CHICAGO Oct 28 A team of veteran traders in
the brokerage industry has launched a new online brokerage
company that specializes in option trading for the
The brokerage, called trade MONSTER, has been operating
since Oct. 15 but made its official debut on Tuesday.
Its offerings include trading in equities, exchange-traded
funds, mutual funds and fixed income products.
The new brokerage is a subsidiary of Chicago-based
optionMONSTER Holdings Inc, a provider of news and analysis
founded in 2006 by veteran option traders Jon and Pete Najarian
and entrepreneur Dirk Mueller.
Online brokers are competing fiercely for the attention of
small investors. The new entry is going up against larger
rivals such as TD Ameritrade Holding Corp (AMTD.O) and Charles
Schwab SCHW.O, as well as optionsXpress Holdings Inc OXPS.O
and thinkorswim Group SWIM.O, both Chicago-based.
All of trade MONSTER's capabilities are located on its web
site and customers will not have to download software
applications, optionMONSTER Chief Executive Mueller said in a
The brokerage's niche will be equity options trading with
an emphasis on option education.
U.S. options volume is booming as more participants become
interested in trading equity options -- contracts that give
their owners the right to buy or sell stocks at predetermined
prices within a set period of time to manage stock market risk
and/or to generate income.
"These brokerages provide tools necessary for retail
investors to understand the intricacies of the options market
and easy access to liquidity to meet their investment goals,"
said Sang Lee, an analyst with Boston consultancy Aite Group.
"Options trading is an attractive offering for an online
broker because the market is very liquid. The trading volume is
there and the spreads are coming down. It is certainty very
attractive for educated retail investors to participate in the
options market," Lee said.
(Reporting by Doris Frankel; Editing by Dan Grebler)