Overview of Options AI

Options AI is a United States-based company founded in 2021, specializing in simplifying options trading for individual investors. The platform offers a range of market instruments including stocks, calls, and puts. Traders have the flexibility to choose from Brokerage Accounts (Margin and Cash) or a Subscription account type. Notably, there is no minimum deposit requirement, making it accessible to traders of all levels. Options AI operates with a flat commission structure, charging $5 per trade for all transactions.

The platform integrates with various popular brokerage platforms, providing a familiar trading environment for users. Traders can explore the platform's features risk-free with a 10-day free trial and access email support for assistance. Deposit and withdrawal methods are flexible, including bank transfers, credit/debit cards, and electronic options. Educational resources offered by Options AI include Announcements, User Guide, Course, Video Series, The Orbit, and the Trades section, satisfying traders' learning needs at all levels.

Pros and Cons

Pros:

• Flat commission structure: Unlike many brokers who charge per-contract fees, Options AI offers a simple and transparent $5 flat fee for all trades, regardless of size or complexity. This can be particularly beneficial for beginner or frequent traders who make multiple trades.

• AI-powered tools: The platform's signature feature, “The Orbit,” utilizes AI to scan the market and suggest potential options trades based on various factors like unusual volume, implied volatility, and technical analysis. This can be a valuable tool for identifying promising opportunities and saving time on research.

• Educational resources: Options AI provides a comprehensive library of educational content, including courses, videos, and guides tailored to different skill levels. This allows users to learn the basics of options trading, explore advanced strategies, and stay updated on market trends.

• Flexible payment methods: The platform offers various payment methods, including bank transfers, credit/debit cards, and depending on your location, potentially other electronic options. This satisfies individual preferences and ensures convenience when funding your account.

• Paper trading: If you're new to options or want to test your strategies before risking real capital, Options AI offers a subscription-based paper trading account. This lets you practice with simulated funds and gain valuable experience without financial losses.

Cons:

• No standalone trading platform: Unlike some competitors, Options AI doesn't have its own dedicated trading platform. Instead, it integrates with existing brokerage platforms. While this offers familiarity for experienced traders, it might necessitate adapting to a different interface for newer users.

• Not a regulated entity: Options AI itself isn't regulated, as it doesn't hold client funds or offer investment advice. This implies relying on the regulations of your chosen brokerage platform, which adds an extra layer of responsibility for researching and understanding compliance requirements.

• Limited customer support: Currently, customer support is primarily limited to email communication. While helpful, users seeking real-time assistance or live chat options might find this restrictive.

• Fees can add up: Although the flat commission is attractive, remember that regulatory, exchange, and option clearing fees still apply. Be sure to factor these additional costs into your calculations to avoid surprises.

• Not a substitute for professional advice: While educational resources are valuable, it's crucial to remember that Options AI itself isn't a financial advisor. Conduct your own research, understand the inherent risks involved in options trading, and consider seeking guidance from a qualified professional before making investment decisions.

Regulatory Status

Options AI itself isn't a regulated entity. This is because it doesn't directly hold client funds or offer investment advice. It functions as a software tool and educational resource provider, integrating with various regulated brokerage platforms.

It's crucial to research and understand the specific regulations governing your chosen brokerage platform before using Options AI tools for your trades. Additionally, Options AI itself isn't a substitute for professional financial advice.

Market Instruments

Options AI was a platform designed to simplify options trading for individual investors. It offers products related to stock trading and options trading, specifically calls and puts.

Options AI allows users to trade stocks directly through their platform. This means users can buy and sell shares of publicly traded companies listed on various stock exchanges. Stock trading provides investors with the opportunity to invest in individual companies and potentially profit from their growth or performance in the market.

Options AI also facilitates trading in options contracts, specifically calls and puts. Calls give the holder the right to buy a specific stock at a predetermined price (strike price) within a specified period (expiration date), while puts give the holder the right to sell a specific stock at a predetermined price within a specified period. Trading calls and puts allows investors to speculate on the price movements of underlying stocks, hedge against potential losses, or generate income through options premiums.

Account Types

Options AI offers two main types of accounts for traders: Brokerage Accounts and Subscription.

Brokerage Accounts provide traders with access to the revolutionary visual platform for executing trades. There are two subtypes within Brokerage Accounts: Margin and Cash. With a Margin account, traders can buy stocks, purchase calls and puts, trade option spreads, and must adhere to day trading rules. On the other hand, Cash accounts allow traders to buy stocks and purchase calls and puts, but they do not support option spreads, and there are no day trade restrictions.

For traders outside the US or not ready for a new brokerage, Options AI offers an innovative Subscription platform. This Subscription account type is ideal for those who are not yet ready to open a new brokerage account. The main feature of this account type is the Paper Trading Subscription, which enables traders to practice options trading risk-free using a trade simulator. Users can sign up in minutes, enjoy a 10-day free trial, and then continue for just $19 per month, with the flexibility to cancel anytime. Additionally, this account type provides access to real-time market data, a strategy visualizer and scanner, and performance tracking tools. Importantly, no brokerage account is required to access these features, making it an attractive option for traders seeking to hone their skills without committing to a full brokerage account.

How to Open an Account？

Opening an account with Options AI involves a straightforward process:

Step 1: Visit the Options AI Website: Go to the Options AI official website: https://www.optionsai.com/.

Step 2: Navigate to the Sign-Up Page: Look for the “ Get Started” button in the navigation menu. Click on it to proceed.

Step 3: Choose an account type that suits your trading needs, such as Margin or Cash for brokerage accounts, or Subscription for paper trading outside the US.

Step 4: Enter your email address on the Options AI website.

Step 5: Provide the required personal information, including your full name, date of birth, and residential address.

Step 6: Agree to the terms and conditions of the account agreement.

Step 7: Complete any additional verification steps, such as identity verification or providing financial information.

Step 8: Once your account is funded and verified, you can start trading stocks and options on the Options AI platform.

Spreads & Commissions

Options AI implements a transparent commission structure for all trades, featuring a single flat commission without additional per-contract fees for options trading. While this flat commission simplifies cost calculations for traders, it's essential to note that applicable regulatory, exchange, and option clearing fees still apply. These fees are standard across the industry and are levied by regulatory bodies, exchanges, and clearinghouses to cover the costs associated with executing trades and maintaining the integrity of financial markets.

Options AI charges a single flat commission for all trades with no per contract fees for options:

For Margin accounts, traders have the flexibility to trade option spreads, which involve simultaneously buying and selling options contracts to potentially capitalize on price discrepancies or volatility. However, Cash accounts do not support option spreads.

Trading Platform

Options AI offers a integration with popular brokerage platforms, providing traders with a familiar trading environment enriched with powerful tools and resources. Despite not having its standalone trading platform, Options AI ensures a smooth user experience within existing interfaces.

The platform boasts an intuitive interface, simplifying navigation, search, and analysis of options contracts. At the core of its offerings is “The Orbit,” an AI-powered tool that scans the market and recommends potential options trades based on various factors, essentially serving as a personalized trading assistant.

Additionally, traders benefit from market scanners, enabling them to filter stocks and options chains based on specific criteria such as gainers/losers and unusual activity, facilitating focused decision-making. With detailed option chains analysis and a strategy builder feature, traders can delve deeper into understanding underlying assets and craft and test customized options strategies effortlessly.

Overall, Options AI enhances the trading experience by integrating innovative tools and resources into existing brokerage platforms, empowering traders with actionable insights and robust decision-making capabilities.

Deposit & Withdrawal

Options AI offers flexible payment methods and transparent fee structures to accommodate traders' needs. Traders can fund their accounts using various payment methods, including bank transfers, credit/debit cards, and potentially other electronic payment methods depending on their location and the capabilities of their chosen brokerage platform.

When it comes to fees, Options AI provides a detailed breakdown of fees associated with trading index options, regulatory trading fees, option clearing fees, exchange proprietary transaction fees, margin rates, funds and account transfer fees, trade-related fees, and miscellaneous fees.

For index options, such as the S&P 500 Index (SPXW), the fee per contract is $0.50. Additionally, Options AI passes on applicable regulatory and exchange fees, including OCC Options Regulatory Fee, FINRA Trading Activity Fees for both stock and option sales, and SEC Fee for stock sales. The clearing fee charged by Options AI on all option transactions is $0.05 per contract. Traders should also be aware of exchange proprietary transaction fees, such as the Transaction Fee for SPXW options, which is $0.59 per contract. Margin rates for all debit balances are set at 7.45%. Additionally, various funds and account transfer fees apply, including fees for wire transfers, reorganization wire fees, and check copies. Trade-related fees cover exercises and assignments, voluntary corporate actions, and dividend checks, among others. Lastly, miscellaneous fees include charges for overnight mail services and physical certificate processing.

Below is a summary table of the fees associated with trading options on the Options AI platform:

Customer Support

Options AI provides customer support primarily through email communication. Traders can reach out to the support team by sending an email to support@optionsai.com. This email address serves as the main point of contact for inquiries, assistance, and troubleshooting related to the platform's features, account management, trading tools, and any other questions or concerns users have. The support team aims to address inquiries promptly and efficiently, striving to provide timely and helpful responses to ensure a positive customer experience.

Educational Resources

Options AI offers a comprehensive array of educational resources to support traders in their journey towards mastering options trading. These resources cover various aspects of trading and are designed to satisfy traders of all levels of experience.

The platform provides Announcements to keep users informed about the latest updates, market trends, and important news that impact trading decisions. Additionally, traders have access to a detailed User Guide, offering step-by-step instructions and insights into navigating the platform effectively. The Course section offers structured learning materials, covering essential concepts, strategies, and techniques for successful options trading.

For those who prefer visual learning, Options AI offers a Video Series, which provides in-depth explanations and tutorials on key topics. The Orbit, an AI-powered tool, acts as a personal trading assistant, helping users discover potential trades and learn from real-time market analysis.

Furthermore, the Trades section allows users to review past trades, analyze outcomes, and gain insights into their trading performance. With these educational resources at their disposal, traders can enhance their understanding of options trading and make informed decisions in the financial markets.

Conclusion

Options AI presents a unique blend of features for options traders, with its flat commission structure, AI-powered tools, and educational resources offering potential advantages. However, it's crucial to consider the limitations as well. Lacking a standalone platform, relying on external regulations, and limited customer support are key disadvantages. Ultimately, responsible trading involves understanding both the pros and cons, conducting thorough research, and seeking professional guidance when needed.

FAQs

Q: What types of accounts does Options AI offer？

A: Options AI provides both Brokerage Accounts, including Margin and Cash accounts, and Subscription accounts.

Q: Is there a minimum deposit required to open an account with Options AI？

A: No, there is no minimum deposit requirement to open an account with Options AI.

Q: Can I try out Options AI's platform before committing？

A: Yes, Options AI offers a 10-day free trial for traders to explore the platform's features and capabilities risk-free.

Q: What support options are available if I need assistance？

A: Options AI provides email support at support@optionsai.com for traders who require assistance with the platform or have any questions.

Q: What payment methods does Options AI accept for deposits and withdrawals？

A: Options AI accepts a variety of payment methods, including bank transfers, credit/debit cards, and electronic methods, providing flexibility for traders.

Q: Are there educational resources available to help me improve my trading skills？

A: Yes, Options AI offers a range of educational resources, including Announcements, User Guide, Course, Video Series, The Orbit, and the Trades section.