For casual day traders researching online stockbrokers with web-based consoles that rival the best day trading software. we recommend optionsXpress and OptionsHouse. As you will see, they almost match each other’s features down to the smallest detail. The differences are that optionsXpress charges more than twice the price that OptionsHouse charges for online trades. Furthermore, unlike optionsXpress, OptionsHouse does not provide access to level II quotes. For casual day traders, there is a significant advantage to the information that level II quotes reveal, which is why we give the nod to optionsXpress over OptionsHouse in this regard.

When you trade with optionsXpress, its level II quotes reveal which market makers are trying to buy or sell stocks and how many shares they are seeking. Your visibility into market dynamics at such a level can inform your day trading strategy and arm you to pursue effective tactics. Day traders who restrict themselves to level I quotes can see the NASDAQ bid and ask prices just fine. However, they cannot detect who exactly is asking or bidding for the stock, and they cannot know how many shares a market maker wants. Another argument for level II quotes over level I quotes is that a market maker that restricts its clients’ access to level I quotes is in a better position to shop your trades around to your disadvantage.

With either optionsXpress or OptionsHouse, you can trade stocks, options, mutual funds and ETFs. Neither company provides access to stock exchanges outside of the United States. Both are National Best Bid or Offer participants, which means they meet SEC requirements to guarantee that you will receive the best prices when you buy or sell securities. Neither company has direct access to the Electronic Communications Network, and neither supports Smart Order Routing to the NASDAQ or NYSE omissions that will cost you a few milliseconds in terms of order execution.

Both company’s web-based trading consoles are powerful. You can read, research, create watch lists and criteria-based searches, set up charts and graphs, and program automated trades. The inaccessibility of level II quotes through OptionsHouse puts optionsXpress at a great advantage, all other features being equal. In addition to web access, both brokers provide web access to their trading platforms from generic smartphones in addition to apps for iOS and Android.

In terms of help and support, both brokers host no shortage of highly useful educational content. Although neither provides 24-hour access to support, both support live chat, which is a highly convenient communications method.

optionsXpress and OptionsHouse are two mighty online brokers worthy of strong consideration by casual day traders. If you insist on access to level II quotes, optionsXpress is the best of the two for you. However, if you insist on the lowest-priced online market trades in the industry, remember that OptionsHouse’s prices are less than half what optionsXpress charges.