Option Trading Brokers

| April 11, 2012

A broker or brokerage firm is a financial institution.  They’re a trader’s main point of contact with the options markets.

Traders open and fund accounts with the broker.  Brokers place option trades at the request of the trader.  These requests can be made in person, over the phone, or via the internet.

Since your broker is your main point of contact, it’s important to pick a good broker.

And there are plenty of choices to choose from.  Options trading brokers come in all shapes and sizes.

Why?

Option trading is much more commonplace today than it was in years past.  In fact, many active traders use options strategies alongside their stock strategies.  It’s obviously more convenient to trade stocks and options from one account.  As a result, most stock brokers also offer options trading as well.

Today, traditional brick and mortar brokerages with live people can place your options trades.  There are also online brokers where you enter trades yourself on your computer or mobile device.

The good news is there’s no right or wrong answer when it comes to selecting an option trading broker.  It’s all about finding one that fits your trading style, comfort with technology, and budget.

However, in today’s fast paced world of options trading the trend is toward online options trading.  For one, executing a trade online is much faster than doing it in person or over the phone.

And with today’s smartphone and tablet technology, you can trade options from virtually anywhere.  You can do it from the comfort of your home, while you’re lounging by the pool, or while you’re waiting for a flight at the airport.  It’s truly amazing how technology has changed options trading.

You can find rankings and reviews of the top brokers at Barron’s.  Here are some of the brokers they gave high marks…

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Category: Options Trading Basics

About the Author ()

Marcus Haber is the co-editor of Options Trading Research and boasts well over a decade of real-life options experience. Learning from some of the biggest names in the business, Marcus has served as an Options Strategist for a number of firms and was also appointed to the Options Advsiory Board with Pershing, a branch of the Bank of New York.

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