Evaluating the Top Options Trading Apps on the Market
As an options trader, you know how important it is to have a robust, user-friendly app to execute trades efficiently. With the proliferation of options trading platforms in recent years, it can be challenging to determine which one best fits your trading needs and style. This article provides an in-depth evaluation of the top options trading apps available today based on key features such as usability, tools and analytics, trading flexibility, and costs. We examine both free and paid platforms to help you make an informed decision on which app to use as the foundation of your options trading. You will also learn insider tips from experienced options traders on maximizing these apps to improve your trading performance. With this guide, you will have the knowledge to confidently choose an options trading app that aligns with your goals as a trader.
What to Look for in an Options Trading App
Reliability and Security
When evaluating options trading apps, reliability and security should be top priorities. Look for apps offered by reputable brokers with a proven track record of dependability and security. Check if the app encrypts your data and accounts, uses two-factor authentication, and has never experienced major data breaches. The app should also have a record of minimal downtime or outages so you can access your account and make trades whenever needed.
An Intuitive Yet Powerful Interface
A good options trading app should be intuitive enough for beginners yet provide powerful tools for advanced traders. Look for an app with an easy-to-navigate interface, simple account setup, and educational resources to help you get started. However, the app should also offer advanced charting, screening, and trading capabilities for more sophisticated options strategies as your knowledge and experience grow. Some of the best apps provide an optimal balance of simplicity and power.
Competitive Commissions and Fees
Don’t overlook the impact of commissions and fees on your options trading profits. Compare the commissions and contract fees charged by different brokers to find an affordable app. Some charge flat-rate commissions while others use a tiered structure based on volume. Look for apps with low base rates, volume discounts, and occasional promotional offers for the best value. The fees you pay over time can significantly affect your bottom line.
Access to the Options You Need
The options trading app you choose should provide access to the specific options contracts you want to trade. Not all brokers offer the same range of underlying stocks, indices, ETFs, futures, currencies, and commodities options. Compare which options each app supports to make sure you have access to the markets that match your trading interests and strategies. An app offering a wider range of options will give you more opportunities to find profitable trades.
Top 5 Options Trading Apps for Beginners
E*Trade
One of the most popular options trading platforms, ETrade allows you to trade options on stocks, ETFs, and indexes. They offer an easy-to-use mobile app, as well as desktop platforms with intuitive tools for analyzing potential options trades. ETrade is ideal for beginners with educational resources to help you learn the basics of options trading. They charge a flat base commission of $0 per options trade.
Tastyworks
Tastyworks is a brokerage firm built specifically for active options traders. They provide a simple yet powerful desktop and mobile platform with tools focused on options trading. Tastyworks offers low commissions, starting at $1 per options contract, as well as extensive education for learning options strategies. However, their tools may be too advanced for complete beginners.
TD Ameritrade
A reputable broker for all investment types, TD Ameritrade provides a straightforward options trading platform. They offer guided education for options basics all the way up to advanced strategies. With a mobile app and two desktop platforms to choose from, TD Ameritrade works well for beginners and seasoned traders. Options commissions start at $0.65 per contract.
Interactive Brokers
For the advanced beginner, Interactive Brokers offers an options trading platform with powerful tools and global market access. However, their platforms have a steep learning curve and options commissions of $0.70 per contract, making them better suited for active or professional traders. They do provide education for getting started with options.
Robinhood
Robinhood offers free options trading, making it appealing for beginners on a budget. However, their options platform is basic, lacking many of the tools and resources provided by other brokers. While you can trade options on Robinhood, you may outgrow their capabilities as you become more proficient. For the cost, though, Robinhood is a place to start for learning the ropes of options trading.
Advanced Options Trading Apps for Active Traders
Once you have a solid understanding of options trading fundamentals, you may want to explore more robust platforms with advanced tools. Several feature-rich apps are geared toward active, experienced options traders.
Thinkorswim Mobile
TD Ameritrade’s Thinkorswim app provides sophisticated options analysis and trading capabilities. You can analyze options strategies with its Strategy Roller feature, view options chains, place complex multi-leg options orders, and receive alerts on price movements. Thinkorswim’s charts allow you to overlay studies like Bollinger Bands® to identify trading opportunities. However, the sheer number of tools and features can seem overwhelming to newer traders.
tastyworks
The tastyworks app specializes in options trading, offering a simple yet powerful interface. It provides streaming options chains, volatility skews, and advanced charts to help identify opportunities. You can also analyze potential returns for different options strategies. tastyworks stands out for its low commissions and ability to trade futures in addition to options. However, it may not suit beginners as well as other platforms.
Option Samurai
A newer entrant, Option Samurai delivers an intuitive options trading experience focused on education. It provides lessons and videos to help you learn different options strategies, and includes tools to analyze and place various types of options trades. You can also join Option Samurai’s community to discuss trading ideas. While still gaining popularity, Option Samurai offers an easy way for active traders to continue honing their knowledge and skills.
For experienced options traders wanting to step up their game, platforms like Thinkorswim, tastyworks, and Option Samurai provide advanced capabilities to identify and act on opportunities in the options market. With their sophisticated offerings, however, comes a learning curve to leverage all the available tools and features to your advantage. But for those willing to invest the time, the rewards of mastering these platforms can be significant.
Choosing the Right Options Trading Platform for Your Needs
When determining which options trading platform is right for you, several factors should be carefully considered based on your investment goals and level of experience.
Functionality
For beginners, an easy-to-use interface with educational resources is ideal. Platforms like E*Trade and TD Ameritrade offer intuitive designs and a large selection of tools to help you learn options trading strategies. More advanced traders will require advanced charting, screening, and order entry features found in platforms like Thinkorswim or Interactive Brokers. Consider what tools will be most useful to support your options trading needs.
Fees
Options trading fees can vary significantly between platforms. Most major brokers charge a small per-contract fee for options trades, typically a few dollars. Some brokers bundle options fees into an all-inclusive pricing model. Be sure to compare the total cost for the number of contracts you expect to trade each month. Low fees are ideal, but the platform’s functionality is also important.
Selection of Investments
The range of available investments differs between platforms. If you plan to trade a variety of options, from stocks and ETFs to futures and foreign exchanges, choose a platform with a robust selection. Some platforms specialize in certain assets. Consider which types of options you want to trade now and potentially in the future.
Customer Service
For new options traders, high-quality customer service and education are essential. Look for a platform that offers resources to help you learn options strategies, as well as live support when you have questions. An experienced support team can help guide you through complex trades and resolve any issues.
Evaluating options trading platforms based on these key factors will help ensure you choose a platform well-suited to support your options trading needs and set you up for success. With the right platform in place, you can focus on developing and executing effective options trading strategies.
FAQs About Options Trade Apps
What are the benefits of using an options trading app?
Options trading apps provide convenient access to your brokerage account and the ability to trade options on the go. The best options apps offer advanced tools for options analysis, alerts, and education to help you become a more informed trader. Options apps can save time by streamlining the options trading process.
What features should I look for in an options trading app?
The top options trading apps offer features like real-time streaming quotes, customizable alerts, integrated news feeds, charting tools, and options screening tools. Look for an app with strong security, low fees, and available customer support. Some apps provide tools for analyzing potential options strategies like spreads, straddles, and strangles. The best options apps are user-friendly and suitable for traders of all experience levels.
How much does it cost to use options trading apps?
Many major brokers offer free options trading apps. Some charge small monthly platform fees for live streaming data or more advanced tools. Most brokers charge standard commission rates for options trades executed through their mobile apps. It is best to compare rates across different brokers to find an affordable option that suits your needs.
What are the top options trading apps?
Some of the best options trading apps are TD Ameritrade’s thinkorswim Mobile, ETrade’s Power ETrade, Charles Schwab’s StreetSmart Edge, and Interactive Brokers’ Trader Workstation. These apps provide advanced options analysis tools, streaming data, charting, and low-cost options trading. The options app you choose will depend on your broker and trading needs.
In summary, options trading apps provide an easy way to trade on the go with your mobile device. When choosing an options trading app, look for advanced options tools, low fees, security, and customer support. Compare rates across different brokers to find an app with the features you need at an affordable price. With the right options trading app, you’ll have greater flexibility and control over your options trading strategy.
Conclusion
As you can see, there are several quality options trading apps available today that can help make options trading more accessible and successful for retail investors. By considering your personal needs and preferences, reviewing features like advanced charting and analysis, educational resources, paper trading availability, and commission costs, you’ll be in a good position to select the right app to download. Whichever you choose, utilizing a mobile app can provide a convenient way to check positions, make trades, and continue learning on the go. With the power of a full-featured trading platform now in the palm of your hand, it’s easier than ever for individual investors to incorporate options strategically as part of an overall investment approach.
