Have you found yourself staring at your computer screen, scrolling through endless pages of option trading platforms, wondering which one is the right fit for you?
We’ve all been there at a point. It’s like trying to find a needle in a haystack. But don’t worry. I’m here to help you change that. I’ve taken the time to carefully evaluate and test the top option trading platforms on the market and narrowed it down to the top four. Think of me as your shopping assistant, guiding you through the features of each platform, such as pricing, features, and traders’ experience.
I’ll also paint a clear picture of the pros and cons of each platform, making it easier for you to decide which one is the best fit for you.
So, put on your trading hat, and let’s go on a journey to find your perfect options trading platform.
1. Rockwell Trading
This company was founded by Markus Heitkoetter in 2005, and since then, they’ve been helping traders like you reach their goals.
Here’s the thing, they don’t just hand you a set of tools and say good luck. No, they go above and beyond by providing an in-depth breakdown of strategies and investment niches.
But that’s not all. They also offer educational courses to teach beginner and advanced traders how to profitably identify, enter, and exit trades. Their library of tutorials covers everything from market analysis to options pricing models.
With their comprehensive courses, personalized mentorship, and powerful trading tools, Rockwell Trading makes it easy for you to get started on the path to financial freedom.
PROs
- Access to advanced tools
- PowerX Optimizer stock scanner
- Mentoring from experts
- Strategies applicable to multiple markets
CONs
- Potentially costly products
- Steeper learning curve for some users
2. Tastyworks
Well, let me tell you about Tastyworks. It was created by the same team that built TD Ameritrade’s popular Thinkorswim platform, and it’s a game-changer for self-directed retail traders.
They wanted to create a platform that gives you access to markets and advanced analysis tools, and boy did they deliver. Tastyworks is built with active traders in mind and only offers stocks, ETFs, options, and crypto trading.
But the real kicker? Its fees.
It’s got one of the lowest fee structures out there – a flat rate of $1 per contract opening fee and a $10 max cap per leg. Plus, they don’t charge a commission when you close a position.
PROs
- Low commission for options trades
- Multiple tools for analysis and monitoring
- Options-specific educational resources
- Emphasis on trading over investing
CONs
- Limited investment options
- Weak portfolio analysis
3. TD Ameritrade
TD Ameritrade is a well-known full-service online broker that’s been around since 1975, and they’ve got a reputation for providing excellent educational resources to their customers. In 2019, Charles Schwab purchased the company.
They offer a wide range of asset classes and different platforms that cater to all types of investors, whether you’re an active or passive trader. Sure, their options commission may be higher than some other online brokers that are more focused on trading stocks and options, but having access to a full set of financial products on one platform may be worth it.
Have you ever wanted to take control of where your orders go and how they’re executed? Well, with TD Ameritrade, you can! You can rely on their cutting-edge order routing technology or even direct your orders to specific exchanges.
But they don’t stop there. You also have the ability to backtest your trading strategies and set orders to trigger automatically when certain criteria are met. You get more control over your trades and gain an edge in the market.
PROs
- Offers a broad range of product
- Advance educational materials
- Solid options analytics
- Near equality between the powerful desktop
CONs
- No fractional shares trading
- No automatic sweep of uninvested cash
4. Interactive Brokers
It was founded way back in 1978 by Thomas Peterffy. They were pioneers in the industry, creating the first handheld computers used for trading markets. In 1993, they began selling their services to the public when Interactive Brokers Inc. was incorporated as a U.S. broker-dealer.
Since then, it has become the go-to choice for sophisticated traders because it offers pretty much every security type in most markets on a single platform. But that’s not all, Interactive Brokers also has some excellent options analysis tools, and the best part is they’re available on the mobile application.
You’ll find tools like options spread templates to compare similar strategies and find the best risk/return profile. Plus, you’ll have access to tools to potentially graph payouts on options strategies.
PROs
- Options screeners and probability calculators are top-notch
- Excellent controls for order execution and routing
- Offers a wide range of trading vehicles and market locations
- Competitive margin rates
- Includes the option to practice through paper trading
CONs
- Advanced features may be overwhelming for new users
- Limited availability of order routing for some clients
- No option to backtest custom algorithms
Final Thoughts
Well, there you have it, folks, our list of the top four option trading platforms. We’ve covered everything from beginner-friendly interfaces to advanced charting tools and highlighted the pros and cons of each platform.
Whether you’re a seasoned trader or a newbie, finding the right platform can make a huge difference in your trading success. It’s important to remember that the best option trading platform for you will depend on your individual needs and preferences.
So, take some time to consider what you’re looking for in a platform, and remember to factor in things like features, pricing, resources, and user interface. By doing so, you’ll be able to make a more informed decision and find the perfect platform to suit your trading style.
Jeremy Biberdorf is a long-time internet marketing pro turned online entrepreneur and blogger. Check out his investing blog at Modest Money.
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