Best Options Brokers

Written By

James Barra

Written By

James Barra

James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.

» James Barra Profile Page

Fact Checked By

Michael MacKenzie

Fact Checked By

Michael MacKenzie

Michael is a writer and editor with over a decade in journalism and publishing. His niche lies in editing and fact-checking content in the financial services sector, with a focus on online brokers and trading platforms. Michael previously reported on politics and economics in the Middle East and edits books for established publishers.

» Michael MacKenzie Profile Page

Updated

Jan 30, 2024

Options are derivative contracts that give you the right to buy or sell an underlying asset at a certain price on or before a set date. As well as allowing investors and companies to hedge against price swings, options contracts are a popular way to speculate on market movements and can be used as tradeable assets in their own right.

Our experts have evaluated and compared dozens of options brokers. To find the best brokers for options trading, we considered:

List of Best Options Brokers 2024

These are the 5 best options brokers based on our tests:

1. AvaTrade
2. Deriv.com
3. CityIndex
4. FOREX.com
5. IG

Best Options Brokers Comparison

Best Options Brokers Comparison

Broker	Options Trading	Margin Trading	Trading Platform	Minimum Deposit	Regulator	Visit
	✔	✔	WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade	-	ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM	Visit
	✔	✔	Deriv Trader, MT5	$5	MFSA, LFSA, VFSC, BFSC	Visit
	✔	✘	MT4, TradingView, TradingCentral	$0	ASIC, FCA, MAS	Visit
	✔	✔	MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral	$100	NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA	Visit
	✔	✔	Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral	$0	FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA	Visit
	✔	✔	WebTrader, App	$100	FCA, ASIC, CySEC, DFSA, MAS, FSA, FSCA, FMA, EFSA	Visit
	✔	✔	Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral	$0	FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB	Visit
	✔	✔	NinjaTrader Desktop, Web & Mobile, eSignal	$0	NFA, CFTC	Visit
	✔	✔	Spreadex Platform, TradingView	£0	FCA	Visit
	✔	✔	TradingCentral	$0	CIRO	Visit
	✔	✔	Desktop Platform, Mobile App	$0	SEC, FINRA, MAS, ASIC, SFC	Visit
	✔	✔	eToro Trading Platform & CopyTrader	$10	SEC, FINRA	Visit
	✔	✔	Trader Workstation (TWS), MT4	$200	FSP, FMA	Visit
	✔	✔	Own	$0	SEC, FINRA	Visit
	✔	✔	MT4, TradingView	$0	-	Visit

#1 - AvaTrade

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Review

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
• Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
• Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

• WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
• Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
• AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more

Cons

• A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
• There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
• It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here

Visit AvaTrade

#2 - Deriv.com

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Review

Why We Chose Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "

- DayTrading Review Team

• Instruments: CFDs, Multipliers, Forex, Stocks, Indices, Commodities
• Regulator: MFSA, LFSA, VFSC, BFSC
• Platforms: Deriv Trader, MT5
• Minimum Deposit: $5
• Minimum Trade: 0.01 Lots
• Leverage: 1:1000

Pros

• Deriv bolstered its short-term trading opportunities in 2024 with accumulator options on simulated indices featuring up to 5% growth rates
• Traders can use multipliers between 1 and 30, with take profit, stop loss and deal cancellation parameters
• Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5

Cons

• There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
• The range of 100+ assets trails some competitors such as Quotex which offers 400+
• There's no loyalty program or rebate scheme for high volume traders

Visit Deriv.com

#3 - CityIndex

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Review

Why We Chose CityIndex

City Index is an established and award-winning forex, CFD and spread betting broker with top-tier global regulation, including in the UK (FCA) and Australia (ASIC). With 30+ years in the industry, 13,500+ instruments and 24/5 customer support, City Index is a solid pick for aspiring traders.

"City Index is best for new and intermediate traders looking for a wide selection of assets on user-friendly platforms."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Cryptos, Options, Commodities, Bonds
• Regulator: ASIC, FCA, MAS
• Platforms: MT4, TradingView, TradingCentral
• Minimum Deposit: $0
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction.

Pros

• Extended hours trading on 70+ popular shares including Amazon and Tesla
• Thousands of instruments including thematic indices and interest rates that are not available at many alternatives
• Industry-leading platforms including MT4, plus access to cutting-edge third-party tools like TradingView

Cons

• No Islamic account for Muslim traders
• $15 monthly inactivity fee
• Cryptocurrency trading not available in all locations

Visit CityIndex

#4 - FOREX.com

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Review

Why We Chose FOREX.com

Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Cryptos, Futures, Options, Commodities
• Regulator: NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA
• Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
• Minimum Deposit: $100
• Minimum Trade: 0.01 Lots
• Leverage: 1:200 (Retail), 1:500 (Pro)

Pros

• FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
• Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
• With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.

Cons

• There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
• Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
• Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.

Visit FOREX.com

#5 - IG

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Review

Why We Chose IG

Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
• Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
• Platforms: Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
• Minimum Deposit: $0
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail), 1:250 (Pro)

Pros

• The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our Best Trading App award
• The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met
• As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust

Cons

• Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
• IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
• While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients

Visit IG

Best Options Brokers For Beginners

These 3 options brokers are best for new traders with a low minimum deposit, a beginner-friendly platform and free education:

1. Webull
2. IG
3. eToro USA

Best Options Brokers For Active Traders

These 3 options brokers are best for active traders with competitive fees, advanced tools and perks for high-volume traders:

1. AvaTrade
2. FOREX.com
3. NinjaTrader

Cheapest Options Brokers

These 3 options brokers offer commission-free trading with no hidden charges:

1. Webull
2. SoFi Invest
3. Firstrade

Best Options Trading Platforms

These 3 options brokers offer the best platforms with a user-friendly interface, reliable order execution and sophisticated analysis tools:

1. AvaTrade
2. eToro USA
3. Plus500

What To Look For In An Options Broker

To compile a list of the best brokers for options, we considered several key factors:

Low Commissions On Options Contracts

Most brokers charge a per-contract fee for options trading. To find the cheapest options brokers, we compared the commission per contract, which typically comes in at around $0.65 per contract. We also look for firms that offer discounts for high-volume traders.

Alongside direct trading fees, we consider non-investing charges. These can take the form of market data fees, regulatory charges, deposit and withdrawal fees, and inactivity penalties. Together, this gives us an objective view of the overall pricing.

A Range Of Tradable Markets

Options contracts can be traded on a range of underlying markets, from stocks and bonds to commodities and currencies. Importantly, the best brokers offer an array of options instruments, allowing traders to build a diverse portfolio.

We compare the underlying markets available to find the options brokers with the greatest breadth and depth in their product portfolio.

Regulated With A Good Reputation

Our team places the highest priority on safety so we always recommend picking an options broker that is regulated by a top-tier financial body. Using a regulated broker to trade options will help protect you from scams and provide security for your funds.

We verify the regulatory status of all the options brokers we review. To do this, we check the broker’s license number (often found at the bottom of the brokerage’s website) on the regulator’s register to confirm they are authorized and which countries they are allowed to accept options traders from.

Only regulated and trustworthy firms make our list of the best options brokers.

High-Quality Platform

The platform is your window to the financial markets and the tool where you can analyze instruments and execute trades. As a result, choosing a reliable, efficient and powerful platform is important.

Our team test the options platform available where possible, either by downloading the desktop software, opening the web trader, or using the mobile app. The key things we look for are a well-designed and easy-to-use interface, rich charting and analysis tools, and straightforward order management.

Margin

While some investors trade options with a cash account, many use a margin account so they can increase their buying power and prospective profits in return for a modest outlay.

Our team compare the margin requirements set by brokers, that is the funds or securities that must be deposited in your account as collateral. We also consider the cost of trading on margin, which is typically a percentage charge based on the amount you borrow.

Our Methodology

To find the best options brokers, our team spend thousands of hours each year, testing, comparing and rating firms.

The categories with the largest weighting in our options broker rankings are the fee per contract, the range of underlying assets, the quality of platforms, margin rates, and the firm’s regulatory credentials and safety record.

Our team also factor in the overall trading experience during the evaluation process to inform the final rating we assign to each options broker.

FAQ

Which Is The Best Options Broker?

We have compiled a list of the best options brokers in 2024. These are the 5 top options trading platforms based on our experts’ findings.

What Is An Options Broker?

Options brokers give traders the ability to trade options contracts on the markets they support, such as US stocks. These derivative contracts give you the right to buy or sell the underlying asset for a set price on or by a certain date.