Rates & Fees
Pay only for what you need. Put the rest in your pocket.
Select Your Preferred Method
| Options | ||
|---|---|---|
| Equity or Index, Market or Limit[1] [2] | 10¢ per Contract (+ $1.99 per trade) | |
| Broker-Assisted Orders | Additional $6.00 | |
| Option Exercise and Assignment | $9.00 | |
| Stocks and ETFS | ||
| Market or Limit (Unlimited Shares) | $0 | |
| Broker-Assisted Orders | Additional $6.00 | |
| Foreign Stocks | $39.00 | |
| Extended Hours Trading | ||
| All Trades | $0.00 per trade | |
| Exchange Fees | ||
| OCC Fees – Trades with Contracts of: | ||
| 0-2750 | $0.02 Per Contract | |
| Greater than 2750 | $55.00 Per Trade | |
| Options Regulatory Fee (ORF) | $0.0181 Per Contract | |
| Trading Activity Fees (TAF) | ||
| Stocks & ETF’s | $0.000130 per share (max. $6.49 per trade) | |
| Options | $0.00218 Per Contract | |
| Covered Debt Securities | $0.00082 Per Bond (Max. $0.82 Per Trade) | |
| SEC Transaction Fee | Varies | |
| Mutual Funds | ||
| All Mutual Fund Trades | $5.00 | |
| Periodic Invest – Withdraw | $5.00 | |
| Listed Bonds | ||
| First 25 Bonds | $5.00 Per Bond | |
| Each Additional Bond | $3.00 Per Bond | |
| Minimum | $39.00 | |
| Auto Trade Commissions | ||
| Commission rates for auto trade orders requiring special handling by eOption’s auto trade desk. | ||
| Equities | $2.00 | |
| Options | $3.99 + $0.10 Per Contract | |
Important Note: Modifying a partially executed order, also known as a cancel/replace, is considered a new order and will incur a separate commission if the modified order is executed.
[1] Option rates apply to each side of spread orders. Option strategies involve multiple purchases; therefore your transaction costs may be significant for option strategy trades. Option orders that receive partial fills on separate trading day will be charged the base option rate for each day in addition to the per contract rate.
[2] Select proprietary index options may incur additional fees. Please check our Brokerage Fees page for further details.
Fees & Commissions effective as of 2/9/2017. All fees subject to change without notice.
Options involve risk and are not suitable for all investors. Prior to trading options, you must be approved for options trading and read the Characteristics and Risks of Standardized Options. A copy may also be requested via email at support@eoption.com or via mail to eOption, 950 Milwaukee Ave., Ste. 102, Glenview, IL 60025. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.
| AS OF 10/29/2019 THE CURRENT BASE RATE IS 7.75% | ||
|---|---|---|
| Less than $25,000 | Base Rate | 7.75% |
| $25,000-$49,999 | Base Rate -0.50% | 7.25% |
| $50,000-$99,999 | Base Rate -1% | 6.75% |
| $100,000-$249,999 | Base Rate -2% | 5.75% |
| $250,000+ | Base Rate -3% | 4.75% |
Equities
| Minimum Equity Requirements to Use Margin | ||
|---|---|---|
| A combination of: | Minimum: | |
| Cash/Marginable Securities | $2,000 | |
| Short Sales of Equities | $2,000 | |
| Cash/Options/Stock | $2,000 | |
| Margin/Options/Stock | $2,000 in Marginable Securities or Cash | |
Note: Long option purchases have an initial and maintenance margin requirement of 100%. For spreads and uncovered options, please see Margin Minimum Equity Requirements below. To open an eOption margin account, you must have at least $2,000 in cash or marginable securities in your account. Additional requirements may apply depending upon specific transactions and positions in your account.
Options
| Minimum Equity Requirements to Trade Certain Option Strategies | ||
|---|---|---|
| A combination of cash and marginable securities: | Minimum: | |
| Spreads | $2,000 | |
| Equity and Index Spreads | $2,000 | |
| Spreads in an IRA | $2,000, Cash Only | |
| Uncovered Options: | ||
| Naked Puts | $25,000 | |
| Naked Calls | $100,000 | |
| Naked Index | $500,000 | |
Note: At this time, we do not allow margin borrowing on cash secured short puts, short calls, naked or spread positions.
| Marginable Option Transactions | ||
|---|---|---|
| Option Type | Initial Requirement | Maintenance Requirement |
| Naked Puts | 20% of current market value minus out-of-money amount or 10% of strike, whichever is greater times the multiplier times the quantity plus the market value of the option | 20% of current market value minus out-of-money amount or 10% of strike, whichever is greater times the multiplier times the quantity plus the market value of the option |
| Naked Calls | 20% of current market value minus out-of-money amount or 10% of current market value, whichever is greater times the multiplier times the quantity plus the market value of the option | 20% of current market value minus out-of-money amount or 10% of current market value, whichever is greater times the multiplier times the quantity plus the market value of the option |
Note: Position limits are 2,000 contracts when going short and uncovered. The long position limits are determined by the exchange. 2x Leveraged ETF naked options will be replaced with 40% or 20% and 3x Leveraged ETF naked options will be replaced with 60% and 30% in the above calculations.
Options Expiration Policy
Expiring long and short option positions may be closed as early as 2:00 PM EST on the last trading day prior to expiration if you do not have the funds or buying power to buy or short the underlying security. Please note that you may still get assigned even if a short option is out of the money. Therefore, if there is risk to the account, short options may be closed out even if it is out of the money. The firm may close out your positions without prior notice. We may also elect not to exercise or close the resulting stock position in the aftermarket hours on Friday or pre-market hours on Monday.
Day Trading Buying Power Calculation
Money market funds are not applied towards calculating day trade buying power. Please contact us to have money market funds journaled to the margin type prior to the effective date if you would like to use all funds to calculate day trade buying power. Also, please note it is necessary to shut off sweeps to money market upon trade settlement in order to use all available funds to day trade without interruption. This request must be in writing with a signature.
Margin Account Maintenance and Initial Requirements
| Stock Transactions | ||
|---|---|---|
| Stocks | Initial Requirements | Maintenance Requirement |
| $5.00 and above | 50% | 30% |
| $4.99 to $3.00 | 50% | 50% |
| $2.99 and below | 100% | 100% |
| Short Stock Transactions | ||
|---|---|---|
| Stocks | Initial Requirements | Maintenance Requirement |
| Short stock sales below $3.00 per share | Not allowed | Greater of $2.50 a share or 100% of current market value |
| Short stock sales below $5.00 per share | 50% of market value | Greater of $2.50 a share or 100% of current market value |
| Short stock sales above $5.00 per share | 50% of market value | Greater of $5.00 a share or 30% of current market value |
| Leveraged Long ETF Transactions | ||
|---|---|---|
| Equities | Initial Requirements | Maintenance Requirement |
| Leveraged 2x | ||
| $5 and above | minimum 50% | minimum 50% |
| $3.00-$4.99 | minimum 75% | minimum 75% |
| Leveraged 3x | ||
| $5 and above | minimum 75% | minimum 75% |
| below $5 | 100% | 100% |
| Leveraged Short ETF Transactions | ||
|---|---|---|
| Equities | Initial Requirements | Maintenance Requirement |
| Leveraged 2x and above $5.00 | Minimum 60% | $5 a share or minimum 60% of market value whichever is greater |
| Leveraged 3x and above $5.00 | Minimum 90% | $5 a share or minimum 90% of market value whichever is greater |
| Short sales below $5.00 | Same as maintenance | Greater of $2.50 a share 100% of current market value |
| Short sales below $3.00 | Not allowed | Greater of $2.50 a share or 100% current market value |
| Other Securities | ||
|---|---|---|
| Equities | Initial Requirements | Maintenance Requirement |
| Unit Investment Trust | 100% | 25% |
| Municipal Bonds | 25% | 15% |
| Corp Non-Convertible | 25% | 20% |
| Corp Convertible | 50% | 30% |
| High Yield Bonds (Below $80) | 50% | 40% |
| Corp Reversible Bond | 50% | 40% |
| CMO’s | 25% | 20% |
| IO’s, PO’s, Inverse Floaters | 40% | 30% |
| US Government Issues Based on Years to Maturity | ||
| 0 to less than 1 year | 4% | 2% |
| 1 to less than 3 years | 5% | 3% |
| 3 to less than 5 years | 6% | 4% |
| 5 to less than 10 years | 8% | 5% |
| 10 to less than 20 years | 9% | 6% |
| 20 years or more | 10% | 7% |
Concentrated positions on margin will hold the following requirements:
Margin accounts with any concentrated single equity position market value that exceeds the equity in the margin account may be charged minimum 40% on the entire account.
Important Guidelines
- Required Market Price for Stocks: Most stocks traded on major U.S. exchanges and Nasdaq-listed securities priced $3.00 and above are eligible for margin borrowing. Please note that some stocks including Pink Sheets or Bulletin Board Stocks are not eligible for margin borrowing.
- Minimum Market Price for Stocks: Stocks priced under $3.00 are not eligible for credit towards margin requirements and are not credited to margin buying power.
- Mutual Funds: Most mutual funds can be used as collateral, provided they’ve been held for at least 30 days Please note you cannot purchase mutual funds on margin.
- Bonds: Most corporate, treasury, municipal, and government agency bonds are eligible for margin borrowing. Margin ability and margin requirements are subject without advance written notice to change based on liquidity, bond ratings, concentrations, and other risk factors.
- Money market funds, certificates of deposit (CDs), annuities, and options are not available as collateral for margin borrowing.
- Maintenance Calls: Maintenance calls are due in four (4) business days under normal conditions. Exchange calls are due in one business day.
- House Required Minimums: If equity drops below house required minimum, or a call is issued for any other reason, you may be required to immediately sell securities or deposit additional funds promptly.
- Concentrated Accounts: Margin maintenance is higher for concentrated accounts and requirements may vary per security.
- Margin Maintenance: Margin maintenance ranges from 30% – 100% depending on the particular securities in an account.
- Increased Maintenance Requirements: From time-to-time, we may be required by our clearing firm to increase maintenance requirements due to overall firm concentration, or unusual market conditions. We further reserve the right to increase the requirements at our sole discretion.
European Style Option Spreads
To be considered a spread, the long and the short side must expire on the same day. If the expiration dates are not the same the short side will be treated as naked.
Covered LEAPS Requirements
Initial Requirement: Proceeds from the sell of the LEAPS calls cannot be used to satisfy Reg-T requirements. If an account purchases stock and sells short covered LEAPS calls, the account will be required to the 50% initial requirement on the long stock.
Maintenance Requirement: The short market value of the LEAPS will be deducted from the equity when figuring maintenance requirements for accounts holding these positions. The value of the long stock will be valued at the price of the stock or the strike price of the option, whichever is lower.
Margin Risks
We are furnishing this document to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the margin agreement provided by your broker. Consult your broker regarding any questions or concerns you may have with your margin accounts.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from your brokerage firm. If you choose to borrow funds from your firm, you will open a margin account with the firm. The securities purchased are the firm’s collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and as a result, the firm can take action, such as issue a margin call and/or sell securities in your account, in order to maintain the required equity in the account.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
- You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm that has made the loan to avoid the forced sale of those securities or other securities in your account.
- The firm can force the sale of securities in your account. If the equity in your account falls below the maintenance margin requirements under the law, or the firm’s higher “house” requirements, the firm can sell the securities in your account to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
- The firm can sell your securities without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities in their accounts to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interest, including immediately selling the securities without notice to the customer.
- You are not entitled to choose which security in your margin account is liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell in order to protect its interests.
- The firm can increase its “house” maintenance margin requirement at any time and is not required to provide you advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the member to liquidate or sell securities in your account.
- You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to the extension.
- The IRS requires Broker Dealers to treat dividend payments on loaned securities positions as a “substitute payment” in lieu of a dividend. A substitute payment is not, a “qualified dividend” and is taxed as ordinary income.
- Industry regulations may limit, in whole or in part, your ability to exercise voting rights of securities that have been lent or pledged to others. You may receive proxy materials indicating voting rights for a fewer number of shares than are in your account, or you may not receive any proxy materials.
Click here for some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Contact eOption regarding any questions or concerns you may have about margin accounts.
| BROKERAGE FEES | ||
|---|---|---|
| ACH Recall/Reversal/Return | $35.00 | |
| Wire Transfers | ||
| Wire Transfer | $35.00 | |
| Recalled Wire | $50.00 | |
| Returned Wire | $50.00 | |
| Returned Check | $40.00 | |
| BROKERAGE FEES | ||
|---|---|---|
| Retirement Accounts | ||
| Simple IRAs | ||
| Simple IRA 5304 Annual Fee | $45.00 | |
| Simple IRA 5305 Annual Fee | $100.00 | |
| Simple IRA Setup Fee | $100.00 | |
| Simple IRA Termination Fee | $50.00 | |
| Traditional, Roth, Rollover, SEP IRAs & Coverdell ESAs | ||
| IRA Annual Fee | $15.00 | |
| IRA Setup Fee | No Charge | |
| IRA Termination Fee | $50.00 | |
| Profit Sharing Plans | ||
| Profit Sharing Plans | $100.00 | |
| BROKERAGE FEES | ||
|---|---|---|
| Cancel and Re-bill | $20.00 | |
| Certificate Held in Safe Keeping at HTS/Firm | $100.00 Per Year | |
| Certificate Processing/Deposit Fee (NYSE, NASDAQ, Pink Sheets, and Bulletin Board Stocks) | $75.00 Per Cusip, Per Deposit, Plus Applicable Fees[1] | |
| Copy of Past Confirmation | $5.00 | |
| Copy of Past Statement | $5.00 | |
| DTC Non-Transferable Fee | $15.00 Per Month | |
| DTC Non-Transferable Securities Held | $150.00 Annually | |
| DRIP | No Charge | |
| DRS Statement Withdrawal | $30.00[2] | |
| A DRS statement is sent only when a security is returned to the transfer agent to hold in book entry form. | ||
| DWAC and DRS Process Fee | $75.00 Plus Transfer Agent Fees | |
| Inactivity Fee | $50.00 Annually | |
| Index Option Exchange Fees | Varies | |
| Non-ACAT Eligible Securities – Full | $75.00 | |
| Non-ACAT Eligible Securities – Partial | $35.00 | |
| Non-DTCC Eligible Securities | $100.00 Plus Pass Thru Fees[1] | |
| NSCC Illiquid Securities Fee | Varies | |
| Physical Certificate Held at DTC Delivery Fee | $100.00 | |
| Physical Certificate Held at Hilltop Securities, LLC in Street Name or Client Name | $150.00 Per Year | |
| Professional Data Fees | $125.00 Per Month | |
| Reg T Extension | $20.00 | |
| Reorganization – Mandatory | No Fee | |
| Reorganization – Voluntary | $50.00 | |
| Right or Warrant Exercise – Voluntary | $50.00 | |
| Right or Warrant Exercise – Mandatory | No Charge | |
| SEC Transaction Fee | Varies | |
| Short Stock Hard to Borrow Fee | Varies | |
| Statements & Confirms | ||
| Electronic Statements | Free | |
| Electronic Confirms | Free | |
| Paper Statements | Free | |
| Paper Confirms | $1.00 Per Trade | |
| Tenders | ||
| Voluntary Per Position | $50.00 | |
| Mandatory | No Fee | |
| Trading Activity Fees (TAF) | ||
| Stocks & ETF’s | $0.000130 per share (max. $6.49 per trade) | |
| Options | $0.00218 Per Contract | |
| Covered Debt Securities | $0.00082 Per Bond (Max. $0.82 Per Trade) | |
| Transfer and Ship Request | $550.00 | |
| Transfer Out – Full | $60.00 | |
| Transfer Out – Partial | $50.00 | |
Important Note: Modifying a partially executed order, also known as a cancel/replace, is considered a new order and will incur a separate commission if the modified order is executed.
[1] Applicable fees include wire fees, rejection fees, and shipping fees, redeposit fees, transfer agent fees, DWAC fees, and agent fees. [2] A DRS statement is sent only when a security is returned to the transfer agent to hold in book entry form.Fees & Commissions effective as of 1/14/2017. All fees subject to change without notice.
Inactivity Fee
An account is considered inactive when there are less than 2 trades in the past 12 months or if there are less than $10,000 in credit or debit balances.
Index Option Exchange Fees
Effective January 1, 2024 eOption will begin passing through index option exchange fees. The additional cost to trade select index options is listed below. These fees will be charged in addition to eOption’s standard commission schedule.
| Symbol | Description | Rate |
| DXL | Jumbo DJX Index | $.18/contract |
| EPX | SIG Oil Exploration and Production Index | $.45/contract |
| HGX | OHLX Housing Sector Index | $.18/contract |
| MNX | Mini Nasdaq 100 Index | $.18/contract |
| MVR | Morgan Stanley Retail Index | $.18/contract |
| NDX | Nasdaq-100 Index | $.15/contract |
| OEX | S&P 100 Index | $.55/contract |
| OSX | PHLX Oil Service Sector Index | $.35/contract |
| RUT | Russell 2000 Index | $.18/contract |
| SOX | PHLX Semiconductor Index | $.35/contract |
| SPX | S&P 500 Index | $.60/contract |
| SVO | SIG Energy Index | $.35/contract |
| UTY | PHLX Utility Sector Index | $.35/contract |
| VIX | CBOE Volatility Index | $.50/contract |
| VXX | iPath S&P 500 VIX Short Term Futures | $.18/contract |
| XAU | PHLX Gold and Silver Index | $.35/contract |
| XEO | S&P 100 Index (European Style) Monthly | $.40/contract |
| XEO | S&P 100 Index (European Style) Weekly | $.35/contract |
| XDE | Euro/US Dollar Currency Index | $.35/contract |
| XSP | CBOE MINI S&P 500 | $.50/contract |
Index fees are subject to change without notice.
Options Regulatory Fee (ORF)
Breakdowns of each rate for the individual exchanges are as follows:
Exchange Rates
- ARCA – $0.0055 per contract
- CBOE – $0.0045per contract
- C2 – $0.0012 per contract
- MIAX – $0.0029 per contract
- PEARL – $0.0028 per contract
- PHLX – $0.0050 per contract
Total: $0.0219
The combined rate for the ORF will be $0.0219 per contract with no minimum per trade.
Updates to fees are made on a best efforts basis, however all fees are subject to change without notice. For current information and updates, please refer to the appropriate web site.
Professional User means a subscriber who:
- uses the information for more than personal investment purposes;
- plans to furnish or use the information with any other person(s) as part of any type of business activity (customer service, investor relations, public relations, financial planning, etc.) even if it is outside of the Securities marketplace;
- is using the information as or on behalf of a firm; corporation, partnership, trust or association and not as an individual for personal use;
- is a securities broker-dealer, registered representative, investment advisor, investment banker, futures commission merchant, commodities introducing broker or commodity trading advisor, money manager, financial planning advisor, member of the Securities Exchange or Association or Future Contract market, or any owner, partner or associated person of the foregoing;
- is employed by a bank or an insurance company or an affiliate of either performing functions related to secutities or commodity futures investment or trading activity; or
- otherwise meets the definition of a professional user, as defined from time to time by any Exchange or similiar information Provider from whom the Subscriber is receiving information.
SEC TRANSACTION FEE – NEW RATE EFFECTIVE 2/25/2021
Effective February 25, 2021, the Section 31 fee rate applicable to specified securities transactions on the exchanges and in the over-the-counter markets will increase from its current rate of $22.10 per million dollars in transactions to a new rate of $5.10 per million dollars in transactions. See https://www.sec.gov/news/press-release/2021-8 for more information.
For more information on the term “charge date,” please refer to Rule 31(a)(3) and Exchange Act Release No. 49928 http://www.sec.gov/rules/final/34-49928.htm.
How to Calculate:
Multiply the sale/principal amount of the transaction by the fee rate. Truncate at the seventh place after the decimal point. Truncate the resulting figure at the fifth place after the decimal point and round up to the nearest cent (Always round up if there is a remainder).
For more information visit the FINRA web site http://www.sec.gov/divisions/marketreg/mrfreqreq.shtml.
Updates to fees are made on a best efforts basis, however all fees are subject to change without notice. For current information and updates, please refer to the appropriate web site.
Short Stock Fee
Based on the recent changes to the short stock rules and increased difficulties to borrow stock, our clearing firm, Hilltop Securities, Inc. will be passing on charges for shorting stock that they must locate outside of their firm. These stocks are typically called hard to borrow securities. The fees can be charged daily and posted to the customer’s account the following business day for settled positions.
The formula for the Hard to Borrow fee (HTB) is the rate times the principal value divided by 360 to come up with the daily charge. The principal value of the security is calculated by taking the securities price at the end of the previous trading day then multiplied by 1.02 (102%), the figure is then rounded up to the nearest dollar amount.
Updates to fees are made on a best efforts basis, however all fees are subject to change without notice. For current information and updates, please refer to the appropriate web site.
Trading Activity Fees (TAF)
Trading Activity Fees (TAF) are passed through to customers as part of normal transaction processing.
Effective July 1, 2012, the Trading Activity Fee (TAF) rate for sales of covered equity securities will increase from $0.000095 per share for each sale of a covered equity security to $0.000119 per share, with a corresponding increase to the per-transaction cap for covered equity securities from $4.75 to $5.95. The new rate will apply to any sale of a covered equity security subject to the TAF occurring on or after July 1, 2012.
The FINRA (TAF) for option sales is currently $0.002 per contract and fees for covered debt securities are $0.00075 per bond, with a maximum assessment of $0.75 per trade (based on 1,000 bonds), will remain unchanged.
As an industry transaction standard, FINRA levies a Trading Activity Fee (TAF) on the sale of covered securities pursuant to Section 1 of Schedule A to the FINRA By-Laws. The text of the rule is available in the online FINRA Manual.
Updates to fees are made on a best efforts basis, however all fees are subject to change without notice. For current information and updates, please refer to the appropriate website.