FROM OUR PARTNERS

Best Options Trading Apps of 2022

Ashley Jackson

Trade put and call options from the palm of your hands by turning your mobile device into a powerful tool. We’ve considered the best options trading apps based on commissions, account minimums, ease of use, and overall quality.

Get up to $625 when you open and fund an account

$0

Fee Per Trade

$0

Account Minimum

Overview

J.P. Morgan Self-Directed Investing offers beginners and seasoned investors free trades and a portfolio tool to help build out their asset allocation.

What we like

  • Unlimited trades with $0 commissions
  • No minimum investment
  • Manage investments from a mobile app
  • Portfolio builder tool to help with asset allocation
  • Access to research and insights

What we don't

  • Limited accounts, such as no SEP-IRA
  • No fractional share trading

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Copy investments from successful traders

$0

Fee Per Trade

$0

Account Minimum

Overview

eToro is a multi-asset platform that offers both investing in stocks, cryptocurrencies, and trading in CDF assets. It provides an innovative approach to ‘Social Trading,’ also known as ‘Copy Trading.’ Social trading allows users to connect, share their trades, and copy successful traders’ trades for potential gains.

What we like

  • Commission-free real stock trading
  • Offers money and risk management tools
  • A lot of learning materials available
  • Offers a free demo account
  • Copy successful traders investments

What we don't

  • Higher spreads and rollover fees
  • High non-trading fees

Discover new ideas from an active investing community

$0

Fee Per Trade

$0

Account Minimum

Overview

Public provides access to a powerful suite of tools, daily insights from millions of investors, and curated content and news, so all members can have the tools and resources needed to invest with context.

What we like

  • All-in-one investing platform 
  • Wide selection of product offerings 
  • Commission-free
  • Insights from an investing community of millions
  • Invest in any fractional asset
  • Live in-app shows about the markets

What we don't

  • Limited account types
  • No in-person customer support

Margin trading available with premium account

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Axos Self-Directed Trading provides investors commission-free trades and an all-in-one solution for banking and investments.

What we like

  • Commission free trading on most assets 
  • Easy to use platform
  • Wide selection of product offerings 
  • No minimum deposit required
  • Extended market hours for premium accounts
  • Joint accounts available

What we don't

  • Crypto not supported
  • Premium account required for certain features
  • No in-person customer support

Offers fractional share trading

$0

Fee Per Trade

$0

Account Minimum

Overview

SoFi allows you to trade cryptocurrencies, stocks, and ETFs. It also uses the SIPC protection scheme and offers up to $500,000 in insurance coverage.

What we like

  • Free trading on ETFs and stocks
  • Offers fractional shares
  • A wide variety of cryptocurrencies
  • Free financial advice
  • No account minimum

What we don't

  • Does not offer mutual funds, bonds and options
  • Limited track record

Why use options trading apps?

Options trading apps have become popular. Here are a few of the most common reasons:

  • More informative: These platforms offer more information about what’s going on in the world of financial markets than any other platform does. For example, many apps offer access to real-time quotes on various assets such as currencies and commodities and stocks and indices.
  • Offer several strategic alternatives: Options trading apps provide access to many different types of investment strategies. You can choose between stocks, bonds, futures, currencies, or trade indices like the S&P 500 or Dow Jones Industrial Average (DJIA). Some apps even allow you to invest in commodities like gold or silver bullion bars.

You can also choose between long-term investments, buy & hold or short-term trades day trading. This is important because some people prefer one over another, depending on their personal goals and risk tolerance levels.

Are options trading apps safe?

Most apps are safe, but some are riskier than others. The best way to find out if the app is safe is to read reviews from other traders and see what they say about the service offered by the app. You can also check if the government regulates the apps. If it is regulated, you will have access to the services of a government agency that will help you recover your money if something goes wrong with your brokerage account.

What are the fees for options trading apps?

Commission on the first 100,000 contracts is usually $0.65 per contract. The fee decreases for high-volume traders, promising a competitive price for high-frequency traders. Fees vary widely from app to app, so comparing them before you open an account is essential.

Types of trading options

There are basically two types of trading options:

  • Put options: Put options are contracts that allow you to sell a security at a given price before the expiration date. If the underlying stock price falls, your put option will increase in value and if it rises, your put option will decrease in value.
  • Call options: Call options give you the right to buy a security at a given price before the expiration date. If the underlying stock price falls, your call option will decrease in value and if it rises, your call option will increase in value.

Benefits of trading options apps

There are various benefits for trading apps:

  • Easy access: Options trading platforms allow you to manage your investments from anywhere in the world using several devices such as smartphones, tablets, and laptops. This makes it very convenient for people who travel frequently or simply want to access their accounts from home without going through the hassle of going into a brick-and-mortar office.
  • Daily options: This app allows you to buy and sell stocks or indices in short time frames. This type of app gives you more control over your portfolio because you can sell or buy an option right before it expires. 
  • Access to top-tier tools: These apps also offer their clients access to top-tier tools that they can use in order to analyze stocks and make more informed decisions when trading options. These tools can help investors determine which options are worth buying or selling at any given time.

How to choose the best options trading apps

Here are some factors to consider when selecting an app:

  • Commissions: Some apps offer commission-free trading on options, while others charge a fee. This is one of the most important factors when comparing different apps. You should always compare the cost of trading options between apps to find the most affordable option for you.
  • Option strategies: Some apps allow certain option strategies that other apps don’t allow. For example, one app might enable you to buy calls and puts with different expiration dates on the same underlying asset without charging any additional fees or minimum deposit requirements, while another may charge a fee for each trade or require a minimum deposit amount before allowing such trades to be made.
  • Extra features: Some apps offer additional features that are not essential but can be helpful. For example, some apps allow you to trade on margin or have more advanced charting tools. Other apps offer educational resources and trading signals from experts. If you have a specific use case for an app, i.e., margin trading, this is important to consider when choosing an option app.
  • Make sure the trading platform is easy to use: The best brokers offer intuitive interfaces that make placing trades simple and quick. If you don’t like using the platform provided by your broker, see if it offers any third-party alternatives.