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Vetting an Options-Tool Brokerage

Discussion in 'Options' started by Jay Hattler, Oct 31, 2015.

  1. Jay Hattler

    Jay Hattler Well-Known Member

    As a newbie, I'm wondering about the viability of options-tool providers who are also brokers. Should I be concerned about the financial soundness of a Tradestation or Optionshouse, where I am primarily interested in their software, but I need to provide $100K or more of assets to get it free.

    Yes, I know I can pay a monthly fee. In that sense, it becomes like renting OptionVue. But I don't mind spreading my assets around to get the free tools. I'm just wondering if these are 'real' brokerages like tdAmeritrade or Schwab.

    Tradestation, e.g., is owned by a Japanese financial unit I have never heard of, but I believe it was already an independent brokerage before the acquisition.

    Any advice would be appreciated.

  2. TheSpeculator152

    TheSpeculator152 Well-Known Member

    My recommendation would be to separate the two.

    If you're looking to trade options you need a dedicated options platform. I have used TradeStation for many years and while they are great with stocks, Forex and futures, they are not a purpose built options analysis platform.

    Consider OptionVue, dated but proven solution, or Optionnet ONE, which is the upcoming and more modern solution.

    For trading, I would recommend interactive brokers or think or swim.

    I hope this helps you.

    Sent from my iPhone using Tapatalk
    Kevin Lee likes this.
  3. Andrei

    Andrei Well-Known Member

    There are three features I need from a tool:
    1. Reliable analytics
    2. Keeping track of each trade's P/L and history, including an easy way to "re-play" a trade.
    3. Back testing
    As far as I know, no broker provides all three. TOS probably comes closest, but I know of no "easy and reliable method to track replay trades. I know some people are using simulated trades in analysis tab to track P/L and On Demand features to back test, but in my opinion these are very limited and prone to errors.
    Both OV and ONE can track individual trade P/L, although I think ONE is better at this. Both can be used to back test and store your results for further analysis. I think ONE is a better software package, OV looks and feels like it is 20 years old.
    Because I mostly trade M3 and BB strategies, I use OV, since they have been developed using OV software. However, if look at many recent posts in this forum, you will see that OV has many self-inflicted problems in their latest release. Thus I am now seriously considering switching back to ONE.

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