The Best Options Trading Platforms
Among a sea of possibilities, here are five of the best options trading platforms for investors.
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.
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.
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
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Jared Hoffmann is a highly respected financial content creator and options expert, holding a journalism degree from San Francisco State University. Formerly a Senior Options and Day Trading Editor and on-air personality at Money Morning, he excels in delivering comprehensive options education, technical analysis, and risk management education to traders.
-
Stock Market Today: Dow Slides 697 Points on Super-Hot Jobs Data
When the December nonfarm payrolls report hit the tape, there was no question which way stocks would go at Friday's opening bell.
By David Dittman Published
-
Essential Tech Tools for Managing Your Home and Finances While Traveling
Stay secure and stress-free on the go with the best tech tools for managing your home, bills and security from anywhere.
By Dori Zinn Published
-
Stock Market Today: Dow Slides 697 Points on Super-Hot Jobs Data
When the December nonfarm payrolls report hit the tape, there was no question which way stocks would go at Friday's opening bell.
By David Dittman Published
-
Blowout December Jobs Report Puts Rate Cuts on Ice: What the Experts Are Saying
Jobs Report The strongest surge in hiring since March keeps the Fed on hold for now.
By Dan Burrows Published
-
Constellation Energy Stock Soars on Its $26 Billion Buy. Here's Why Wall Street Likes the Deal
Constellation Energy is one of the best S&P 500 stocks Friday after the utility said it will buy Calpine in a cash-and-stock deal valued at $26 billion.
By Joey Solitro Published
-
Why Walgreens Is the Best S&P 500 Stock After Earnings
Walgreens stock is soaring Friday after the embattled pharmacy chain reported strong earnings and gave an upbeat outlook.
By Joey Solitro Published
-
Delta Stock Remains a Strong Buy After Earnings
Delta stock is soaring Friday after the air carrier beat earnings expectations and issued a strong outlook. Here's what investors need to know.
By Joey Solitro Published
-
The Wrong Money Question to Ask After Trump's Election
If you're wondering what moves to make with a new president moving into the White House, you're being dangerously shortsighted. Here's what to do instead.
By George Pikounis Published
-
An Investing Plan for This Year: Doing Less Can Lead to More
Achieve more when investing in 2025 by planning to work smarter, not harder. These three strategies can help put you on the right track and keep you there.
By David Booth Published
-
All About Six Types of Auto Insurance Coverage
Do you know what your auto insurance policy covers? Here's a primer on some coverage categories, along with examples of how each type of coverage works.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS Published