Best platform for trading options value

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. Best Option Brokers. Choosing which broker to use when trading options is without doubt one of the single most important decisions you will ever need to make in your trading career. Using a good broker can save you money, increase your profitability, save you time, help you find trading opportunities, and it will generally improve your overall trading experience. The following is a list of the overall best online brokers that we recommend. If you are looking to sign up with a broker now, then we would advise that you take a look at any of the below online brokers. For advice on choosing an options broker, plus further recommendations in specific categories, please see read on. Competitive Commission Structure Easy to Use Platform for Traders Allows for a Fully Customizable Experience. Competitive Fees Interaction with a Community of Traders Educational Resources for Beginners. One of the Best For Trading Features Top of the Line Trading Platform Extensive Customization Available. You'll see from the above table that we provide reviews of the brokers that we recommend. For a list of all our reviews, plus information on exactly how we go about reviewing brokers, please visit this page. These reviews can help you make a decision about which of our recommendations is the right one for you.

Despite the importance of choosing a broker carefully, many traders sign up with any old broker and simply join the first one they come across or the one that offers the best sign up incentive. Not putting any thought into what broker to use is a big mistake because, this really is a decision that is well worth spending some time on. If you are lucky enough to know an experienced trader that you trust then asking them which broker they use is a good way to find a decent broker, but that isn't a course of action that is available to everyone. Alternatively, you could try out a range of different brokers, compare them, and decide which one is best for you. However, this would be pretty time consuming. We have produced this section specifically to help you choose a broker. As well as the list of our top rated online brokers above, we have also produced a number of other lists. Each one of these contains a number of recommended online brokers that are particularly suitable for a specific purpose. You can see each of the broker categories that we cover linked over to the right. We have also provided some brief details about each category further down this page. Full Service Brokers vs. Discount Brokers.

The first page in our section on the best options brokers is a comparison between the two main types of brokers: full service brokers and discount brokers. The distinction between the two is quite important to understand, as the services offered by the two is substantially different. In very basic terms, a full service broker will provide clients with advice and guidance in addition to executing orders as instructed while a discount broker will simply carry out orders on behalf on their clients. Both types have their advantages, and we explain more on the following page: Full Service Brokers vs Discount Brokers. Best Brokers For Beginner & Small Traders. When you first begin trading, the chances are that you will be starting out with a relatively small amount of capital, and indeed you may be planning to only ever make small trades. Beginners and those trading with a low budget should be looking for fairly specific attributes before signing up with a broker. An appropriate commission structure and low minimums for both the size of your deposits and value of your trades is essential. Any sign up incentives being offered could also be significant too. If you are a beginner when it comes to options trading we suggest taking a look at what we have found to be the best brokers for people just getting started. Best Brokers For Stock Options. As you probably know, contracts can be based on a variety of different underlying securities which give you many choices.

Probably the most commonly traded are stock options those contracts where the underlying security are stocks in publically listed companies. It isn't particularly difficult to find brokers that are suitable for trading stock options, but it's still important to choose your broker wisely. If you are planning on trading mostly stock options, then please visit the following page for relevant recommendations. These all do an excellent job when it comes to trading stock options. Best Brokers For Forex Options. Forex options are contracts where the underlying security is foreign currencies. These are also very commonly traded, so finding an broker where you can trade forex options is not too much of a challenge. However, there are certain brokers that particularly stand out and that we believe are worthy of our recommendation. It's very important to find a forex broker that can meet your needs. For a complete list of these recommended brokers and more details on what you should be looking for when deciding where to sign up, please visit the following page. Best Brokers For Binary Options. Binary options are a unique form of contract that work a little differently to most others (please see our page on Binary Options for more details) and they are ignored by many traders as they often perceived to be a bit more complicated than the more standard type of option. In fact, the basic principle of binary options is relatively straightforward and trading binary options is becoming increasingly more popular among traders. Not all brokers will deal with binary options, but for a list of recommended brokers that do please visit the following page.

Best Brokers For OTC Options. OTC options are those contracts that aren't listed on a public trading exchange but are instead traded over the counter. Those options tend to be highly customized contracts that have complicated terms that include many of the exotic options that exist. Because OTC options are not traded on the public exchanges they are not generally as accessible to the public and are more typically traded between large financial institutions. Many traders do like to trade OTC options though, in which case it's important to use a broker that is suitable for the purpose. Please visit the following page for recommended brokers in this category. Best Brokers For Active Traders. Traders that use active trading styles, such as the day trading style, typically make a large number of transactions on a daily basis. As such, one of the most important attributes that active traders need to look for when choosing a broker is a commission structure that is very competitive and ideally provides for a discount when making a lot of trades. However this isn't the only consideration that active traders need to take into account and choosing a broker purely based on the commissions charged is rarely a good idea. For more advice on this, along with recommendations of suitable services, please visit the following page.

Best Brokers For Auto Trading. An increasingly popular way to try and profit from options is by using auto trading services which basically involve a trader signing up with an organization that will find opportunities for trading and then automatically place the relevant orders with the traderЂ™s broker. There are a number of services around and although they aren't necessarily the ideal way to trade, they can potentially be profitable. One of the biggest problems facing traders that wish to use auto trading services is that not all brokers allow it. For a list of the top places that do, please visit the following page. Brokers with Best Trading Platforms. The quality of the trading platform is something that many traders overlook when choosing an online broker, but it really is something that is very important for anyone that is trading options. A decent platform should be well designed with a user-friendly interface as brokers that make it easy to place orders will generally enhance your overall trading experience. This isn't something that should be ignored if you are going to be spending any sustained length of time trading options each day. For a list of recommended brokers that meet these criteria, please visit the following page. Best Brokers for Trading Platforms. The online brokers that we have listed below are, in our opinion, the brokers that have the best trading platforms. If you are looking for an options broker that makes it easy to place orders and has plenty of useful features and tools, then these are the brokers that we recommend signing up with. Many traders know exactly what they want from an online broker and this makes choosing which broker to use a lot easier. It's largely why we designed our best options brokers section the way we did, because by listing recommended brokers in a variety of categories, traders can simply choose which category is relevant to them and then join one of our recommendations.

However, many options traders aren't entirely sure what it is that they really want from a broker, and this can make it harder to decide where to sign up. One solution is to simply look for the online brokers that have the cheapest commissions, but the cheapest brokers aren't always the best brokers. Basic and advanced trading platform Free quote streaming tool included Advanced functionality to track performance. Functional and feature rich platform Home & online study courses available Option Station Pro specifically for options. An advanced web-based platform Platform is very fast & responsive "QuickTrade" feature for placing orders quickly. If you are unsure about which broker to choose then a good way to decide is to look for the brokers that have the best trading platforms because, a good trading platform is one of the biggest benefits a broker can offer. We are confident you wonЂ™t be disappointed in using any of our recommendations listed above. Attributes of the Best Trading Platforms. To some extent, what makes for the best platform at an online broker is a subjective thing. Some traders may find a particular trading platform absolutely perfect for them, but another trader might not like that platform at all. While most options traders will almost certainly have their own personal preferences, there are certain attributes that are particularly important in relation to a trading platform. Any good trading platform should be well laid out and easy to use for example. We discuss this in more detail below along with the other attributes that we believe are vital for a good platform.

Good Layout & User Friendly Functionality Speed of Execution Stability. Good Layout & User Friendly. A good layout might not sound that important, but it really is much easier to use an online broker where it's easy to find what you are looking for. It also helps when the platform is easy on your eye, particularly if you are a full time trader and may well be spending lots of time looking at it. User friendliness is important too, specifically in relation to placing your orders. This should be a simple process that doesnЂ™t take much time to do as it can be very frustrating if you want to get an order placed quickly and you have to enter in a lot of information. An ordering process that just takes a few clicks is much better. All processes, such as making or deposit or checking your open positions, should be user friendly as well.. The best brokers offer plenty of functionality in their trading platforms in addition to just the placing of orders. While a lot of that functionality or even all of it might not always be needed by every options trader, having some useful extra features is usually appreciated by most traders. One particularly useful feature is the ability to create specific options spreads as one order, without having to place each of the required transactions separately. Most of the commonly used options trading strategies are basically just a particular type of spread that is able to create other spreads quickly and easily which can be very beneficial. Other useful features include, among others, being able to access your brokerage account from your smart phone or being able to look at statistics of your past trades. Any good online broker should have a system that executes your orders quickly and efficiently.

In fast moving markets, just a very short delay can have a significant effect on the profitability of your trades as it can cause you to miss the prices you were after. Knowing at what price point to enter a position and exit it, is a key skill in options trading. However, in some respects you are only as good as your broker. This is why we believe that the fast execution of orders is such an important quality of trading platforms by the brokers. It's absolutely essential that the platform at an online broker is as stable as it possibly can be. Many traders rely on being able to spot opportunities in the market and react to them quickly, and many also make trades where the plan is to enter a position and then exit them within a very short space time. Basically, timing is crucial for options traders. If the trading platform at a broker isn't perfectly stable, and is prone to freezing or crashing, then this can cause serious problems for traders, which is why it's such an important quality in our opinion. These days, most brokers do indeed ensure that their platforms are as stable as they need to be, but there is always room for improvement. The importance of the quality of the trading platform should never be under estimated as it can have a major impact on your overall experience. In our opinion, choosing an options broker based on how good their platform is can be a good a way to choose a broker. The brokers that we have recommended on this page all have trading platforms that we consider to be among the best, based on those attributes that we have discussed. The Best Options Broker.

Latest Update October 28, 2016. The best options trading platform isn’t going to be an afterthought tacked on to an existing suite of products: it should be robust and easy to use. Beginners need enough support to learn the ropes and experienced traders are after low fees and powerful tools. We signed up, assessed the fees, took the tools for a spin, and narrowed it down to three top picks. The one that's best for you depends on what you’re after. Tons of online and in-person support, plus a practice platform that lets you try everything out with “paperMoney.” The downside? Higher fees. Rock-bottom pricing, but no research or method support. Unrivaled tools & research with pricing that favors active traders. There are a lot of brokers that are perfectly capable of trading options — nearly all of the big (read: old-school) names have an options platform integrated into their suite of offerings.

But for those looking to really dive in, whether as a beginner just starting out or an active trader looking to level up, the best platform won’t be something that’s just tacked on. How We Found the Best Options Broker. To find the brokers that cater specifically to options, we looked at 36 choices and analyzed their products. We prioritized the most important aspects: Cost matters a lot when it comes to trading options. It’s the very nature: part of the appeal of options is that the returns can be major even if you don’t fork over a lot of cash up front, and many traders use options as a cheaper alternative to going long on a high-priced stock. Fees can add up and even wipe out the profits from any profitable trades. Granted, slightly higher fees may be worth it if a broker can provide other perks (say, excellent resources and education for beginners), but we wanted all our picks to have competitive pricing. We also wanted to avoid minimum balance requirements, or a set number of trades per month. Easy-to-use interfaces are a make-or-break for most platforms. The price of options contracts can swing a lot over the course of a trading day poking around a clunky options chain can literally cost you. Education and resources are important, especially for investors who are getting their feet wet. Sure you’ve got a handle on multi-leg options trades, but do you know when it’s the right time for a bull call spread? What’s an iron butterfly? Not all traders will need hand-holding, but we wanted to find at least one excellent options broker we could recommend to newcomers.

Flexibility can be interpreted a few ways. For us, it meant the robustness of the platform (could we research and purchase stocks and ETFs in addition to options?) its flexibility (could we streamline a multi-leg options trade, or did we have to input them all separately?) and whether or not we could customize it to our liking. It was quick work to eliminate the most expensive platforms, as well as the ones that had absolutely no resources or reports. To test ease of use and flexibility, we signed up for accounts and simulated making trades on all the rest. Three brokers rose to the top, and each brings something unique to the table. Our Picks for Best Options Broker. TD Ameritrade Higher fees on an ultra-easy platform. Plus, tons of support and education. TD Ameritrade is one of the largest online brokerages in the market today, with over 7 million funded customer accounts and over $700 billion in total client assets, and despite its slightly higher prices, it provides the best platform for a beginner trading any product, options or otherwise.

For more novice traders, the platform supports the jump from trading stocks with the funds in an IRA to more sophisticated products like options. It’s robust, plus it has the customer service and educational resources to make the transition. There are webinars and hours of on-demand videos that’ll teach you about options strategies and how to literally execute those strategies on the platform. TD Ameritrade is a full-service broker, and that full service (we’re talking 247 customer service and 100 branches for face-to-face consultations) does come with higher fees. Barron’s agrees, awarding it “best platform for novices” five years running. We can anticipate its service only getting better too. In 2016, TD Ameritrade started the process of acquiring Scottrade, another platform known for it’s in-person customer service offerings. In fact, TD Ameritrade is one of the best platforms for all levels of investors, serving up two discrete products: thinkorswim and Trade Architect. Thinksorswim is a desktop platform designed for an all-around trading experience: charts with real-time data, news tickers, 300-plus technical studies, alerts and alarms, heat mapping, options screeners, securities scanner, and more, all accessible in a single click. It’s definitely for seasoned investors — newcomers will likely be overwhelmed — but it’s worth bringing up because a virtual playspace called paperMoney allows even total novices to cut their teeth without risking even a single penny. We recommend beginners stick to TD Ameritrade’s web-based platform Trade Architect. It is nowhere near as robust as thinkorswim (and has nowhere near as jazzy a name), but it provides everything a new investor would want and it’s ultra-easy to use.

It’s not bogged down with all the bells and whistles and live-streaming CNBC. Tabs at the top are simply categorized under jargon-free headings: account overview, watch lists, alarms, idea generators, and heat maps. Unlike thinkorswim, the platform is customizable. If you want more widgets, like say, additional stock tickers or video, they’re there for the adding. If beginner investors use TD Ameritrade’s education library to learn the ropes, practice using paperMoney in thinkorswim, and then easily execute trades with Trade Architect, the slightly higher fee may suddenly seem worth it. OptionsHouse The lowest fees and no minimum balance requirements. OptionsHouse isn’t the most recognizable name in the industry, and that’s probably because this online broker hasn’t pursued an aggressive marketing campaign like some of the other brokers out there (remember E*Trade’s old Super Bowl ads?). The company was founded in 2005 and was established to specifically provide options traders who demanded lower fees from the then burgeoning online brokerage industry. Those low fees are still what makes OptionsHouse so popular. There’s a $0 minimum deposit to join and options trade at $4.95 + $0.50contract (stocks trade at a flat $4.95 fee). This is the lowest price in the industry. Only TradeKing comes close — matching that $4.95 options base fee, but charging $5 more than OptionsHouse for the exercise fee. The OptionsHouse platform is striking if a bit chaotic — there are buttons, tabs, and menus all over the place.

It’s intuitive and there’s a tutorial to walk you through, but to a beginner it might seem more like sitting in front of the controls of an aircraft than is comfortable. Beginners take note: OptionsHouse does have a virtual platform that’s great for practicing. And, the tradeLAB makes dissecting options spreads simple — the green smiley face is good the red frown is no good. What you won’t get for those low fees is method and research: OptionsHouse has about 30 technical studies TD Ameritrade has 300. It’s important to note that E*Trade purchased OptionsHouse for a whopping $725 million in 2016. It is still unclear how any pricing structures or account features and perks will change after the sale is completed, but an OptionsHouse blog post suggests that E*Trade’s tools and services will become available after the platforms merge. Best Tools and Research. optionsXpress A one-stop shop within a major firm, with an options-native platform. OptionsXpress was purchased by Charles Schwab back in 2011 to enhance Schwab’s competitive edge in options trading. The result is a one-stop shop with an options-native platform that’s pretty whiz-bang. Everything happens through the desktop platform, Xtend, but all the trading tools are also on the optionsXpress web platform. It’s fully customizable, and it’s easy to find real-time quotes and market data, news and reports, and company background information. The Idea Hub scans the market for volatility, earnings, and income-based strategies and offers new trade ideas. With Walk Limit, you can set a few parameters, and it will scan updated market data and re-create an order you may have made at a higher price in the past.

Sign up for the Xpresso newsletter and you’ll get a daily email alerting you to the day’s risks and opportunities. Add to that an impressive library of educational resources, as well as access to all of Charles Schwab’s investment research (and free access to its seminars and meetings at local branches), and a virtual trading platform that helps beginner investors practice all types of trading with $25,000 in fake cash. If you need help from a broker — to calm your first-timer nerves or to walk you through a complex method — they’re ready to help and totally free, too. The standard rates are steep, so we don’t recommend optionsXpress to the casual trader. Make more than 35 trades a quarter and you’ll click into “Active Trader” status and your fees will go down. Trade in volumes and there’s another discount trade contracts under a nickel and there’s another discount. This is all to say the price structure favors the active. And while optionsXpress has a $0 account minimum and does not charge any annual or inactivity fees, if you leave, there is a $60 full outgoing transfer fee. The Best Options Broker at a Glance. Options are contracts that allow an investor the right, but not the obligation, to buy or sell an asset on or before a set date.

Here’s an example: Say you are a buyer looking for a specific vintage car and you end up finding one you just have to have. When you find it, however, you know you won’t have any cash to buy it for another six months. You then negotiate with the owner to give you an option to buy the car in six months for a specific amount. If the owner agrees, you pay him a percentage up front for that option. The same scenario applies in the stock market – just for financial assets instead of vintage cars. If you were trading stocks, you’d be actually buying the car. Or, rather, not buying it since you didn’t have the money. Because options are simply options and not promises, if something happened to that vintage car — say it was sitting in the driveway and a tree fell on it — you wouldn’t have to buy it. You’d still be out the price you paid for the options contract, but at least you wouldn’t have lost all that money on a now-worthless pile of steel. And, if in those same six months something happens that makes the car go up in value, well, hey, you’ve already locked in your price. If you’re new, you should prize learning tools. If you’re experienced, you’ll need to choose between low cost or amazing tools. No matter what, options trading shouldn’t be an afterthought tacked onto your platform.

Best for Beginners. TD Ameritrade TD Ameritrade fees might be higher, but sometimes you get what you pay for. Consider your entire investment method. Don’t make your final decision solely based on options trading if it’s not the only kind of trading you’ll be doing. These online brokerage firms all offer a variety of investment opportunities. You may want to take into account their extra perks or the price of their mutual funds, for example. Know your expirations. Options are contracts that expire if they’re not acted on and an expired contract is worthless. Make sure you understand your expirations and set reminders using your broker’s platform, or on your calendar if you’re not trading every day. 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. 5 Top Online Stock Brokers. Posted by Blain Reinkensmeyer | Last modified on Nov 28th, 2017 | Published Apr 28th, 2017. Investors should know the best online brokers to trade with. Some online stock brokers are known for their award-winning customer service while others are known for inexpensive stock trades or powerful trading tools. This guide will highlight some of the best brokers available today with tips and advice for choosing a broker. Here are the online brokers that offer investors the most value for their portfolios. Stock Trades: $6.95 | Option Trades: $6.95 + $0.75 per contract | Minimum Deposit: $0. Current Offer: Trade free for 60 days + Get up to $600. TD Ameritrade was ranked #1 Online Broker 2017 by StockBrokers.

com* with its $6.95 stock trades. Its platforms (thinkorswim was #1 desktop platform), tools, mobile apps (#1 for mobile trading), research (top 5 finisher), customer service (#1 for phone support), and education (#1) are all award winning. Full review. Stock Trades: $4.95 | Option Trades: $4.95 + $0.65 per contract | Minimum Deposit: $2,500. Current Offer: Get up to 500 free trades for 2 years. Fidelity is best known for its value driven customer experience. Regular stock trades are just $4.95 each and Fidelity was rated #1 for order execution quality, which drives down trading costs even further. Beyond cost and ease of use, Fidelity also finished #1 for research tools. It’s Viewpoint articles are top of class and Fidelity is the only broker to offer 12 third-party research reports for individual equities. Full review. Stock Trades: $6.95 | Option Trades: $6.95 + $0.75 per contract | Minimum Deposit: $500. Current Offer: Trade Free for 60 Days & Get Up to $600.

Stock Trades: $6.95 | Option Trades: $6.95 + $0.75 per contract | Minimum Deposit: $0. Current Offer: Invest in a new account and get up to $600. Merrill Edge is the online broker of Bank of America and is available to all investors, regardless if they are a current BofA customer. Like TD Ameritrade and ETRADE, Merrill Edge is well-rounded however, it has a huge advantage over all other brokers thanks to its Preferred Rewards program where customers can earn free trades, credit cards bonus cash back, priority customer service, and more. I have personally been using the program since it launched. It’s awesome. Full review. Stock Trades: $4.95 | Option Trades: $4.95 + $0.65 per contract | Minimum Deposit: $0. Current Offer: Trade as low as $3.95. Plus pick either 90 days free or $200 back. Ally Invest offers investors $4.95 stock trades, quality customer service, and full banking services through Ally. TradeKing was acquired by Ally Financial in 2016 and continues to enhance its offering with tools like Ally Invest LIVE, the broker’s mobile friendly trading platform. Full review. Stock Trades: $5.00 | Option Trades: $5.00 + $0.50 per contract | Minimum Deposit: $500. Current Offer: All-New Pricing. Now Only $5Trade + No Software Fees.

TradeStation offers one of the most advanced trading platforms available in the industry and is built for traders who appreciate deep technical and fundamental analysis. Rates are competitive across the board. New investor beware TradeStation is not built for you. Instead, TradeStation caters to active traders who understand the markets and are seeking highly-customizable tools to hone their craft. Full review. Tips for Choosing a Broker. Having the best stock broker to serve individual needs is very important for any investor. For example, cheap trades most often come at the expense of less research tools and a more simplified trade platform. Consider these 12 key factors to help compare all stock brokers and ultimately find the best broker to suite your needs. What does it cost to buy shares of stock? Does the fee change based on the type of order or size of order? To keep it simple, look for brokers that offer flat-fee trades, ie charging a flat rate regardless of the type, price of the stock, or size of the order.

When picking up the phone or emailing a broker, is a well trained customer service representative ready to assist? How any investor is treated as a client is more important to some than others. But, even for those that don’t rely on customer support that often, to know that they have award winning service there when they need it is comforting. Trading successfully is a lot easier when investors have great tools at their disposal. A top stock broker should offer access to a wide variety of trade tools to help make the most of each and every trade. From real-time streaming quotes to last sale tickers, quality stock scanners, mobile trading apps, and level II quotes to name a few. Strong tools are essential for active investors. Some brokers allow you to open an account with no minimum deposit while others may require several thousand dollars. Also know that some brokers require higher minimums to gain access to premium platforms, functionality, and personalized support. A good online broker will provide a variety of market research tools.

The rule of thumb here is simple: the more you pay per trade, the better the market research (both fundamental and technical) that is provided. A online stock broker should offer access to not only trading stocks, but also a strong selection of no load mutual funds, commission free ETFs, and complex options. Other unique investment offerings to look for could include direct market routing, conditional orders, futures trading, and forex trading. Fees beyond trade commissions include inactivity fees (common with active trading brokers such as Interactive Brokers, Lightspeed, and TradeStation) and IRA fees for having a retirement account. While most brokers do not charge predatory fees, it’s still important to do your due diligence. Just like a bank account, stock brokers also make a portion of their profits off miscellaneous fees. Funding a IRA, Roth IRA, or other retirement account with no annual fees is an extra perk many online brokers offer. There is no reason why you should pay an annual fee to have an retirement account. If managing your own portfolio is not of interest, all full-service brokers offer optional advisory services as well. Furthermore, robo-advisors such as Betterment are growing in popularity. Once again, the experience at larger established brokers is going to be superior to smaller brokers. Larger online brokers offer banking and other financial services. This goes beyond money market accounts and CDs.

Checking accounts, mortgages, debit cards, and credit cards can also be offered. The leader in this space is, hands down, Bank of America Merrill Edge. Because of the web today, all online brokers invest heavily into account security. SSL websites (look for “https” at the beginning any URL) are used by most brokers and some are now even offering two-factor authentication (using your phone to confirm a code before logging in). Just like shopping online and choosing a trustworthy website to purchase from, the best bet is to choose a well-known, established broker for your portfolio. For the active trader, execution speed and fill price are very important. I won’t get too in depth here but I have tested many of these brokers and there can be noticeable differences in trade execution times and quality. For the majority of investors, saving a penny per share on a 100 shares order isn’t the end of the world, but for active traders it is something to look into. To understand Order Execution, read this guide. For investors in the United States this is not a problem but for investors living outside the US, when comparing brokers it is important to make sure they offer service in your country. Here’s a good list of international brokers to start with. Best Stock Brokers Summary. Questions & Help Choosing a Broker. If you need help deciding which broker to choose or have a broker specific question please feel free to email me and I will be happy to help. To view star ratings, summaries, screenshots, and more for these brokers, see our stock broker comparison tool.

Also, if you feel this guide was helpful for you please share it on Facebook, Twitter, Google+, or email it to a friend. This took many dozens of hours to put together so I appreciate your support! * – The StockBrokers. com 2017 Online Broker Review included 16 brokers whom were each assessed within ten primary categories: Commissions & Fees, Customer Service, Platforms & Tools, Research, Ease-of-Use, Offering of Investments, Education, Mobile Trading, Order Execution, and Banking. TD Ameritrade, Inc. and Reink Media Group are separate, unaffiliated companies and are not responsible for each other’s services and products. Terms. Join Over 22,000 Investors. Receive Weekly Market Recaps directly in your email inbox! Log, Store, and Analyze Your Trades. ©2017 Reink Media Group LLC · All Rights Reserved. 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.