Best option trading website
Consider these 12 key factors to help compare all stock brokers and ultimately find the best broker to suite your needs. Trade Commissions What does it cost to buy shares of stock? Does the fee change based on the type of order or size of order?
To keep it simple, look for brokers that offer flat-fee trades, ie charging a flat rate regardless of the type, price of the stock, or size of the order. Customer Service When picking up the phone or emailing a broker, is a well trained customer service representative ready to assist? How any investor is treated as a client is more important to some than others. Trading Tools Trading successfully is a lot easier when investors have great tools at their disposal.
A top stock broker should offer access to a wide variety of trade tools to help make the most of each and every trade. From real-time streaming quotes to last sale tickers, quality stock scanners, mobile trading apps, and level II quotes to name a few.
Strong tools are essential for active investors. Account Minimums Some brokers allow you to open an account with no minimum deposit while others may require several thousand dollars. Also know that some brokers require higher minimums to gain access to premium platforms, functionality, and personalized support. Market Research A good online broker will provide a variety of market research tools. The rule of thumb here is simple: Investment Options A online stock broker should offer access to not only trading stocks, but also a strong selection of no load mutual funds, commission free ETFs, and complex options.
Other unique investment offerings to look for could include direct market routing, conditional orders, futures trading, and forex trading. Other Fees Fees beyond trade commissions include inactivity fees common with active trading brokers such as Interactive Brokers, Lightspeed, and TradeStation and IRA fees for having a retirement account.
Just like a bank account, stock brokers also make a portion of their profits off miscellaneous fees. There is no reason why you should pay an annual fee to have an retirement account.
If managing your own portfolio is not of interest, all full-service brokers offer optional advisory services as well. Furthermore, robo-advisors such as Betterment are growing in popularity. Once again, the experience at larger established brokers is going to be superior to smaller brokers.
Banking Larger online brokers offer banking and other financial services. This goes beyond money market accounts and CDs. You also find recommendations for the best online brokers, in a number of different categories.
If you are simply looking for a reputable broker to use right now, then we suggest choosing one from the table below. These are all quality brokers which come highly recommended, based on both personal experience and extensive research. To find out more about everything this site has to offer, please read on. You will notice that we provide reviews on our top ranked brokers. These are very useful when it comes to choosing who to use, as they contain all the details you need to make an informed decision.
You can see a full list of all the reviews we provide here. This site comprehensively covers everything you need to know about options trading, ranging from the fundamental basics right up to advanced strategies.
If you are a complete beginner you will find all the information you need to get started, explained in a way that is easy to understand. If you are a more experienced trader looking to expand your knowledge then you will find plenty of advanced subject matter that will help you to improve your trading skills. It is possible for anyone to get involved with this, but there is a lot to learn on the subject.
To make it easy for you to find exactly what you are looking for we have divided the site into several clearly defined sections. These are as follows. Beginners should start with the first section and then work through each section in order, while those of you looking for specific information will probably prefer to skip straight to the relevant area. If you would like to know more about what these sections are all about, you can find details on each of them further down the page.
There are also a few other articles which you may be interested in. We have written a page explaining in full what this site is all about, and introducing the people behind it. We have compiled a useful glossary of terms too, which is a comprehensive list of the jargon and technical words used. For those of you interested in such things, we have also written a complete history of options. This details how the market evolved over time to create the thriving industry which exists today.
This introduction has been compiled specifically with the beginner in mind. If you are completely new to all of this, or investment in general, then this section is the best place for you to start.
We have included detailed articles to explain exactly what a contract is, and what it is is all about. We have explained the benefits and the risks involved, where you can buy and sell contracts and how the contracts work in practice. Finally, we have provided detailed explanations of the key terms and phrases that you will come across — such as moneyness, leverage, margin and time decay. Options are one of the more complex financial instruments, and before you can think about starting to buy and sell them you really need to understand certain fundamentals.
In this section we have provided comprehensive information about the numerous types of contracts you can trade, and the various orders you will need to place. This section also includes details on the different trading styles that are typically used and an introduction to spreads, which are a vital component in most of the strategies that can be used.