Best Options Brokers

Options trading is when you buy or sell an underlying asset at a pre-negotiated price by a certain future date. It can be a way to speculate on the prices of various assets and allows for flexible trading strategies. It can also be a way to hedge risks and requires less initial investment up front than some other markets.

Options are a flexible investment tool that can help you take advantage of any market condition. With the ability to generate income, reduce risk, or take advantage of your market views, options can help you achieve and leverage those goals.

Before you can start trading options, you will need to show that you know what you are doing. This is because options are considered riskier than some other forms of trading. Compared with opening a stock brokerage account, opening an options trading account can require larger amounts of capital and more experience.

That being said, there are many brokers that provide options trading which you can choose from. We have compiled this options trading guide to help you understand more about option brokers and what to look for during your search for one.

Top 10 Options Brokers

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.
AvaTrade Review

ADGM FRSA, ASIC, BVIFSC, CBI, FFAJ, FSCA, IIROC, JFSA

$100

2006

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
2.
IG Review

ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA

$250

1974

1:200

76% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
3.
City Index Review

ASIC, FCA, MAS

$100

1983

1:200

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
4.
E*TRADE Review

FINRA, NFA

$500

1982

1:2

All investments involve risk, including loss of principal. Past performance does not guarantee future results.
5.
Swissquote Review

DFSA, FCA, FINMA, MFSA, SFC

$1,000

1996

1:100

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
6.
Freedom24 Review

BaFin, CySEC, SEC

$1

2008

N/A

Ownership of securities and other financial instruments always involves risks.
7.
Firstrade Review

FINRA

$1

1985

1:4

All investments involve risk and losses may exceed the principal invested.
8.
Saxo Bank Review

ASIC, FCA, FINMA, JFSA, MAS, SFC

$500

1992

1:66

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
9.
tastyworks Review

FINRA, NFA

$1

2017

1:2

Trading complex instruments can come with a high risk.
10.
Plus500 Review

ASIC, CySEC, FCA, FSA, FSCA, FMA, ISA, MAS

$100

2008

1:30

79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

AvaTrade

AvaTrade provide impressive options trading at competitive prices via professional and powerful desktop platforms along with an intuitive and versatile options trading app.

The AvaOptions trading app features 13 option strategies, including spot, call, call spread, call ratio, put, put spread, put ratio, straddle, straddle, butterfly, condo, risk reversal, and seagull option strategies. Everything is managed from your mobile device, whether it’s an iPad or an iPhone.

Further the AvaOptions app offers interactive screens, and intuitive functionality, for a wide range of financial instruments, including options, indices, gold, and currency pairs. Plus, there are complimentary demo accounts available, with no registration needed.

Traders have access to any strike, and any expiration date up to 1 year. There are live streaming trades available 24/5, with multibank liquidity provided. The option strategies can be applied to dozens of currency pairs, and commodities like silver and gold as well. Trade sizes will vary from 10,000 to 10 million.

Whether you are novice or expert in options trading, receiving comprehensive support can help you with your options trading strategies. AvaTrade’s state-of-the-art AvaOptions trading platform equips you with powerful market analysis and trading strategy tools to make informed decisions and trade options with confidence.

Pros
  • Simple, powerful, versatile options platforms both on desktop and mobile
  • Competitive spot and option prices for any trader
  • Cash or physical settlement in margin account
  • Streaming liquidity from the largest global banks
  • Lots of free options trading education
  • Risk management tools to help protect capital
  • Free practice demo account
  • Best-in-class customer service with multilingual live support
  • Fast and easy free deposits and withdrawals
Cons
  • High inactivity fees
  • Instruments vary between platforms
  • Cannot accept traders in the USA

IG

With IG, you can trade flexible online options and speculate on a range of assets. You get the expertise and support from one of the best CFD providers in the world. They are established and regulated in multiple jurisdiction which can give additional peace of mind to investors.

You can choose from a range of expiries and trade on a breadth of markets when you trade options with them. Choose the option to suit you and trade major indices, shares and FX with daily or weekly, monthly and quarterly options.

They enable you to buy and sell options with no closing spread when you hold them until their fixed expiry date. You can develop options trading strategies using a variety of options and take a position on rising, falling and even flat markets all over the world.

IG have a generous range of educational content for you to discover the fundamentals of options trading, including: what are options, which markets you can trade, what moves options prices, and how to get started with options trading.

Pros
  • Trade daily options with reduced spreads – the same as on regular spot markets
  • Get the leverage you want by choosing your strike and trade size
  • Cap your maximum risk when you buy daily options
  • Weekly, monthly and quarterly options
  • Longer expiries, well-suited to traditional trading strategies
  • Pay less for long-term positions, thanks to zero overnight funding
  • Find opportunity on a broad range of market conditions – even flat markets
  • Develop options strategies for greater control over your trading
  • Welcome traders in the USA
  • Free demo trading accounts
Cons
  • Could offer some more deposit and withdrawal methods
  • Minimum deposit of $250 is not the lowest
  • Limited instruments on MetaTrader 4
  • No MetaTrader 5 platforms
  • Inactivity fee after 2 years

City Index

At City Index you can diversify your investment portfolio by trading options via CFD trading or spread betting (UK only) with daily, monthly and quarterly contracts available. You get full access to the brokers intuitive options ladder via the advanced desktop platform and convenient mobile apps for iOS and Android.

City Index offer traders a wide range of opportunities across markets including indices, commodities, forex and metals. They are a regulated broker with a huge selection of financial instruments and very competitive trading conditions including low fees, tight spreads and rapid trade execution speeds. Forex.com is another trading broker under the same umbrella which further emphasises the stature of the company.

Pros
  • Tight spreads, live streaming on 40+ markets including FX, indices, and commodities
  • Use options in your portfolio to manage your risk as you like
  • Speculate from any market environment whether trending, range bound or inactive
  • Access thousands of option strikes across multiple asset classes on the intuitive options ladder within the platform
  • Benefit from a customisable economic calendar to help you manage your future exposure
  • Free demo trading accounts
Cons
  • Certain features restricted depending on your location
  • Inactivity fees if you do not trade for a sustained period of time
  • Limited digital wallet funding options
  • Product portfolio limited to forex and CFDs

E*TRADE

Whether you’re in-the-money, or out-of-the-money, E*TRADE can help you keep on top of your portfolio with intuitive tools for trading options on stocks, indexes, and futures. You pay no per-contract charge when you buy to close an equity option priced below a set value. This allows you to close short options positions that may have risk, but currently offer little or no reward potential, without paying any contract fees.

Options on futures offer nearly 24-hour access to react around potentially market moving economic events. You can choose to hedge existing futures positions, earn premium or speculate while using less funds upfront. Plus, you could diversify into metals, energies, currencies and more. The broker has lots of helpful content where you can learn the basics of options, explore strategies for trading them, and see how they may fit into a portfolio.

Pros
  • Among the lowest options contract fees in the market
  • User-friendly platform and app for trading options on stocks, indexes, and futures
  • Support from knowledgeable options specialists
  • Close short options positions priced below a certain amount with no contract fee
  • Excellent selection of premium options trading tools
  • Free educational content to learn more about options trading
Cons
  • Limited countries accepted
  • No forex, cryptos or CFDs
  • Limited deposit and withdrawal options

Swissquote

Swissquote is a multi-asset trading platform where you can build your own diverse portfolio with a huge selection of financial instruments to choose from. They have a fantastic selection of industry leading platforms where you can trade options and CFDs with some of the lowest fees that you will find from any broker.

You can also get free access to some powerful trading tools including the brilliant Autochartist. These can be very useful to help you find opportunities in your preferred markets. Beginners are well looked after with lots of handy educational resources.

In terms of safety, the broker is regulated and are part of the large Swissquote Group Holding Ltd company who have a proven track record of offering financial services since 1996. One of my favourite aspects of this broker is that their support team is very prompt, polite and efficient with their responses.

Pros
  • Enjoy trading on the largest derivative exchanges
  • Transparent pricing with no hidden commissions or trading fees
  • Extensive offer with direct access to nearly a million derivatives
  • Trading desk at your disposal for advanced strategies
  • Extended trading hours so you can trade anytime, 5 days a week
  • Fully adjustable maturity from one day to one year
  • Superior liquidity and execution on 45 FX Options
Cons
  • Minimum $1,000 deposit not the lowest
  • Limited choice of account funding options
  • Cannot accept traders in the USA

Freedom24

Founded in 2008, Freedom Finance, the official company name of Freedom24, has already offered to its 400,000+ worldwide clients participation in 280+ IPOs, including 40,000+ trade stocks, 1,500+ ETFs, 1,000+ US Stock Options and 147,000+ bonds on the largest exchanges in Europe, Asia and the US.

Pros
  • 40,000+ trading instruments including IPOs
  • Flexible trading plans with low fees
  • Easy to use trading platform
  • Helpful trading tools
  • Demo trading accounts
  • The ability to buy stocks 24/7
  • No charges for the first 30 days
  • Remote account opening in just 10 minutes
  • Excellent customer support
Cons
  • Limited deposit and withdrawal methods
  • Could add some educational content
  • No cryptocurrency trading or funding options
  • No MetaTrader or cTrader platforms
  • No managed accounts

Firstrade

Firstrade provide traders with access to US markets for trading Stocks, ETFs, Options, 11,000+ Mutual Funds and lots more. They have a good range of platforms with powerful trading tools and versatile accounts. Fees start from as low as $0 but they do not offer CFD trading.

Pros
  • Lots of financial instruments
  • Commission from $0
  • Comprehensive market research
  • Educational content to assist beginners
  • Variety of powerful trading tools
  • Various account types to choose from
  • Small $1 minimum deposit
  • Good customer service
Cons
  • No CFD trading instruments
  • Limited account funding options
  • Limited countries can open an account
  • Does not currently have any cryptos
  • No managed accounts

Saxo Bank

Saxo Bank is a regulated broker that offers a huge selection of over 42,000 financial instruments for trading on advanced platforms with good trading conditions including tight spreads, low fees and rapid execution speeds. They also provide daily market analysis, powerful trading tools, educational materials and managed portfolios.

Pros
  • Access to trade a great range of over 42,000 trading instruments
  • Low spreads and rapid trade execution speeds
  • Very competitive trading conditions and commission fees
  • Modern trading platforms which are swift and replete with essential tools for traders
  • Market analysis from a team of analysts known as SaxoStrats
  • Abundance of powerful trading tools for indepth market analysis
  • API connectivity for institutional trading conditions
  • Third-party tools including TradingView, MultiCharts & Dynamic Trend
  • Managed portfolios
  • SaxoSelect trading strategies
  • Saxo rewards programme
  • Multilingual 24-hour customer support
Cons
  • They do not accept traders from some countries
  • Minimum $500 deposit is not the lowest
  • Perhaps overwhelming for beginners
  • Inactivity fees if you do not trade enough

tastyworks

tastyworks is a USA broker that has professional trading platforms for retail traders to trade in an intuitional environment with all of the tools and education they need to reach their goals.

Pros
  • Good selection of markets and instruments to trade
  • Professional yet user-friendly trading platforms
  • Customise your trading on desktop, web and mobile
  • Trade cryptocurrencies with commissions capped at $10
  • Do more with naked calls, futures options, and more
  • Very low commission fees
  • Reliable trade execution speeds
  • Lots of market analysis and insights to inspire traders
  • Abundance of educational content for beginners
  • Low minimum deposit of just $1
  • Excellent customer support
Cons
  • Do not offer CFD trading
  • Limited deposit and withdrawal methods
  • USD account currency only

Plus500

Founded in 2008, Plus500 is a regulated and leading online trading broker providing a large range of 2,000+ CFD instruments for trading on their simple and clean proprietary trading platforms with very competitive trading conditions.

Pros
  • User-friendly trading platforms for web, desktop and mobile
  • Large range of 2,000+ trading instruments
  • Commission-free trading account
  • Good variety of account funding options
  • No deposit or withdrawal fees
  • Trading guides to help educate beginners
  • Market news and insights for inspiration
  • Innovative products offered
  • Practice trading accounts
  • Excellent customer support 24/7
Cons
  • Cannot accept clients from certain countries
  • No fixed spread accounts
  • Could add crypto payment options
  • Inactivity fees if you do not trade enough
  • No MetaTrader platforms

77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Conclusion

Here you will find our best option brokers, based on thousands of hours of extensive research, testing and analysis across hundreds of brokers. Upon conclusion of each of our broker reviews, we have assigned each broker with a rating.

Some of the most important factors that contribute towards a good broker for trading options online have been considered including things such as the available options, other financial instruments, platforms, apps, tools, execution, liquidity, fees, education, funding options, regulation, customer service and more.

Each of our chosen options brokers have undergone and passed our stringent broker reviews with flying colours, based on what we consider to be amongst the most important considerations when choosing an option broker for trading online. These brokers are well-established within the online trading industry, providing top options trading conditions to traders and investors of all experience levels.

Having the best options brokers according to our findings listed in one place, can help you save time when looking for the best option broker for your own individual needs.


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