Unlock Your Trading Potential with These Best Options Trading Platforms
Trading options has been growing in popularity for investors who are looking to maximize their profits. Options are contracts that give the buyer the right to buy (call option) or sell (put option) an asset at a specific price, known as the strike price, on or before a specific expiration date.
Options trading can be complex, but with the right platform and tools, it can be a profitable strategy. In this article, we will review the best options trading platforms in the market.
What to Look for in an Options Trading Platform
Before we jump into the best platforms, let’s discuss what features are important to look for in an options trading platform.
- Supported instruments: A good options trading platform should offer a wide range of options contracts, stocks, exchange-traded funds (ETFs), and futures.
- User interface: A user-friendly interface that makes it easy to place trades and view important information is essential. It should also be customizable to meet the trader’s preferences.
- Costs and fees: Different platforms have different fee structures for trading options, commissions, and other costs associated with using the platform.
- Educational resources: A platform with educational resources, such as video tutorials, webinars, and a knowledge base, can help traders learn more about options trading and improve their skills.
- Mobile app: For traders who are always on-the-go, a mobile app that offers the same features as the desktop version can be a game-changer.
- Risk management tools: Some platforms offer risk management tools such as stop-loss orders, or the ability to create a custom trading strategy and backtest it.
- Customer support: A platform’s customer support should be available 24/7 and offer multiple channels to contact them, such as chat, phone, or email.
Now that we know what to look for let’s dive into the best options trading platforms available.
Best Options Trading Platforms
Here are our top picks of the best options trading platforms available. We’ve ranked them based on features, user interface, costs and fees, and educational resources.
1. TD Ameritrade
TD Ameritrade is a well-known brokerage that offers a comprehensive trading platform for options traders. The thinkorswim platform provides a user-friendly interface that can be customized to meet individual preferences.
The platform’s standout features include:
- Access to a wide range of options contracts
- Customizable charting tools and technical indicators
- Backtesting capabilities to test trading strategies
- Education resources, including webinars and courses
- 24/7 customer support
TD Ameritrade charges $0 for options trades, with a $0.65 fee per contract. The platform also offers a mobile app that provides the same features as the desktop version.
2. E*TRADE
E*TRADE is another well-known brokerage that offers an options trading platform with a wealth of features. The platform is easy to use and provides educational resources and research tools that can help traders make informed decisions.
The platform’s standout features include:
- Access to a wide range of options contracts
- Advanced charting tools and technical indicators
- Backtesting capabilities to test trading strategies
- Research tools, including market news, company profiles, and analyst reports
- 24/7 customer support
E*TRADE charges $0 for options trades, with a $0.65 fee per contract. The platform also offers a mobile app that provides the same features as the desktop version.
3. Interactive Brokers
Interactive Brokers is an online brokerage that caters to active traders. Its options trading platform, called Trader Workstation (TWS), is designed for experienced traders who require advanced tools to analyze and execute trades.
The platform’s standout features include:
- Access to a wide range of options contracts, stocks, bonds, and futures
- Advanced charting tools and technical indicators
- Algorithmic trading capabilities and API access
- Risk management tools, including stop-loss orders and margin requirements
- 24/7 customer support
Interactive Brokers charges $0.65 per options contract, with a $1 minimum per order. The platform also offers a mobile app that provides the same features as the desktop version.
4. TradeStation
TradeStation is a platform designed for active traders who trade frequently. It offers a multitude of features and customizable tools that can help traders analyze the markets and execute trades.
The platform’s standout features include:
- Access to a wide range of options contracts, stocks, futures, and cryptocurrencies
- Advanced charting tools and technical indicators
- An option-specific order entry and options chains window
- Backtesting capabilities to test trading strategies
- 24/7 customer support
TradeStation charges $0 for options trades, with a $0.50 fee per contract. The platform also offers a mobile app that provides the same features as the desktop version.
5. Robinhood
Robinhood is a commission-free platform that offers a mobile app for options trading. It’s designed for less experienced traders who are looking to trade options easily and on-the-go.
The platform’s standout features include:
- Access to a limited range of options contracts and stocks
- Commission-free trading
- User-friendly interface that is easy to navigate
- 24/7 customer support
Robinhood charges $0 for options trades, with a $0.65 fee per contract. The platform only offers a mobile app, with no desktop version.
Conclusion
Choosing the right options trading platform can make a significant difference in your trading success. Before deciding on a platform, make sure you consider factors such as supported instruments, user interface, costs and fees, educational resources, mobile app, risk management tools, and customer support.
Our top picks for the best options trading platforms are TD Ameritrade, E*TRADE, Interactive Brokers, TradeStation, and Robinhood. Each platform offers unique features and benefits, so it’s important to select a platform that meets your individual needs and trading style.
Remember, trading options can be complex and risky, so it’s important to do your research and educate yourself before making any trades. Always practice risk management and utilize the resources available on your chosen platform to help you make informed trading decisions.
