Some of the features to look for are:
- Trading platform – This is the software or web-based application that you use to place and monitor your options trades. You want a platform that is fast, reliable, secure, and easy to use. You also want a platform that offers advanced order types, such as conditional, contingent, and multi-leg orders, to help you execute your options strategies.
- Trading tools – These are the tools that help you analyze the options market, design your options strategies, evaluate your risk and reward, and optimize your performance. You want a platform that offers tools such as options chains, options calculators, options scanners, options screeners, options backtesters, and options simulators.
- Research – This is the information and data that help you understand the underlying stocks, the options market, and the economic and market conditions. You want a platform that offers research such as stock quotes, charts, news, earnings, dividends, analyst ratings, fundamentals, technical indicators, and market sentiment.
- Customer service – This is the support and assistance that you get from the platform provider, in case you have any questions, issues, or feedback. You want a platform that offers customer service such as phone, email, chat, social media, forums, FAQs, and tutorials.
Some of the platforms that offer a variety of features for options trading are:
- E*TRADE – This platform is best for options traders who prefer a web-based platform, as it offers a sleek and intuitive interface, with customizable widgets and layouts. It also offers Power E*TRADE, a more advanced platform that has options-specific tools, such as Live Action, StrategySEEK, and TradeLAB.
- Saxo Markets – This platform is best for options traders who want to trade stock options on global markets, as it offers access to over 1,200 equity options across the US, Europe, and Asia-Pacific. It also offers SaxoTraderGO, a web-based platform that has options-specific tools, such as Trade Ticket, Option Chain, and Option Board.
- AvaTrade – This platform is best for options traders who want to trade FX options, as it offers access to over 40 currency pairs, with flexible contract sizes and expiry dates. It also offers AvaOptions, a web-based platform that has options-specific tools, such as Risk Manager, Strategy Simulator, and Portfolio Summary.
Reputation
The last factor to consider when choosing a stock options platform is the reputation. Options trading is a serious and risky business, so you want to find a platform that is trustworthy, reputable, and regulated.
