Best platform for trading options gold

5 Best Online Broker Platforms For Options Traders. Options trading can be simple, but can quickly get complicated. Online brokers provide customers tools to handle the tons of quotes, statistics and underlying-securities tracking they might need to succeed in trading puts and calls. IBD's 2013 Best Online Brokers Survey found the five options trading platforms that clients rated highest. They were OptionsXpress , TD Ameritrade ( AMTD ), Interactive Brokers, Charles Schwab ( SCHW ) and TradeStation . "Options can be used by a wide variety of investors to target a wide variety of objectives," said Jim Bittman, director of program development and a senior instructor for the Options Institute at the Chicago Board Options Exchange. Brokerage firms have developed platforms to help options traders of all levels, from novices who buy a call or put to advanced folks who put on multilegged positions. While some platforms are bare-bones, others have a barrage of features such as streaming data, sophisticated analytics and pricing tools. Investors can choose a platform that's Web-based or downloaded as a separate program. A Web-based trading platform is accessed from your broker's website. These are generally less fancy and less customizable. Downloaded platforms tend to use flashier charts and tools. They also tend to give users the ability to customize screens and layouts. OptionsXpress, owned by Schwab, has offerings for clients ranging from beginners to more sophisticated traders.

The broker's Web-based platform is not flashy, but is laid out well. It has easy-to-use order-entry interfaces under secondary navigations for single-option orders as well as spreads and covered calls. The company also has an all-in-one trade ticket that makes entering orders with multiple options faster and easier. Just select the method you want to put on, and the different legs of the trade will be set up for you. OptionsXpress also has tools to help find trade ideas, as well as volatility charts and price calculators. TD Ameritrade also offers a basic, Web-based platform that has something for every level of investor. Order entries for single options, covered calls, spreads and strangles can easily be accessed under a secondary navigation. For single options orders, you can choose an exchange to handle the order or you can have it done automatically. Whether you're putting on a spread, strangle or straddle, you easily get quotes for those trades as a package rather than viewing them in individual legs. For traders who want more advanced features, TD Ameritrade offers the Trade Architect and Thinkorswim platforms. Trade Architect is a Web-based platform catering to active investors, who can select a method and get profit-and-loss graphs to see how the trade can play out. Thinkorswim, which requires a download, is TD Ameritrade's platform for advanced traders. Packed with sophisticated features, investors can monitor the market and place trades in one screen.

Complex strategies can be easily placed, and investors can switch layout views to see implied volatilities and probabilities. Interactive Brokers has two platforms for customers. One is its Web Trader platform, which has just the basics for viewing option chains and entering orders. The company also offers a much more advanced tool for options traders. Interactive Broker's OptionTrader, which is within its Trader Workstation platform, lets users view options chains, including key statistics such as implied volatilities and greeks -- a term that refers to delta, gamma and other measures of options' sensitivity to various factors. Orders for single options or combination orders can easily be entered. Buttons are conveniently placed to reverse a position or hedge it from price risk. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc. The 3 Best Forex Trading Platforms. Latest Update November 11, 2015. Top forex brokers excel in a variety of areas like trade execution, real-time access to prices and charts, and educational resources.

Most brokers have several platforms, including those that are highly specific for automated and algorithmic trading. Some of the largest factors that come into play when selecting a forex trading platform are your individual trading style and experience level. Well-rounded forex platforms will have the most flexible solutions that enable you to trade and manage risk from any computer or mobile device. Thinkorswim, part of TD Ameritrade, delivers the most advanced forex trading platform on the market. They conveniently enable you to trade forex, stocks, futures, and options all from one account. Through this platform, thinkorswim brings professional-grade charting and analysis packages, and places them in the hands of retail clients. These powerful tools are accessed through a desktop application or web application that is compatible with Windows or Mac, and highly rated mobile apps for iPhone, iPad and Android. Forex. com combines one of the most customizable forex trading platforms with one of the most complete mobile solutions, enabling you to trade how you want, when you want. The FOREXtrader Pro platform comes with a partner app store, Tradable, so users can customize every part of their trading experience one app at a time. Use automated trading apps to build strategies, or use the Margin Alert app to receive alerts when you’re getting close to a margin call.

The mobile platform for iPhone, iPad, and Android doesn’t skimp on features either, containing a host of complex order types and a portal to access education to increase your forex knowledge from anywhere. MB Trading tailors to various expertise levels, offering multiple platforms for the professional trader and several others for those who are intermediate and novice. Deskop Pro and MetaTrader 4 are dedicated, Windows-based platforms targeting more advanced traders. MBT Web and MBT Mac are web-based platforms for more intermediate or beginner traders that can be accessed through any browser. All platforms have highly customizable interfaces and powerful analytical tools to take your trading to the next level. If you need to trade more than forex, try out the Lightwave platform, which also powers stock, futures, and options trades from one account. We find the best of everything. How? We start with the world. We narrow down our list with expert insight and cut anything that doesn't meet our standards. We hand-test the finalists. Then, we name our top picks. Forex Brokers.

Are you looking for a better place to open your trades? Whether you're a beginner or experienced trader, our reviews and broker listings can help you find the best platforms to trade with. We only list brokers that are trusted, well regulated and offer competitive spreads, bonuses and trading conditions. The Best Forex Brokers + Trading Platforms. Free forex signals + market research Online education and webinars Fee free withdrawals and deposits. The leading Social Trading platform with 4.5m traders Follow other traders or be a leader and earn Personal service and VIP perks. Trusted, regulated broker with 10 yrs experience Multi award winning company Segregated accounts with leading banks. Choice of four professional trading platforms Trusted & Secure: authorised and regulated Choice of Forex, CFDs, Spread Betting and Binary Options. + Cash rebates on trades. World class trading platform Expert market analysis Regulated and traded on the LSE. +50% Deposit Bonus (ex-EU only) Free Guaranteed Stop Loss Segregated funds at top tier banks Fixed spreads & negative balance protection. Tight spreads without commissions Advanced charting tools. + Up to £6000 on deposits.

No commissions and low spreads Advanced trading tools Minimal account fees. 1st month commission bonus. Low cost trading with tight, fixed spreads Loyalty rewards: Earn cashback as you trade Choose Forex, CFDs or spread betting. +100% on every deposit. Split second execution No requotes Range of accounts. +55% Deposit Bonus. 'Asia's top broker' Wide choice of leverage options. +40% Deposit Bonus. Generous Cashback Rewards for every trade Leverage the wisdom of the crowds to inform your positions Fast, simple signup. 24 hr Live Support Fully Regulated and Licenced EU Broker User - friendly trading platform.

Instant fund withdrawals - no commissions Tight spreads from 0.1 points Unlimited leverage. 8 Trading Platforms Spreads from 0.1 Pips $0 fees on deposits. Deposit Bonus + Cashback. Trusted by 100,000s of traders Fully licensed in the EU by Tight spreads and fast withdrawals. 0.0 pip spread pro accounts Instant deposit. How to choose a forex broker. Regulation in the forex market. In the US, a reputable forex broker will be a member of the National Futures Association and will be registered with the U. S. Commodity Futures Trading Commission as a Futures Commission Merchant and Retail Foreign Exchange Dealer. A broker that is a member of the National Futures Association and subject to CFTC regulations will state this and its NFA member number on its website, typically in the "about us" section and on each web page. In the UK, brokers are regulated by the Financial Conduct Authority (). In other countries, there is a specific regulator responsible for forex brokers.

Any platform should have a legal indication of being regulated by such an authority, in the interest of protecting your deposit. The offer of each broker may differ in terms of leverage and margin. Forex brokers will offer a variety of leverage amounts depending on the broker, such as 50:1 or 200:1. The ability to select the leverage a trader desires enable better control of risk. Different brokers may also offer different commissions and spreads. A broker that uses commissions may charge a specified percentage of the spread, the difference between the bid and ask price of the forex pair. However, most brokers advertise that they charge no commissions, and instead make their money with wider spreads. The wider the spread, then, the more difficult it can be to make a profit. Popular trading pairs, such as the EURUSD and GBPUSD will typically have tighter spreads than the more thinly-traded pairs. A trader should compare spreads on the pairs the trader prefers to trade from broker to broker. Different brokers also offer different terms for deposits and withdrawals. Each forex broker has specific account withdrawal and funding policies. Brokers may allow account holders to fund accounts online with a credit card, via ACH payment or via PayPal, or with a wire transfer, bank check or business or personal check. Withdrawals can typically be made by check or by wire transfer. The broker may charge a fee for either service.

The offer of currency pairs can also vary from broker to broker. Many brokers offer only the majors, and then a few minor pairs. There are, however, a great deal of less-traded pairs that merit attention, and it may be worth finding a broker who offers a great variety. Ease of use of the trading platform is another important offer from a broker. The platform should be easy to use, visually pleasing, and have all the tools that the trader likes to use. The trader should have no difficulty working with the platform so that there are no mistakes when trading. One other factor that may affect your choice of a broker is customer service. This can vary wildly from one broker to another. Trading forex is a 24-hour activity, so your broker should certainly offer full-time customer service. There should also be rapid intervention if you have a problem making a withdrawal of funds – one typical problem with forex platforms is that it can awkward trying to get your profits out. Your platform should have a consistent withdrawal policy and, if something goes wrong, customer service should intervene without delay or any issues. Similarly, if there is a trading problem – that is, if the trading software malfunctions – your customer service should unwind the trade for you without any questions. Can you trust user reviews of forex brokers? We have debated adding a review section to each of our broker pages, but in researching other forex site a trend is clear: many bad experiences of trading with a particular company come down to naivety or inexperience with trading markets.

It is easy for people who have been sold a 'make money online' dream to feel scammed if they very quickly lose their capital - but is this the fault of the trader, the broker or the website or mailing list who sold them on the dream to begin with? Likewise, due to the vast sums moving through the financial markets each day, it is not hard to find suspect reviews, either absurdly positive ratings that suggest they were written by a member of staff from a small time broker, or aggressively negative posts that appear to be an attempt by unscrupulous brokers to smear their competitors. In short, it's a mess. So what is a trader to do when evaluating a platform? In our view one of the best steps you can take is to choose a broker that is regulated by a organisation that actually has teeth. While the UK's old regulator, the FSA, used to take a lax approach to regulation, in recent years they have taken a particularly hard line with brokers. This may mean a more laborious sign up process, as they must now meet stringent money laundering requirements - but in turn it means they, and the partners that advertise them, are strictly limited in the claims they can make so you know you're not being oversold. They must also meet much tighter licensing and accounting procedures so you know your money is safe. Use our broker comparison list and make your own opinions. To choose between the regulated brokers, we suggest taking a good look at the spreads they offer and the quality of their trading software. Sign up for a demo account or take a no-deposit deal and test the waters - can you see yourself using this platform every day? Is it responsive to your trades, or do you witness slippage in placing or closing your positions?

Compare the pros and cons of each trading platform, and make an informed choice as to whether a better platform is worth paying higher fees for - or indeed, if a simplified interface or features such as social trading are worth paying a premium for. We only list forex brokers we feel meet an exacting criteria, but your priorities may differ - make sure to explore each broker in full rather than opting for the company with the biggest welcome bonus. Featured Brokers. Risk Warning. Your capital is at risk. Trading in Forex and Contracts for Difference (CFDs) is highly speculative and involves a significant risk of loss. The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. This website is provided for informational purposes only and in no way constitutes financial advice. A featured listing does not constitute a recommendation or endorsement. About ForexTrading. Company. Forex Trading.

Company was established to provide global traders a deep and insightful source of information on forex trading, its key strategies and indicators. With guides for everyone from beginner traders in Bangladesh to advanced strategists in Hong Kong we want the world trading community to benefit from our in-depth broker reviews, features, and commentary. We list the world's top regulated and authorised brokers suitable for a global audience. We aim to think global, act local with our website, so that whether you're in Asia, Europe or Africa you can gain from our content on the world's biggest market. Day Trading Options: 5 Best (Starter) Platforms. Once you’ve learned the basics of day trading – you might get the idea that the process is easy: buy options, sell them within the day, repeat the next day. Don’t let that fool you, however options day trading can get a little bit tricky. This is where trading platforms come into play. Online brokers love the options day trader, most likely due to its higher returns compared to stock trading. This encourages stiff competition, leading to innovative solutions and friendlier price points, which is a great plus for investors and day traders. This article will discuss all you need to know about the options trading platform and online options trading in general. First, I’ll give you the essential factors and features that you need to consider before choosing an online broker to manage your day trade options. Once that’s settled, we’ll discuss the five best platforms available – from general overviews, price points, advantages, disadvantages, and other useful information. Let’s get started!

Top 5 Options Day Trading Platforms. min Balance req. $4.95 + $0.50 per contract. $4.99-9.99 + $0.20-0.70 per. contract (based on volume) Superior Platform Interface. $12.95 (Active Trader)$14.95. (Standard Trader) + $1.25-1.50. per contract (based on volume) $1000 (waived with. $100 monthly auto-deposit) $8.95 + $0.75 per contract. $9.99 + $0.75 per contract. Factors to Consider Before Choosing an Online Broker for Day Trading Options. More frequently than not, individuals tend to choose brokers with the lowest price points. While cost and fees are indeed important, they’re not the only things you should consider before choosing an online broker for trading options. Sure, you might get the least expensive broker – but at what price? You also need to take into consideration the following factors: Interface and Simplicity. These factors may be even more important for beginners in day trading.

Online brokers exist to make your life and investment processes simpler and easier – not the other way around! You’ve got enough to worry about in formulating strategies for day trading, you really shouldn’t be wasting time figuring out how to use a trading platform. Commissions and Fees. I still have to mention it, as it is an important factor to consider. Commissions and fees can make or break your actual returns on investment. Be wary of fees that may be hiding in plain sight or are written in fine print, such as maintenance fees and trading fees. Similarly, commissions and fees should be direct, to the point, and simple in nature. Available Research and Technological Tools. These are arguably the most important points to look for in a trading platform. Research – which includes opinion articles by the pros, corporate publications, and news in general – can help you make smarter decisions in day trading. These should be readily available in the online platform you choose, and should be updated promptly.

Trading tools, on the other hand, will help you analyze trends that may be based on the research data available on the site. Make sure that the online broker you choose is affiliated with trusted associations. For more information, visit the Financial Industry Regulatory Authority’s (FINRA’s) website.. Your broker should also be able to guide you step by step. There’s nothing like great customer service, online brokers’ included. There are a lot of other features that you might look for once you get the hang of it, but the factors listed above are the most basic ones to look out for in online trading platforms. The Five Best Trading Platforms. Now that you know what features to look for in an online broker, you may start to wonder: which should I choose? You might be overwhelmed by the amount of platforms available for day trading options. Simply visiting their websites might not be enough for you to comprehend their services. But don’t worry. We’ve got you covered! We did the research for you and tested various trading platforms available for day traders.

Here are the five best option trading platforms (in no particular order), along with some information on their fees, key features, pros, and cons. Minimum balance requirement: $0. Commission for options: $4.95 + $0.50 per contract. OptionsHouse has one of the lowest commissions for options trading, which makes it attractive for beginners and experienced users alike. Founded in 2005, OptionsHouse quickly became one of the top choices for day traders for its low base rates. If you’ve decided to go for discount brokers, OptionsHouse may be the best choice for you. In 2014, OptionsHouse merged with TradeMonster, which helped improve its overall trading capabilities. One feature that many users love about OptionsHouse is its highly customizable platform, where you can tweak and select the sections you prefer to see on your dashboard. The website also provides you with useful options trading tools, such as options chains, risk viewers, and option calendars. OptionsHouse also boasts of its fast order entry. Processes are streamlined (a guide they call ‘tradeCYCLE’), and you can input orders and add stocks with ease, and in an instant.

Beginners may also find OptionsHouse attractive with its archived webinars that teach you how to go through day options trading. There is a downside to the simplicity and efficiency of OptionsHouse, however it may not be for individuals looking for platforms that have a number of investment products (for one, it lacks Forex trading). Its name speaks for itself: it mainly focuses on options. Lastly, OptionsHouse is not a full service broker. As previously mentioned, this is for those who are looking for a discount broker. OptionsHouse is perfect for those seeking low fees, advanced trading tools and platform, and efficiency. Minimum balance requirement: $5,000. Commission for options: $4.99 to $9.99, with $0.20 to $0.70 per contract (based on volume) TradeStation has one of the best design interfaces and platforms among online brokers, a major reason experts shower it with praises. It’s also one of the fastest and most efficient online trading platforms, with fast order placements and trade executions incorporated. For a visual of the interface and a review of the platform by Chris Dunn, see this video: One of our favorite features on TradeStation is its OptionsStations tool, which makes analysis of possible option trades infinitely easier. It also includes a P&L chart in 3D format – visualizing your profits and losses and helping you choose better potential trades.

You can even rank possible trades, and analyze various options positions. Tools are also available for you to formulate and test out your trading strategies – and even earn from them by selling these strategies to interested investors. Another plus for TradeStation is its availability on mobile (on both iOS and Android). The app isn’t quite as comprehensive as the web platform yet, but you can still view and analyze real-time data and make trades. This is very important for day traders, as you have to be alert to sudden changes any time – and you should be ready to make the trade. A word of warning though: TradeStation issues a monthly brokerage fee worth $99.95, and it’s not for those who are conservative with their options as it is more beneficial for those who trade in bulk. If you’re into trading massive volumes of options, though, then TradeStation may be the perfect platform for you. Minimum balance requirement: $0. Commission for options: $0 Base Fee, $12.95 to $14.95 + $1.25 to $1.50contract based on volume. OptionsXpress mainly focuses on features that would highlight its strength in options trading, such as real-time options trade data, quotes, and options chains. Similar to OptionsHouse, OptionsXpress’s platform is highly customizable, and is very easy to use. OptionsXpress also is one of the faster and more efficient online trading platforms available. Inputting an order with a wide array of different options is possible with its simple, all-in-one interface.

The platform also offers useful trading tools such as price calculators, and charts that will help you track different options’ volatility. One of their most powerful tools is the DragonTool, which lets you search for options based on your personal preferences and strategies. Beginners also can find resources in OptionsXpress that would be useful: for one, they have a virtual trading platform that lets you invest $25,000 in virtual money – which can help you create and fine-tune your trading strategies in real life. OptionsXpress also has an Education Center, which houses videos that teach newbies the how-tos of day trading. In addition, new users get a free 13-month subscription to a daily financial newsletter which cites notable news, publications, reports, and trends in the market – very handy for those looking to earn more in the options trade. Like TradeStation, however, OptionsXpress favors those who trade options more actively. So if you’re just starting out and are just trying to test the waters in day trading, their pricing structure may not be the most preferable – you’d be better off with OptionsHouse. But if you’re an experienced day trader who trades on a regular basis, their pricing is a major plus. Another disadvantage to consider is that their customer service includes chat and telephone clients which you can access during the day, but the 24-hour customer support is only available to futures traders. Minimum balance requirement: $1,000 (waived if you have an automatic deposit of $100 per month) Commission for options: $8.95 + $0.75 per contract. The parent company of OptionsXpress, Charles Schwab is one of the frontiers of options trading. The company was founded in 1971, and has garnered vast experience in the options trading game. They’re not limited to options trading, though, as they are a full investment company (which can be an advantage if you’re looking to trade investment products other than options).

Charles Schwab is one of the best platforms if you’re looking for research data, analysis, and trading tools. Similar to OptionsXpress, Charles Schwab offers a customizable platform for those who want to incorporate their personal preferences on the interface. Beginners and advanced traders alike will also enjoy their other useful resources, such as live webinars, educational videos, seminars (at Charles Schwab outlets) and financial commentary by the experts. While there is a vast amount of resources that can be found at Charles Schwab, some users have complained that the interface looks a bit disorganized, especially if you don’t know specifically what you’re looking for. Though they offer 24-hour customer service, many have also said that Charles Schwab’s email support is not on par with other options brokers’ levels. Minimum balance requirement: $0. Commission for options: $9.99 + $0.75 per contract. You’ve probably heard of TD Ameritrade, and you’ve most likely even tried one of their most popular virtual trading tools, thinkorswimⓇ. But TD Ameritrade’s services don’t just stop at virtual trading, they also offer one of the best online options platforms currently available. Their much-lauded analytical tools, thinkorswimⓇ and Trade ArchitectⓇ, offer users with highly functional features that can help you follow market trends, analyze them (through graphs and charts), formulate a method, and implement them instantly. Advanced users in particular will likely enjoy these features (with their wide array of settings that can be customized), but beginners are also welcome in their very user-friendly online platform interface.

TD Ameritrade also comes with a mobile app, suitable for those who want to closely follow news and trends in the market. Aside from their advanced trading tools, TD Ameritrade has some of the best research data and commentary available for options traders. They also provide users with experts’ commentary, reports, and charts (among many others!) when you look for a quote for a company. Courses are available for users in all levels (Beginner, Advanced, or Expert). Aside from these helpful materials, TD Ameritrade also offers live and online seminars and workshops, and other educational videos. These amazing features come with a heftier price, however. TD Ameritrade’s commission and fees are significantly higher than their competitors. Those who are looking for international market access won’t find it on TD Ameritrade, either. But, if you’re willing to spend more for better tools and data, TD Ameritrade hits the nail on the head. I have provided with you with important factors to consider before choosing an online options broker, and some exceptional online trading platforms. A final word of advice: before choosing the platform you really want to use, make sure that they pass all your requirements – and are equipped with the tools that you want to use. If you’re not sure exactly what you’re looking for in online trading platforms yet, don’t worry – you’ll learn that along the way.

You’ll form your preferences over time and learn valuable things about options trading, and you’ll find the best options trading platform for you. All of the platforms listed above are helpful for traders of all levels, so don’t be afraid to try it out and start day trading! No related posts. Zequek Estrada says. Recently I’ve taken an interest in day trading platforms. This answered some questions I’ve had about it. Although I don’t know if I’ll actually choose a platform, it’s good to be aware that you need to check if your choice is equipped with all the tools that you want to use. Leave a Reply Cancel reply. COMPENSATION DISCLOSURE. Top 10 Explosive Penny Stocks to Invest In 2017 (Hot Picks) Methods For Building And Repairing Credit. 3 Best Small Business Credit Cards for 2017. Popular Categories.

Tom Smallwood. Tom is a former accountant turned entrepreneur. He is not a financial adviser but does tend to give a lot of financial advice to his friends and colleagues. He currently runs a small online venture and blogs about his research and experiences. How To Buy Gold Options. Buy gold options to attain a position in gold for less capital than buying physical gold or gold futures. Gold options are available in the U. S. through the Chicago Mercantile Exchange (CME), so if you've wondered how to invest in gold, here's a shorter-term and less capital intensive way to do it. How to Invest in Gold: Calls and Puts. Use options to profit whether gold prices rise or fall. Believe the price of gold will rise? Buy a gold call option. A call option gives the right, but not the obligation, to buy gold at a specific price for a certain amount of time (expiry). The price you can buy gold at is called the strike price. If the price of gold rises above your strike price before the option expires, you make a profit.

If the price of gold is below your strike price at expiry, you lose what you paid for the option, called the premium. (For more on how to decide which call or put option to use, see " Which Vertical Option Spread Should You Use? ") Put options give the right, but not the obligation, to sell gold at a specific price (strike price) for a certain amount of time. If the price of gold falls below the strike price, you reap a profit of the difference between the strike price and current gold price (approximately). If the price of gold is above your strike price at expiry, your option is worthless and you lose the premium you paid for the option. It is not necessary to hold your option till expiry. Sell it at any time to lock in a profit or minimize a loss. Gold Options Specifications. Gold options are cleared through the CME, trading under the symbol OG. The value of the options is tied to the price of gold futures, which also trade on the CME. 40 strike prices are offered, in $5 increments above the below the the current gold price. The further the strike price from the current gold price, the cheaper the premium paid for the option, but the less chance there is that the option will be profitable before expiry. There are more than 20 expiry times to choose from, ranging from short-term to long-term. Each option contract controls 100 ounces of gold. If the cost of an option is $12, then the amount paid for the option is $12 x 100 = $1200.

Buying a gold futures contract which controls 100 ounces requires $7,150 in initial margin. Buying physical gold requires the full cash outlay for each ounce purchased. To buy gold options traders need a margin brokerage account which allows trading in futures and options, provided by Interactive Brokers, TD Ameritrade and others. Gold options prices and volume data are found in the Quotes section of the CME website, or through the trading platform provided by an options broker. Calls and puts allow traders a less capital intensive way to profit from gold uptrends or downtrends respectively. If the option expires worthless, the amount paid (premium) for the option is lost risk is limited to this cost. Trading gold options requires a margin brokerage account with access to options. Best Options Trading Platforms: The Ultimate Guide. This ultimate guide will help you understand trading options, where to find the best options trading platforms and how to recognize and compare them. Maybe you want to earn more money to pay the bills.

Or your next holiday. Or a house for your family. Or maybe you really just want some extra income. Then you’ve probably heard that you should invest your money in financial products – be it stocks, real estate or even foreign currency. You also probably already have an idea what stocks are – it’s always on the news, and it’s the most popular thing to invest in. But what about options? Don’t worry. We’ve got you covered. We’ll discuss what the basics of options trading are, the best options trading platforms, and how to compare these platforms. What In The World Is 'Options Trading'? If you’re already looking for the best platforms, you probably already know what option trading is. But let’s refresh our minds and revisit important basics in the options trading game. An option is another type of security a lot of people invest in, a contract that makes a buyer able to buy or sell an underlying asset before a specific date, and at a particular price. Also recall that this gives the buyer the right to buy or sell, but no obligation.

This short video quickly explains what is options trading: Binary Options Explained. In contrast to regular options trading, you may have also heard of binary options. It is a specific type of options that lets you decide between two choices: yes or no, or in trading terms, “call” (when you predict the price will rise) or “put” (when you predict the price will decline). Since you can only have two choices, it will also yield just two possible results: all or nothing, meaning that an investor can never lose more than what he’s invested. The difference to regular options lies in the payout, which is pre-determined at the onset of the contract as well as the expiry time and execution. With sets of skills, knowledge, and experience, and using one of the best binary trading platforms, it can be highly valuable. Ok, I Get It Now. But Where Do I Trade Options? We’ll tell you all about the best trading platforms available, and we’ll compare their prices, advantages, disadvantages, and more. But before we get to that part, we all need to establish some factors and features that you should consider before choosing a broker or a platform to trade options. Also, people usually only consider commissions and fees before choosing a platform, but that’s not the only important thing to look at. It’s important, yes, but there are many other facets that you should know before finally deciding on a brokerage company. What Should I Look For In An Options Trading Platform? Consider the following factors: Since we already mentioned it in the previous paragraph, might as well start with this one.

Of course, commission and fees are still highly important for any trader in the game. First, make sure that there aren’t any large “hidden” fees (e. g. maintenance fee, trading fee) – as these “little” fees may affect your return on investment. You should also consider if you’re trading in bulk or not. Some platforms offer better pricing for those who trade in large volumes, but others are more suitable for ‘beginners’ who trade less. Options platforms’ pricing tables should be straight forward , and easily understood for all users. Always, always do your own research, too. Read as much reviews as you can about the trading platforms you’re considering. Or even read articles about them and their performance in finance-focused newspapers. In addition, trusted brokers are usually affiliated with professional associations (e. g. Financial Industry Regulatory Authority) – so make sure your broker has valid qualifications. This is one of the most important factors to consider, but also probably the most neglected. The platforms’ customer support should be available online – or through other means of contact. And actually, most of the trusted online platforms provide customer service – 247.

Here’s one test you could do to make sure their customer service is excellent: contact them before you finally decide on their service. Ask them about basic facts about trading, their services, and other relevant questions that you may think of. This can give you a gauge on which online broker is the best when it comes to customer service. Research Data And Software. Personally, I think this is an essential feature that everyone should consider – but mostly for skilled and experienced users. For beginners, this could be useful too: the platform you choose should have vast amount of data and resources (videos, articles, seminars, and the like) that teaches you how to be a good options trader. Research data includes publications, news articles about the market and persistent trends, and professional commentary among others. When you learn how to make use of these resources, they could help you make better trading decisions – also with the help of the software available on the site. Your chosen platform should have trading tools that would help you determine the best options to buy, track volatility, and analyze market trends. What Is The Best Online Options Trading Platform? There really is no one best options trading platform there’s only the best for you – and your preferences. The same could be said for looking for the best stock trading platform. Here is a list of the ten best trading platforms that you could choose from. mutual funds, futures. Desktop and web platforms, virtual trading, advanced tools.

mutual funds, futures. Web platforms, virtual trading fees, zero inactivity fees, low prices. Stocks, options, futures, mutual funds, FOREX. Desktop and web platforms, no inactivity fees, many features for beginners, good mobile support. mutual funds, futures, FOREX. Web platforms, virtual trading, zero inactivity fees, advanced tools, many features for beginners. Desktop and web platforms, wide selection of commission-free ETFs, good customer service. Desktop platform, low prices, good for advanced traders, good mobile support. Stocks, options, futures, mutual funds, FOREX. Web platforms, virtual trading, low prices, good mobile support. Stocks, options, futures, mutual funds, FOREX. Desktop and web platforms, good for advanced traders, good mobile support.

Desktop and web platforms, many features for beginners, good mobile support, above average customer service. Desktop and web platforms, above average customer service. Founded in 1982, TradeStation has created a good reputation for its brand, especially for its technology, and state-of-the-art, advanced trading tools and data available. Experienced users and experts alike love TradeStation’s user interface: it’s flexible enough, especially for those who prefer multiple monitors. Charting is also available in the platform, which can help users make in-depth analyses of various trends and data. But options traders in particular should use their amazing OptionsStation tool. The OptionsStations tool was designed to make data analysis so much easier – you can even view profit and loss charts both in 2D and 3D form – whichever way you prefer. Also available in the platform is a tool that lets you rank potential trades. And if you want to improve your method, TradeStation provides a program that lets you test out strategies before implementing them. TradeStation releases updates on a regular basis it really is an innovative company when it comes to the technology aspect. However, all of these come with a steep price: $99.95 monthly, which can be waived if your account has $100,000, or once you meet a specific level of trading activity. Its base fee for options ranges from $4.99 to $7.99, with a price per contract of $0.20 to $0.70, depending on volume.

Unlike TradeStation, OptionsHouse provides one of the most competitive prices in the options trading market today. At a $4.95 base fee, you can make a trade, with a $0.50 per contract fee. OptionsHouse has one of the simplest pricing matrices among online trading platforms, which makes it a favorite among beginners and advanced traders alike. If you’re looking for advanced analytical tools, OptionsHouse is also a great choice. In 2014, they merged with tradeMONSTER – which was highly known at the time for its innovative trading platform. Trading options became so much easier and faster after the full integration of tradeMONSTER, and its interface became even more customizable than ever before. Their other useful tools – such as strategySEEK, tradeLAB, spreadMAKER, and adjustTRADE – can all help you form smarter decisions in options trading. In particular, strategySEEK lets you look for and scan real-time data based on specific criteria that you would establish. OptionsHouse also provides users with a virtual trading platform, which would be useful for options trading newbies. There are still downsides to OptionsHouse, however. For one, they don’t have a lot of investment products available (e. g. they do not have foreign exchange trading). While their tools are undoubtedly advanced, they do not have a lot of research available for you to analyze – especially compared to their competitors’ research data. E*TRADE, while it has notable, simple-to-use desktop and web platforms, is more highly regarded because of their leading mobile applications.

One feature we love about E*TRADE is its E*TRADE 360, its simple and customizable page for their online platform. You can easily navigate around the page, and even beginners would find it appealing – E*TRADE’s platform makes placing orders a breeze. They have one of the best customer support services in the options trading industry today – just go ahead and try to send them an e-mail! Huge amounts of research data are also readily available at E*TRADE, coming from sources such as S&P, Thomson Reuters, SmartConsensus, and MarketEdge. Their tools are also just at par with their competitors: they provide probability calculators, options screeners, and option analyzers to its users, among others. You can analyze market trends, volatility data, and other relevant information you need for your investments. And of course, their mobile application is second to none when it comes to this feature. Their app provides the ability to compare your own portfolio to the market average, aside from the common features that mobile trading apps provide (e. g. real-time tracking). Their fees are about average to above average of the industry, having a base fee of $9.99, with $0.75 per contract. Arguably one of the most popular trading platforms in the US, TD Ameritrade is highly regarded by many experts and professionals for their advanced research data, tools, and analytical capabilities. TD Ameritrade truly has some of the best tools for both beginners and experienced traders alike. Trade Architect and Thinkorswim – their two platforms – are top-of-the-line, and are leading the industry with its many practical and useful features. You can use scanners to search filter options, see historical revenues of companies, and analyze ‘risk graphs’ for potential trades. TD Ameritrade’s Thinkorswim.

TD Ameritrade’s Thinkorswim platform is also really popular because of its virtual trading feature. You can try out your investment strategies with virtual money before implementing them in real life – with your real money. This is great for beginners who are still new to the whole options trading business. They also have an education center that would help newbies find their way in trading – with resources such as videos, lessons, and demonstrations, among others. TD Ameritrade leads when it comes to their research, providing news from more than six different sources. TD Ameritrade still lags behind with mobile apps as their app looks like their online platform which many users love. The company also provides one of the best customer services in the market, with around 100 branches nationwide, in addition to their 24-hour phone line. They also have an automated client (Ask Ted) that will guide you through their platform. Though it has many advantages, of course, it still comes with a con: TD Ameritrade is on the higher end of the spectrum when it comes to fees. The base fee is $9.99, with a contract price of $0.75. What About Platforms For Binary Options?

There are different brokers specifically for binary options? Yes. Not a lot of options platforms provide services for binary options. We’ll give you a few recommendations if you want to dive into trading binary options. Aside from the factors we listed above that you should consider before choosing a platform, for a binary options platform, you must remember to take note and follow regulations. Some countries, like the US, are very strict with binary options trading – which is why we’ll only be recommending the platforms that are accepted by regulatory bodies in the US. You should also be really careful when it comes to sites that claim they trade binary options or that they’re one of the best in binary trading, because many have been duped by these websites. Always be responsible and do your own research when it comes to these traders. Remember that it’s always better to be safe than sorry! Here we list down some of our trusted and best binary options brokers: for those residing in the US, we recommend using FInpari, Porter Finance, or NADEX. For our readers in the UK, try out IQ option, 24 option, or Banc de Binary. For residents of Europe and Canada, our recommendations are 24 option or Banc de Binary. Start Trading Options Now!

Before finally choosing a broker or platform to trade options, list down all your requirements and preferences first. Rank them if you want – do you want more research? Analytical tools? Or are you after the commissions and fees? Let those determine which site would really be the most suitable for you. Since we gave you a list of our recommended trading platforms – go ahead and try them out! Sometimes, you’ll really never know what you prefer unless you go ahead and experience options trading for yourself. Just remember our essential tips, only use risk capital you can afford to lose, research and analyze well, and have fun trading! No related posts. Leave a Reply Cancel reply.

COMPENSATION DISCLOSURE. Top 10 Explosive Penny Stocks to Invest In 2017 (Hot Picks) Methods For Building And Repairing Credit. 3 Best Small Business Credit Cards for 2017. Popular Categories. Tom Smallwood. Tom is a former accountant turned entrepreneur. He is not a financial adviser but does tend to give a lot of financial advice to his friends and colleagues. He currently runs a small online venture and blogs about his research and experiences. Best Options Trading Brokers and Platforms. NerdWallet offers financial tools and advice to help people understand their options and make the best possible decisions. The guidance we offer and info we provide are deeply researched, objective and independent.

We spent over 300 hours reviewing the top online brokers before selecting the best for our readers. And to help you find the one that’s best for you, we’ve highlighted their pros, cons and current offers. Who is the best options broker today? The answer depends on whom you ask and what they value. For some investors, the best broker for trading options is the one with the cheapest commissions. Others prioritize trading tools, platform design, research, customer service or all of the above. While most of the brokers on our best-of list below would be a good, all-encompassing choice for many investors, we’ve also highlighted the standout candidates in specific areas that matter most to options traders. Unsure what you’re looking for? See how to choose an options broker for more on what can make or break an options trading experience. Summary: Best online stock brokers for options trading. Best for low-cost. Best options trading platform.

Best for research and education. Best overall for options trading. Our top picks cover all the option trader needs — access to high-quality research, analytical tools, a user-friendly platform — at reasonable prices. TD Ameritrade and Interactive Brokers earn high marks for options investors for their advanced trading platforms, deep bench of research and tools, plus their high-caliber options trading capabilities. TD Ameritrade handily serves option traders no matter where they are on the learning curve. The broker’s thinkorswim platform offers a robust options trading experience for active investors seeking professional-grade tools to identify trading opportunities, analyze potential risks and rewards, test trade strategies and quickly place even the most complex options trades. The broker’s web-based Trade Architect platform is for investors just getting into options or those who don’t require a high-octane platform. Its stripped-down, easy-to-use interface won’t overwhelm newbies. And although Trade Architect isn’t as fully stocked with tools and data as thinkorswim, it’s no slouch, either. Intermediate investors will find advanced features like a marketoptions heat map, screening and tradefinder tools, and streaming news. Get details in our TD Ameritrade review. For cost-conscious, active options traders looking for low costs and a platform with a lot more meat on its bones, Interactive Brokers may be more your style.

Interactive Brokers charges just 70 cents per contract with no base fee ($1 minimum order), plus discounts for larger volumes, if you can manage the $10,000 account minimum. Its Trader Workstation platform (with an options method lab) is considered one of the best and most sophisticated around. But watch other fees to ensure that the lower commissions pay off. Both brokers allow prospective clients to test-drive the goods without putting any real money on the line. TD Ameritrade offers a paperMoney virtual trading account to test out the thinkorswim platform. At Interactive Brokers, once customers open a real account (which has a $10,000 minimum funding requirement), they can set up a paper trading account that offers them hands-on practice using IB’s Trader Workstation platform and tools. Best brokers for low-cost options trading. These brokers offer competitively priced options trading commissions and have eliminated or dramatically capped minimum trading fees. In early 2017 most of the mainstream online brokers slashed commissions to levels once reserved for their deep-discount peers. That doesn’t mean that they’re the best deal in town for every investor. For active options traders, eOption earns five stars from NerdWallet for its low options trade commissions. The company charges a fixed $3 base plus 15 cents per contract.

Another plus: eOption is known for having some of the lowest margin rates available. Although eOption charges a $50 annual inactivity fee on accounts that have placed fewer than two trades in the past 12 months or have less than $10,000 in credit or debit balances, the minimum trade workaround isn’t onerous, even for infrequent traders. Charles Schwab’s trade commission of $4.95 base rate plus 65 cents per contract puts it within spitting distance of deep-discount peers. Schwab recently fully took over the old OptionsXpress and incorporated that broker’s options experience into its own platform, with both web-based and mobile functionality. Commissions aren’t the only costs associated with trading options. Platform, data and other fees can quickly cancel out what you save on commissions. See our full reviews of Charles Schwab and eOption for details on what they offer. For those simply looking for a cheap way to execute options trades, Charles Schwab and eOption get the job done. Best options trading platforms. These brokers offer some of the most powerful trading platforms available for a reasonable price. Judging a broker’s trading platform by the number of features it offers is like buying a car based solely on what you read in the dealer brochure. While all investors have their must-have features, what’s more important is how the platform feels when it’s in their hands.

The trading platforms at Ally Invest and TradeStation offer a wide variety of analytical tools, provide stable and speedy trade execution, and allow investors to customize the tools and design to best suit their needs. Unlike TradeStation, Ally Invest (formerly TradeKing) is technically a deep discount broker as reflected in its commissions (options traders pay a $4.95 base plus 65 cents per contract with only one base charge per spread), $0 account minimum and free access to research and data. Frequent traders (those who place 30 or more trades per quarter or who carry a balance of $100,000 or more) pay a discounted $3.95 base and 50 cents per contract. But don’t be fooled by the lower prices: Customers get a lot of platform power for free. Ally is suitable for newer options investors. The browser-based platform resembles the offerings of its pricier competitors and comes with free options trading tools for screening and advanced charting. Navigation is easy and streamlined. Customers can create a custom dashboard with movable modules with the data and features they want to use. The setup extends to what users see across all devices, including mobile and tablet. TradeStation is best left to more experienced, tech-savvy investors who want to experience options trading using the same tools as pro traders. The broker provides all the tools needed to design, test-drive, monitor, automate and speedily execute the most complex trades via direct-market access (no pesky middleman to slow down the process). Its OptionsStation Pro platform is fully integrated into TradeStation’s regular trading platform.

An added bonus is the broker’s active investor forums, where traders discuss ideas, ask questions and get help. Access to all of TradeStation’s bells and whistles used to come at a steep $99.95 monthly platform fee for those who didn’t meet account balance or trading activity minimums. But in March 2017 TradeStation eliminated the service fee, lowered its trade commissions for stocks and options and tossed in free real-time market data and free access to its market-monitoring and portfolio-level back-testing tools. Educational tools and platform tutorials are plentiful, which is a plus: Because of the sophisticated nature of the platform, it may require some time to become familiar with all that it offers. See more in our TradeStation review. Best research and options trading education. Both offer extensive research and data for free, as well as live classes and webinars for beginning and advanced options traders. If you’re new to options trading or want to expand your trading strategies, a broker that devotes its resources to research and customer education is a must. Because Schwab and Fidelity each have offices across the country in addition to their online options education libraries, they’re able to offer in-person guidance and free seminars on how to trade options, as well as one-on-one guidance on using the tools each platform offers. Fidelity’s constantly refreshed library draws from more than 20 providers, including Recognia, Ned Davis, S&P Capital IQ and McLean Capital Management.

The full suite is available to customers when they sign into the broker’s web-based platform. And you don’t have to stop digging when you’re away from your computer: Fidelity has a strong mobile app that lets customers access the company’s full suite of research through a mobile browser. Charles Schwab’s options trading capabilities and lineup of trading data and research got a big boost as the company integrated its purchase of OptionsXpress. In October Schwab re-launched its online platform under the StreetSmart name, with both web-based and mobile functionality, though for now only former OptionsXpress clients have access to the new platform. In the first quarter of 2018, Schwab will begin rolling out the new platform to all clients. While the platform name is changing, Schwab still provides a fully realized suite of offerings for options traders, including trade assessment tools, customizable screeners, access to Schwab analyst options-market commentary, live online webinars and pre-recorded seminars. Best brokers for beginner options investors. These brokers provide ideal conditions (educational resources, user-friendly platforms, customer support and low minimums) for investors just learning the options trading ropes. TD Ameritrade — one of our top overall brokers — ranked highest in this category, too. But since there are many types of beginners with many different preferences, instead of highlighting the category champions we’ve focused on brokers that are excellent candidates in three key areas: Low minimum opening balance requirements. Ally Invest, TD Ameritrade, Merrill Edge: If you’re not yet ready to devote a lot of your capital to options trading, you don’t want to tie up much in an account to meet the minimum.

Many of the brokers on our list require no money to open an account. However, industry regulations require that traders maintain a $2,000 minimum to trade options. Strong customer support. Scottrade and TD Ameritrade: On-call help is particularly handy when starting out. One way to test a broker’s level of service is to contact the company with any questions you have about its option trading offerings before you even open an account. Scottrade is known for its standout customer service and huge physical presence of 500 branches. So is TD Ameritrade, with around-the-clock phone and email support and 100 branches where clients can attend seminars and meet with investment associates. At the end of 2017, TD’s acquisition of Scottrade will be complete, increasing each broker’s ability to serve clients. User-friendly platforms. Ally, Charles Schwab and TD Ameritrade: There’s nothing better than test-driving a broker’s platform before you commit.

Check to see if the broker you’re considering offers paper trading (virtual trading on a platform that mimics the real deal) or contact customer service to see if they will set you up with a demo account. As for brokers discussed in this review, Ally Invest’s browser-based platform is intuitive and easy to customize. And both Charles Schwab and TD Ameritrade have multiple platforms customers can use to start learning the ropes, then graduate to more sophisticated tools and trades if desired. Best options trading brokers: summary. Updated June 30, 2017. Disclaimer: NerdWallet has entered into referral and advertising arrangements with certain broker-dealers under which we receive compensation (in the form of flat fees per qualifying action) when you click on links to our partner broker-dealers andor submit an application or get approved for a brokerage account. At times, we may receive incentives (such as an increase in the flat fee) depending on how many users click on links to the broker-dealer and complete a qualifying action.