely important AND they do not offer futures info.

When I opened the account, I got 100 free trades; with 42 free trades remaining, I withdrew my funds for reasons stated below. However, in April 2010, I decided to give them another shot. Since I hadn’t used the account since Dec. 2009, I called to see if the account was still open and active and they said “yes”. On April 8, 2010, I utilized their online ACH transfer and initiated an ACH deposit; since we both utilize JP Morgan, OptionsHouse received the funds on April 9, 2010. Then, in an email that I received dated April 12, 2010, at 10:38 p.m. (presumable CDT since they are in Chicago), they tell me that the account will not be “reopened” AND that they will not return my funds until April 19, 2010.

Over the last 4 years I have used TD, Scottrade, Etrade, Schwab, Fidelity, OptionsXpress, and OptionsHouse; with the exceptions of Fidelity, Schwab and OptionsHouse, I found that each offered something that excelled above the others. HOWEVER, I have to say, that OptionsHouse is the most pathetic of them all. Although I experienced that every single one of them was deceptive in one way or another, OptionsHouse takes the cake. For me, it is simply not worth it to pay $2.95 a trade when you really can’t get the trades you want because of poor execution, clunky platform sceens, mishandling of funds, extremely limited customer service, and only two hours extended hour trading.

FURTHERMORE, I found that OH practice “conversion” and “unjust enrichment” by withholding ACH deposits for 3-5 days after they have “cleared” or by holding your funds for 3-5 days after you request them (disregarding any settlement issues which would delay even further). As far as I am concerned, they are outright crooks.

Did I mention their stock trading tools are so elementary that they are virtually useless?

In a nutshell, they 1) had closed the acct. but said it was open, 2) allowed me to do an online ACH deposit, 3) received my funds on April 9, 2010, 4) now say the acct. was closed and won’t be reopened, AND 5) won’t return my funds until April 19, 2010. SO they use my money, for free, for 10 days! On top of that, I have been trading between 10k - 40k shares of C (usually several times a day), C has been on the move, and I don't have my trading money to trade.

Responses

  • Ci
    cigarking Sep 20, 2016
    This comment was posted by
    a verified customer
    Verified customer

    OPTIONSHOUSE is absolutely THE WORST discount broker I've dealt with in over 20 years of trading. They always hold on to funds when a withdrawal is requested for some BS reason. This usually revolves around the local post office not recognizing the mailing address. How is it possible that I have received my voter registration, vehicle registration, and regular mail without any problems, but Optionshouse has issues? What makes Optionshouse different? As many of you have pointed out: they are holding on to funds for extra days and earning interest. There is definitely a class action suit here.

    0 Votes
  • Me
    Mel Gib May 21, 2021
    This comment was posted by
    a verified customer
    Verified customer

    @cigarking I invested 8, 350 US dollars with scam broker FXG trade and I have never gotten my money back, i was so desperately in need of help to recover all the money back to me, fortunately I came across a colleague that introduced me to a binary options trade funds recovery expert who goes by the name Mr David Miller Perkins when i met them i did not believe that they could get back my money because i have been scammed a lot already and didn't know what to do, but my spirit told me to give it a try and i did, feel free to contact them via their email address:[email protected] and they will help you to recover all your lost investment that was denied from you by your scam broker.

    0 Votes
  • Jo
    johnwaltonjudge Sep 03, 2016

    Getting my funds back from a broker i traded with was a big problem until i discovered a strategy on how to withdraw my funds, and that was after loosing $30, 000 in a month.and now, i even make $10 in a day trading.i discovered most people find it as a problem now to withdraw their funds or have a problem in trading.i enjoy teaching them and also help them get their funds [email protected] for more info

    0 Votes
  • Hk
    hknotts Jul 21, 2016
    This comment was posted by
    a verified customer
    Verified customer

    My husband passed away 5/6/16. I have called multiple times and emailed to have paperwork changed to my name. No call backs. No emails. I am being totally ignored by Optionhouse. It is shocking as Fidelity, Scottrade, etc. have reached out immediately with change of name paperwork and their condolences.

    1 Votes
  • Oh
    OHUser Jan 05, 2016

    I should have seen all these complains about them. They charged me $750 of monthly fees for Professional real time data feed without sending anything in the mail or email. Some popup about account migration and now all these hidden fees. They don't even mention it anywhere that they have been charging all these fees. Completely unethical company. I will never do business with them.

    0 Votes
  • He
    HELP THEY SCREWED ME Apr 17, 2015
    This comment was posted by
    a verified customer
    Verified customer

    Anyone that got screwed by optionhouse lets find a way to get togather and file a mass filing complaint with the sec

    0 Votes
  • He
    HELP THEY SCREWED ME Apr 17, 2015
    This comment was posted by
    a verified customer
    Verified customer

    I agree with all the negative complaints listed they are all right 100 percent !!! optionhouse is a big scam and I truly hope everone of you that got screwed by them FILES A SEC complaint they are know as OM securities LLC DBA optionhouse FILES A SEC COMPLAIN on then now just here the SEC if they get to many can walk right in with agent suspend everthing whiles they go through there books apex to they are a** holes I got screwed for a 1.00 ach yes 1.00 on a IRA/ROTH I though I was doing a transfer to the account from my broker account with them cash on had section none the less it ACH my bank for 1.00 charge declined becase it was suspious and it was !!! they must have been testing my account none the less the next day they issue a margin call for 30 againt my account putting the IRA account in to -30 three to 4 days calling there CSR WHAT CRS !!! they don't have any that answer the phone none the less finaly chat I go over it they tell me we issued a refund to the account, year right the next day the -30 still there they said no look at your broker account PLEASE !!! its not here come on this is not about my broker account . its the IRA/ROTH then today again I get a CSR chat Only he says all you have to do is make a deposit to the IRA account and will nix the 30 we charged you not what there CSR said the day before he said we will remove the 30 call in the IRA BS man this company can not be trusted at all SEE THE CHAT transcipts I have attached the CSR will lie to you just to get you off the phone or chat THEY CAN NOT BE TRUSTED with your money steet clear and get this they pissed me off enough i sold all in my broker account and in the process of getting my money out they stop all withdrawls by me from my broker account holding the Broker account hostage until they get the -30 in the IRA SCAMMMERS wish the SEC would get off there ### and light them up for this crap and pull there lic

    0 Votes
  • Pa
    PatJer Mar 17, 2015
    This comment was posted by
    a verified customer
    Verified customer

    Optionshouse seems to have forgotten why small account holders trade options and has declared war on them. I opened a small account (approximately $3k max) about 3 years ago with them, and I have traded ONLY options. About 3 months ago, I was assigned an option trade that had gone against me, seriously depleting my small stake. I figured, tough, but that’s the life of a trader. This past week, however 2 winning trades were closed out by Optionshouse less than 4 hours before expiration. That was a bit much to take, so I filed a complaint with BBB. The response from Optionshouse in brief was: “you don’t have enough money in your account for us to suck up if we decide to assign you the options…and..we can do that if we feel like it; it’s in the fine print of the agreement you signed when you opened the account”. I am in the process of being an ex-customer. Below is their response to my BBB complaint in full. Read and advise yourself.

    On March 6, 2015 at 12:22:59 p.m. CST, the day of weekly options expiration, our Risk Department took market action by liquidating your 2 BBY 2015 Mar 6 C @ 38.00 (Weekly) Call options at $1.61 and your 2 EA 2015 Mar 6 C @ 55.000 (Weekly) Call options at $1.50 and we were fully within our right to do so. We took market action in your account for the following reasons:

    OptionsHouse denies that, as you state, "I have been arbitrarily closed out by OptionsHouse at very unfavorable terms". The process by which we monitor our customer accounts for exercise and assignment risk was provided to you and was at all times available on our website. http://www.optionshouse.com/risk/expiration/

    OptionsHouse had no idea where Best Buy Co., Inc. ("BBY") and Electronic Arts Inc. ("EA") might have closed on March 6, 2015. Based on volatility and other market factors, it could have easily finished in the money thus adding potential exercise risk in your cash account.

    The policy as detailed on our website accurate. On the day of weekly or monthly options expiration in an effort to mitigate potential exercise and assignment risk OptionsHouse monitors and in certain cases takes appropriate market action to reduce risk.

    Your total account value as of the close on March 5, 2015 (the day prior to expiration) was $677.65. Had your 2 BBY 2015 Mar 6 C @ 38.00 (Weekly) Call options and your 2 EA 2015 Mar 6 C @ 55.000 (Weekly) Call options finished in the money by more than $0.01 on March 6, 2015 all 4 contracts would have been auto-exercised by the Options Clearing Corporation ("OCC") thus creating a $17, 922.35 debit your account.

    Simply stated, you did not have the cash value or securities equivalent value to cover the potential debit resulting from the auto exercise on your long options.

    By signing your new account agreement on December 21, 2012, you acknowledged that you read and understood (emphasis added) the "Customer Agreement" and all account agreements, that governed your account. In a section titled "Option Exercise and Expiration, " the Customer Agreement discloses the following:

    "When Customer owns an option that is about to expire "in the money, " OptionsHouse or Apex may, in its sole discretion or in accordance with the Rules and Regulations, and without notification to Customer, close out the option. OptionsHouse or Apex may take this action in order to prevent an exercise that would require the purchase or sale of the underlying security for which Customer does not have sufficient funds. This is in no way to be construed as an obligation on OptionsHouse's or Apex's part to sell or exercise such options on Customer's behalf."

    0 Votes
  • Lo
    Longhorn67 Mar 11, 2015

    hardwoodsurfer, you must be getting your **** sucked cause OH is absolutely ridiculous. I'm so pissed I can't even talk about it any more...

    0 Votes
  • Ha
    hardwoodsurfer Oct 04, 2014
    This comment was posted by
    a verified customer
    Verified customer

    I have used them for four years and had nothing but great service. The fees are super low and the options trading tools are excellent. Frankly, some of you do not seem to be options traders based on the things you are complaining about. Seriously, if you want to buy and sell stocks and use a brokerage to pay bills you should go to a scotts or etrade. OH is for options traders.

    0 Votes
  • El
    Elelaj Sep 11, 2014

    I called the customer service this morning to find out "how to place price limits on my investments for selling purposes". For instance if the Stock A is being traded at $10.00 per share I was looking to place a limit to sell at $8.00 per share if the price falls at 8.00.
    Instead OPTIONHOUSE representative (SAM) misinformed me by telling to select the LIMIT (Duration: section in the Order Ticket). Therefore the unexpected happen; my stocks were sold at current market value. It just sucks, especially when the intention was not to sell but rather to sort of protect investment by limiting the price fall. Instead you hear excuses such as "May be the rep. misunderstood you"...really? I was misguided by the Trading Desk Technical support on how to set the SELLING PRICE. So instead of setting the price I END UP SELLING THE STOCK...NO more COMMENTS the reader should judge itself.
    Unacceptable and irresponsible behavior from OPTIONHOUSE.
    I will remove all my investments effective immediately.

    0 Votes
  • Ja
    James E. Haslip, Jr. Sep 05, 2014
    This comment was posted by
    a verified customer
    Verified customer

    I sent Options House a check which had not reached them in a week. At that time I put a stop payment on it. I expected to pay a fee which I did not her about right a way. A few days later I received a margin call. I had to check an account which was never funded and no longer open to find out what it was about. I sent them a response (a few actually) that I do not use margins. I did not receive a reply right away. About a week later, after the daily margin call, someone at Options House was kind enough to send me a message that I simply owed a $30.00 fee for the bounced check. I wrote out the check and responded that it was easy once I knew what the daily margin call actually was. I have been accused of blocking their messages and not receiving the message that the fee in question was not margin related. If they ... (I am thinking)... can not send a message calling a small fee a fee, I cannot imagine how they would handle other peoples $30, 000 or $40, 000 accounts. Oh yes, on the email I "blocked" I received the daily margin call today (Strange how it got through on that account after I blocked it.) Perhaps sometime this next week one of those gentlemen will find my $30.00 check on his desk and they will not bother me again.

    0 Votes
  • Ja
    James E. Haslip, Jr. Sep 05, 2014
    This comment was posted by
    a verified customer
    Verified customer

    Oh yes, I sent Options House a check. It did not clear in over a week. I then (after a week) put a stop payment on the check. I expected to pay a fee for the bounced check. However, a few days later I received a margin call. I had to log into my account to check it. Of course, I could not log into a closed account which was never funded. I complained to Options House and did not receive a response. Every day I received the same message. They would not respond to my messages. Finally one of them did send me a message that It was simply a $30.00 fee for the bounced check. I wrote out the check that day. I am still receiving a margin call every day. Now they are trying to cover up by sending messages to sights like this that I blocked them from my email and that the problem was never margin related. Actually, the day I received the message that It was simply a $30.00 fee for a stopped check, I thanked the person and wrote out the check. If they ( in my opinion) harass people and do not care about explaining small charges when they make them. I hate to think what they would do with $30, 000 or $40, 000 of an investors money. Oh yes, I did receive that margin call again today. Perhaps some time next week one of them will find my check on his desk and they will stop bothering me.

    0 Votes
  • Mo
    mohamed hussien Sep 05, 2014

    had the same experience of misusing my funds after i transferred $475k total of $900K equities ( counting margin ) did not have access to my account for a week, their claim scottrade did not send a SMA, so i requested from scottrade to transfer the account back to them .
    forget to mention all this time, my account shows a margin call, i asked scottrade to call them to find out if i have a margin call, scottrade informed that their was no margin call and i can go ahead with the reverse transfer.
    After Scottrade confirmed that they overnight the transfer form, played dumb and called optionhouse to ask did you get the SMA form,
    and being on hold for 5 minutes all of the sudden, they do not need the SMA form any more and by the end of the day i will have access to the margin equity. it has been 3 days since they recieved the scottrade transfer form, my guess they will ignore and would not call them to ask about it because i fear they will stall the process. my plan to file a complaint through the security exchange and let them make a call so they can speed up the process, addition to that they lied to me about the maintenance requirments from the beginning althought i gave them my positions to the penny, plus they advertise $4.75 a trade vs $7 scottrade and $10.00 etrade and amitrade but the $4.75 does not include the exchange commissions fees which is so far between $2.50 up to $7.00 JUST for the exchange fees VS Scottrade was charging me a $flat of $6.00 which is suppose to be $7.00 flat . i read the previous complaints, poor customer service and ACH that takes 4 FULL buisness days, but that's okay, they don't lie about the ACH and poor ignorant customer service is a price getting cheaper margin rate or cheap option fees. but my experience is different. stay away from them. they are big scammers .

    0 Votes
  • Ja
    James E. Haslip, Jr. Sep 03, 2014
    This comment was posted by
    a verified customer
    Verified customer

    Do not use OptionsHouse. I sent them a check which did not get there for over a week. I stopped payment on it after such a long time and then closed my account without ever funding. Now I am constantly receiving margin call notices for an account which was never funded. I have never used margins. Of course, I can not get into the closed account to find out what they are calling me on. It has been over a week since the margin call started. Who knows when the harassment will end?

    0 Votes
  • Ma
    maryjo48 Apr 26, 2013

    absolutely agree! they are absolute ###s. who also steals your pennies when your not looking! they have a very abrasive customer service manner. its like they are hired literally right off the street without any training.

    Contact the legal authorities and peak 6 investments and give them how fraudulent they are with customer service! And also report to BARRON to remove their ratings. because they are definitely not even close to the 4 stars it was given or falsely given! there nothing but a bunch of [censored]es, literally.

    0 Votes
  • Jo
    joanas Apr 23, 2013

    OH utilizes deceptive trade practices. their customer service is outrageously poor. i always takes more than 10-15 minutes just to get through to someone. and it seems most have very poor customer service skills.

    if you have the chance please complain about Option House to SEC and FINRA and to other sites!

    1 Votes
  • Bi
    Bill T 283 Feb 13, 2013
    This comment was posted by
    a verified customer
    Verified customer

    DO NOT PUT YOUR MONEY HERE! I don’t know where to start with this online broker. The customer service here is awful. I have been a customer here for a couple of years and it has only gotten worse. I consider myself an active trader and make 20 trades per week. The brokers here are not properly trained or educated with margin trading, trading rules, order execution and options in general. They have EXCESSIVE hold times when you try to call in and talk to someone. I have tried a few times in the past week and was on hold for at least 30 minutes +. This is unacceptable and the manager who is in charge obviously does not care. I have tried to get a hold of this company and asked to speak to a supervisor and they always say that no one is available. They are in clear violation of rules. They also get payment for their order flow from the market makers and exchanges that they route their orders too. That is why many have previously said that their order execution is awful. I also have an account at ETrade and their orders route a lot quicker. OptionsHouse has a horrendous trading platform and is very outdated. Their charting is also horrible. I learned the hard way being here. Don’t waste your time with this company.

    1 Votes
  • Gu
    Guest612 Jan 10, 2012

    Fees are the lowest you can get. Customer service needs improvement very badly. I prefer online chat, but when representative could not figure out the answer to my question, I was asked to call their hotline despite not having a trading question. Platform does not show everything I need to know like the commission I am paying. It said zero (availed of their promo), but apparently it's not free (pink sheets) and I ended up losing $$$. I could have easily found out that the promo has that disclosure had the platform showed correctly the amount of commission fees I am paying per trade/per kind of stock. I am not looking for superb service, but at least decent enough for my money’s worth. Disappointed. This is to help others make informed decisions when choosing a brokerage firm.

    1 Votes
  • Ma
    max70 Apr 21, 2011
    This comment was posted by
    a verified customer
    Verified customer

    this is my explanation of this situation.I open the account with them and make my option trades.According to their profit loss calculator I should get profit for $400.Unfortunately when my position (strangle)was expired I found that I got instead of profit negative in my account.I start to call to trade desk with explanations but their customer service is awful.Instead explain me what happen the guy said that he doesn't have time to talk to me about my issue because he has another callers and suggest me take my all activities transfer to MS Excel and check what happen.I never ever seen this customer service in any brokers like this.Then I send them an email with all files attached which is I used to follow my trade actions during the trade time and ask them for written explanation of my position.The trade manager called be back.He was very rude to me saying that I don't understand how the options works even if i tell them that I have 3 years experience and educational certificate.So..nobody explain me what exactly was wrong with my trading.When i send PL graph to them shows them where the price was closed and what profit should I get the trade guy said that he can do this diagram in photoshop easy and this is not a proof.After all of this headache I transferred my money back to my bank and closed the account.Id like to tell anyone before to open an account with any brokers try to found out any feedbacks and then open it.They try to attract the people with low commissions because they just started do this business and they need more customers but they don't understand that no low commissions make the business well but relationships between their customers first.So please stay away from optionshouse.

    1 Votes
  • Tt
    T Tull Jan 25, 2011

    The Options house reps are not with a clue how to speak to customers. The lack of experience to serious answers and just the rude. abrasive style does no investor good. Don't say I use a deep discount broker like them, You eat at McDonalds does the service also is deep discounted?

    1 Votes
  • Jo
    jo_co Oct 14, 2010

    Whiners. You chose the deep discount broker. Do a little research. Read the terms. Call customer service to ask questions before you decide to use them.

    -1 Votes
  • Ss
    SST100 May 06, 2010

    I agree, each time I do an ACH deposit, it takes 3 days or so to clear. This is ridiculous. Through the ACH system, the banks clear their transfers on the SAME DAY. Clearly, OH uses people's money for free. If you add up all the ACHs someone does in a year, over all the people, you see at any moment OH sits on top of tons of funding.

    I mean, freaking today, that the Dow dropped 998 points for a few minutes, I could have made a killing--some of my stocks went down over 70% for a brief moment. But OH was sitting on my ACH from 2.5 days ago.

    1 Votes

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