How do I choose the right options broker?

Screening should go both ways. The broker you choose to trade options with is your most important investing partner. Finding the broker that offers the tools, research, guidance and support you need is especially important for investors who are new to options trading. » Need some help? Learn how to choose an options broker

What are options traders?

Options traders are speculating that an underlying asset’s price will move one way or another. Stock option contracts tend to represent 100 shares of the underlying stock. But stocks aren’t the only option; investors can also buy and sell options on other assets, like bonds, commodities and exchange-traded funds (ETFs).

How do brokers screen options traders?

Brokerage firms screen potential options traders to assess their trading experience, their understanding of the risks and their financial preparedness. These details will be documented in an options trading agreement used to request approval from your prospective broker. » Ready to get started? See our list of the best brokers for options trading

What do brokers look for in a broker?

This usually includes income, growth, capital preservation or speculation. Trading experience. The broker will want to know your knowledge of investing, how long you’ve been trading stocks or options, how many trades you make per year and the size of your trades. Personal financial information.