Given the trends in the market, options trading has become increasingly popular in recent years.
So, if you’re looking to start trading options, you might be looking for online trading platforms that specialize in options trading and offer quality trading tools and no or low option trading fees.
That said, as options trading is a complex, you need to be selective about the platform you will choose to perform successful trades.
This post presents you with some of the best options trading platforms and discusses what they offer for investors.
The Best Options Trading Platforms
The best options trading platforms offer quality and innovative trading tools and are informative about the services they offer.
Moreover, they have a customer service that supports every user in need, whether they are beginners or advanced investors.
While most brokers for stock trading are good for options, not every platform is geared toward trading the options market.
Among the greatest services are E*Trade, Webull, Tastyworks, Interactive Brokers, TD Ameritrade, and Fidelity Investments.
Top Picks for Options Trading
E*Trade - The best for active traders
Overview
Minimum deposit on E*Trade: $0
Fees for options: $0.65 per contract
As one of the oldest brokerage platforms, E*Trade has a system designed to support beginner and experienced traders.
It features incredible educational materials for beginners, as well as advanced trading tools and analytics for experienced traders.
E*Trade has desktop, web, and mobile platforms, making it suitable for active traders. The platform also has active customer service for traders in need of support. The trading service applies a standard contract fee of $0.65 but also provides a discount for active traders who make a minimum of 30 options trades in three months.
A great advantage that E*Trade offers is the ability to paper trade, allowing new traders to practice options trading before investing their capital. Using its tools, you can analyze risks and the maximum profit of each option.
Pros
- Educational content and paper trading for beginners
- A simple-to-use platform and app
- Offers intuitive trading tools for options trading
- The traders get risk and reward analysis
- It enables you to trade options for futures for 24h a day
Cons
- Potentially higher fees and commissions for options trading
Webull - The best for traders on the go
Overview
Minimum deposit: $0
Fees: $0 commissions for options trading
Considering that it doesn’t have per-contract or commission fees, Webull is suitable for traders looking for an affordable trading platform.
The platform has easy-to-use and full-featured mobile software for traders on the go.
Webull provides excellent trading tools and market analytics, and clear graphics. With the help of its tools, you can construct one, two, or four-leg strategies and customize the options trading strategy, including changing price strikes.
Once you open an options trading account, you get access to real-time market data. On Webull, you have 11 options trading strategies to choose from, such as the iron condor, straddle, butterfly, and others.
This trading platform also offers a customizable options chain and enables you to connect with other traders and discuss market trends and options strategies.
Pros
- Gives access to smart trading tools
- Provides an intuitive interface and research tools
- Educational resources for new and experienced traders
- Excellent website and mobile app
- Extended trading hours
Cons
- Webull has limited account types
- Not much liquidity in advanced options strategies
Tastyworks - The best for mobile users
Overview
Minimum deposit on Tastyworks: $0
Fees: $1 to open options contract
Tastyworks is one of the few trading platforms that are geared toward options trading.
The platform offers a fast, reliable, and safe trading experience on the Desktop format, the browser version, and the mobile app.
Tastyworks features advanced technology and excellent trading tools for active and experienced traders, as well as educational content and live video content for new investors.
The platform also enables users to make adjustments to simplify the process of opening options trading positions.
The main goal of the investors who founded this trading platform was to provide the traders with easy access to the market and provide them with analysis tools.
The options analytics by Tastywork include the Greeks for specific options strategies, graphs for profitability in terms of options positions, and more.
Pros
- Advanced tools for analyzing the market
- Educational content specified for options trading
- Competitive rates for options trading
- It offers a liquidity rating indicator
- Provides analysis tab for profit and loss potential
Cons
- The platform caters to advanced traders
Interactive Brokers - Best for experienced traders
Overview
Minimum deposit on Interactive Brokers: $0
Fees: $0.65 per contract for options trading
Interactive Brokers is a trading platform that is committed to providing quality trading execution.
An advantage this trading service has is that it frequently provides enhancements to the already advanced analytical tools.
Interactive Brokers offers low commissions for active users. Its superior analytic tools are also available on the mobile app, which provides a seamless trading experience that is beneficial for traders on the go.
Moreover, users can view the options spread template to compare strategies and then apply the ones that work best for them.
In addition, Interactive Broker provides traders with tools that will help them estimate whether an option will become profitable.
Pros
- Offers paper trading for beginner traders
- Offers probability calculators for the traders
- Features five advanced trading tools
- Provides tools to help you select the right option strategy
Cons
- The advanced platform may not be suitable for beginners
TD Ameritrade - Best for traders using a mobile app
Overview
Minimum deposit on TD Ameritrade: $0
Fees: $0.65 per options contract
TD Ameritrade is a trading platform known for providing educational resources containing the basics for beginner investors.
However, the platform also offers a simple options chain, along with advanced tools to help you implement the strategy and analyze the trades.
All of the tools make the platform also suitable for active and seasoned investors. Even though they have commissions for making options contracts, the financial tools and products that TD Ameritrade offers are worth it and very beneficial to have.
TD Ameritrade also has a simple-to-use desktop platform as well as a mobile app that enables the users to make multi-leg options depending on the strategy you will use.
Moreover, the traders can backtest the options strategies and set the option orders to be set automatically when the market meets specific criteria.
Pros
- The platform provides a wide range of financial products
- Innovative tools for efficient options trading
- TD Ameritrade has a web, desktop, and mobile app
- It has professional customer service support
- Educational content for beginners
Cons
- The accounts on TD Ameritrade are limited to US residents
Fidelity Investments - Best for beginner traders
Overview
Minimum deposit on Fidelity Investments: $2,000 deposits to start trading
Fees: $0.65 commissions for options trading
Regardless if you are a beginner or a seasoned trader, Fidelity Investments offers trading tools, expertise and educational content for the traders.
The platform is also known for its excellent research reports as well as its active customer support.
The investment tools provided by Fidelity Investments enable you to take advantage of the market conditions and make the right moves to make a profit. Moreover, their team of professionals in options trading give you insights into the market and guide you through the process helping you with effective trading ideas.
Compared to other online options brokers, Fidelity Investments doesn’t alert you for things that are not significant for trading, improving the overall trading experience for the users.
Additionally, you can improve your options trading strategies by taking part in free options webinars and a coaching session with their members.
Pros
- Provides low and transparent costs
- The platform features innovative trading tools
- The users have access to articles, videos, and courses
- Fidelity Investments offers market research and insights
- The platform has professional customer support
Cons
- The account verification can be slow
Do You Need a Considerable Amount of Money to Start Options Trading?
Compared to trading stocks, you don’t need a lot of capital to begin options trading.
This is one of the reasons small traders opt for this type of investment.
The advantage of options trading is that with little capital, you can make a significant profit in only a short time period.
However, this type of trading comes with risks, which is why it is significant to understand the return you will receive compared to the risk you are taking.
Do You Need a Brokerage Platform?
To begin trading options, you will need to find a trading platform to access the market.
That said, nowadays, there are plenty of online trading platforms that are not only more affordable than before but also more advanced.
Features to Look For in the Best Trading Platform
The trading space features plenty of options trading platforms. Therefore, finding which one aligns with your trading needs and preferences is quite challenging.
While there is no one particular options trading platform that will work for everyone, let’s have a look at some features to consider before you open an account or start trading.
Fees and commissions
The main goal when trading options is to minimize risk and make a profit.
However, the amount you pay to make a trade also contributes to the profit or loss.
Therefore, look for platforms that offer free-of-cost trades or at least affordable fees.
Advanced tools and resources
The greatest option trading brokers provide educational content and research tools for investors who have just started trading.
It is known that options trading requires trading skills and extensive knowledge, so such a platform will save you hours of online browsing and searching for reliable resources.
Additionally, the best options trading platforms also have advanced trading tools, analytics, and clear charts, as well as easily accessible customer support.
The option chain and analytics are very important regarding options trading, so ensure that you select a service with all the features you need.
Platform
Options Trading can be a complex trading process, but the platform you are trading on should not.
The advanced trading platforms are simple to use and understand, and all of their tools are accessible in just a few clicks.
If you are often on the go, a trading platform that has a mobile app might be a good option for you.
Additional features to look for
Some online trading platforms provide paper trading, which is very beneficial for investors who are just starting out and would like to practice their skills before they start trading.
Another important factor to keep in mind is to look at the security features the platforms provide, as during trades, the traders invest real money. Equally necessary is to ensure that the trading platform is reliable to avoid scams.
Make sure to look for a trading platform that works well with your strategy when it comes to options trading.
It should be transparent about the costs and determine whether the financial tools and services they offer are suitable for you as a trader.
How to Become a Successful Trader
Options trading requires a lot of investment knowledge and understanding of all the option strategies that can help you earn a profit.
However, the market is constantly moving, so to stay on the right side of the market, you need to be aware of every change at the right time.
A trading service such as FoolProof can help you generate consistent income while trading, sending you up to three trade alerts per week in the form of messages.
On top of that, the veteran traders from FoolProof will send you a detailed trading plan and guide you through the process.
The alert trade service will cost you only $97 a month, but you also get a 14-day free trial which speaks volumes about the quality of their services.
With the help of FoolProof, you will be able to recognize trading opportunities more easily and place trades that will lead you to profit.
Final Thoughts
You can find plenty of options trading platforms online, but not all of them provide the same benefits for the users.
In this article, we have selected some of the best trading services by evaluating what they offer in terms of costs and fees, tools, the quality of trade performances, user experience, and educational content.
With the help of this comprehensive guide, you will be able to find the right trading platform for you and start options trading right away!