Minimum 1 contract market or limit. TradeStation is also included in the Barron's top 5 brokers in the category 'Best for Options Traders'. The broker offers low options trading cost, in two different pricing plans, per-contract and per-trade. Frequent traders receive the cheapest pricing.
TradeStation's trading platform is highly customizable, one of the best in the industry, includes within a very fast and intuitive options trading platform, OptionStation Pro. As Barron's said in its survey this year: Ally Invest is also included in the Barron's top 5 brokers in the category 'Best for Options Traders'. The firm offers one of the lowest options commissions among the largest investment companies in the country. Ally Invest Live, an extremely customizable trading platform, allows investors to trade complex options.
Extensive educational materials - articles, charts, videos, tutorials and even live events - are available at no charge for options traders of all levels.
Access to a free third-party research is another great advantage of low-priced Ally Invest. The company provides only one source of independent research, which is better than nothing as often third-party tools are benefits provided by higher-priced discount brokerage firms.
Open Ally Invest Account. Low-cost options commissions do not always mean poor trading tools or low quality service. All brokerages below offer the cheapest fees for options and at the same time provide sophisticated trading platforms and numerous powerful trading tools designed specifically for options trading.
Educational material for better understanding of the nature of options - the benefits and risk, pricing and trading strategies - are offered by each investment company. In addition, lowest options fees brokerages ranked highest among all options brokerages. The lack of understanding of the idea of leverage often creates a strong belief for many investors that options are riskier investments than stocks.
However, if used wisely, options are less risky than a similar position in a stock. After all, options were originally created as a risk management tool, but it can also be used as a speculation and an income tool. There are plenty of options strategies. Some of them are more conservative than others and can even be used by investors in their retirement accounts.
Options are sold in contracts, and the price of an options contract is called the premium. Options are also priced at a fraction of the price of the stock. There are two kinds of options - calls and puts. Call options act very much like a stock. If a stock goes up, the value of the call will generally increase with the price of the stock.
If investors think that prices are going to drop, there are put options, which generally move in the opposite direction of the price of a stock. Usually, when a trader buys a call or a put, he is speculating on a stock price. It allows investors to potentially profit from a stock price movement with a small initial investment for the options contract.
Income-oriented traders can use options to create an income as options allow investors to trade in any market conditions - up, down and even sideways markets. Trading options requires a brokerage firm's approval.
There are different approval levels in trading options. The higher the level the more complex the strategy and the higher the risk that it carries. Investors can apply for options trading privilege or ask for an upgrade of a current options approval level through their online account by providing their financial information, options investment objectives and level of experience in trading options.
Low cost options brokers Top discount online brokerages with the cheapest commissions for options trading.More...