Best Broker for Options Trading

  • September 12, 2020

Who's the best broker for options trading? With so many brokers out there, is one better than the other? We'll take a look at a broker be believe is the best.

However, with all the different options, no pun intended, out there for brokers, we do the heavy lifting to find the best.

Who's the Best Broker for Options Trading?

  • Who's the best broker for options trading? Hands down Tastyworks is the best broker for options trading. If you're new to trading options or a seasoned pro, there is no reason why you should be using any other platform other than Tastyworks. 

Let's take a look at Tastyworks a little closer. 

Tastyworks opened its virtual doors in 2017. Now, this may seem insignificant except for one thing. Their infancy means they aren't saddled with the legacy systems so often bogging down their older competitors.  

With unparalleled option order execution and some of the lowest fees on the market, Tastyworks is hard to beat. You'd be hard pressed with commissions capped at $10 per leg to find a better deal elsewhere.

Read our Tasyworks review to learn more about it.

Best Broker for Options Trading

1. An Options Focused Platform Geared Towards Profits

Without a doubt, Tastyworks' entire platform's geared towards evaluating volatility and the probability of profit. And since 90% of the trades placed are derivatives, so spend the majority of their time designing tools specifically for options traders.

So how exactly does Tastyworks do this? For starters, their analysis page which displays charting on open positions. I talk about this more in detail later, but it basically tells you how much you stand to gain or lose if you adjust your open position.  

Further to this, just last month, Tastyworks introduced ChartGrid. This fantastic desktop application allows traders to load up to 10 different underlyings on a single page.

More importantly, all of the charts are customizable, and you can trade directly from them. Which make the best broker for options trading.

2. A Consistent Look and Feel

There's nothing worse than getting used to a broker's specific charting platform, only to be faced with a different look on your mobile. Trading is hard enough as it is without struggling to find VWAP or level 2 data. 

Luckily the look and feel of their mobile platform is quite similar to their desktop version. Users can breathe a sigh of relief as their watch lists are the same on mobile, web, and downloaded platform. 

Although a newcomer to options trading might be initially uncomfortable, in time, you'll come to appreciate Tastyworks features.  

3. The Ability to Analyze Multiple Scenarios on Your Open Positions

You can thank their analysis page for that. Let's say you have a few different positions on Facebook, like an iron condor and a butterfly spread.

Within the page, you can analyze the risk profiles of combined positions and see how a possible adjusting position will change that trade outlook. 

And what's even better, you can quickly modify your existing position using the chart to enter/exit your trade rapidly. For this reason alone, Tastyworks gets my vote as the best broker for options trading. 

 I can't stress enough how remarkable this tool is. Any option trader will greatly appreciate the platform's spectacular attention to detail.

What Is the Best Platform for Trading Options?

  • ThinkorSwim is another platform you can look at when looking for the best broker for options trading. It has a stellar charting system along with the ability to trade every options trading style. However, with ThinkorSwim's issues as of late with their fills, Tastyworks is overtaking them. 

1. Let's Talk Money and Why Tastyworks Is the Best Broker for Options Trading

Pricing is one of Tastyworks strong points. And when it comes to options, they completely blow every other brokerage firm that I know out of the water.

There is no comparison. First of all, there are no account minimums at Tastyworks. Secondly, their initial commissions are practically non-existent.

And finally, they have no commissions on closing trades. In all my years trading, I have't seen any other broker do this.

2. Why Tastyworks Is the Best Broker for Options Trading

  • Built into their platform is every single tool you need to analyze and trade options. 
  • Their platform's geared specifically towards the options trader. Which means, you can analyze your risk profile if you have multiple positions on a specific underlying. 
  • You can analyze all the different risk profiles of a combined position.
  • With endless hours of trading videos, shows and up-to-the-minute trade ideas, you can't beat their educational supports.
  • $0 account minimum
  •  $0.00 stock trades, $1.00 to open options trades $0.00 to close
  •  In addition to their attractive commission fees, Tastyworks doesn't charge for the use of their software or access to data. This is definitely a bonus!

3. Some Downsides of Using Tastyworks for Options Trading

  • It can be overwhelming to newcomers as first. But, isn't every trading platform when you start?
  • Poor tools for technical analysis
  • Outside of ETFs containing bonds, there's no fixed-income trading for those who want to put some of their assets into a more conservative asset class.
  • Access to US only markets which leads to more limited trading in equities and futures.
  • News and data isn't the best. I suggest accessing your data elsewhere.  
  • You'll need to log in to The Quiet Foundation if you want any additional portfolio analysis beyond profit and loss.
  • No demo account to practice.
  • No direct-access routing, hinder day traders.

As long as you are prepared to use another platform to conduct your analysis and access data and news, then TastyWorks is by far the best broker for options trading.

4. Who Tastyworks Isn't For

Anyone who doesn't trade options. If options trading isn't your focus, I suggest you check out other brokers like Questrade or E*Trade. Even though Tastyworks fees are still competitive for futures and equities, you'll find better value elsewhere. 

Furthermore, compared to other brokers, the technical analysis and interactive chart functions are underdeveloped. So if you trade stocks based on charts, this is definitely not your platform.

Are You Ready To Learn Options Trading?

Now that you know the best broker for options trading, are you ready to lean? If so, you're in the right place! With Bullish Bears you will learn simple options trading strategies proven to profit.

You don't need to have a huge understanding of all the different technical indicators. Nor, will nor will you need to spend hours sifting through fundamentals.

Once you have your head wrapped around the basic options concepts - all offered free by the way, you can make simple trade decisions. Join us today to start your free trial!

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