OPTIONS TRADING PLATFORM: Top Free Platforms for Pro & Beginners

Options provide investors with a range of strategic opportunities to enhance their investment portfolios. These opportunities include generating income, mitigating risk, and amplifying exposure to specific stocks and indices. Due to the inherent complexity of options trading as compared to purchasing stocks or funds, options traders must exercise caution while selecting the appropriate options trading platform. In this guide, we will explain the best crypto options trading platform and the various free options trading platforms. So, let’s delve right in!

You may want to see: WHAT IS OPTIONS TRADING: Examples, Strategies & Platforms

Best Options Trading Platform

The best options trading platform include the following:

#1. Tastytrade

The same people who made TD Ameritrade’s groundbreaking Thinkorswim® tool also came up with the idea for and built tastytrade. The designers sought to provide marketplaces and research tools to self-directed individual traders. Tastytrade offers equities, ETFs, options, and cryptocurrencies because it targets active traders and stockholders.

The charges for trading options on Tastytrade are among the most affordable in the industry. The maximum amount owed for any portion of an options trade, regardless of size, is $10. On top of that, a $0.10 contract clearing fee comes in for each contract. Tastytrade, in contrast to most brokers, doesn’t charge any fees for closing contracts. As a result, its prices for options trading are among the most competitive in the industry.

#2. Merrill Edge

Merrill’s Story formats for mutual funds and equities and its user-friendly options tools make it our recommendation for beginner investors. The stock stories offered by this company are innovative and have the potential to revolutionize the industry. They make it easy and fun for people who don’t know much about financial statements to do study on stocks in a way that is friendly to them. Meanwhile, certain brokers provide a wider range of tools, while others offer faster order entry. However, for novice traders seeking a comprehensive solution, we find that Merrill is the most suitable option.

#3. Robinhood

Robinhood distinguishes itself from its competitors by not imposing an agreement fee for options trading. Robinhood’s platform is the most cost-effective option for trading options, as it does not charge any commission. Although not the most comprehensive platform, Robinhood provides the convenience of mobile trading, enabling users to execute options contract transactions across all their devices.

#4. Webull

Webull is an excellent option for options traders who are searching for the most cost-effective platform available. The fact that it does not charge fees based on contracts or commissions differentiates it from the majority of its rivals. Webull also provides a trading platform that is simple to understand and operate, and it excels, in particular, thanks to the feature-rich mobile software it makes available for use across all of your devices.

#5. Interactive Brokers

Interactive Brokers determines the cost of trading options depending on the size of the transaction and charges a variable rate on a per-contract basis. Hence, because of this, it is an excellent option for investors who have bigger wallets and are therefore eligible for cheaper rates. Options traders will love this company’s WorkStation tool because it is a proficient trading platform with a lot of features.

#6. Ally Invest

Ally, much like the majority of other trading platforms, does not impose commissions on options trades. Although it does charge a price of $0.50 per contract, this option is less expensive than others that are currently available. Ally is a great choice for option traders who don’t have a lot of money because it doesn’t require an initial deposit and doesn’t charge fees for maintenance.

Free Options Trading Platform

Below is the various free options trading platform:

#1. TD Ameritrade, Inc

This is one of the free options trading platform that offers something for everyone, from passive investors interested in stocks and bonds to active traders curious about options and futures. Investors can derive a great deal of value from the platform’s capabilities, which include superior research, trading tools, and help in the construction of investment portfolios.

TD offers thousands of commission-free investment options that are comparable to what other popular brokerages offer, making it a suitable choice for investors who prioritize commission-free investment vehicles. You can find exchange-traded funds (ETFs) and mutual funds, for instance, that have relatively modest entry standards and cost ratios.

#2. The Trader Workstation Provided by Interactive Brokers

This has a full set of tools for trading options and has been similar to the look and feel of a business plane’s cockpit. On the PC, there are a lot of tools, like IB Risk Navigator, Options Analytics, and Modeling Navigator. It can be set up in many different ways, orders are possible with just one click, and it has a lot of personalization options.

#3. Ally Investments

Ally Invest provides a user-friendly trading platform, and thorough analysis tools, and there are no minimum account balance requirements. Although you won’t be able to trade futures with this brokerage, it’s a good choice for investors of all expertise levels. You won’t have to pay fees on your trades as long as you stick to investing in qualifying U.S. securities like stocks and ETFs. iShares and Vanguard are two companies that offer exchange-traded funds (ETFs) that are well-known for having low expense ratios.

#4. TradeStation

This is also one of the free options trading platform. Analysts in technical analysis and other stock picks favor this platform, but novice traders can benefit from its printed trading model by gaining experience without risking real money. Active TradeStation brokerage account holders can trade paper currency for free on both desktop and mobile platforms.Furthermore, TradeStation gears more toward active traders, and it provides a wealth of resources to help new traders learn the ropes and try out different approaches. Many traders highly regard TradeStation’s platform, and its trading simulator is top-notch.

#5. Vanguard

Jack Bogle, Vanguard’s founder, and namesake, came up with index funds to provide investors with a low-cost investment choice. Trading stocks, exchange-traded funds, and mutual funds will not cost you a dime in commissions. The mobile apps and website are generally intuitive to use, though you may need to do some exploring to perform fundamental tasks like making a purchase or accessing the learning resources.

Vanguard’s lack of features catering to keen traders or those interested in trading for a short time makes it clear that the company’s focus is on clients looking to acquire and keep funds over the long term. Virtual Advisor, a robotic advisor service, and Vanguard Private Advisor Services are the channels via which the company offers financial guidance.

Crypto Options Trading Platform

The crypto options trading platform facilitates the trading of crypto options contracts, allowing users to engage in buying or selling activities. Cryptocurrency options trading platforms provide traders with the opportunity to purchase and sell call-and-put agreements that feature digital assets as the asset of choice. Similar to their conventional financial counterparts, the cryptocurrency options offered by these trading platforms are commonly utilized as instruments for protecting and learning. Below is the various crypto options trading platform:

#1. Bybit

Options on Bitcoin, Ethereum, and Bybit’s native token, Bybit. All deals conclude with USDC, which is a stable coin that serves a lot. Bybit is one of the best-known crypto options trading platform because it allows traders to increase their profits up to 100x while trading three of the most prominent cryptocurrencies. The fees for both the seller and the buyer start at a low 0.03%.

#2. Delta Exchange

Delta Exchange, headquartered in Singapore, is regarded as one of the top crypto options trading platforms due to the breadth of cryptocurrencies and derivatives it supports. Hence, with up to 100X leverage available on each asset, a wide variety of trading approaches are possible. This platform has lower liquidity than others, but it offers the widest range of options and agreements at the lowest prices. Bitcoin and Ethereum are accepted as margin and for all trades.

#3. Binance

When it comes to cryptocurrency trading, Binance is without a peer. Hence, with its excellent options trading interface, Ethereum (ETH) can be traded against the US dollar (USDT). Binance is a popular alternative despite its one-asset constraint for crypto options trading due to its high liquidity and user-friendly design.

#4. Deribit

Because Deribit is well-known for having high trade volumes for both Bitcoin and Ether, it is an excellent choice for institutional investors who are unsure where they should trade cryptocurrency options. Investors are able to establish tight spreads and readily discover contracts that correspond to their trading methods as a result of the availability of a number of different strike prices and expiration dates.

Deribit manages cryptocurrency options differently than the United States because it is headquartered in Amsterdam. Investors do not exercise European-style options until the option’s expiration date, and they always settle the option in cash rather than the underlying asset. Although Deribit offers traders a number of innovative features and outstanding customer assistance, the platform’s costs are significantly higher compared to those of Bybit and a few other exchanges.

#5. Quedex

Quedex differentiates itself from the other crypto options trading platforms on this list because it has made the deliberate choice of storing all of its BTC in offline vaults. This distinction helps Quedex maintain its position as the market leader. Quedex is not only the world’s first futures and options trading platform that is exclusive to Bitcoin, but it has also been successful in obtaining a license from the Gibraltar Financial Service Commission that allows it to operate as a licensed futures and options trading platform.

Quedex spares no effort in assuring a hassle-free and risk-managed trading experience for everybody who signs up by providing trading margins of up to 10x on BTC futures and a proactive risk-control system that prevents adverse balances on your account. Moreover, Quedex does not charge any fees for using its services. Even though some of the other best crypto options trading platforms may experiment with cryptocurrencies to provide additional choices for optimistic options traders, the fact that Quedex is so straightforward is ultimately what attracts traders in such large numbers.

How Much Money Do I Need to Trade Options?

You need to have a minimum of $2,000 available in your trading account to engage in option trades that call for the use of margin. The majority of techniques for options trading involve the usage of leverage, although the following is a list of tactics that can be used even without margin: Buying both the put and the call outright. The purchase and sale of covered calls.

How Much Money Do I Need to Day Trade Options?

One of the requirements for pattern day traders is that they are obligated to maintain an aggregate equity of $25,000 in their margin account on any given day that they engage in day trading activities. This means that they must have this amount of funds available in their account to be able to participate in such activities. It is important to note that this rule applies specifically to pattern day traders and is in place to ensure that they have sufficient funds to cover any potential losses that may occur during their day trading activities.

Final Thoughts

The surge in retail options trading has compelled online brokers to intensify their efforts to attract and retain customers. Consequently, this has led to the emergence of remarkable product innovations, more substantial pricing reductions, and simplified avenues for devising intricate option strategies. Although Tastytrade has slipped in our newly revamped methodology, which places the greatest emphasis on study services, its competitive fees, options-focused material, and enhanced options tools are robust enough to maintain its position as our top overall choice.

References

investopedia.com
stockbrokers.com
cnbc.com
milkroad.com