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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. 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. Best Trading Software. The Ideal Trading Platform for Stocks and Options with Over 100 Order Routing Destinations. Lightspeed Trader is our flagship trading platform. It is the perfect solution for day traders. We continually invest in the latest trading technologies to deliver real-time quotes and executions faster. Lightspeed delivers a robust trading system to the day traders and professionals that demand highly established market data and performance. Traders of all experience levels can easily design and customize layouts and rules to best fit their trading style.

Keyboard traders and point and click traders are covered with fully customizable home screens and Lightspeed Trade Reporting. Highlighted features include: Completely customizable Complex options trading Integrated charting with studies Multi-threading for hyper-speed Advanced scanners and filters Research capabilities powered by TipRanks View Lightspeed Trader APIView Lightspeed Trader Scanner. Lightspeed WebMobile Trader. For clients who prefer a web and mobile based trading platform. WebMobile Trader has been designed to look, feel, and function in a way that is similar to our downloadable Direct Market Access (DMA) platforms, while offering the convenience of access from any PC, Mac, smart phone, or tablet with an internet connection. With no monthly software fee and no monthly market data fees, it is one of the cheapest trading platforms available. Lightspeed Trading also offers some of the lowest option commissions available online. WebMobile Trader provides users with streaming real-time data and offers fast and easy-to-use order entry and execution to meet the needs of savvy traders. Users can trade stocks and options on the go from a single screen for a seamless trading experience. Access your account portfolio wherever you go Real time buying power display and streaming quotes Option chains Quick trade linking from quote screens Advanced order types including trailing stops Access to advanced market data (charting, analytics) Watch lists, charting, news, and research Access the account portfolio Orders executed on mobile update dynamically in all platforms. Market Data Research.

Lightspeed is pleased to offer users of Lightspeed WebMobile Trader a market data and research package. Market data package is available at no cost to non-professional users and $105.00month for professional users, making it one of the cheapest research solutions available for active traders. Professional vs. Non-Professional designation is determined upon first log in. All market data agreements are delivered for execution at that time. Real Time Level 1 data including Dow Jones Indexes for all listed exchanges and ECNs Detailed quote data Charting News. Professional Trading Tools. Fully Automated Trading System. Lightspeed Gateway is a fully automated trading system that offers super low latency to all domestic Equity Exchanges. Lightspeed Gateway is completely platform neutral and can be used on all major operating systems and programming languages. Register with us to see examples of Lightspeed Gateway messages and read the protocol’s specification. Highlighted features include: Market anonymity - all orders are sent to the exchange in the firms MPID Multiple Market data options – Lightspeed can offer co-located customers access to a plethora of different market data options from normalized L1 offering to native exchange market data feeds Nasdaq Carteret Co-location - Offering a tremendous performance advantage on Nasdaq bound orders Multi-venue accessibility Competitive Pricing Pre trade risk management System availability, scalability and recoverability, average up time above 99.99% Nativefix interfaces, both native API and FIX layer built in to ensure a seamless integration for new customers Dedicated Account Manager and Trade Support for every client Lightspeed Pre-trade Risk Management.

Sterling Trader Pro is a full-featured Level II direct access trading platform designed for professionals who work with the rapidly moving electronic markets. The terminal includes advanced pinpoint accuracy for order routing and management and real-time profitloss capabilities, making it particularly suitable for trading groups. Key Sterling Trader Pro features: Direct electronic access to all of the exchanges and ECNs Advanced charting package Highly customizable level II order entry system Programmable keys and load order entry features for instantaneous action Window linking and customization Real time profit and loss information Advanced pinpoint accuracy and smart destination preferences for order routing and management Operates on Microsoft Windows and Intel technology for easy integration with in-house networks Full control over system components for fastest access to markets and exchanges API available for connection with custom and third-party applications. Advanced Options Trading. Livevol X Options Trading. Livevol X is the next-generation execution platform that combines the intelligence of Livevol Pro with advanced options trading capabilities and sophisticated risk analytics. LVX offers a full array of unique features for identifying trade opportunities and developing strategies. Our “what if” modeling tools provide the ability to go from modeling to execution in one key stroke. Of course, monitoring risk is paramount. LVX keeps you on top of position and portfolio risk with industry leading graphical representations calculated in real time. Lists of features within the software are listed below: Order Execution Risk, Position & Trade Analysis Brokerage Account Info Build and Save Layout Analytics with Historical Data Live Order Flow Information Option Market Scanners Option Analytics Components Livevol Excel Add-ons Learn More About Livevol XTry the DemoPricing. RealTick Pro and Express.

Created by Townsend Analytics, RealTick is the platform used by professional traders. RealTick is suited to active traders, registered investment advisors (RIAs), and hedge funds. It delivers sophisticated trading tools, unrivaled access to liquidity, real-time data, charting, analytics and streaming news. Global, multi-broker, multi-asset—RealTick’s unsurpassed flexibility suits every trading style. Traders can make the most of their investment with some of the cheapest trading fees available. Lightspeed offer two versions of RealTick to meet the needs of any trader. Full featured trading software for the professional trader. Advanced order entry and trading with real-time global data Trade allocations and multi-account access for RIAs and hedge funds Multi-asset, trade equities, options and futures from one login Completely customizable user interface Hotkeys and hot buttons MarketMinder™ quote display, hundreds of available fields Advanced time and sales Sophisticated charting with studies Streaming news and fundamental research API and order scripting Hottrend stock scanner Custom tickers Mobile application options from tablet or smart phone $325 monthly software fee $25,000 minimum funding requirement. A value-oriented alternative to the full featured Pro version. Customizable display of full market depth, time & sales, limited to 4 level 2 windows Conditional orders, Bracket Orders, OCO, and more Advanced charts and scanning tools. Watchlists with up to 100 symbols Hot-Key Order Entry $125 monthly software fee $25,000 minimum funding requirement Real-time global market data Integrated add-ons Backed by stable and resilient infrastructure Pricing.

Specialized Stock and Option Trading Software. Derivix provides an all-in-one solution for pricing & analytics, portfolio risk management and multi-broker electronic execution for equities and derivatives markets. Silexx Financial Systems product, one of the most powerful trading platforms on the market. Feature-richness, advanced analytics and speed ensure that you are always ahead of the game. As developers of the popular Metro electronic trading and market-making platform, Chicago-based OptionsCity Software has helped advanced options traders make markets and trade on the world’s leading derivative markets since 2006. OptionsCity is a certified Independent Software Vendor on 15 leading derivative exchanges. Wex has its roots in derivatives trading, and it remains Wex's specialty. Wex's options functionality is unsurpassed, giving traders the tools they need to successfully compete in today’s trading environment. Futures Trading Platforms. RealTick is the platform used by professional traders. It delivers sophisticated trading tools, unrivaled access to liquidity, real-time data, charting, analytics and streaming news. Global, multi-broker, multi-asset - RealTick’s unsurpassed flexibility suits every trading style. The most powerful suite of products for all of your financial market needs. CunninghamTrading Systems (CTS) Real-time quotes, one-click trading, multiple order types, a built in charting package, real-time news and economic indicator feeds, professional options and much more.

Patsystems provides high-performance electronic trading and exchange systems, comprehensive risk management tools and connectivity to global markets from a single screen. Quick Screen Trading (QST) Quick Screen Trading offers revolutionary software applications for real-time streaming futures and options on futures quotes, highly reliable and accurate data, internet based mobility for anytimeanywhere access, professional, advanced tools, the best combination of sophistication, usability, performance and price. Fully automated order processing system designated to handle functional requirements for remote client order entry, pre-trade order risk control and transaction routing. Trading Technologies (TT) Industry-leading software that provides a superior way to view, analyze and trade. Bloomberg EMSX via CQG. Execution Management System (EMSX) with integrated real-time analytics, Indications of Interest (IOIs), Trade Advertisements, and Transaction Cost Analytics (BTCA). Whether you are part of a prop shop or are a professional trader, Rithmic’s trade execution software delivers to you the low latency and high throughput performance. Resources. products and services. Copyright © 2001-2017, Lightspeed Trading, LLC. All Rights Reserved.

Best Options Trading Platforms: The Ultimate Guide. This ultimate guide will help you understand trading options, where to find the best options trading platforms and how to recognize and compare them. Maybe you want to earn more money to pay the bills. Or your next holiday. Or a house for your family. Or maybe you really just want some extra income. Then you’ve probably heard that you should invest your money in financial products – be it stocks, real estate or even foreign currency. You also probably already have an idea what stocks are – it’s always on the news, and it’s the most popular thing to invest in. But what about options? Don’t worry. We’ve got you covered. We’ll discuss what the basics of options trading are, the best options trading platforms, and how to compare these platforms. What In The World Is 'Options Trading'?

If you’re already looking for the best platforms, you probably already know what option trading is. But let’s refresh our minds and revisit important basics in the options trading game. An option is another type of security a lot of people invest in, a contract that makes a buyer able to buy or sell an underlying asset before a specific date, and at a particular price. Also recall that this gives the buyer the right to buy or sell, but no obligation. This short video quickly explains what is options trading: Binary Options Explained. In contrast to regular options trading, you may have also heard of binary options. It is a specific type of options that lets you decide between two choices: yes or no, or in trading terms, “call” (when you predict the price will rise) or “put” (when you predict the price will decline). Since you can only have two choices, it will also yield just two possible results: all or nothing, meaning that an investor can never lose more than what he’s invested. The difference to regular options lies in the payout, which is pre-determined at the onset of the contract as well as the expiry time and execution. With sets of skills, knowledge, and experience, and using one of the best binary trading platforms, it can be highly valuable. Ok, I Get It Now. But Where Do I Trade Options? We’ll tell you all about the best trading platforms available, and we’ll compare their prices, advantages, disadvantages, and more. But before we get to that part, we all need to establish some factors and features that you should consider before choosing a broker or a platform to trade options.

Also, people usually only consider commissions and fees before choosing a platform, but that’s not the only important thing to look at. It’s important, yes, but there are many other facets that you should know before finally deciding on a brokerage company. What Should I Look For In An Options Trading Platform? Consider the following factors: Since we already mentioned it in the previous paragraph, might as well start with this one. Of course, commission and fees are still highly important for any trader in the game. First, make sure that there aren’t any large “hidden” fees (e. g. maintenance fee, trading fee) – as these “little” fees may affect your return on investment. You should also consider if you’re trading in bulk or not. Some platforms offer better pricing for those who trade in large volumes, but others are more suitable for ‘beginners’ who trade less. Options platforms’ pricing tables should be straight forward , and easily understood for all users. Always, always do your own research, too. Read as much reviews as you can about the trading platforms you’re considering.

Or even read articles about them and their performance in finance-focused newspapers. In addition, trusted brokers are usually affiliated with professional associations (e. g. Financial Industry Regulatory Authority) – so make sure your broker has valid qualifications. This is one of the most important factors to consider, but also probably the most neglected. The platforms’ customer support should be available online – or through other means of contact. And actually, most of the trusted online platforms provide customer service – 247. Here’s one test you could do to make sure their customer service is excellent: contact them before you finally decide on their service. Ask them about basic facts about trading, their services, and other relevant questions that you may think of. This can give you a gauge on which online broker is the best when it comes to customer service. Research Data And Software. Personally, I think this is an essential feature that everyone should consider – but mostly for skilled and experienced users. For beginners, this could be useful too: the platform you choose should have vast amount of data and resources (videos, articles, seminars, and the like) that teaches you how to be a good options trader.

Research data includes publications, news articles about the market and persistent trends, and professional commentary among others. When you learn how to make use of these resources, they could help you make better trading decisions – also with the help of the software available on the site. Your chosen platform should have trading tools that would help you determine the best options to buy, track volatility, and analyze market trends. What Is The Best Online Options Trading Platform? There really is no one best options trading platform there’s only the best for you – and your preferences. The same could be said for looking for the best stock trading platform. Here is a list of the ten best trading platforms that you could choose from. mutual funds, futures. Desktop and web platforms, virtual trading, advanced tools. mutual funds, futures.

Web platforms, virtual trading fees, zero inactivity fees, low prices. Stocks, options, futures, mutual funds, FOREX. Desktop and web platforms, no inactivity fees, many features for beginners, good mobile support. mutual funds, futures, FOREX. Web platforms, virtual trading, zero inactivity fees, advanced tools, many features for beginners. Desktop and web platforms, wide selection of commission-free ETFs, good customer service. Desktop platform, low prices, good for advanced traders, good mobile support. Stocks, options, futures, mutual funds, FOREX. Web platforms, virtual trading, low prices, good mobile support. Stocks, options, futures, mutual funds, FOREX.

Desktop and web platforms, good for advanced traders, good mobile support. Desktop and web platforms, many features for beginners, good mobile support, above average customer service. Desktop and web platforms, above average customer service. Founded in 1982, TradeStation has created a good reputation for its brand, especially for its technology, and state-of-the-art, advanced trading tools and data available. Experienced users and experts alike love TradeStation’s user interface: it’s flexible enough, especially for those who prefer multiple monitors. Charting is also available in the platform, which can help users make in-depth analyses of various trends and data. But options traders in particular should use their amazing OptionsStation tool. The OptionsStations tool was designed to make data analysis so much easier – you can even view profit and loss charts both in 2D and 3D form – whichever way you prefer. Also available in the platform is a tool that lets you rank potential trades. And if you want to improve your method, TradeStation provides a program that lets you test out strategies before implementing them. TradeStation releases updates on a regular basis it really is an innovative company when it comes to the technology aspect. However, all of these come with a steep price: $99.95 monthly, which can be waived if your account has $100,000, or once you meet a specific level of trading activity. Its base fee for options ranges from $4.99 to $7.99, with a price per contract of $0.20 to $0.70, depending on volume.

Unlike TradeStation, OptionsHouse provides one of the most competitive prices in the options trading market today. At a $4.95 base fee, you can make a trade, with a $0.50 per contract fee. OptionsHouse has one of the simplest pricing matrices among online trading platforms, which makes it a favorite among beginners and advanced traders alike. If you’re looking for advanced analytical tools, OptionsHouse is also a great choice. In 2014, they merged with tradeMONSTER – which was highly known at the time for its innovative trading platform. Trading options became so much easier and faster after the full integration of tradeMONSTER, and its interface became even more customizable than ever before. Their other useful tools – such as strategySEEK, tradeLAB, spreadMAKER, and adjustTRADE – can all help you form smarter decisions in options trading. In particular, strategySEEK lets you look for and scan real-time data based on specific criteria that you would establish. OptionsHouse also provides users with a virtual trading platform, which would be useful for options trading newbies. There are still downsides to OptionsHouse, however. For one, they don’t have a lot of investment products available (e. g. they do not have foreign exchange trading).

While their tools are undoubtedly advanced, they do not have a lot of research available for you to analyze – especially compared to their competitors’ research data. E*TRADE, while it has notable, simple-to-use desktop and web platforms, is more highly regarded because of their leading mobile applications. One feature we love about E*TRADE is its E*TRADE 360, its simple and customizable page for their online platform. You can easily navigate around the page, and even beginners would find it appealing – E*TRADE’s platform makes placing orders a breeze. They have one of the best customer support services in the options trading industry today – just go ahead and try to send them an e-mail! Huge amounts of research data are also readily available at E*TRADE, coming from sources such as S&P, Thomson Reuters, SmartConsensus, and MarketEdge. Their tools are also just at par with their competitors: they provide probability calculators, options screeners, and option analyzers to its users, among others. You can analyze market trends, volatility data, and other relevant information you need for your investments. And of course, their mobile application is second to none when it comes to this feature. Their app provides the ability to compare your own portfolio to the market average, aside from the common features that mobile trading apps provide (e. g. real-time tracking).

Their fees are about average to above average of the industry, having a base fee of $9.99, with $0.75 per contract. Arguably one of the most popular trading platforms in the US, TD Ameritrade is highly regarded by many experts and professionals for their advanced research data, tools, and analytical capabilities. TD Ameritrade truly has some of the best tools for both beginners and experienced traders alike. Trade Architect and Thinkorswim – their two platforms – are top-of-the-line, and are leading the industry with its many practical and useful features. You can use scanners to search filter options, see historical revenues of companies, and analyze ‘risk graphs’ for potential trades. TD Ameritrade’s Thinkorswim. TD Ameritrade’s Thinkorswim platform is also really popular because of its virtual trading feature. You can try out your investment strategies with virtual money before implementing them in real life – with your real money. This is great for beginners who are still new to the whole options trading business. They also have an education center that would help newbies find their way in trading – with resources such as videos, lessons, and demonstrations, among others.

TD Ameritrade leads when it comes to their research, providing news from more than six different sources. TD Ameritrade still lags behind with mobile apps as their app looks like their online platform which many users love. The company also provides one of the best customer services in the market, with around 100 branches nationwide, in addition to their 24-hour phone line. They also have an automated client (Ask Ted) that will guide you through their platform. Though it has many advantages, of course, it still comes with a con: TD Ameritrade is on the higher end of the spectrum when it comes to fees. The base fee is $9.99, with a contract price of $0.75. What About Platforms For Binary Options? There are different brokers specifically for binary options? Yes. Not a lot of options platforms provide services for binary options. We’ll give you a few recommendations if you want to dive into trading binary options. Aside from the factors we listed above that you should consider before choosing a platform, for a binary options platform, you must remember to take note and follow regulations. Some countries, like the US, are very strict with binary options trading – which is why we’ll only be recommending the platforms that are accepted by regulatory bodies in the US. You should also be really careful when it comes to sites that claim they trade binary options or that they’re one of the best in binary trading, because many have been duped by these websites. Always be responsible and do your own research when it comes to these traders. Remember that it’s always better to be safe than sorry!

Here we list down some of our trusted and best binary options brokers: for those residing in the US, we recommend using FInpari, Porter Finance, or NADEX. For our readers in the UK, try out IQ option, 24 option, or Banc de Binary. For residents of Europe and Canada, our recommendations are 24 option or Banc de Binary. Start Trading Options Now! Before finally choosing a broker or platform to trade options, list down all your requirements and preferences first. Rank them if you want – do you want more research? Analytical tools? Or are you after the commissions and fees? Let those determine which site would really be the most suitable for you. Since we gave you a list of our recommended trading platforms – go ahead and try them out! Sometimes, you’ll really never know what you prefer unless you go ahead and experience options trading for yourself. Just remember our essential tips, only use risk capital you can afford to lose, research and analyze well, and have fun trading! No related posts.

Leave a Reply Cancel reply. COMPENSATION DISCLOSURE. Top 10 Explosive Penny Stocks to Invest In 2017 (Hot Picks) Methods For Building And Repairing Credit. 3 Best Small Business Credit Cards for 2017. Popular Categories. Tom Smallwood. Tom is a former accountant turned entrepreneur. He is not a financial adviser but does tend to give a lot of financial advice to his friends and colleagues. He currently runs a small online venture and blogs about his research and experiences. Lightspeed Trader Features. Lightspeed Trader is the ideal software for both day traders and investors with our flagship trading platform offering equities and options routing to over 100 destinations. See a detailed list of features below. Advanced multi-threaded, multi-core processing Optimized Level II quote messaging Low latency execution Historical intraday chart data Order routing destinations Advanced options trading strategies Block ticker alert and ticker alert Fully customizable Research capabilities powered by TipRanks.

We continually upgrade Lightspeed Trader to give active traders an edge in the market. The technology and features built into our platform are driven by one goal: to give real traders the ultimate tools for seizing market opportunities. We pride ourselves on providing the fastest market data and order management solutions in the industry. Advanced Options Trading. Lightspeed allows you to easily build and trade complex options strategies like debit and credit spreads, straddles, strangles and butterflies. Our interface lets you quickly select the options legs you want to trade and automatically creates “multi legged” order tickets with your desired method. The navigation is simple, intuitive, and extremely powerful. To top it off, take advantage of additional intraday leverage extended to you from hedged options strategies. Customizable Options Chains. Set up your options chains to display the exact info you need to see. Lightspeed offers dozens of columns and settings. Our options chains are fully interactive. Select multiple lines in your chain and automatically send the corresponding method to your order entry window.

You can also link your chains to stock quotes, level II options quotes, and options prints (time and sales). Complex Order Entry (COE) The COE window can receive multiple lines directly from the options chain. This allows you to quickly and easily select, stage, and send your complex options method orders. With our low options commissions, you never pay extra for complex orders. Covered calls. Protective puts. Debit and credit spreads. Long and short strangles. Long and short straddles. Butterflies. Or build your own method with any leg combination, including equity legs. You can do much more with the new COE: Route your orders directly to a selected options exchange.

Reverse your strategies with the click of a button to reflect your market sentiment. See how much premium you will pay or receive for each complex order before you send it. Save your favorite strategies for faster input in future orders. Use this window to see the margin requirements on open orders and trades in each underlying security. See all trades broken down by individual fill. Use the method view to manually break and hedge eligible positions. Manually hedge your positions and strategies. Select any row to break an already existing hedge. Pin positions to mark them as hedged or broken. Use Auto-hedge to automatically hedge all eligible positions for the best utilization of margin. Options Level II Quotes. Lightspeed Trader provides you with real-time quote feeds from all the major exchanges. Get an in-depth look at options liquidity at every price level.

Level II allows you to see buyers and sellers in the market and offers insight into potential points of resistance and support. Integrated time and sales, positions bar, Greeks bar and, order ticket. If your method involves scalping options, this feature is a must. Keep track of where options are actually trading, not just where they are being quoted. Our options Time & Sales window helps you filter out the noise and see where the price action really is. Customize and sort your columns. Options Time and Sales. Keep track of where options are actually trading, not just where they are being quoted. Our options Time & Sales window helps you filter out the noise and see where the action really is. Link your time and sales window to your options quotes. Customize and sort your columns based on your preferences. Customizable Layouts.

Lightspeed Trader allows you to configure up to 10 personalized screen layouts. Each layout can stretch across four monitors, and you can switch between layouts with the click of a button. Trade Stocks and Options. Lightspeed lets you trade equities and options from a single screen. View one of our introductory platform webinars to see how simple it is. Level 2 stock quotes. Streaming Options Chains. Level 2 Options Quotes. Scan the Market for Trading Opportunities. LightScan searches the entire universe of stocks to display symbols sorted and filtered based on your preferences. Sort by over 100 possible criteria and filter to create infinite possibilities. Block Ticker lets you track big trades.

See what the big boys are trading. Ticker Alert lets you find stocks that are breaking new highs and lows. See where the momentum is. Fast – Our charts are powered directly by our ticker plant. This eliminates any delays between market prints and chart updates. Customizable – Easily link charts to Level II screens, create hot buttons to view multiple charts, automatically plot trade executions into your charts, configure time frames, change colors and display options. Advanced – Extensive range of studies offered including comparison charts, moving averages, relative strength indicators, MACD indicators, Bollinger bands, and more. Order Entry to Suit Any Trading Style. Hot Keys. Map any standard or custom order type to a keyboard shortcut. Order Entry Window. Use your mouse to set up and send your orders. Basket Trading. Use our List Order Entry (LOE) window to simultaneously send orders for multiple symbols.

The LOE is completely configurable for each trader’s preferences. Remain disciplined and prevent order entry errors using our front and back end risk controls. Direct Market Access. Build your own orders with predefined parameters. React faster to trading opportunities by sending the order type which will increase your chances of a fill. Once your orders are configured to your liking, they can be sent instantly with the press of a keyboard shortcut. To see everything that our platform has to offer, we encourage you to request a free practice demo account. Our knowledgeable staff can give you a personalized tutorial, and help you configure your layout and order entry options to your specific trading style. See Lightspeed Trader in action in our video series. Resources.

products and services. Copyright © 2001-2017, Lightspeed Trading, LLC. All Rights Reserved. Best Online Trading Platforms for Day Trading. 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. If you’re an active trader looking to try your hand at beating the market, you probably have a good idea of what you want in a brokerage: low costs, premium research, innovative method tools and a comprehensive trading platform. Below, we’ve selected the best online brokers in a variety of categories so you can choose one based on your personal priorities.

One note before you begin: Pattern day traders — as defined by the SEC — must have at least $25,000 in equity in their accounts and be approved for margin trading, regardless of whether their broker’s account minimum is lower. » New to this world? Learn the basics with our guide to how day trading works. Best Online Trading Platforms for Day Trading. Interactive Brokers: Best overall & for low margin rates TD Ameritrade: Best overall & for trading platform Charles Schwab: Best for trading platform Ally Invest: Best for options trading TradeStation: Best for options trading EOption: Best for low margin rates. Summary: Best Online Trading Platforms for Day Trading. Best trading platform. Best for options trading. Best for lowest margin rates. The best online brokers for day trading. These brokers are our best overall picks because of their competitive pricing and strong trading platforms and tools. TD Ameritrade and Interactive Brokers have that powerful combination that every trader wants: Low commissions paired with advanced trading tools and platforms. Interactive Brokers may have an edge with traders who prefer per-share pricing and can meet the $10,000 account minimum and $10 monthly commission minimum — both of which docked the broker slightly in our star ratings. TD Ameritrade offers a very competitive flat rate and no minimum balance requirement.

Both brokerages offer a very extensive investment selection, including futures options and forex trading, while Interactive Brokers also offers precious metals. The best trading platforms. These brokers offer some of the most powerful trading platforms available, with no minimums or fees. Both top picks, TD Ameritrade and Interactive Brokers, have strong trading platforms. But TD Ameritrade also excels here, as does Charles Schwab . TD Ameritrade offers what may be the best trading platform available, thinkorswim , along with Trade Architect , a second platform designed for simplicity. Charles Schwab also offers two excellent platforms: Streetsmart. com, a Web platform suitable for beginners, and StreetSmart Edge, a more advanced option with elevated charting functionality. Both brokers make all of their tools and platforms available to all customers with no trade activity or balance minimums (taking into account Schwab’s easily avoidable $1,000 account minimum). The best online brokers for options trading. These brokers offer the strongest tools for options traders.

Ally Invest and TradeStation are both superior brokers for options traders, though their appeal depends largely on trade activity and platform needs. TradeStation is for seriously committed traders: The company’s platform — which is outstanding — comes with a $99.95 monthly fee, waived only for those who in the previous month carried a $100,000 account balance or traded at least 5,000 shares, 50 options contracts or 10 round-turn futuresfutures option contracts. (Note: In March 2017 the company eliminated monthly service fees for its desktop, mobile and web-trading apps for non-professional subscribers on the per-trade pricing plan.) Active but low-volume options investors will probably prefer TradeStation’s per-shareper-contract commission schedule ($1 per option contract, no base or ticket charge, with a minimum one contract market or limit order). Options traders at Ally Invest (formerly TradeKing) pay a $4.95 base plus 65 cents per contract with only one base charge per spread. They also get access to a powerful platform with no additional charge, including free options trading tools for screening and advanced charting. Navigation is intuitive, and customers can create a custom dashboard that includes the data and features they want to use. The setup extends to all devices, including mobile and tablet. The online brokers with the lowest margin rates. Traders who utilize margin should prioritize a broker’s margin rates in their search. Our top choice for best online broker wins here, too — in fact, no one comes close to Interactive Brokers when it comes to margin rates, so if that’s your No. 1 priority, you’ll likely find your home there. The broker charges a blended rate based on account balance, but features a calculator on its website to help investors quickly do the math. As noted above, Interactive Brokers does impose monthly trade minimums.

EOption has a lower minimum deposit requirement and more reasonable trade requirements, charging a $50 inactivity fee only on accounts that haven’t traded at least twice in the past 12 months or have less than $10,000 in credit or debit balances. Both brokers charge very competitive commissions for stock and options trades. Best platforms for day trading: summary. Interactive Brokers. Low margin rates. min. $1, max. 0.5% of trade value. Ally Invest. base + $0.65 per contract. EOption. Learn more about day trading before diving in. Day trading is buying and selling stocks within a short time frame, often inside a day. The goal is to capitalize on stocks with rapid and frequent price fluctuations.

Day traders often buy a stock they expect to rise in price, or short-sell a stock they expect to fall. Day trading isn’t for the faint of heart — it magnifies all the inherent risks of investing — and should be used as a secondary method, after you’ve invested for long-term goals like retirement. To learn more, read our primer on day trading. How much money do you need to day trade? The SEC requires that pattern day traders maintain at least $25,000 in equity in their accounts. Under the SEC rules, you’re a pattern day trader if you day-trade four or more times within five business days and the day trades represent more than 6% of your total trading activity in that same five-day period. Day trading, defined by the SEC, is buying and selling or short-selling and buying the same security on the same day. In our view, that means you should have an awful lot of money to engage in day trading, because that $25,000 should represent just a small piece of your overall investment portfolio — the bulk of which should be invested for the long term. What’s the safest way to day trade? Our guide to how to day trade gets into advice for minimizing risk, but as a quick synopsis: Rule No. 1 is only put up money you wouldn’t mind parting with. In other words, treat day trading like gambling, not long-term investing. Beyond that, be sure to do your research before you jump in, and establish an exit plan. It’s easy to make rash decisions when your positions start going bad, so setting rational strategies in advance can help curtail emotional reactions. How do you learn how to day trade?

Practice. Many brokers offer virtual trading accounts that essentially let you test the waters with Monopoly money. It’s a great way to get started without the risk. We’ve put together a list of virtual trading platforms, along with more information about how these work. We highly recommend testing out your trades on a virtual platform before putting your money on the line. What securities are best suited for day trading? Most day traders trade stocks, though you can day trade bonds, currencies or commodities, too. Generally, you want to look for securities that are: Highly liquid, with large trade volume. Relatively volatile. You want frequent price changes, which allows you to make a profit quickly. Known to you. An understanding of the stock’s price history, and how it reacts to various events — earnings reports, economic shifts — is key.

Many day traders trade only a few specific stocks, developing expertise in those companies and narrowing their focus. Newsworthy. Coverage of a stock will trigger people to buy or sell it. As a day trader, you’ll want to follow the news to find trade ideas. » Don’t think day trading is for you? Here are other suggestions for how to invest. Updated Sept. 22, 2017. Arielle O'Shea. Arielle is a personal finance writer at NerdWallet. Her work has been featured by Esquire, Money, USA Today, Forbes and The Associated Press. Read more. 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.