Top Choices for Trading Platforms

Best Options Trading Platforms of 2024

Options trading demands a platform with robust features, and the best options trading platforms stand out by offering a wide array of functionalities. These include thorough research amenities, seamless order entry, competitive pricing, actionable content, customizability, and efficient execution. To thrive in the complex world of derivatives trading, the top platforms for trading options must also provide substantial educational resources and responsive, knowledgeable customer support for traders.

Best Overall: tastytrade

Tastytrade stands out as the best overall online brokerage for trading options, following exhaustive research, data analysis, and live broker demonstrations. Positioned as a platform optimized for options traders’ needs, tastytrade excels in pricing, user experience, and relevant content tailored to its options-focused clientele. Among 26 online brokers assessed using 89 key criteria, tastytrade emerged as a standout option.

Why We Chose Tastytrade

Tastytrade clinched the top spot as the best options broker due to its competitive pricing, cutting-edge technology for analyzing and trading options, and its repository of actionable education content designed specifically for options traders. The platform offers lower trading costs compared to most online brokers, with capped competitive commission rates that provide volume traders with substantial savings on options trading expenses.

Pros & Cons

Pros

• Low costs, especially for higher volume traders
• Intuitive and easy-to-use trading platform
• Strong research and analytical tools
• Excellent educational content

Cons

• Fee structure favors more active traders
• Limited product offerings
• Learning curve for the platform
• No interest on cash balances

Overview of Tastytrade

Established in 2017 and formerly known as tastyworks, tastytrade has solidified its position as a premier trading platform, emphasizing options and futures alongside stocks and ETFs. Tastytrade’s competitive fee structure, especially for multi-contract trades, sets it apart in the options trading realm.

Tastytrade’s pricing model, offering $1 for opening an options trade and capping commissions at just $10 per round trip, makes larger-size trades economically advantageous, particularly for complex multi-leg trades. Their user-centric interface facilitates seamless trading experiences, bolstered by specialized educational content and fractional share trading.

While catering to options traders with tailored educational programs and simplified order entry, tastytrade also stands out for high-volume trading discounts. However, traders with infrequent activities and higher cash holdings might find the lack of interest on uninvested cash a downside.

Best for Beginner Options Traders: Charles Schwab

Charles Schwab offers the best platform for novice options traders. With extensive educational resources, live training, and actionable content, Schwab, post its TD Ameritrade acquisition, equips beginners to venture into options trading via their thinkorswim platform, all complemented by paper trading capabilities for practice.

Pros & Cons

Pros

• Platforms for all customer types
• Thinkorswim integrated into the platform
• Educational materials and guides for beginners
• Options screening tools

Cons

• Higher margin rates
• Low returns on cash balances
• Options fees applied on all legs of the trade

Overview of Charles Schwab

Charles Schwab, a pioneer in discount brokerage since 1973, evolved into a leading online broker post its acquisition of TD Ameritrade. Offering a blend of tools and educational content, including thinkorswim integration, Schwab empowers traders with a range of options analytics and strategy-building capabilities.

Schwab’s diverse platform suite caters to different trading preferences, prioritizing self-sufficiency with educational offerings and advanced options analytics. While margin rates and options commissions align with industry standards, Schwab shines in supporting various markets and providing a robust trading experience.

Schwab’s reputable options screeners and technological support underscore its market versatility. Though margin rates may be relatively higher, Schwab’s reasonable options trading costs and focus on trader autonomy make it a valuable option for retail traders.

Best for Advanced Options Traders and Best for Mobile Options Trading: Interactive Brokers

Interactive Brokers captures the top spot for advanced options traders due to its cutting-edge trading technology, tailored research tools, expansive product range, and low margin rates. The platform’s mobile options trading offerings, notably IBKR Mobile, deliver a comprehensive suite of options strategies and analytical tools on a sleek user-friendly platform.

IBKR’s mobile platforms, including IBKR Mobile, excel in providing exceptional options analysis and trading capabilities, making it the preferred choice for mobile options trading. Features like the Options Wizard and simplified order staging process enhance the overall trading experience for both advanced and casual traders.

Pros & Cons

Pros

• Low commission and margin rates
• Excellent trading technology
• Widest breadth of products available
• Platforms for professional and less sophisticated traders

Cons

• Platforms can be intimidating
• Complex commission schedules
• Limited access to IPOs and OTC Stocks

Overview of Interactive Brokers

With a legacy dating back to 1977, Interactive Brokers stands out for its pioneering trading technology, catering to both institutional and retail traders. Offering competitive margins and comprehensive trading tools, IBKR strives to meet the diverse needs of traders, with plans ranging from IBKR Lite to IBKR Pro.

Providing a wealth of options-specific features and customizability, IBKR empowers traders with extensive screening tools and a range of asset classes. The platform’s flexibility and global market access make it a go-to choice for traders seeking advanced options trading functionalities.

IBKR’s mobile offerings cater to traders of all levels, offering options strategies and analytical tools for traders on the move. With impressive capabilities, including support for six-leg options strategies, IBKR Mobile equips traders with powerful tools to analyze probabilities and execute trades seamlessly.

Best for Low-Cost Options Trading: Webull

Webull sets itself apart as the top choice for low-cost options trading, delivering a feature-rich platform for U.S. exchange-listed options at no commission. Offering an array of trading and analytical features, Webull stands out for its competitive pricing and user-friendly experience.

Pros & Cons

Pros

• Commission-free stock, ETF, and options trading
• Easy-to-use platform
• Competitive interest rate on idle cash
• Supports futures trading
• Powerful charting features

Cons

• Not a full-service broker
• Limited portfolio management tools
• No fixed income or mutual funds

Overview of Webull

Launched in 2018, Webull swiftly emerged as a low-cost trading platform, appealing to beginner and intermediate traders with its commission-free stock, ETF trading, and zero-commission U.S. Exchange-listed options. Offering round-the-clock trading hours and attractive interest rates, Webull provides a seamless user experience.

While lacking in portfolio management tools, Webull offers a powerful platform with customizable features and extended trading hours. The platform’s competitive APYs on uninvested cash and zero-commission options trading have cemented its position as a cost-effective solution for options traders.

As with other platforms, Webull utilizes payment for order flow for commission-free trading, ensuring ease of order placement. Though this model may affect order execution quality, Webull’s simple ordering process and low options rates make it an attractive choice for options trading.

Best for Casual Options Traders: E*TRADE

E*TRADE’s platforms cater to both casual and experienced traders, offering a seamless balance of functionality and user-friendliness. Positioned as the best platform for casual options traders, E*TRADE Mobile, with its sleek interface, caters to those seeking a user-friendly option trading experience.

Pros & Cons

Pros

• Industry-best mobile apps for investors and traders
• Excellent educational content
• Top-tier research amenities and resources
• Strong portfolio analytics

Cons

• Low interest rates on uninvested cash
• No fractional share trading outside of robo-investing
• No access to international exchanges
• No direct access to cryptocurrencies

Overview of E*TRADE

Established in 1982, E*TRADE stands out for its diverse investment and trading options, serving millions of clients with trillions in assets. Offering accessible platforms for both casual traders and seasoned investors, E*TRADE’s suite of trading interfaces caters to varying trading preferences.

E*TRADE’s emphasis on user experience and functionality reflects in its highly adaptable trading platforms. Catering to distinct trader needs, E*TRADE offers Power E*TRADE for sophisticated traders and E*TRADE Mobile for a more streamlined experience, underscored by educational resources and analytical support.

With a focus on educational content and streamlined trading interfaces, E*TRADE enables traders to delve into options trading effortlessly. While options commissions align with industry standards, E*TRADE’s flexibility and robust trading solutions appeal to casual traders seeking diverse trading products.

Compare the Best Options Trading Platforms

Options trading, with its intricacies and varied strategies, demands robust platforms to navigate the market effectively. Tailored to meet the needs of options traders, the top trading platforms offer a wealth of features, analytics, and trading capabilities to align with traders’ preferences and objectives.

Delve into the world of options trading armed with the right platform that complements your trading style and objectives. Whether you are a novice trader getting your feet wet or an experienced investor seeking cutting-edge trading capabilities, the best options trading platforms offer a mix of educational resources, competitive pricing, and advanced trading features tailored to your needs.