As such, you just have to find your preferred broker from the following list, based on your geographical location, after which you just need to sign up and start trading right away.

Who is the Best Option Broker? 

The Simple Dollar’s Top Picks Best Online Brokerage Accounts in Optionshouse – Best Discount Broker (also Best Options Broker) Scottrade – Best Support and Service.

I conducted research to compile a list of every online broker. I narrowed the list down to just under 50 brokers by eliminating those that did not allow U. I individually researched each broker, visited their websites, and analyzed rankings and reviews across the web.

I concluded that there were 15 online stock brokers worth digging into. My next step was to come up with measurable data to compare these brokers. I had to be aware that comparing a full-service broker to a discount broker or options broker was going to be difficult.

These were my next steps: I came up with 10 important categories of features to measure each company. Some of these features included costs and fees, access to investment products, research, education, trading technology, and financial resources. I compared each of the 15 online brokers across these features.

Once this comparison was complete, I was left with four of the best online brokers that excelled in specific areas. These four online brokerage firms cover the spectrum for anyone who would sign up for an investment account. I knew I could recommend one of them to a specific group of investors or traders. Here are the final steps I took: I tested out each of the top four brokers I actually tested several in the top 15 and simulated the trading experience.

I analyzed the unmeasurable aspects of each broker that the data could not account for, like usability and functionality, and downloaded all the mobile apps. I looked for additional features unique to each online broker that I also did not capture in the data. The company still exists today and trades under the ticker SCON. This was the time of the first technology boom from The stock eventually went up to nearly double that and then crashed with the rest of the tech market.

Being 14 years old and thinking this stock was going to go up forever, I rode the wave up and all the way back down — down to nothing. Check out the chart of SCON below and feel my pain.

You can see that the stock took two major spikes up and crashes back down I was involved in the first one. I tell this story because I learned three great lessons about stock trading: Staying disciplined can keep you from losing money and ensure you lock in your gains.

Before you open a stock and option brokerage account, make sure the broker has been in business for a few years and that you have talked to people that really have an account there. If you think you have found the cheapest options broker but you have never heard of them before and you don't know anyone that uses them, then stay away!

Option Commission Once you are comfortable that the brokerage firm that you are considering is a credible, then take a look at their commission structure. Finding the cheapest option broker is not that easy. Here are a few tricks that the brokers play when you are looking at their stock and options commission structures: Brokers often have several different commission structures depending on the size of your account and the number of trades you will make per month or per quarter.

So please make sure you are looking at the commission structure that matches your account size or trading frequency. Brokers commission changes based on the number of contacts you will be trading with each order so consider the size of your trade. Will you be trading 2 contracts, 20 contracts or contracts with each trade? Make sure you are looking at their standard commissions and not just the "introductory" commission rates as there are lots of special broker offers out there and sometimes the offers are only good for the first 30 or 60 days.

Finally, what other fees are there? Fees to get your money out? Make sure you know the whole fee structure! The more money you have, the longer you have had the account, and the more trading history you have the more likely you can get a reduction. I called ETrade recently and asked them to match another brokerage firms commissions and they did within 24 hours.

These brokerages know that it is very expensive to acquire a customer and it is much easier to maintain a customer. There are many other factors to consider when opening that option brokers account besides just the commission.

I am pretty web savvy and I have used many different platforms and trust me -- all options broker platforms are NOT the same. I have been burned so many times because I can't submit an order quickly, or I waste precious seconds trying to find the exact ticker symbol or the number of contracts I own. Option prices often move so quickly that seconds can mean a difference of a dime or more in price. So trying to save a few dollars in commission can be penny wise and pound foolish!

What I see happening with option brokers platforms now is that some are designed for the beginner option trader and some are designed for the experienced option trader.


Choosing the Best Online Brokerage 

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.

Options trades offer much higher profit margins for brokers than stock trades, and, as a result, competition is fierce in attracting these clients. This type of market atmosphere . The best options brokers all have low fees, no account minimums, and user-friendly interfaces. 

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Buying and selling options, and more

For traders specifically looking to trade options, choosing the best online broker can be particularly crucial.. Most major brokers have options trading . A guide to choosing an online options broker for options traders, including recommendations of the best online options brokers in many different categories.

Currently, there are more than trading platforms or brokers. This was not the case in when binary options trading started since there were about 10 trading platforms. The emergence of many brokers has been good since it has created high competition, which is beneficial to investors in terms of more bonuses and high/5(). Finding the "cheapest options broker" and finding the "best options broker" are two totally different searches. Every major online discount stock broker that I know now allows you to trade stock options, but don't think for a minute that all option brokers .

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