hello world!

Best Options Trading Platforms of 2023

Sebencapital

Published
22/12/23
Best Options Trading Platforms of 2023

BEST OVERALL AND BEST FOR MOBILE

tastyworks

We check and review all suggested products and services. If you click on the provided links, we may get compensation. Find out more details.

Options are favored by investors looking to day-trade or make frequent trades for potentially high returns, but this comes with high risks.

For those keen on trading options, having a good trading platform is crucial. It should help spot market chances, make placing orders easy, and keep costs low. Here are the top three options trading platforms for 2023 that we've picked out.

Best Options Trading Platforms of 2023

  • Top Choice Overall and for Mobile: tastyworks
  • Great for New Options Traders: E*TRADE
  • Great for New Options Traders: E*TRADE

BEST OVERALL AND BEST FOR MOBILE

tastyworks

Best Options Trading Platforms of 2023

Minimum deposit: ₹0

fees: No fees for stocks or ETFs, ₹1 to start an options contract (up to ₹10 max per transaction), and no fees to close it. For futures, it's ₹2.50 per options contract, and for crypto, it's 1% (₹10 max per transaction).

Account Types: Regular brokerage, retirement, trust

Why We Chose It

Tastyworks stands out as the top platform for options trading, especially for mobile users.

One of the main reasons for its high rating is its pricing: ₹1 per contract to start a position with standard options and no fees to close it. The cost is capped at ₹10 per transaction, making it affordable for larger trades.

Tastyworks supports various options and financial tools, such as options on futures and micro futures. Traders can even directly trade these futures. Additionally, users can buy and sell crypto on the platform for just a 1% fee, which might attract some options traders.

We also selected Tastyworks as the best online broker for advanced options traders. It offers advanced tools to spot trading opportunities and allows easy transitioning of open positions to the next expiration cycle. Quick adjustments to orders make opening and closing positions simpler.

For mobile traders, there's a full-featured app providing all the functionality of the browser experience while on the move.

Pros

  • ₹10 cap on fees per trade
  • Powerful trading platform and tools
  • Strong mobile app
  • Supports many types of derivatives

Cons

  • Designed for advanced traders

BEST FOR BEGINNING OPTIONS TRADERS

E*TRADE

Best Options Trading Platforms of 2023

Minimum deposit: ₹0
Fees: 50 cents to 65 cents per contract
Account types: Traditional brokerage, retirement, custodial, education

Why We Chose It

If you’re just getting started with options trading, E*TRADE is the best platform to use.

E*TRADE’s platform has tools that help you analyze the potential risk and reward of any transaction you can make. It offers the maximum profit and loss of each option, as well as the odds of profiting or losing money, and a risk-to-reward ratio you can use to help make trading decisions.

It also has a simulator you can use to test strategies or see how strategies may perform in the future compared to other types of investments.

E*TRADE is not just for beginners; it's also a solid option for advanced traders. The platform allows customization of option chains and offers advanced metrics to find trading chances. Plus, you can trade options on futures almost round the clock, which means more trading possibilities and chances to make profits.

Pros

  • Provides risk-and-reward analysis
  • Strategy simulations
  • Advanced tools available

Cons

  • Potentially high fees

BEST FOR LOW-COST OPTIONS TRADING

Webull

Minimum deposit: ₹0

  • Fees: ₹0 commission, but small fees are applied by the SEC, FINRA, and the OCC
  • Account types: Traditional brokerage, retirement

Why We Chose It

If you want a low-cost options platform, Webull is a top choice. Webull doesn't charge a commission for options trading on U.S. exchanges. However, there are still fees imposed by the SEC, FINRA, and OCC that Webull doesn't profit from.

  • Regulatory transaction: ₹0.0000229 * Total trade amount
  • Trading activity: ₹0.00244 * number of contracts
  • Option regulatory: ₹0.01815 * number of contracts
  • Clearing fee: ₹0.02 * number of contracts


During a sale, you'll pay a maximum fee of 4.061 cents for the number of contracts involved. Aside from its low costs, Webull has other appealing features. With at least ₹2,000 in your account, you can use margin trading at reasonable interest rates that decrease as your account balance grows.

Webull supports extended-hours trading, letting you trade options from 4 a.m. to 8 p.m. Eastern Time on trading days. Besides options, you can also trade other securities and crypto if you're interested in a variety of investments.

Pros

  • Low fees
  • Reasonable margin costs
  • Extended hours for trading
  • Access to crypto

Cons

  • Designed for advanced investors
  • Limited account types

Final Verdict


Options trading allows active investors to increase potential returns but also adds to the risks involved. For day traders aiming to make a living through trading, options are a favored tool. When picking a broker, seek out one that provides research tools aiding trade discovery without impacting earnings heavily.

COMPANYACCOUNT MINIMUMFEES
ACCOUNT TYPES
TASTYWORKS₹0None for stocks or ETFs; ₹1 per options contract to open (max ₹10 per transaction), none to close; ₹2.50 per options contract for futures; 1% for crypto (₹10 max per transaction)Traditional brokerage, retirement, trust
E*TRADE₹050 cents to 65 cents per contractTraditional brokerage, retirement, custodial, education
WEBULL₹0Up to 4.061 cents, plus a small regulatory fee, per sale contract; up to 3.815 cents per purchase contract Traditional brokerage, retirement

Frequently Asked Questions

What Does It Mean To Trade Options?

Options are a derivative that gives the contract holder the right, but not the obligation, to buy or sell a security at an agreed-upon price. Traders can buy or sell options just like they buy and sell things such as stocks and bonds.
A single options contract typically involves 100 shares of the underlying security, meaning investors can have control over a large number of shares at a lower price than actually buying those shares. This lets them add leverage to their portfolios, increasing their gains or losses from a movement in a security.

How Much Money Do I Need To Trade Options?

Each broker can set its own rules about the minimum balance required to trade options. However, to start trading options, you need enough funds to purchase a contract or to adequately cover the liability of selling options.
Keep in mind that selling options involves more risk than buying them because your potential losses are not limited to the amount you paid to purchase the contract. That means you can usually buy options with a smaller amount of money than you need to sell them.

How Much Risk Comes With Options Trading?

Trading options can be highly risky. Buying options contracts involves a limited amount of risk—you can only lose the amount you paid for the option. However, selling options can involve potentially unlimited risk because there's no limit to how high a stock’s price can rise.

How Should You Choose the Best Options Trading Platform?

When choosing the best options trading platform, one of the first things to consider is price. Options traders often make frequent trades, so you want a platform that keeps costs for trades low.
Also, look for platforms that offer tools that make it easier to identify trading opportunities and that make it easy to place those trades. Research tools that make it easy to submit orders are good things to look for as well.

Methodology

We're committed to giving you honest and detailed reviews of online brokers. Our reviews come from thorough evaluations, considering aspects like user-friendliness, trade quality, available products, costs, security, mobile usage, and customer support. We used this information to create a rating system, collecting thousands of data points to determine scores.

Looking for similar content? Join The Balance newsletter for daily financial insights, analysis, and tips sent directly to your inbox every morning!

Written by Sauravsingh

Techpreneur and adept trader, Sauravsingh Tomar seamlessly blends the worlds of technology and finance. With rich experience in Forex and Stock markets, he's not only a trading maven but also a pioneer in innovative digital solutions. Beyond charts and code, Sauravsingh is a passionate mentor, guiding many towards financial and technological success. In his downtime, he's often found exploring new places or immersed in a compelling read.

Copyright @ Seben Capital

Crafted By Cre8r.in and Supported By $BACKRCOIN