Option brokers reviews
Despite the importance of choosing a broker carefully, many traders sign up with any old broker and simply join the first one they come across or the one that offers the best sign up incentive. Not putting any thought into what broker to use is a big mistake because, this really is a decision that is well worth spending some time on. If you are lucky enough to know an experienced trader that you trust then asking them which broker they use is a good way to find a decent broker, but that isn't a course of action that is available to everyone.
Alternatively, you could try out a range of different brokers, compare them, and decide which one is best for you. However, this would be pretty time consuming.
We have produced this section specifically to help you choose a broker. As well as the list of our top rated online brokers above, we have also produced a number of other lists.
Each one of these contains a number of recommended online brokers that are particularly suitable for a specific purpose. You can see each of the broker categories that we cover linked over to the right.
We have also provided some brief details about each category further down this page. The first page in our section on the best options brokers is a comparison between the two main types of brokers: The distinction between the two is quite important to understand, as the services offered by the two is substantially different. In very basic terms, a full service broker will provide clients with advice and guidance in addition to executing orders as instructed while a discount broker will simply carry out orders on behalf on their clients.
Both types have their advantages, and we explain more on the following page: Full Service Brokers vs Discount Brokers. When you first begin trading, the chances are that you will be starting out with a relatively small amount of capital, and indeed you may be planning to only ever make small trades. Beginners and those trading with a low budget should be looking for fairly specific attributes before signing up with a broker.
An appropriate commission structure and low minimums for both the size of your deposits and value of your trades is essential.
Any sign up incentives being offered could also be significant too. If you are a beginner when it comes to options trading we suggest taking a look at what we have found to be the best brokers for people just getting started. As you probably know, contracts can be based on a variety of different underlying securities which give you many choices.
Probably the most commonly traded are stock options; those contracts where the underlying security are stocks in publically listed companies. It isn't particularly difficult to find brokers that are suitable for trading stock options, but it's still important to choose your broker wisely. If you are planning on trading mostly stock options, then please visit the following page for relevant recommendations.
These all do an excellent job when it comes to trading stock options. Forex options are contracts where the underlying security is foreign currencies. These are also very commonly traded, so finding an broker where you can trade forex options is not too much of a challenge. However, there are certain brokers that particularly stand out and that we believe are worthy of our recommendation.
It's very important to find a forex broker that can meet your needs. For a complete list of these recommended brokers and more details on what you should be looking for when deciding where to sign up, please visit the following page. Binary options are a unique form of contract that work a little differently to most others please see our page on Binary Options for more details and they are ignored by many traders as they often perceived to be a bit more complicated than the more standard type of option.
In fact, the basic principle of binary options is relatively straightforward and trading binary options is becoming increasingly more popular among traders. Not all brokers will deal with binary options, but for a list of recommended brokers that do please visit the following page. This broker, one of the first to offer its services over the internet is suitable for all trader types. It has a basic platform which is ideal for beginners and part timers, and an advanced platform for those that are looking for something more sophisticated.
Both are relatively easy to use. Focused specifically on options, this broker is a good choice for both low and high volume traders thanks to the two separate commission plans.
The trading platform is functional and easy to use, and can be customized to suit personal requirements. Click here to read our review of OptionsHouse. This broker is good all around and performs well in many areas. Its biggest drawback is the fact that it isn't very cheap when it comes to commissions. Many could consider the higher commissions well worth it though, because there are several useful tools and features they offer. You can read our OptionsXpress review by clicking here.
This online broker is well-known all around the industry by traders from all walks of life. They are especially known for their extensive features and tools that their customers have access to, as well as for one of the most advanced trading platforms available today. Check out all that they have to offer by reading our TradeStation Review. It's also very easy to use which makes it particularly appealing for beginners. A big advantage, if you live in the United States, is the fact that you can visit any one of their branches nationwide for help and advice.
You can find a full review of Scottrade here. Anyone that is looking to keep transactions costs down should consider TradeKing, as the commissions charged are very competitive.
The drawback is that there's a lack of advanced features and tools. You can still do most of what you are likely to want to do here though, and the trading platform is very user friendly. Click here for the full TradeKing review. TradeMonster is a good choice for big traders, because the commission costs are very reasonable when trading in high volume. It has enough advanced features to keep experienced traders happy and is also easy enough to use for beginners. Read our TradeMonster Review here.
Reviews of Online Options Brokers Being a successful trader is all about making informed decisions. Section Contents Quick Links. Why Read Broker Reviews? About Our Reviews We strive to make sure that our reviews contain all the information that you need to make an informed decision about which broker is likely to the best for you.