How to choose the best options trading platform for you
There are several key factors to consider when looking for an options trading platform to suit your needs and goals. Explore how you can choose the best options trading platform for you.
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Visit help and support for more information.
Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We’re available from 9am to 5pm (UK time), Monday to Friday.
Contact us 0800 409 6789
Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.
Contact us 0800 195 3100
Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.
Visit help and support for more information.
Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.
Visit help and support for more information.
Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We’re available from 9am to 5pm (UK time), Monday to Friday.
Contact us 0800 409 6789
What is an options trading platform?
An options trading platform is a digital marketplace where you can buy and sell options contracts online. Options are contracts that give you as the holder the right, but not the obligation, to trade an underlying asset at a set price on or before a certain date.
When trading options, you can choose to buy or sell call and put options.
- Call options
- Put options
A call option is a contract that gives you as the buyer the right, but not the obligation, to buy a specific asset at a pre-set price on, or before, a specified expiry date. An increase in the underlying asset’s market price is likely to lead to the call option’s appreciation.
When selling a call option, you’ll have the obligation to sell the underlying asset at a pre-set (strike) price. You’ll sell a call option if you believe that the underlying asset’s price won’t rise above the strike price by the expiration of the contract.
In-the-money (ITM) options contracts have intrinsic value. This means an underlying asset’s option will have exceeded its strike price, leaving it with an intrinsic value above 0. When a call option’s exercise (ie strike) price is below the underlying asset’s current price, then it’s ITM. On the other hand, when a put option’s exercise price is above the asset’s current market price, it’s ITM.
A put option is a contract that’ll give you as the buyer the right, but not the obligation, to sell the underlying asset at a specific price, at – or before – a pre-set expiry date. The intrinsic value of a put option increases if the asset's market price falls below the strike price.
An option is out of the money (OTM) when the contract hasn’t reached its strike price, meaning it has no intrinsic value and will likely not be worth much when it reaches its expiry date.
Factors to consider when choosing an options trading platform
Below are some of the key factors, including platform features, to consider when choosing a broker interface on which to trade options.
Products and markets: ways of trading as well as the number of markets you can get exposure to
Commission and fees: how much it costs to trade and any other applicable charges
Ease of use: a user experience that’s designed for navigation of the interface in an intuitive way
Tools: platform features like charts, trading signals, alerts, indicators and computational analysis
Risk management: ways of mitigating risk, eg stop-loss orders, guaranteed stops and price alerts
Trading hours: how many days per week you can trade and the times during which you can open and close positions
Customer service: reliable, expert support in your preferred way, eg phone, email or X (formerly Twitter)
Each of our award-winning platforms1 offers an intuitive interface, real-time data, risk management tools, custom watchlists and educational resources to support your trading. You can manage winning positions automatically by setting take-profit orders based on your risk-reward ratio. Plus, our US options and futures platform’s quick order adjustment features enable you to automatically duplicate, invert and replace orders that haven’t been filled yet – you can perform each of these actions manually (using a separate deal ticket) on our flagship platform.
How to start trading options with us
You can trade listed and over-the-counter (OTC) options on our award-winning platforms.1 You can use our US options and futures account for exposure to on-exchange US options.2 You can also trade options as the underlying of a spread bet or contract for difference (CFD) with us.
Trading US-listed options with us
Stock options with underlying securities such as Apple and Tesla
Index options, including those on assets like the S&P 500 and Russell 2000
Exchange-traded fund (ETF) options like those on assets such as the SPDR S&P 500 ETF Trust (SPY) and iShares Russell 2000 ETF (IWM)
Trading on options using spread bets and CFDs with us
Forex options such as those on major currency pairs (eg EUR/USD, GBP/USD, USD/CHF and EUR/GBP)
Share options with underlying securities that are stocks – eg FTSE 100 shares and certain US shares
Stock index options, including those on assets like Wall Street and the NASDAQ 100
Commodity options with an underlying such as gold or oil
With us, you’ll take options positions with leverage when using a spread betting, CFD trading or US options and futures margin account. Leverage comes with increased risk and complexity as both potential profits and possible losses are magnified to the full value of the trade. It’s important to manage your risk as you could lose money quickly – you could even lose more than the deposit you paid to open the position.3
To start trading options with us, you can follow these steps:
Do your research to get an understanding of how options work
Choose which account to use: US options and futures, spread betting or CFD trading
Choose the market and asset you’re interested in
Decide on your directional assumption
Choose your position size
Manage your risk and open your position
Monitor and close your position
Options costs and fees
Knowing what brokers’ costs and fees are for options trading may help you avoid certain charges in the long run. We try to be as transparent as possible about charges relating to your trades, enabling you to make informed decisions that could help prevent unexpected commissions and fees chipping away at the funds in your account.
Below are the main costs of trading with us.
US-listed options:
- From $1.00 per contract to open and no commission charge to close options positions
- Opening commission for an equity or ETF options trade is capped at $10.00 per leg (ie buying or selling one call or put options contract at a time)
Spread betting: commission-free; you’ll pay a spread, ie the difference between the bid and ask prices
CFD trading: spread charges apply to CFD trades for all markets except shares. For every share CFD trade, you’ll pay a commission instead of a spread
It’s important to keep in mind that the above are the main costs of trading on exchange or over the counter with us. Other fees and charges may apply for these ways of trading (eg overnight funding fees for spread bets and CFDs, and currency conversion fees).
Options trading broker comparison
Here’s a table showing how our options trading platforms compare to those of other brokers in the UK:
|
IG |
CMC Markets |
Interactive Brokers |
Saxo |
Options offerings |
Listed options and spread bet and CFD options |
CFD options |
Listed options |
Listed options and CFD options |
Broker trading hours* |
24/7 except from 10pm Friday to 8am Saturday |
Sunday 9pm to Friday 10pm |
8am to 6pm Monday to Friday |
8am to 5pm Monday to Friday |
Commissions and fees** |
|
|
|
|
Customer service |
Get expert support from our team via phone, email, X (formerly Twitter) or live chat
|
Access this service via email and phone |
Access this service via email, phone and live chat |
Get 24-hour customer service when markets are open, visit the self-service support centre or raise a ticket |
Headquarters |
London, UK |
London, UK |
Greenwich, Connecticut, USA |
Copenhagen, Denmark |
* Live trading hours vary based on the product and/or market.
** Additional fees may apply.
Educational resources for options traders
Use of educational resources is important for beginners and experienced options traders alike. It offers opportunities for knowledge-building and skills refinement that can help you in working towards your trading goals.
Some of the educational resources we provide for traders include options need-to-knows , IG Academy and how-to guides, eg what are options and how to trade them.
Advanced tools for experienced options traders
Advanced tools for options trading can provide valuable insights regarding your positions and managing your risk. These tools include the Greeks, which you can use on our US options and futures platform. The four prominent Greeks are delta (∆), gamma (Γ), theta (θ) and vega (V).
Here’s what each measures:
Delta – the change in an option's price or premium resulting from a change in the underlying asset’s price
Gamma – how much change there is in an option’s delta over time based on movement in the underlying
Theta – time value in options prices, ie how much an option’s price declines over time (time decay)
Vega – the risk of changes in implied volatility, ie the expected volatility of the underlying asset
Theta and delta shown for calls and puts using table mode in the trade tab of our US options and futures platform:
Vega and gamma shown for calls and puts using table mode in the trade tab of our US options and futures platform:
Our chief market analyst's considerations for picking an options trading platform
Choosing the right options trading platform is a crucial decision for traders of all experience levels. The ideal platform for you should align with your trading style and goals. To find the one that’s right for you, you can consider factors such as the features it provides, its usability and the cost-effectiveness of the products it offers.
Start by evaluating the user interface. Look for a clean, intuitive layout with customisable workspaces and mobile compatibility. The platform should be easy to navigate, with clear charts and data presentation
Quality research and analysis tools are essential. The best platforms offer real-time quotes, advanced charting capabilities, technical indicators, options chains and risk analysis tools. For newer traders, educational resources such as webinars, tutorials, articles and paper trading features can be invaluable
Consider the platform's execution speed and reliability. Fast order routing, minimal slippage, and stable performance during high-volume periods are crucial for successful options trading
For you to understand the broker’s fee structure, including per-contract fees, base fees and any additional charges that might impact your profitability, there has to be transparency around this on the trading platform
Look for responsive, knowledgeable customer support that’s available through multiple channels
Ensure the platform offers suitable account types for your needs and implements robust security measures like two-factor authentication and encryption
Verify that the broker is authorised by a body like the Financial Conduct Authority (FCA) to ensure compliance with the relevant regulations
Access to real-time market data and integrated news feeds can aid decision-making. Advanced traders may benefit from strategy builders and risk-reward analysis tools
In today's mobile-first world, a robust mobile app with full trading capabilities is increasingly important
Don't overlook the financial stability of the broker offering the platform. A broker's financial health can impact your ability to access funds or execute trades
When making your choice of which options trading platform to use, prioritise features that align with your trading style and goals. Take advantage of demo accounts to test different platforms before committing. Consider the overall value provided by the platform's tools, education and support. By carefully evaluating these factors, you can select a platform that enhances your options trading experience and supports your trading journey.
FAQs
Which online brokers that offer options trading have the lowest commissions and fees?
While several online trading brokers offer competitive pricing, it's useful to do thorough research, comparing them to find the one that you prefer.
It’s also important to note that fee structures can change and what's best for one trader may not be ideal for another depending on factors such as trading volume and strategy.
To enable a cost-effective trading experience for you, our offerings are priced competitively, including our listed options products that you can trade on our dedicated US options and futures platform.
Can you trade options in the UK?
Yes, you can trade options in the UK.
With us, you can trade pure-form options using our US options and futures platform.
You can also trade options as the underlying assets of spread bets and CFDs on our flagship OTC platform.
What is the safest options strategy?
No options strategy is risk-free, but there are some that are generally considered lower risk than others. The ‘safest’ options trading strategy often depends on market conditions, your risk tolerance and specific trading goals.
A strategy that's often regarded as relatively safe is covered call writing – it involves:
Owning shares of a stock
Selling (or writing) call options (equivalent to the number of shares you own) on that same stock. Each standard equity options contract represents 100 shares of the underlying stock, so you’d sell one call for every 100 shares you own
You can employ this strategy in our US options and futures account4 but not a spread betting or CFD trading account, as the latter two accounts only enable you to speculate on the price of options rather than actually buy or (as is required with covered call writing) sell these contracts.
Covered call writing is considered relatively safe because of:
Limited downside risk: your primary risk is the potential decline in the stock price
Profit generation: you’ll earn premium from selling the call options, which could provide a small buffer against minor price declines
Defined risk: your maximum loss is limited to the price you paid for the stock, minus the premium received
Flexibility: you can adjust your strategy monthly by choosing different strike prices or expiration dates
However, it's important to note that:
The strategy caps your upside potential on the stock
It doesn't protect entirely against significant drops in the stock’s price
Other relatively conservative options strategies include:
Cash-secured puts
Collar strategy
Bull call spreads
Try these next
Discover options features, and potential benefits and risks of trading options.
Find out what options are and how you can trade them with us.
Learn about trading on our US options and futures platform in the UK.
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1 Spread betting and CFD trading platform and app: best platform for the active trader, best multi-platform provider and best finance app as awarded at the 2024 ADVFN International Financial Awards. US options and futures platform: best options trading platform as awarded at the 2024 ADVFN International Finance Awards; best overall options trading platform of 2024 as awarded by Investopedia (criteria, evaluation and ranking determined by Investopedia); No.1 desktop options trading platform and No.1 desktop futures trading platform as awarded at the 2024 StockBrokers.com awards. 2 You can trade US-listed options in a margin or cash account. When you trade in a margin account, you’ll have more strategies available to you – eg selling naked call options and defined-risk options spreads. Options positions aren’t fully cash-secured (eg you aren’t necessarily required to put up the buying power in full upfront) in a margin account. In a cash account, options trading is non-marginable (ie you can’t borrow cash to establish positions, so you’ll commit the full value of your trade upfront). 3 Leveraged products are complex financial instruments, with which an upfront deposit – called margin or buying power – is used to open a larger trade. Your margin will only be worth a certain percentage of your trade, but potential profits and losses will be calculated based on the total position size, not your margin. This makes leveraged trading inherently risky and should never be approached without a trading strategy and adequate risk management in place. 4 There are several ways that the shares necessary for this strategy can be acquired with a US options and futures account, namely: physical delivery (which will occur if an equity options contract expires in the money and you have enough equity in your account to cover the acquisition), assignment and direct purchase via our US options and futures platform. Alternatively, you could transfer shares from a share dealing account to a US options and futures account, provided the shares in question are listed in the US. |
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