Options are traded using a wide range of platforms. There are web, desktop, and mobile solutions for newbies and pros. Here are eight systems to consider. The Eight best options trading platform to be considered are listed below.
8 Best Options Trading Platforms of 2024
Options are popular instruments that can be traded online. Each allows you to buy or sell a particular security at a fixed price in the future. Options trading may bring huge returns due to high volatility. In South Africa today, it can be accessed through international brokerages. Here are eight trading platforms to consider in 2024.
1. Charles Schwab
This trading platform is best for beginners. Charles Schwab helps to hone trading skills and offers abundant educational resources. Clients have an affordable start thanks to low per-contract commission. There is no base fee — the broker only charges $0.65 per contract.
As users gain experience, the platform grows with them. There are sophisticated charting aids and trade calculators. Both web and downloadable options exist. The StreetSmart platforms have trades, quotes, and other pro features. However, they are less advanced than some of their rivals. Another drawback is rigorous rules for trading on margin.
2. TD Ameritrade
This brand stands out thanks to two things: cutting-edge technology and rock-bottom pricing. No base commission or minimum balance is required. Self-directed options trades cost $0.65 per contract. Margin and advanced features require at least $2,000 balance.
Additionally, clients may access the foreign exchange and the futures market. Web and desktop platforms are available. The first option is basic. The downloadable platform includes options stats, trigger orders, and other advanced features.
3. TradeStation
This platform is best for pros. There are two versions (desktop and mobile), and two types of accounts. While TS GO is focused on new traders, TS Select has more depth. It is aimed at diversified portfolios and requires a minimum deposit of $2,000. In either case, there are no commissions.
Newbies love TradeStation’s Simulated Trading tool. They can practise managing orders, using charting aids and other features. The concept is similar to the demo account on the most popular trading platform from ForexTime.
4. Webull
This platform is best for no commission high-volume trades. It is a relatively new product that offers stocks, ETFs, and options — both base fees and contract fees are non-existent. In most cases, options trading is completely free.
Webull will charge you for trading on margin. The same applies to short sales, regulator’s fees, and payments for advanced data feeds. As long as you stick to regular options, you will not be paying anything.
There are platforms for desktop use, web trading, smartphones, and tablets. New users are welcomed with free stock and other promotions. Due to the attractive price policy, you could make sizable savings. The only drawbacks are the limited choice of assets and short company history.
5. Interactive Brokers
This brand is popular with experienced and active traders. It offers a broad range of accounts. Serious traders can have all their needs covered.
The IBKR Lite account includes no base fee and offers fixed pricing. For instance, options for U.S. markets cost $0.65 apiece. Free stock and ETF trades are also accessible.
Large-volume players may consider switching to IBKR Pro. It allows fixed or tiered pricing, as well as longer trading hours. Tiered schemes reduce costs for U.S. options to $0.15 per contract.
Holders of advanced accounts need to keep at least $100,000 on their balance. Alternatively, they may pay $10 in monthly commissions. Otherwise, a recurring inactivity fee of $10 is charged every month.
6. Tastyworks
This broker’s key strength lies with its high-tech tools. Clients have cutting-edge instruments for market analysis and trade management. Web, desktop and mobile access are all provided. Importantly, these offer similar functionality.
The platforms have unique features for quick decision making. For example, clients may use quick rolls, and adjust their orders in a flash. There are educational videos on options trading strategies.
Tastyworks offers options on ETFs and stocks. Neither have a base commission. The broker charges clients $1 per contract when opening a trade. Closing is free. If an order has multiple components, the opening charge for each ‘leg’ is limited to $10. Options on futures are more expensive — up to $2.50 ($1.25 per contract to open and the same price to close).
7. E*Trade
This broker has the best mobile solutions. Its platform and app are ideal examples of trading environments. Power E*TRADE offers quality, functionality, and speed. It is a comprehensive solution with training instruments. Clients have access to affordable premium features. Today, there are no base fees. Each option contract costs only $0.65.
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8. eOption
Active options traders who want to cut costs may consider eOption. The brand offers some of the lowest commissions and margins in the industry. Clients may also trade stocks and ETFs cheaply. Options are traded at $0.10 per contract and $1.99 per transaction. Traders with over 4 contracts in a transaction save even more.
