Options trading can be rewarding with the right platform. Understanding the risks and using strategies that fit your risk tolerance are the keys to successful options trading.
Options trading isn’t a key focus of most stock trading platforms. To find a broker that specializes in options trading, it’s important to research and compare the different features available.
Since options trading can be majorly profitable for you and the broker, a handful of online brokerages have stepped up their game. It is important to shop around for a broker that will fit your trading goals and risk tolerance.
I narrowed it down to the best online brokers for buying and selling options contracts. I am confident that these platforms offer the most competitive rates and provide the best user experience for trading options.
The best options trading platforms are offered by the 11 brokers below. You can find a wide range of educational materials to help you maximize your trading knowledge.
11 Best Options Trading Platforms
Here are the best options trading platforms you can start using today:
- TD Ameritrade: Best Overall Options Trading Platform
- TradeStation: Best for Active Investors
- Robinhood: Best for No Fees
- Tastyworks: Best Specialized Options App
- E*TRADE: Best Mobile App
- Webull: Best for Beginners
- Interactive Brokers: Best for Experts
- Charles Schwab: Best for User Experience
- You Invest: Best Robo-advisor
- Gatsby: Best Social Platform
- eOption: Best Options Pricing
1. TD Ameritrade
Whether you are a new trader or a pro, there is no better place to start. It is an ideal platform for traders of all levels.
It is easy to research and stay on top of your investments in the basic app. Real-time news and market data can help inform your decisions.
With thinkorswim, the company’s advanced trading platform, you get loads of complex features that work the same, whether you’re on desktop or mobile. You don’t need to juggle multiple accounts and passwords just to keep track of your investments.
Thanks to the first broker to do away with fees, commission-free or low-fee trades are now offered.
The broker does not have an account minimum. It’s an ideal choice for investors who don’t have a lot of money to invest.
Features:
- App: thinkorswim, TD Ameritrade Mobile
- Minimum deposit: $0
- Pricing: $0.65 options contract
- Continue Reading: TD Ameritrade Review
2. TradeStation
TradeStation has a powerful options trading platform for experienced users, as well as more simplified tools a novice investor could understand. TradeStation is a great choice for beginners and experienced investors.
The platform allows you to choose between two levels, which have different fees and features. There are a number of features designed to help you make the most of your investments.
TradeStation has live data, options strategies, and educational resources. The TradeStation platform is easy to use.
You can use OptionsStation Pro. You can use OptionsStation Pro to analyze potential trades. There are more analytical tools and quick trading capabilities in this tool. It allows traders to make decisions with greater confidence.
Some of the lowest option fees per contract can be found at TradeStation.
Features:
- App: TradeStation Mobile
- Minimum deposit: $0 for TS Go; $2,000 for TS Select
- Pricing: $0.60 options contract (TS Select); $0.50 options contract (TS Go)
3. Robinhood
If you want to start trading options on a platform that is easy to use, you should check out Robinhood. It’s free to use and offers a great way to explore options trading.
You can invest in fractional shares with new traders. You can use real-time streaming market data to make smarter decisions.
Although it doesn’t have as many educational resources and analytical tools as other platforms, it has enough to get you started. It is easy for beginners to get comfortable with the platform because of the user-friendly interface.
The platform has its limits, but it is easy to use and free, including options contracts. It is a great way for beginners to get started in the stock market.
Features:
- App: Robinhood
- Minimum deposit: $0
- Pricing: $0 options contract
- Continue Reading: Robinhood Review
4. tastyworks
Options trading is one of the areas that tastyworks excel in.
Professional traders will appreciate the research tools and lightning-fast trade entry found in the tech-savvy app. The app is easy to use for beginners.
The platform is easy to use, but tastyworks is better suited to professionals. The platform offers a wide range of powerful tools and features to help professionals make informed decisions, but is less user-friendly for novice investors.
You can change your investments on-the-fly with tastyworks features, they function the same whether you are on your phone or computer. You can connect your tastyworks account to other platforms for quick and easy access to all of your accounts.
There are videos where traders demonstrate trades and share strategies.
Features:
- App: tastyworks
- Minimum deposit: $0
- Pricing: $1 option on stocks and ETFs; $2.50 option on futures
- Continue Reading: Tastyworks Review
5. E*TRADE
Since day one, E*TRADE has set the bar high. It has changed the way people invest, giving everyone access to the same tools used by Wall Street pros.
The basic E*TRADE platform is easy to use and can be used by a beginner. It has a wide range of investment options.
E*TRADE has a platform for professionals called Power E*TRADE. Power E*TRADE provides sophisticated tools and analysis to help professionals make the most informed decisions in the fast-paced world of trading.
You can research options, create and test trading strategies, and execute and manage options trades on both platforms. OptionsHouse has a mobile platform for trading on the go.
One of the best mobile experiences of anyone is offered by E*TRADE. The app is easy to use, so you can start trading quickly.
Features:
- App: E*TRADE Mobile app; Power E*TRADE app
- Minimum deposit: $0
- Pricing: $0.65 options contract, or $0.50 w/30+ trades a quarter; $1.50 futures options
- Continue Reading: E*TRADE Review
6. Webull
Webull is a newer investment platform that should be on your radar if you are an options trader. Webull has a range of features that make it easier to trade options, including real-time market data and advanced order types.
If you want to trade options, stocks, and even ADRs, Webull has a lot to offer. A variety of trading tools and resources can help you become an informed investor.
The platform has online resources and customer service. The desktop version of Webull is completely accessible and free. It’s an excellent way to get real-time market data, news and analysis for free.
Webull has more than its website features to offer.
Unlike other platforms on the list, Webull does not charge for options contracts. Webull allows investors to place trades outside regular market hours.
While there may be some fees down the line, Webull lets you trade options on an advanced platform for free. You can make informed decisions when trading options if you have access to research, data and news.
Features:
- App: Webull: Stocks, Options, and ETFs
- Minimum deposit: $0
- Pricing: $0 options contract
- Continue Reading: Webull Review
7. Interactive Brokers
Interactive Brokers is designed for professionals and active traders with advanced analytical tools. It offers access to a wide range of markets and products at competitive prices, making it one of the most cost-effective options for experienced traders.
It brings nearly everything from its desktop platform to its mobile app, so you can research and execute trades on-the-go or at home. It’s an incredibly versatile trading platform for investors of all levels.
The IBKR Pro version is for more complex trading, while the IBKR lite version is for simpler trading.
The more options trades you make, the lower the cost per contract is. IBKR is an attractive option for frequent options traders because of its low cost and no base fee.
You will face higher fees and requirements with Interactive Brokers Pro platform. It may not be suitable for beginners.
Features:
- App: IBKR Mobile
- Minimum deposit: $0
- Pricing: $0.65 options contract (sometimes lower with tiered pricing)
- Continue Reading: Interactive Brokers Review
8. Charles Schwab
Charles Schwab is a good choice if you want to work with a well-known and reliable broker. Charles Schwab has a long-standing reputation for providing excellent customer service and helpful tools to support investors of all levels.
The J.D. has top honors. The customers were also pleased with the superior customer service they had received from the company. One of the most user-friendly apps on the market is the Power survey of brokerages.
There are lots of educational resources for new investors and tools to start trading options. You can use the resources to learn about the different strategies and risks associated with options trading.
StreetSmart Edge, the platform’s premier software for expert traders, can be used by seasoned investors.
The cloud-based version of StreetSmart Edge can be used to trade from anywhere. StreetSmart Edge is available for both Windows and Mac operating systems, so no matter what device you’re using, you’ll be able to access the platform.
Features:
- App: Schwab Mobile
- Minimum deposit: $0
- Pricing: $0.65 options contract
- Continue Reading: Charles Schwab Review
9. You Invest by J.P. Morgan
Another impressive options trading platform is You Invest.
If you already bank with Chase, their trading platform could be a perfect addition to your services.
You Invest gives you a simple, straightforward experience, whether you are researching, trading options, or managing your investments. You Invest gives you control of your financial future and allows you to make informed decisions about where to put your money.
The platform lets you choose between You Invest Trade, a hands-on option, and You Invest Portfolios, a robo-advisor.
You will get commission-free trades and low fees all the time.
Features:
- App: J.P. Morgan Mobile
- Minimum deposit: $0; $500 minimum investment with You Invest Portfolios
- Pricing: $0.65 options contract
10. Gatsby
New traders can get on board with the complexity of options trading on the platform. New traders can learn the basics of options trading quickly and easily with the educational materials and resources offered by Gatsby.
The startup does not charge commission or contract fees. It’s an attractive option for entrepreneurs who want to get their business off the ground without additional costs.
It rewards you with points for every trade, which adds up to gift cards from popular retailers. You can redeem points for a variety of rewards, so you can find something that suits you.
The app integrates social media into its platform. Users can stay connected with their friends and make the most of the experience. You can join in on live discussions and see what your friends are doing.
If you are a new trader looking for an app with a social twist, Gatsby is worth a look.
Features:
- App: Gatsby
- Minimum deposit: $10 to start investing
- Pricing: $0 options contract
11. eOption
eOption is one of the best options trading platforms. eOption is a cost-effective solution for investors looking to maximize their options trading profits. The platform is best suited for active traders.
Advanced traders will find the app and its tools the most useful, as it has plenty of educational resources to assist newer traders. The app’s sophisticated tools and resources can help advanced traders stay ahead of the market.
eOption is another platform whose investment app is just as impressive as its desktop version, mirroring the interface on mobile.
eOption is one of the best options if you want to trade at a high volume and save money. It’s an excellent choice for people who want to invest with a minimal amount of capital.
Features:
- App: eOption
- Minimum deposit: $10 to start investing
- Pricing: $0.10 options contract
What Is Options Trading?
Options trading is a lot like trading individual stocks.
The difference is that you bet on the future trajectory of a stock or other asset, entering a contract that gives you the right to buy or sell at a certain time or set price. Since the value of the contract derives from the underlying asset, this type of trading is known as derivatives trading.
You expect the stock’s value to increase with a call option. If the stock value increases, you have the right to buy the stock at a fixed price, which can provide a good return on your investment. The stock’s price will decrease if you have a put option.
You hold a contract to buy or sell the stock instead of owning it. You earn a profit if you bet right.
Options are mostly for stocks, but you can enter option contracts for other assets, like:
- ETFs
- Index
- Commodities
- Currency
- Bonds
How Much Money Do You Need to Start Investing?
Online brokers are all about minimizing fees and account minimums, removing the barrier for a lot of beginning investors.
You can start trading options with a few bucks.
Some brokers may require you to have a certain amount of funds in your account in order to open an account. If your account falls below the minimum balance requirement, you will be charged fees.
You just need to make sure you have enough money for trading and account fees if there is no account minimum. Before you start trading, it is advisable to read and understand the terms and conditions of your account.
You could also consider margin trading. Margin trading can help you leverage your capital to make more money, but it can also increase your risk of losses. Though margin trading with options is more complicated than with stocks, it allows you to borrow more funds to invest. With margin trading with options, you can benefit from the potential for greater returns on your investments.
Continue Reading:
How to Pick the Best Options Trading Platform
Every investor has their own trading strategy and platform to use. Make sure the strategy you choose is in line with your long-term goals by doing your research.
It’s difficult to choose an investment platform with a more complex asset like options. It is important to research the different tools and features of a potential investment platform in order to meet your specific needs.
As you narrow down your list of options trading platforms, keep the following in mind:
- Price : Not all options trades are free or low cost, weigh the expenses of each platform, and consider the volume of trading you will be doing. It’s important to remember that the cost of trading options can vary greatly, so it’s important to do your research and find the best option for you.
- The platform you choose should be easy to use. It should be enjoyable for your users.
- Consider each platform’s analytical tools, educational content, and trading features. Before making a decision, it is important to evaluate the cost of each platform and the fees associated with trading.
- Some brokers offer a longer lineup of assets, while others specialize in options. If you want to meet your trading goals, you need to find a broker that has the assets you need.
You can rely on any one of the options trading platforms listed above to provide you with a great user experience, low costs, and useful features. They can give you the information you need to make informed decisions about your trades.
It’s up to you to pick the best one for your investment strategy.
