Online Brokers Breaking into Options Action

Last week, when the International Securities Exchange, an electronic options exchange, introduced itself to the investing world, it named among its investors three brokerage firms with significant online capability: E*Trade (EGRP Quote), Ameritrade (AMTD Quote) and Scottsdale Securities. The institutional investment community might have scoffed, but the firms' desire to pony up millions to join the project is a sign that they want a larger share of options traders' business.

Full-Service Brokers Remain Wary

The online brokerage sector has become a force to be reckoned with in the options world. This at a time when full-service brokers remain reluctant to recommend options for many clients even though they retain active options strategists. ...