The Best Options Trading Platforms

It's not an easy task to identify the best options trading platforms among a seemingly endless number of choices.

As an investor, getting your selection right is vital: The best options trading platforms can help you maximize your investment potential.

In this article, we'll take a deep dive into five of the best options trading platforms, including distinct features and potential drawbacks.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

We'll examine pros and cons so you can identify the one most suitable for your objectives and confidently embark on a rewarding journey into the world of call options and put options.

Here are five of the best options trading platforms for investors.

E*Trade 

Pros:

• A comprehensive range of investment options: E*Trade offers a diverse array of investment choices, providing ample opportunities for portfolio diversification.
• User-friendly interface: The platform's intuitive layout makes it accessible to investors of all experience levels, including beginners.
• Educational resources: Access a wealth of educational materials to enhance your understanding of the markets and improve your investing acumen.

Cons:

• Commission fees: E*Trade's commission structure can be relatively higher compared to some other platforms, potentially affecting your overall trading costs.
• More on fees: E*Trade charges commissions on both sides of a trade, which can result in higher-than-average commissions for those placing less frequent options trades.

InteractiveBrokers  

Pros:

• Versatility and global market access: InteractiveBrokers caters to investors with diverse needs, offering advanced analytical tools and access to global markets.
• Robust research: Gain access to in-depth market research and analysis, enabling you to make informed investment decisions.
• Professional-grade platform: Ideal for seasoned investors seeking advanced features and tools.

Cons:

• Learning curve: The platform's extensive features may require a learning curve, especially for investors new to the world of options trading.

Webull

Pros:

• Seamless experience: Webull offers a smooth and user-friendly platform, suitable for investors of all levels.
• Paper trading: Practice risk-free with Webull's paper trading feature, allowing you to refine your strategies before committing real funds.
• Advanced charting: Benefit from advanced charting tools for technical analysis and trend identification.

Cons:

• Customer support: Some users have reported limited customer support options, potentially affecting timely resolution of issues.
• Educational resources: While Webull offers educational materials, they may not be as comprehensive as other platforms, especially for in-depth research.

Thinkorswim (by TD Ameritrade) 

Pros:

• Advanced tools: Thinkorswim stands out with its advanced charting, technical analysis and customizable trading strategies, empowering investors with sophisticated tools.
• Extensive research: Access a wealth of research tools and data for thorough analysis and market insights.
• Professional-grade platform: Ideal for seasoned investors seeking robust features and tools.

Cons:

• Learning curve: The platform's advanced features may require time and effort to fully grasp, especially for investors transitioning to more complex trading strategies.
• Complexity for novices: Beginners may find the platform overwhelming due to its professional-grade tools and extensive capabilities.

Tastytrade 

• Built for retail traders: Created by the same team that developed TD Ameritrade's thinkorswim platform, tastytrade (formerly tastyworks) was designed specifically with retail traders in mind.
• User-friendly commission structure: Tastytrade does not charge commission for closing positions (only opening ones) and caps fees at $10 per leg for any options trade, no matter the size of the trade. This results in a truly competitive fee structure.
• Fundamental analysis: Although tastytrade is all about option strategies, it includes a fundamental analysis tab on both its desktop and its browser platforms.
• Focus on trading rather than investing: Tastytrade offers robust option analytics and tools for traders, allowing for relatively pain-free position creation and trade management.

Cons:

• Focus on trading rather than investing: This is both a pro and a con. Investors may feel underwhelmed, as there are limited investment choices.

FAQs about the best options trading platforms 

• Are these platforms suitable for both stock and options trading? Absolutely! All the mentioned platforms support both stock and options trading, offering comprehensive investment options.
• Do these platforms offer mobile trading options? Yes! Each platform provides mobile trading apps, enabling you to stay connected to the markets and execute trades on the go.
• Are commission fees applicable for all trades? While some platforms offer commission-free trades, others may charge fees for certain types of transactions. It's essential to review the fee structure of each platform.

Related content

• What Is the VIX?
• The Best Online Brokers and Trading Platforms
• Making the Case for Covered Call Strategies