Best for Options Traders

When it comes to online brokers catering to options traders, a few companies have consistently proven their worth through high ratings, advanced technology, and strong customer support. Among these top-rated brokers are OptionsHouse, thinkorswim, tradeMONSTER, and optionsXpress, all of which offer robust platforms tailored to the needs of options traders. These brokers have been recognized by Barron's and other financial publications for their exceptional offerings, highlighting their commitment to providing high-quality trading experiences and tools for investors.

OptionsHouse has earned a reputation as one of the best brokers for options trading, as evidenced by its third consecutive ranking as "Best for Options Traders" in Barron’s 2011 annual ranking of top online brokers. The company received a notable 4½-star rating for Trade Experience, a critical factor for traders seeking a seamless and efficient platform for executing options trades. OptionsHouse, founded by PEAK6 Investments in 2005, operates with a technological foundation built upon PEAK6’s extensive trading platforms. This integration of advanced trading tools and infrastructure gives OptionsHouse a significant edge in the market. The same state-of-the-art technology used by PEAK6 to manage large-scale positions across U.S. exchanges every day is leveraged by OptionsHouse to provide a smooth, professional trading environment for its customers.

The broker's platform is designed to cater to both beginner and experienced options traders. It offers various tools to help users manage their trades, including real-time data feeds, intuitive charting, and a suite of risk management features. The combination of these tools makes it easier for traders to analyze markets, execute trades, and optimize their strategies. OptionsHouse's continued recognition by Barron's speaks to its consistent performance and commitment to providing excellent service to its clients.

thinkorswim, Inc., a subsidiary of TD Ameritrade Holding Corporation, is another top contender in the world of options trading. For the second consecutive year, thinkorswim was rated the No. 1 broker by Barron’s, based on a variety of criteria including trade experience, trading technology, usability, range of offerings, research amenities, portfolio analysis, customer service, and education. This comprehensive approach ensures that traders have access to everything they need to succeed, from advanced charting tools to in-depth market analysis. Thinkorswim stands out for its cutting-edge technology and innovative trading features, making it a favorite among active traders, particularly those focused on options.

The thinkorswim platform provides traders with a customizable interface, allowing them to tailor the platform to their individual preferences. It also supports a wide range of asset classes, including options, stocks, futures, and forex, making it a versatile platform for investors who wish to diversify their portfolios. In addition to its powerful trading tools, thinkorswim offers extensive educational resources, helping both new and experienced traders understand the intricacies of options trading. For example, the platform provides access to live webinars, educational videos, and articles that explain various trading strategies, risk management techniques, and market analysis. This comprehensive suite of tools makes thinkorswim an excellent choice for traders seeking a high level of functionality, usability, and support.

tradeMONSTER is another notable broker that has garnered praise for its options trading services. For the second straight year, Barron’s named tradeMONSTER "Best for Options Traders" in their 16th annual online broker review. The broker offers a user-friendly platform equipped with real-time streaming quotes, advanced charting features, and options chains, enabling traders to monitor and execute trades effectively. One of the standout features of tradeMONSTER is its paperTRADE feature, which allows traders to practice strategies without risking real money. This is particularly beneficial for new traders or those looking to refine their skills before committing to live trades.

In addition to its trading tools, tradeMONSTER also provides a comprehensive help and learning center, offering resources such as educational articles, trading guides, and video tutorials. These resources are designed to help traders better understand the complexities of options trading and develop their skills over time. The broker’s focus on providing educational materials and hands-on tools like paperTRADE makes it an appealing choice for traders who want to learn the ropes of options trading in a risk-free environment.

Finally, optionsXpress, founded in 2000, has established itself as a pioneer in online stock, options, and futures brokerage services for self-directed investors. It has earned a 4-star rating from Barron’s, making it a reliable option for traders seeking an intuitive and efficient platform for executing options trades. As a member of the Securities Investor Protection Corporation (SIPC), optionsXpress provides a level of protection for traders, ensuring that investors' assets are safeguarded in the event of the financial failure of the broker-dealer, though it should be noted that this protection does not extend to losses resulting from declines in the value of securities.

OptionsXpress is known for its easy-to-use platform, which combines advanced trading tools with a simple, intuitive interface. Traders can access real-time quotes, advanced charting, and a variety of order types to manage their trades effectively. The broker also offers a range of educational resources, including webinars, tutorials, and market analysis tools, making it an excellent choice for traders at all levels of experience. Its solid reputation, user-friendly platform, and extensive educational offerings have made optionsXpress a go-to broker for many options traders.

In conclusion, the world of options trading is vast and varied, with numerous brokers offering a range of features and services to meet the needs of different types of investors. OptionsHouse, thinkorswim, tradeMONSTER, and optionsXpress are among the best brokers in the industry, each offering unique strengths and benefits. From advanced trading technology to comprehensive educational resources and robust customer support, these brokers have earned their rankings as top options trading platforms. Traders seeking a reliable, well-rounded broker for options trading can confidently consider any of these companies, knowing that they will be equipped with the tools, resources, and support needed to succeed in the dynamic world of options trading.