Best Options Brokers of 2023 Reviewed

Options enable traders to create complex strategies that can be used to hedge risk while trading. In order to get the most out of options trading, it’s essential for traders to have the best options brokers behind them.

In this guide, we’ll review the 10 best options brokers for 2023 and explain why we think they’re the top platforms for trading options around stocks, forex, indices, and more. Read on to find the best options trading brokers today!

Best Options Trading Platforms Reviewed

Now that readers have seen our list of options brokers, it’s time to take a closer look at what each of these brokers brings to the table.

1. Libertex – Best for Trading Options CFDs with Leverage

Libertex is unique among options brokers that we reviewed in that it doesn’t allow traders to buy and sell options contracts outright. Instead, Libertex offers options contracts for difference (CFDs). These allow traders to speculate on the price of an options contract – up or down – but not to execute a contract.

Options CFD trading has several advantages over direct options trading. First, traders can speculate that the price of an options contract will fall and profit if it does. Second, Libertex allows traders to apply leverage when trading options CFDs. Since options already have leverage built in, options CFDs enable traders to place significant bets on assets with only a small amount of capital.

Libertex offers a variety of options CFDs for popular indices like the S&P 500 and the DAX as well as for commodities like crude oil and gold. The platform does not offer options CFDs on individual stocks at this time. There are no commissions on options CFD trades at Libertex, although traders will pay a spread as well as overnight fees for positions held after market close.

Traders at Libertex have access to several top trading platforms, including MetaTrader 4, MetaTrader 5, and Libertex’s own custom platform. All 3 are available for web and mobile. Options traders may find MetaTrader 5 to be the most useful, since it offers support for analyzing multi-leg options trading strategies and an enormous library of customizable technical indicators.

Libertex requires a minimum deposit of $10 to open a new trading account.

What We Like:

62.2% of retail investor accounts lose money when trading CFDs with this provider.

2. AvaTrade – Best for Trading Vanilla Forex Options

AvaTrade is one of the best forex options brokers in 2023. It offers vanilla forex options, which enable traders to speculate on whether the value of a currency will go up (by buying call options) or down (by buying put options).

This options forex broker currently offers options on 42 forex pairs as well as silver and gold. Forex options can be traded with leverage up to 100:1, while metal options can be traded with leverage up to 50:1. AvaTrade also offers forex CFD trading with leverage up to 400:1 and traders can find many of the best forex pairs to trade at this broker.

AvaTrade doesn’t charge commissions for options trading, instead relying on a variable spread. This typically keeps trading fees low and AvaTrade also doesn’t charge deposit or withdrawal fees. Traders can get started with this options broker with just a $100 minimum deposit.

One of the things we like best about AvaTrade is that it offers a dedicated trading platform for analyzing options strategies. This platform, called AvaOptions, offers 16 pre-made options trading strategies for traders to analyze. AvaOptions offers detailed visualizations of the potential risk and reward of any options strategy and color-coding makes it easy to compare strategies at a glance.

For traders who want to dive into technical charting, AvaTrade also offers a more general-purpose web trading platform as well as access to MetaTrader 4 and MetaTrader 5. AvaTrade also has a copy trading platform where traders can mimic the moves of more experienced forex options traders.

What We Like:

71% of retail investor accounts lose money when trading CFDs with this provider.

3. IG – Best for Trading Options on Market Volatility

IG is a global brokerage firm with a wide selection of options to trade. This options broker offers daily, weekly, and monthly options contracts on individual stocks, major stock indices, and major and minor forex pairs. Weekly and monthly options don’t have overnight fees, making them a suitable choice for traders who want to hold longer positions. Options can be traded either through spread betting or CFDs.

One of the best things about IG is that the broker also offers options on volatility indices like the VIX. This gives traders a way to build hedging strategies directly around market volatility. For traders who are heavily invested in the stock market in other ways, betting on volatility through IG options can help mitigate the risk of a downturn.

IG offers several different trading platforms and tools, which also contribute to making it one of the best brokers for options trading. Traders can choose from ProRealTime, MetaTrader 4, or L2 Dealer. IG also offers an API for traders who want to use a custom platform or rely heavily on algorithmic trading platforms.

IG requires a minimum deposit of £250 to open a new trading account. Options trading is not available in the US.

What We Like:

Your capital is at risk.

4. TD Ameritrade – Advanced Options Strategy Analysis with Thinkorswim

TD Ameritrade is a US-based brokerage that offers thousands of options on US-listed stocks and ETFs. All options trading at TD Ameritrade is commission-free, although there is a fee of $0.65 per contract.

The #1 reason to use TD Ameritrade over another one of the top options brokers is its trading and analysis platform, Thinkorswim. Thinkorswim is one of the most advanced trading platforms available today, and it’s only available to TD Ameritrade customers.

In Thinkorswim, traders will find a comprehensive suite of tools for analyzing single-leg and multi-leg option strategies. Traders can choose from pre-made strategies or build custom strategies. They can also quickly see an option’s implied volatility and the put/call ratio for a stock to determine which way the underlying security is moving. A probability tool helps traders determine how likely their trading strategy is to succeed.

Another benefit to TD Ameritrade is that it offers IRA accounts in addition to traditional brokerage accounts. Options can be traded in an IRA with no capital gains taxes.

What We Like:

5. Charles Schwab – Simplified Order Entry for Multi-leg Options Strategies

Charles Schwab is one of the best options brokers for beginners who need a simple way to execute multi-leg options strategies. With Schwab, traders can simply fill out each leg of their trade in a row in an order entry table. The software offers a chance to review and automatically flags potential errors, greatly simplifying a process that is stressful and time-consuming at other options brokers.

Charles Schwab also has handy tools for analyzing options strategies. Traders can see their maximum profit and loss as well as a trade’s likelihood of success based on historical volatility, The Schwab Idea Hub offers options trade ideas to help traders identify the best opportunities in the market every day.

This broker offers options on most US stocks and ETFs and traders can also write put and call options as part of their strategies. Options trades are commission-free, but each trade carries a fee of $0.65 per contract. There is no minimum deposit required to open a trading account with Charles Schwab.

What We Like:

6. Robinhood – Discover Trending Stocks while Trading on the Go

Robinhood is widely known as the leading commission-free investing app in the US, but it’s also a leader in options trading. Traders who use Robinhood can access thousands of options contracts for US stocks on the NYSE and NASDAQ exchanges. Like stock trading, options trading at Robinhood is 100% commission-free – traders just have to pay regulatory fees.

One thing to keep in mind is that Robinhood does not support multi-leg options trades. It’s also not possible to write and sell put or call options with this broker. So, Robinhood is best suited for traders who want to take single-leg long or short options positions around individual companies.

Despite this limitation, Robinhood makes it easy for traders to find opportunities. The app’s discover tab keeps track of trending stocks that traders may want to keep an eye on. Robinhood also suggests the best options stocks that traders might be interested in, making it easier to find new trades.

Robinhood doesn’t require any deposit to open a new account.

What We Like:

7. Webull – Best Options Broker for 0% Commission Trading

Webull is a Robinhood competitor that similarly offers 0% commission on options trades with no contract fees. We think Webull is one of the best discount options brokers because it combines this fee-free approach with a fairly comprehensive charting and analysis platform. Whereas Robinhood barely offers technical charts at all, Webull gives traders the tools they need to find and analyze technical setups.

Webull’s charting platform is available for web and mobile and supports a wide range of technical studies. It’s not as in-depth as TD Ameritrade’s Thinkorswim and it can’t match the best MT5 brokers. However, it’s easy to use and provides the basic tools traders need to decide what options to buy and sell.

Webull offers thousands of options for US stocks and ETFs. Traders can choose from 11 multi-leg options strategies, although Webull doesn’t support fully custom strategies.

This broker doesn’t require any deposit to open a new account. However, Webull offers a bonus of up to 12 free stock shares when traders make a deposit.

What We Like:

8. E*Trade – Advanced Options Research Tools and Low Fees

E*Trade is another top options broker that boasts low fees, top-notch trading tools, and a wide selection of contracts. At E*Trade, traders can find options for stocks, ETFs, and commodities. Stock and ETF options cost $0.65 per contract with no base commission, and the fee drops to $0.50 per contract for traders who make 30+ trades per month.

For commodity futures options, there’s a fee or $1.50 per contract. E*Trade offers options for any CME-listed futures, which include crude oil, foodstuffs, and even Bitcoin. Traders can also trade options around the S&P 500 – in fact, we think E*Trade is one of the best Micro E-mini options brokers.

We’re big fans of E*Trade’s trading tools, which include probability analysis for multi-leg options trades and visualizations of risk/reward for any options strategy. It’s easy to enter multi-leg orders right from the analysis tools as well, simplifying the process of going from investigation to execution.

E*Trade doesn’t require a minimum deposit to open a new account and the brokerage offers 24/7 customer support.

What We Like:

9. Ally Invest – Trade Stock Options with No Account Minimum

Ally Invest is the best options broker for small accounts in 2023. There’s no minimum deposit required to open an account with Ally Invest and no minimum trade size to overcome. In addition, the cost for options trading is just $0.50 per contract – making this one of the cheapest options brokers in the US. Traders can buy or write and sell options contracts through this brokerage.

While Ally Invest isn’t known for offering a powerhouse trading platform, it offers a surprisingly strong range of tools for options trading. Traders have access to options chains, multi-leg strategy visualizations, and in-depth market research. Even better, Ally invest’s platform is available for the web and mobile devices.

Another reason to choose Ally Invest is that it offers both traditional and Roth IRAs. So, investors have the ability to trade options inside a tax-deferred retirement account. IRA accounts at Ally Invest have zero setup or maintenance fees.

What We Like:

10. Interactive Brokers – Best Paper Trading Account for Options Traders

Interactive Brokers is one of the most advanced platforms we reviewed for trading options. It is not the best options broker for beginners, but rather is tailored towards experienced traders who need a highly customizable suite of tools.

Among the useful tools that Interactive Brokers offers is a paper trading account. While that might not sound like a big deal, it’s essential for advanced traders to test out new options trading strategies. This broker offers analysis tools to help traders gauge the success or failure of a new strategy and makes it easy to migrate the best options trading strategy to their live account once it’s been thoroughly tested.

Another thing that’s unique about Interactive Brokers is that it offers options trading on stocks from 30+ market centers around the world. So, this is a suitable broker for traders who want to look beyond the US market.

Interactive Brokers options fees range from $0.15 to $0.65 per contract with no base commission. Volume requirements to push down the contract fee can be steep, as this brokerage caters more towards highly active options traders.

What We Like:

Top Options Trading Platforms Compared

To help traders find the best options trading broker for their needs, we’ve put together the table below that compares each of the top 10 brokers head-to-head.

How We Select the Best Options Brokers

Options trading is fast-moving and can be high stakes for traders. So, there are a lot of factors to consider when deciding where to trade options. Here are some of the primary things we looked at when choosing the 10 best options brokers.

Regulation

Options brokers are regulated by the same financial authorities as stockbrokers, forex brokers, and other trading platforms. Regulators like the Financial Industry Regulatory Authority (FINRA) ensure that options brokers have protections in place for client funds. They also serve as watchdogs to prevent unfair trading activity that could negatively impact individual traders.

Range of Options Contracts

Options trading is available for stocks, ETFs, forex, indices, commodities, and more. However, not all brokers offer options contracts for all of these different asset classes. When choosing an options broker, it’s important to think about what assets a trader wants to focus on and find a broker that specializes in options for that asset class.

Fees

Fees for trading options can make a huge difference in how profitable a trader is. Here is a breakdown of account and options trading fees at the top brokers for options trading:

Trading & Analysis Tools

The best options trading platforms offer dedicated tools for researching and analyzing multi-leg options strategies. These include tools for probability analysis, visualizing profit and loss potential, and comparing different options strategies. Top brokers also have simplified order entry systems for multi-leg options strategies.

Minimum Deposit

Many options brokers require a minimum deposit in order to open an account. This is typically less than $100, so it’s not a big hurdle. Some brokers do not require any deposit.

Demo Account

A demo trading account enables traders to test out the best options trading platform before placing live trades. Paper trading is also important because it offers beginners a chance to learn how to trade options and experienced traders a chance to test out new strategies.

Mobile App

More and more trading takes place on the go these days. So, it’s essential that options brokers offer user-friendly mobile apps that include tools for analyzing options strategies. Most brokers have trading platforms available for iOS and Android devices.

Payment Methods

Funding an options trading account should be simple and free. Most brokers accept bank transfers. Some also accept credit or debit cards and e-wallets like PayPal, Neteller, or Skrill.

Customer Service

Many of the best options brokers offer 24/5 or 24/7 customer service, so it’s easy for traders to get help when they need it. Look for phone or live chat support, as these provide faster access to help than email support.

How to Start Trading Options with a Regulated Broker

Ready to start trading with the best options trading platform for 2023? We’ll walk traders through how to invest in options with Libertex, our top-rated options broker.

Step 1: Sign Up for Libertex

Head to Libertex’s website and click Sign Up. Traders need to enter their email, phone number, and a password, then click Open Account.

Libertex then requires personal details including the trader’s name, address, and birthdate. Finally, traders must upload a driver’s license or passport in order to verify their identity.

Step 2: Deposit Funds

Libertex accepts a wide variety of deposit methods, including bank transfers, credit and debit cards, Neteller, Skrill, PayPal, Trustly, Sofort, and GiroPay. Bank transfers do not have a minimum deposit, but most other deposit methods require a minimum payment of $100.

Step 3: Trade Options

Once a trader’s account is funded, they’re ready to start trading with Libertex. Traders can open the Libertex web trading platform and search for any of the available index or commodities options. Click Buy or Sell, then enter the amount to trade. Then click Trade to open a new options position.

Conclusion

Options trading enables traders to hedge risk when trading volatile assets such as stocks, forex, and commodities. There are thousands of different options to trade and many strategies to use, making this approach to trading suitable for a wide range of traders.

Based on our reviews, Libertex is the best options trading platform for 2023. With Libertex, traders can buy and sell options CFDs with no commission and utilize leverage to size up their positions. Sign up for Libertex today to get started!

62.2% of retail investor accounts lose money when trading CFDs with this provider.

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