Best Options Trading Platform Software – The covid-19 pandemic has brought a flood of investors looking to explore new ways to increase returns, generate income or hedge their portfolios. One of these ways is options trading. Options are contracts linked to an underlying asset. You may be more used to buying units of shares or ETF transactions. In options, the contract involves the purchase/sale of multiple shares (usually 100 shares).
In this article, we review Europe’s leading options brokers to help you find the right options trading platform for you. Our criteria include the trading platform, regulation, number of option contracts available, minimum deposit, and customer service.
Best Options Trading Platform Software
When choosing an online broker, there are several factors that you need to consider. For options trading in particular, some factors play a bigger role than others, namely:
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An online broker offering stocks, ETFs, bonds, futures, and options on major exchanges in the US, Asia, and Europe, as well as IPO opportunities for individual investors. The commission for US stock options is EUR 0.65 per contract. Other option contracts cost EUR 1.50 per transaction.
Founded in 1978, IBKR is one of the most trusted brokers in the world. The minimum commission for US options is only $1 per trade. You can trade options in North America, Europe, and Asia Pacific.
💡 Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app for trading stocks, options and ETFs, perfect for novice investors.
A low cost broker based in Europe with more than 2.5 million users. It offers options on the European and US markets with an initial commission of $/€/£0.75 plus €/£5 monthly connectivity, regardless of trading volume.
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The US-based broker offers (only) commission-free US options trading to all its users worldwide. For European investors, there is a $25 fee for outgoing wire transfers.
A brokerage firm dedicated to trading stocks, ETFs, cryptocurrencies, futures, and options. The option price starts at $1, with a limit of $10 per trade to open a contract ($0 to close a contract).
Founded in 2008, Freedom24 (the brand of NASDAQ-listed brokerage Freedom Holding Corp.) has provided more than 280 IPOs to its more than 400,000 global clients, including more than 40,000 stocks traded, more than 1,500 ETFs, more than 1,000 US stocks, options and over 147,000 bonds on the largest exchanges in Europe, Asia and the US.
The Freedom24 trading platform can be accessed through the PC and mobile app versions. Both trading platforms are enough to execute trades. They are well designed and intuitive, but lack customization options. You will get additional features like “InvestIdeas” and “News”.
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Freedom24 offers a wide selection of markets and currencies. The commission for US stock options is EUR 0.65 per trade. Other option contracts cost EUR 1.50 per contract. In addition, if you choose to exercise your option position, you will be charged EUR 1.50 per contract.
Additionally, Freedom24 offers IPO access to hundreds of companies waiting to list on major stock exchanges (find out upcoming IPOs!). This feature is exciting because it is only available to institutional investors.
Founded in 1978 and listed on NASDAQ (ticker: IBKR), Interactive Brokers is a global online broker that has weathered major financial crises, demonstrating resilience and disciplined risk management processes.
Interactive Brokers offers a number of different options for traders to choose from. Designed for individuals and institutions, the platform provides global access to stocks, options, futures, currencies, bonds, and funds in more than 150 markets. Interactive Brokers makes them accessible to everyone from a centralized and simplified platform.
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Options trading is available from over 30 market centers, with commissions starting at $1 for US option contracts. The trading platform offers advanced options trading tools such as the rollover options tool, OptionTrader and Option Analytics. You can use the Strategy Builder to view your positions, market data, option chains and customize your trading strategies. The Interactive Brokers Trader Academy might be a great place to deepen your knowledge of options!
In addition, Interactive Brokers has IBKR Global Trader, a mobile app for those new to the investment industry that enables trading of stocks, options, and ETFs. The product offers automatic currency conversion, fractional shares, and a demo version.
Founded in 2013, DEGIRO is a low-cost brokerage that has become popular for its low rates. With over 2.5 million users, this innovative platform is widely known for its DIY philosophy. You have everything you need to start investing yourself. It offers trading in a wide range of financial assets, including stocks, ETFs, bonds, options, futures contracts, warrants, mutual funds, and some leveraged products.
DEGIRO allows you to trade options on the US (CBOE, CME, NYMEX…) and European (Eurex, Euronext, IDEM…) markets. The commission for doing this is quite high. In addition to the connection fee of €5 per month, you will also pay €0.75 per contract. In addition, you will be charged EUR 1 per contract when you exercise your options.
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The trading platform is not suitable for options trading, which means that there are no advanced tools to see the full picture of the dynamics that affect the price of options. In other words, the platform is only suitable for execution (buy or sell).
Founded in 1985 and headquartered in the United States, Firstrade is a discount broker offering commission-free stocks, ETFs, options, and mutual fund trading with reliable order execution, a long track record, and a solid reputation.
Although they accept clients from all over the world, their product portfolio only includes financial products listed in the United States. Also, Firstrade is missing some features that are very valuable to investors: trading fractional shares and other asset classes like cryptocurrencies, forex, futures, and CFDs.
Options trading on Firstrade is relatively cheap: $0 commissions and $0 contract fees, with no trade, exercise or transfer fees. The options trading platform is at an intermediate/advanced level with access to option chains, risk/reward profiles for each trade, and fully integrated OptionsPlay. Also, you can educate yourself through free option courses on the platform.
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Finally, Firstrade’s base currency is the US dollar. If you deposit funds in another currency, you will be charged a currency conversion fee on deposits and withdrawals. Another option is to use an inexpensive currency conversion service like WiseorRevolut.
Tastytrade, formerly Tastyworks, is a US-based online brokerage that focuses on options trading, but also provides access to stocks, ETFs, and cryptocurrencies. Powerful trading platform developed by the same people who built the thinkorswim trading platform, operated by TD Ameritrade.
Tastytrade offers stock and ETF options, futures, and micro futures for $1 ($10 cap), $2.50, and $1.50 per contract, respectively. There is no commission charged for closing option positions.
On the downside, the low fees don’t make up for the limited account facilities and lack of investment options for casual traders or passive investors, for example, without mutual funds. In addition, commissions can reach $75 per bank transfer.
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While tastytrade can be intimidating for beginners, it offers a wide range of educational materials and research tools to improve the efficiency of your options trading.
Founded in 1982, TradeStation is an American broker that strives to provide you with the best trading experience on its rewards platform and brokerage services. You can trade stocks, ETFs, options, futures, and cryptocurrencies using competitive pricing models.
Access real-time data on stock options priced as low as $0.60 per contract. The platform was developed with powerful and intuitive tools to meet the needs of both beginners and advanced investors. The internal OptionStation Pro software allows you to quickly build option chains, analyze any option strategy scenario, and then place trades directly on the market.
Options trading can be intimidating at first, but once you understand its dynamics well enough, it opens up investment options you won’t find in conventional investments like stocks and ETFs. With options, you can predetermine the risk of a trade and control a larger position size with a smaller investment.
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Keep in mind that there are some pros and cons to know about trading European options. Some platforms advertise their pricing structures for the US market and are only available to US residents. EU-based investors may have to pay higher fees (we mention them in the breakdown from the previous platform).
We hope you find this article and the information we share useful and valuable. Do you have any comments on what we wrote? Feel free to let us know in the comment section.
Franklin is a CFA Tier III candidate with 3 years of wealth management experience as a fund research analyst and host of the “Edge Over Hedge” YouTube channel.
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If you use a broker that does not have these 3, you will immediately be behind 8 balls. In one of the most competitive industries (if not the most competitive)
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