Top Option Broker Review

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

11 Best Options Trading Brokers and Platforms of April 2020

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

The best options brokers offer low options contract fees, quality trading tools, an abundance of high-quality research and the customer service necessary to support everyone from beginner investors to advanced traders.

While most of the brokers on our list of best brokers for stock trading would be a good pick for options as well, this list highlights brokers that excel in areas that matter most to options traders. Many of the below brokers also appear on our list of best online trading platforms for day trading.

Unsure what you’re looking for? See our post on how to choose an options broker and our options 101 guide for more on what can make or break an options trading experience.

on TD Ameritrade’s website

TD Ameritrade

cash credit with qualifying deposit

on TD Ameritrade’s website

cash credit with qualifying deposit

Commission-free stock, ETF and options trades.

High-quality trading platforms.

No account minimum.

Good customer support.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

Large investment selection.

Costly broker-assisted trades.

on Interactive Brokers’s website

Interactive Brokers IBKR Lite

No promotion available at this time

on Interactive Brokers’s website

No promotion available at this time

Large investment selection.

Strong research and tools.

Over 4,300 no-transaction-fee mutual funds.

NerdWallet users who sign up for IBKR Pro get a 0.25 percentage point discount on margin rates.

Website is difficult to navigate.

Inactivity fees on IBKR Pro.

on Robinhood’s website

Robinhood

no promotion available at this time

on Robinhood’s website

no promotion available at this time

No account minimum.

No retirement accounts.

No mutual funds or bonds.

Limited customer support.

on TradeStation’s website

TradeStation

cash credit with a qualifying deposit

on TradeStation’s website

cash credit with a qualifying deposit

High-quality trading platforms.

Commission-free stock, ETF and options trades.

Active trader community.

Free trading on advanced platform requires TS Select.

No transaction-fee-free mutual funds.

Plans and pricing can be confusing.

Merrill Edge

cash credit with qualifying deposit

cash credit with qualifying deposit

Robust third-party research.

Integrated with Bank of America.

Advanced traders may find fewer securities on offer.

Want to compare more options? Here are our other top picks:

Summary of Best Options Trading Brokers and Platforms of April 2020

on TD Ameritrade’s website

cash credit with qualifying deposit

on TD Ameritrade’s website

Interactive Brokers IBKR Lite

on Interactive Brokers’s website

No promotion available at this time

on Interactive Brokers’s website

on Robinhood’s website

no promotion available at this time

on Robinhood’s website

on TradeStation’s website

cash credit with a qualifying deposit

on TradeStation’s website

no promotion available at this time

cash credit with qualifying deposit

in cash bonus with qualifying deposit.

in Transfer Fee Rebates

No promotion at this time

No promotion available at this time

cash credit with a qualifying deposit or transfer

Last updated on April 6, 2020

Methodology

To recap our selections.

NerdWallet’s Best Options Trading Brokers and Platforms of April 2020

About the author

NerdWallet Compare, Inc. NMLS ID# 1617539

California: California Finance Lender loans arranged pursuant to Department of Business Oversight Finance Lenders License #60DBO-74812.

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.

Best Options Trading Platforms for 2020

The StockBrokers.com best online brokers 2020 review (10th annual) took six months to complete and produced over 30,000 words of research. Here’s how we tested.

Next to active traders, there is arguably no customer more valuable to an online broker than an options trader. Options trades offer brokers much higher profit margins than stock trades, and, as a result, competition is fierce in attracting these clients. This type of market atmosphere is great for investors because with healthy competition comes product innovation and competitive pricing.

Best Options Trading Platforms

Here are the best options trading platforms, based on over 100 variables.

  • E*TRADE – Best for options overall
  • TradeStation – Low costs, great platform
  • TD Ameritrade – Best options tools
  • Interactive Brokers – Best for professionals
  • Charles Schwab – Unique order types

Best for options overall

Built as a web-based platform, Power E*TRADE innovates and delivers speed, ease of use, and the tools needed for traders to succeed. Once again, in our 2020 Review, Power E*TRADE won our award, “Best Web-Based Platform.” E*TRADE also took our top spot for options trading. Read full review

Low costs, great platform

As a trading technology leader, TradeStation shines. Options trading is a breeze using OptionStation Pro, a built-in tool within the TradeStation desktop platform designed for streamlined trading and robust analysis. Options tool capabilities include custom grouping for current positions, streaming real-time greeks, and advanced position analysis, to name a few. Read full review

Best options tools

Once again, for the ninth consecutive year, TD Ameritrade is number one for trading platforms and tools, thanks to desktop-based thinkorswim. Whether day trading, options trading, futures trading, or you are just a casual investor, thinkorswim is a winner. Read full review

Best for professionals – Open Account
Exclusive Offer: New clients that open an account today receive a special margin rate.

Trading tools within the Trader Workstation (TWS) platform are designed for professional options traders. From algo trading to Options Strategy Lab, Volatility Lab, Risk Navigator, Market Scanner, Strategy Builder, and Portfolio Builder, Interactive Brokers is built for professionals. Options commissions start at $.65 per contract with a $1.00 minimum and no maximum. Read full review

Unique order types

Schwab’s flagship downloadable trading platform, StreetSmart Edge, provides most of the bells and whistles options traders and day traders need to succeed. For options traders, Schwab’s All-in-one trade ticket, alongside the proprietary Walk Limit order type, are both excellent. Read full review

Options Trading Tools Comparison

Broker Commissions Promotion Account Minimum Learn More
Feature E*TRADE Interactive Brokers
Open Account
TD Ameritrade TradeStation
Option Chains – Streaming Yes Yes Yes Yes
Option Chains – Total Columns 30 37 33 32
Option Chains – Greeks 5 4 5 5
Option Chains – Quick Analysis Yes Yes Yes Yes
Option Analysis – P&L Charts Yes Yes Yes Yes
Option Probability Analysis Yes Yes Yes Yes
Option Probability Analysis Adv Yes Yes Yes Yes
Option Positions – Greeks Yes Yes Yes Yes
Option Positions – Adv Analysis Yes Yes Yes Yes
Option Positions – Rolling Yes Yes Yes Yes
Option Positions – Grouping Yes Yes Yes Yes
Platforms & Tools 4.5 4.5 5 5

Best Options Trading Tools

Platform wise, web-based Power E*TRADE offers all the tools an options trader could want, and displays them in magnificent form. Attention to detail, such as automatic spread groupings, effortless scanning through strategySEEK, and easy-to-understand risk/reward data through tradeLAB, make Power E*TRADE a truly unique experience.

Keeping the spotlight on excellent platforms and tools for options traders, TD Ameritrade’s thinkorswim and TradeStation cannot be left out. Strategy Roller from thinkorswim enables clients to create custom rules and roll their existing options positions automatically. The number of settings and depth of customization available is impressive, and something we have come to expect from thinkorswim.

Not to be outdone, TradeStation’s OptionsStation tool makes analyzing potential trades a breeze, and even goes as far as including 3D P&L charts. Investors note, however: Popcorn and 3D glasses are not required, and while visually appealing, we did not see any distinct advantage over the traditional 2D P&L chart.

If unique features and functionality matter to you, Charles Schwab offers the “Walk Limit” order type, which will “walk” your order to try to get the most favorable price within the National Best Bid or Offer (NBBO). The broker also offers Idea Hub, which uses targeted scans to break down options trade ideas visually.

For professionals, Interactive Brokers takes the crown. At Interactive Brokers, there is no base charge, and the per-contract rate is just $.70. Additional savings are also realized through more frequent trading. That said, the broker is built primarily for professional traders and requires a $100,000 minimum deposit for margin accounts. Lastly, its trading platform, Trader Workstation, is the most challenging platform to learn out of all the brokers we tested for our 2020 review.

There’s a healthy variety of reputable brokers to choose from in the world of options trading. At a minimum, investors should expect their broker to include scanning, P&L analysis, risk analysis, and easy-order management. Position management functionality and tying the experience together is where platforms such as Power E*TRADE and thinkorswim by TD Ameritrade distinguish themselves.

What is the best platform for trading options?

The best trading platform for options trading offers low costs, feature-rich trading tools, and robust research. Our all-around top pick in 2020 for options trading is Power E*TRADE. The web-based Power E*TRADE platform includes all the tools an options trader could want and displays them in magnificent form. My two favorites are strateySEEK and Snapshot Analysis.

What is a call option?

In its most basic form, a call option is used by investors who seek to place a bet that a stock will go UP in price. Buying a call option contract gives the owner the right (but not the obligation) to buy shares of stock at a pre-specified price for a pre-determined length of time. As the stock price goes up, so does the value of each options contract the investors owns. Each contract represents 100 shares of stock.

What is a put option?

In its most basic form, a put option is used by investors who seek to place a bet that a stock (or other security such as an ETF, index, commodity, or index) will go DOWN in price. Buying a put option gives the owner the right (but not the obligation) to sell shares of stock at a pre-specified price (strike price) before a preset date (expiration). The further the stock falls below the strike price, the more valuable each contract becomes.

What is the minimum amount required to trade options?

Each online broker requires a different minimum deposit to trade options. For most brokerages, the minimum deposit required is less than $1,000. To apply for options trading approval, investors fill out a short questionnaire within their brokerage account. Access to begin trading options can be granted immediately thereafter.

Is options trading risky?

Yes. Options trading is a form of leveraged investing. Any time an investor is using leverage to trade, they are taking on additional risk. Many times, this risk is unforeseen. With options, investors who buy a call or put risk the money they invested in the contract. However, when selling a call or put, if the trade isn’t protected (also known as going naked), then the investor is taking on significant risk. To protect investors, new investors are limited to basic, cash-secured options strategies only.

Options Trading Features

Ultimately, choosing an options brokers comes down to personal preference and weighing priorities, such as cost versus ease of use and tool selection.

On a feature by feature basis, all of our top five finishers this year offer the following features to their options trading customers.

Feature Definition
Has Education – Options Provides a minimum of 10 educational pieces (articles, videos, archived webinars, or similar) with the primary subject being options. All content must be easily found within the website’s Learning Center. Platform tutorials, FAQs, etc do NOT count.
Option Chains – Streaming Real-time Option chains with streaming real-time data.
Option Chains – Greeks Viewable When viewing an option chain, the total number of greeks that are available to be viewed as optional columns. Greeks = delta, gamma, theta, vega, rho.
Option Chains – Quick Analysis The ability to jump straight from the option chain to a P&L chart or probability chart for deeper analysis. Viewing a summary P&L within the chain itself also qualifies.
Option Analysis – P&L Charts When analyzing a theoretical option trade, a P&L chart is available.
Option Analysis – Probability Analysis A basic probability calculator.
Option Analysis – Probability Analysis Adv A tool to analyze a hypothetical option position. Displays a probability histogram / chart with optional customizations.
Option Positions – Greeks Viewable View at least two different greeks for a currently open option position.
Option Positions – Greeks Viewable Streaming View at least two different greeks for a currently open option position and have their values stream with real-time data.
Option Positions – Advanced Analysis Ability to analyze an active option position and change at least two of the three following conditions – date, stock price, volatility – and assess what happens to the value of the position.
Option Positions – Rolling Ability to pre-populate a trade ticket and seamlessly roll an option position to the next relative expiration.
Option Positions – Strategy Grouping Ability to group current option positions by the underlying strategy: covered call, vertical, etc. Can be done manually by user or automatically by the platform.
Level 2 Quotes – Options Level II options quotes available.
Screener – Options Offers a options screener. Commonly referred to as a spread creation tool or similar.

Explore our other online trading guides:

Methodology

For the StockBrokers.com tenth annual best online brokers review published in January 2020, a total of 3,540 data points were collected over six months and used to score brokers. This makes StockBrokers.com home to the largest independent database on the web covering the online broker industry.

Participation is required to be included. Each broker completed an in-depth data profile and provided executive time (live in person or over the web) for an annual update meeting. Our rigorous data validation process yields an error rate of less than .001% each year, providing site visitors quality data they can trust. Learn more about how we test.

Still aren’t sure which online broker to choose? Email us a question! Whether you are a beginner investor learning the ropes or a professional trader, we are here to help. Email us your online broker specific question and we will respond within one business day.

TopOption Broker Review

�� Demo Account:
⚖ Allows Hedging:
�� Allows Scalping:
�� Headquarters: Cyprus
�� Founded:
�� Trading Platform(s): SpotOption
�� Regulating Authority(s):
�� Minimum Deposit: 100
�� Maximum Leverage:

Visit TopOption
Risk Warning: Your capital may be at risk

Our Review of TopOption

Company Overview

TopOption is an online trading platform that aims to keep binary trading simple. There are 180 different stocks, indices, currencies and commodities to choose from, but the basics of the platform merely involve predicting the direction of a chosen investment. There are also advanced options: “rollover”, where traders add 30 per cent to the initial investment for a delay in expiry; “double”, where a trader can double their investment mid-trade; “buy-me-out”, where a trader can annul a trade prematurely and “touch/no touch”, where investors can trade based on whether or not a stock will reach a certain level.

Types of Account and Account Opening

To open an account, potential traders fill out an online form with their contact details; they also need to fill in a compliance questionnaire, and supply payment details. The account is opened after being funded with the minimum amount. However, TopOption is not open to US traders.

There are three types of account based on the size of the initial funding: Starter ($100), Pro ($1000) or VIP ($5000).

Promotions on Sign-Up; Deposit Bonuses

Bonuses are available depending on the type of account; these are negotiated on a case-by-case basis with an account manager.

Commissions and Fees

There are no fees; however, a successful trade will pay 85 per cent of the initial amount. There is no information available on whether there is a partial refund for unsuccessful trades.

Trading Platform and Apps

No downloads are required to use the platform, and it can be accessed via PC and mobile; there is also a free Android app. The user interface is very easy to use; it is one of the best platforms for binary trading.

Ease of Deposit and Withdrawal

The minimum deposit amount is $100, and this can be transferred by e-wallet, wire transfer, debit or credit card.

Withdrawals are returned to the same account or card; there are no charges for these transactions.

Regulation and Compliance

This broker is registered with CySEC, and their site gives additional information on the potential risks of security trading, including advising potential traders to seek independent financial advice before trading. TopOption comply fully with all industry regulations, and each account is insured for up to €20,000.

They provide a wealth of free training materials, and their customer service is the best in the industry. This means that TopOption are one of one of the safest and most reliable binary trading platforms.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

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