Best Options Brokers

Here you will find what we consider to be the best options brokers, based on thousands of hours of detailed research, testing and analysis across hundreds of online brokers. Upon completion of each of our broker reviews, the trading brokers team has assigned each options broker with a rating, and displayed our best options brokers on this page.

Top 5 Options Brokers

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

ASIC, BVI, CBI, FFAJ, FSA, FSCA, IIROC

Min $100 Deposit

2006

1:400

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2.

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

Min $250 Deposit

1974

1:200

Review Trade! Trade!
Terms & conditions apply
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3.

ASIC, FCA, MAS

Min $100 Deposit

1983

1:200

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4.

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

Min $100 Deposit

2008

1:30

Review Trade! Trade!
Terms & conditions apply
76.4% 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.
5.

FINMA, FCA, MFSA, DFSA, SFC

Min $1,000 Deposit

1996

1:100

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How did we choose our best options brokers?

Some of the most important factors that contribute towards a good broker for trading options have been considered including the regulatory authority, trading platforms, trading instruments, trading tools, fees, spreads, execution speeds, account types, deposit/withdrawal options, leverage, minimum deposit requirement, educational resources, customer support and more.

Having the best options trading brokers based on our findings listed in one place can help traders save time when identifying the best options brokerages according to their own individual trading needs.

Each of the option brokers we have chosen have undergone and passed our stringent option broker reviews with flying colours, based on what the trading brokers team consider to be amongst some of the most important considerations. These brokers are well-established within the online brokerage industry, providing top options trading services to traders across the globe.

Following on from our list of the best brokers for trading options, we will now look at what options trading is and some of the most important factors to consider when looking for a broker to trade options.

What are options?

In finance, an option is a contract which conveys its owner, the holder, the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option.

Options are securities themselves, like a stock or bond, and because they derive their value from something else, they’re called derivatives. Options are based on the value of underlying securities such as stocks, commodities and forex currency pairs.

What is options trading?

Call options (buy) and put options (sell) create the base for a variety of different option strategies which are primarily designed for hedging or speculation. As such, traders usually enter into calls when they expect the price of the underlying asset to increase, and puts when they expect the price to decrease.

The value of the options contract can be influenced by a variety of factors. This includes four elements which are the underlying asset’s price, the strike price, the time left until the expiration date, and the volatility of the corresponding market (or index).

Traders will often speculate on options in order to try and make a profit from the varying prices of the underlying asset. To learn more about trading options, please see our guide on how to trade options.

What is an options broker?

An options broker is a firm or an individual who executes options on behalf of the clients and usually charges them a commission fee for doing so. A firm or individual who trades options for their own account is called a trader. Most options brokers handle transactions for a number of individual and institutional customers.

Why trade options?

Options are commonly traded for speculation and hedging purposes. They allow for the implementation of flexible trading strategies. Typically, option traders are self-directed investors. As a do-it-yourself (DIY) investor, they are in full control of their trading decisions and transactions.

  • Options can be cost effective
  • Options allow traders to speculate long and short on price movements
  • Options can help diversify a trading portfolio
  • They offer a number of strategic alternatives

Options traders can profit by being an option buyer or an option writer. Options allow for potential profit during both volatile times, and when the market is quiet or less volatile. However, it must be stated that there are significant risks involved with trading options online and some people even believe that options trading is no different to gambling. If you are planning on trading options then it is imperative you have a clear understanding on the risks and learn as much as possible.

What makes a good options broker?

There are various factors worth considering if you are looking for an options broker to trade online with. In this section, we will cover what we consider to be some of the most important factors that you need to be aware of when choosing a suitable options broker for your own individual needs.

Options broker regulation

If you are looking for a broker to trade options online with, then regulation should really be one of the first things that you look for. The trading brokers review team believe regulation to be very important as it can give traders some protection in the case something was to go wrong. Regulated brokers must follow strict rules and procedures that are put in place to protect investors. Without regulation, there may be no help should the worst happen.

Options broker trading instruments

Options are financial instruments that are derivatives based on the value of underlying securities such as stocks, commodities and currency pairs. If you have a particular market in mind, you will need to ensure that the broker you are considering has options in that market available to trade. The more options that the broker has, the more choice you will have if you wish to trade other markets in the future.

Options broker trading fees

Brokers will often charge a commission fee for processing your option trades through their platform. There may also be accounting fees and inactivity fees. It is important to be aware of all the broker fees and compare brokers to make sure they are providing good value.

Options broker trading platforms

To trade options online, you will need an options trading platform which the broker will provide you with. There are various desktop, web and mobile platforms available, some more user-friendly than others. Each platform will have a choose of trading tools, features and functionalities. If you are already familiar with a specific trading platform, you may wish to check that the broker provides it. Alternatively, you can opt for a popular and user-friendly options trading platform such as MetaTrader or cTrader.

Options broker leverage

In finance, leverage refers to the act of magnifying positions through the use of borrowed capital. You have to qualify for a margin account, but when you do, you’re able to use leverage (margin) when trading options. Leveraged products, such as options, magnify your potential profit but also your potential loss.

For example, if you had an account balance of $1,000 and leverage of 1:3, you would be able to take a position size of $3,000 ($1,000 x 3 = $3,000).

Whilst this does mean that you can control a position size larger than you would have been able to without leverage, it also means the risk is significantly greater. It is imperative that you have a clear understanding of leverage and how it works before trading options with leveraged positions.

Options broker education

The best option brokers should have a generous selection of educational resources such as trading guides, tutorial videos, webinars, eBooks, quizzes and more. These can help you to learn more about trading options online and to help familiarise yourself with the brokers products and services. We are a big advocate of brokers who support informed trading.

Options broker trading tools

Most option trading platforms will have an array of built-in trading tools to assist with their daily trading activities and thorough market analysis. However, if you require any additional tools, it may be worth checking that they are provided by the broker. Tools can include economic calendars and earning reports to keep up to date with the latest stock market news, which can be used as part of a fundamental analysis. Other trading tools may include trade calculators, trading signals, market alerts and more.

Options broker account opening

Each options broker will have its own minimum deposit policy so check that you can meet this requirement. You may also need to provide some personal information in order to pass the brokers KYC and AML procedures. The sign-up process can be quicker at some brokers, especially if all of it is conducted online. During the sign-up process it is very important to make sure that you read all of the brokers terms and conditions, only proceeding if you understand and agree with them.

Options broker account funding

Option brokers can have a variety of different account funding options in order for traders to make deposits and withdrawals to and from their trading account. You should make sure that the broker has a convenient funding options for you along with the time taken and fees involved. Common broker payment methods can include wire transfer, credit/debit card whereas some brokers will offer online payment methods such as Neteller, PayPal and Skrill.

Options broker customer service

There are options brokers located throughout the globe. Some will offer email and telephone support whereas others will also offer live chat support. You want to be able to contact the broker at a time and via a method that suits you. Therefore, it can be important to check where the brokers’ offices are located, what times they are available and how they can be reached. You could test their response time and quality prior to opening an account.

How to start trading options online?

Now that you have had a brief overview of what options are and what to look for when choosing an options broker, you may be considering opening an online trading account to trade options online. To do so, you will need to choose an options broker, follow the account opening process and you will then be able to start trading options online through one of their option trading platforms.