Once one of the leading online brokerage firms for options and futures trading, OptionsXpress has been at the center of a lot of controversy over the years. The legitimacy and trustworthiness of the firm are said to be questionable as regulatory breaches and unethical practices have been alleged against it. This review of OptionsXpress gives a deep insight into the history of the company, the regulatory problems that the company has gone through, and the possible implications for investors.
OptionsXpress Overview
Established as a need to fulfill the rising need in online trading, OptionsXpress was an ideal platform for stock, option, and futures trading. The platform’s specialty was in its ease of use and bundled educational resources to cater to both existing and new market traders. Acquired in 2011 by Charles Schwab Corporation, the company was absorbed further into a larger range of financial services.
Website Redirect and Domains
Now, the official website of OptionsXpress, http://optionsxpress.com, redirects to the primary site of Schwab after being acquired by that company. The idea was to merge all services into the Schwab franchise so all clients to experience just one brand of trading. However, some confusion has erupted, especially from users who enjoyed the original OptionsXpress interface.
SEC Charges OptionsXpress for a Short Selling Scam
In April 2012, the US Securities and Exchange Commission (SEC) started an abusive naked short sale scheme, which involved OptionsXpress and many of its officials. Those were the allegations that were leveled against the company by the SEC as the evidence indicated that the company failed to close out obligations under Regulation SHO by carrying out fake “reset” transactions to buy securities without delivering them. This operation managed to continue failures to deliver securities to undermine the market integrity.
Lack of Regulation and Accountability
While registering itself as a brokerage firm, OptionsXpress would surely get into the ranks of degradation of all that it allows in terms of shows by the SEC. Internal controls and their lapses as well as a vague presence of the company when it comes to controversies and alarming news can raise doubts about the firm’s genuineness, thus increasing the number of its clients who come under it.
Warning Signs and User Complaints
Not only does it face all the regulation issues, but it also comes as an offer of criticism by its base of users. “Used to have top quality service, but now long-time customers complain of a marked downtrend over time. Horrible, horrible service.” Such comments show the level of angst among users, probably an indicator of alert signs for potential future customers.
Take Action Today
Scams Report, a trusted platform for uncovering fraudulent activities, has analyzed OptionsXpress and identified reasons for concern. We specialize in detecting brokers with red flags commonly linked to scams, including unclear regulations, deceptive practices, and hidden policies.
Additionally, Scams Report offers support to victims of online scams such as forex trading fraud, cryptocurrency schemes, social media scams, and internet dating fraud. Our team provides free consultations and expert guidance on fund recovery.
If you’ve encountered issues with OptionsXpress or any other broker, don’t wait—reach out to our experts today and take the first step toward reclaiming your funds.
