Best Brokers For Options Trading In March 2023

Webull has added CBOE products to its platform, including S&P options , CBOE Volatility Index options, and Mini-S&P 500 Index options. Webull added fractional share trading to its platforms in 2021 and commission-free over-the-counter stock in 2022. After thorough research on different options, we chose Fidelity as the best overall trading platform because it offers a wide selection of investment products, low fees and educational resources.

what is the best option trading platform

WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data. All of the aforementioned brokerages are top-class, but some are more oriented toward beginners, like Robinhoodand Webull. If you’re looking for commission free option trading, these 2 are your best bet. Robinhoodis the simplest way to start investing in stocks, ETFs, crypto, and/or options in 2023. EToro’s main drawback is its lack of advanced research tools—all the basic charting features are there, but some traders might prefer a more feature-rich platform. That being said, thier platform isn’t as strong as others on this list.

E*TRADE – The Best Options Trading Platform for Spreads

Plus, for options traders, the layout of options chains on Robinhoodis better than any other brokerage. It is strong in long-term investing and short-term trading and allows you to invest in stocks, ETFs, options, crypto, and fixed income. But we do have to make money to pay our team and keep this website running! has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear.

what is the best option trading platform

The College Investor does not include all companies or offers available in the marketplace. Options traders bet on which direction they think the price of a stock will go. Options contracts can be based on a wide variety of underlying securities, however, and many different types of orders can be placed, which makes them more versatile than stocks.

Our product coverage is complemented by a quick overview of options trading and an objective platform-evaluation methodology you can use to compare our picks with platforms that aren’t on our list. A common options trading strategy is to use them to manage risk within a portfolio. It is one of the key ways in which hedge funds manage their portfolios to allow them to potentially generate returns in both bull and bear markets. There are many different types of options, and investors will buy them for a wide variety of reasons.

Interactive Brokers IBKR Lite

Options trading involves buying and selling the rights to buy or sell securities at specific prices at certain dates. Picture betting on a sports game and being able to buy and sell that bet as the game progresses. That, in a nutshell, is how options trading works, though it’s a bit more nuanced.

  • Our expert team has done all the work for you, and reviewed brokers based on BrokerChooser’s unique methodology.
  • Different platforms will charge different fees when it comes to trading options in the UK.
  • Anyone, including retail investors, can buy options contracts through trading platforms and engage in the same activity as institutional traders.

You could start with literally a few hundred dollars for some options strategies, such as buying call or put options, though other moves such as selling put options will likely require more capital upfront. The payoffs in these strategies have different rewards and risks, and it’s crucial to understand what potential return you may get in return for the risk you’d be taking on. Blain Reinkensmeyer has 20 years of trading experience with over 2,500 trades placed during that time. He heads research for all U.S.-based brokerages on and is respected by executives as the leading expert covering the online broker industry.

Ally Invest is geared for the beginning option trader, but experienced traders alike will also get massive value from the options trading platform. Charles Schwab has been giving traders an excellent experience for decades. Their options trading software StreetSmart Edge is easy to use and a great experience on all types of devices. While most popular brokerages offer options trading, it isn’t a key focus of every stock trading platform.

what is the best option trading platform

Combination orders happen when you combine put and call options to enter into a trade. For example, one strategy is called an iron butterfly and allows the trader to combine a sell to open and buy to open. Traders use the buy to open order when they want to establish a short or long position on an underlying security.

Low fees and user-friendly tools make Ally Invest’s options trading platform stand out of the crowd. Being successful on Robinhood simply means knowing how you want to trade options and doing it in a very minimal style. Without any fees whatsoever and low margin rates, you can save a lot of money when it comes to trading options.

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