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Thadeus Geodfrey is an experienced and celebrated writer and self-taught trader specialising in cryptocurrencies and forex. Market analysis, identifying fraudulent brokers, and security are his cup of tea. At BrokerRaters Thadeus develops educational materials and user-guides, offer market insights, ensures our content conforms to the best standards. Join Thadeus to succeed in your trading endeavours.
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Don’t have money to invest in assets like stocks and bonds? Here’s some good news. You can become an options trader, speculate on the future prices of such products, and earn considerable returns. What do you have to do, you ask? The simplest answer is this: learn the basics, then find the best options trading platform UK. Everything else will fall into place.
Finding the best UK options trading platform may sound like the easiest task, but it’s very difficult. Many companies, both good and bad, offer these platforms. If you start vetting all available service providers, you’ll waste a truckload of valuable time on this nightmarish task. But don’t worry, our experts have already done that.
We spent days evaluating different UK service providers and are now here to introduce you to the best options trading platforms the UK has to offer.
List of the Best Options Trading Platforms
- Interactive Brokers – Overall Best Options Trading Platform UK
- eToro – Best Options Trading Platform for UK Social Traders
- FP Markets – Most Economical Options Trading Platform in the UK
- AvaTrade – Best UK Options Trading Platform for Educational Resources
- Plus500* – Simplest Options Trading Platform in the UK
Note: 82% of retail investor accounts lose money when trading CFDs with this provider.
In This Guide
UK Options Trading Platforms: Comparison Table
At BrokerRaters, we have an expert team committed to helping our readers find the best trading brokers, apps, and platforms. We are unbiased and always vet every brand extensively. Our gurus check numerous elements while doing so, from regulation and authorization status to overall costs and how responsive the support team is. Why do we do all that, you wonder?
Vetting brokers and platforms based on crucial factors like the ones we’ve mentioned enables us to highlight the most indispensable details. By doing so, we put you in a better position to identify service providers and platforms that align with your trading needs, goals, style, and expectations. That said, you can start evaluating the recommended service providers using the comparison table below. We’ve outlined the most crucial factors, from licensing and regulation to supported payment methods and demo account availability, on it.
| Best Options Trading Platform | Licence & Regulation | Support Service | Software | Payment Method | Demo Account |
|---|---|---|---|---|---|
| Interactive Brokers | FCA, SEC, FINRA, ICS, CBH, ASIC, SFC, MAS | 24/5 | IBKR Desktop, IBKR Trader Workstation (TWS), IBKR Mobile, IBKR GlobalTrader | Check, wire transfer, direct bank transfer (ACH) | Yes |
| eToro | FCA, MAS, CySEC, FSCAASIC, SFSA ADGM, MFSA, FSAS, GFSC, SEC | 24/5 | eToro investing platform and app, Multi-asset platform, Social Trading, Copy Trader, Smart Portfolios | Credit/debit cards, Bank transfer, Klarna, PayPal, Skrill, Neteller | Yes |
| FP Markets | FCA, MAS, FSCA, ASIC, CMA, CySEC, FSA | 24/7 | MT4, MT5, TradingView, cTrader, WebTrader, Mobile App | Credit/debit cards, Neteller, Skrill, Bank transfer, Google Pay, Apple Pay | Yes |
| AvaTrade | FCA, MAS, FSCA, CBI, CySEC, PFSA, ASIC, B.V.I FSC, FSA, ADGM, ISA | 24/5 | WebTrader, AvaOptions, AvaTrade App, Mac Trading, MT4, MT5, Automated Trading | Credit/debit cards, Neteller, Skrill, Wire transfer, WebMoney | Yes |
| Plus500* 82% of retail investor accounts lose money when trading CFDs with this provider. | FCA, FSCA, CySEC, ASIC, FMA, MAS | 24/7 | Plus500 CFD | Visa, MasterCard, PayPal, Skrill, Bank transfer | Yes |
Platforms Short Overview
An online trader has many enemies, including high fees and limited access to the right financial assets. For enhanced odds of success, we urge you to check every platform’s fees and costs. Be more mindful of account maintenance fees, spreads, and commissions. That is crucial, especially for frequent traders who can rack up immense costs within short periods. Trade with a platform with fair, cost-effective pricing; it’s the best way to ensure more of your potential profits stay with you. Furthermore, ensure the service provider you sign up with offers your favorite financial assets.
In the sections below, our experts have reviewed the fees and assets we discovered while researching and analyzing the best options trading platforms the UK has to offer.
Fees
| Best Options Trading Platform | Minimum Deposit Requirement | Commission/ Spreads | Deposits/ Withdrawals | Inactivity Fee |
|---|---|---|---|---|
| Interactive Brokers | £0 | From 0% | From £10 withdrawal fees | £0 |
| eToro | £100 | From 0% | £5 withdrawal fee | £10 monthly |
| FP Markets | £100 | From 0.0 pips | Free | £0 |
| AvaTrade | £100 | From 0.13% | Free | £50 after every 3 consecutive months of inactivity |
| Plus500* | £100 | From 0% | Free | £10 |
Note: 82% of retail investor accounts lose money when trading CFDs with this provider.
Assets
| Best Options Trading Platform | Stocks | Forex | Crypto | Commodities | Indices | ETFs | Options |
|---|---|---|---|---|---|---|---|
| IBKR | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| eToro | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| FP Markets | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| AvaTrade | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Plus500* (CFDs) | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Note: 82% of retail investor accounts lose money when trading CFDs with this provider.
Our Expert Opinion about Options Trading Platforms UK
In this section, we have reviewed what our gurus consider to be the best options trading platforms in the UK. The recommended service providers hold a special place in our hearts. Why? First and foremost, they operate under the oversight and authorization of the FCA. Moreover, they are also subject to regulations set by authorities in multiple regions, from the FSCA in South Africa to ASIC in Australia.
Is that all? Not really. Read on to discover more positive aspects that make these service providers more than exemplary.
1. Interactive Brokers – Overall Best Options Trading Platform UK
Founded by Thomas Peterffy in 1993, Interactive Brokers (IBKR) is our best overall options trading platform in the UK. The broker’s platform allows interested parties to trade options on 30+ global market centers. Offered products come from different regions, from Canada and the Cayman Islands to the US, Mexico, and Brazil. You can use the platform’s simplified search feature to find fitting products based on criteria like region.
IBKR has its clients’ best interests at heart. The service provider ensures its traders keep a significant chunk of their returns by charging low commissions. You can trade US options contracts on its platform and enjoy tight commissions starting from £0.65 per contract. If you are a professional with a reasonable budget, you can opt for an IBKR Pro account, which comes with commissions as low as £0.15 per contract. If the “good budget” clause doesn’t apply to you and your present financial predicament is wanting, don’t fret. You can still trade with IBKR and have unmatched experiences for numerous reasons, starting with minimum deposit requirements. This broker has no minimum initial deposit requirement, so you can top up your account with any amount after signing up.
We can’t conclude IBKR’s mini-review without mentioning the broker’s impressive range of products. Besides options, IBKR users can trade currencies, futures, and other securities. That’s merely the start. With an IBKR account, you can also invest in popular stocks like Amazon, ETFs like SPGP, tens of thousands of mutual funds, and other instruments.
Interactive Brokers
✔$0 minimum deposit requirement
✔No account inactivity fees
Pros & Cons
Fees
Trading Assets
Pros
- Low commissions on options trading, starting from £0.15 per contract
- Thousands of other tradable securities are offered, from FX pairs to commodities
- Traders can earn a steady income from investment products like stocks and bonds
- No minimum deposit requirement
- No account inactivity fees
- Excellent support service
Cons
- Only offers one cost-free withdrawal per month
- More hidden fees than its peers
After conducting thorough research and extensive assesments, we can confidently categorize Interactive Brokers as one of the most affordable service providers out here. As we’ve already mentioned, this company has no minimum deposit requirement. Plus, it allows traders to fund their accounts with payment methods like ACH and wire transfer at no additional cost. We also highly recommend IBKR because, unlike other brokers, it doesn’t require traders to pay inactivity fees for dormant accounts.
Here’s an overview of the Interactive Brokers fees and charges our team unearthed during our evaluation and exploration:
| Type | Fee |
|---|---|
| Account opening and maintenance | $0 |
| Deposit | $0 |
| Withdrawal | Yes |
| Inactivity | $0 |
| Overnight charges | Yes |
| Currency conversion | 0,5% |
2. eToro – Best Options Trading Platform for UK Social and Copy Traders
Very few UK options trading platforms have social and copy trading features. The good news is that eToro is one of the exceptional few. Join this platform today and get the opportunity to copy experienced options traders raking in high returns. Do you have to pay for this service? No. Moreover, you can sit back, relax, and let eToro’s systems automatically replicate copied traders to your portfolio in real-time.
Besides copy trading, eToro supports social trading. The broker has an active community with 35 million+ users. You can join it today, share insights with fellow options traders, discuss strategies, and grow exponentially. eToro’s copy and social trading functionalities can be incredibly beneficial to your options trading career, especially if you are a novice and have yet to gain the skills you need to generate consistent returns.
While testing eToro’s platform, we were impressed by its user-friendly interface. Whoever designed it had one target in mind: optimum simplicity. Everything is where it should be and extremely easy to find; there are no unnecessary complications that can overwhelm new users. The cherry on the cake is that this broker has extensive educational materials that cover everything from how to open a new account and use the platform to the basics of advanced trading strategies.
You can trade options with eToro today and magnify potential returns with flexible leverages. This broker also offers you the chance to profit from zero-commission and earn up to 4.9% interest on cash balances. Furthermore, while trading options, you can diversify with tradable securities like forex pairs and indices or investment products like stocks and crypto.
eToro
✔ User-friendly trading platform
✔ Over 6000 trading instruments
Pros & Cons
Fees
Trading Assets
Pros
- Users can enhance profitability by copying top-performing traders and investors
- Traders can become members of a bustling community and learn or share ideas with other traders
- User-friendly interface that can’t overwhelm even the greenest traders
- You can earn up to 4.9% interest on your cash balance while trading options
- Zero-commission options with no contract fees are available
- New users can claim juicy bonuses after funding their options account
Cons
- Conversion fees can reach up to 3.0%
- Users with dormant accounts are subject to a £10 monthly inactivity fee
eToro has a transparent fee structure that is easy to understand and helps you plan accordingly. From our analysis, we discovered the following trading and non-trading eToro fees.
| Trading and Non-Trading Charges | Details |
|---|---|
| Account Opening | $0 |
| Management Fee | $0 |
| From $50, depending on your jurisdiction | 0.6 |
| Commission | From 0% on stocks and ETF trading |
| Spreads | From 1 pip on major currency pairs |
| Deposits and Withdrawals | $5 withdrawal |
| Inactivity | $10 monthly |
| Currency Conversion | 1.5% or 3.0%, depending on the currency or payment method |
| Overnight Funding | Varies based on global market conditions |
| Copy Trading | Free |
3. FP Markets – Most Economical Options Trading Platform in the UK
We spent hours examining FP Markets’ fees, and what we discovered has led us to believe this is the most economical options trading platform in the UK. Our gurus started with forex spreads. We encountered super-low numbers of up to 0 pips on popular products like GBP/CAD, EUR/USD, and AUD/CAD. Then, we checked metals, commodities, and cryptocurrencies, and the spreads were breathtaking.
Before going any further, allow us to explain a crucial concept. FP Markets has 2 main types of accounts: Standard and Raw. If you are interested in the lowest spreads of up to 0.0 pips, opening a Raw account is the way to go. A Standard account will expose you to zero commission, but the lowest spreads you’ll get will be 1.0 pips. This service provider also offers Iress and Islamic accounts.
Admittedly, you need at least £100 to start trading with FP Markets’ cheapest account. But that’s a reasonable minimum deposit requirement, considering some providers’ numbers are as high as £500+. To make things better, this broker supports multiple funding methods that have no deposit fees, from bank transfer and Neteller to credit and debit cards.
Lastly, FP Markets is a splendid service provider since it offers numerous trading platforms to its users, including cTrader, TradingView, and MT 4&5. If you are a copy and social trading devotee, this broker has your back. With an FP Markets account, you can copy, follow, and learn from trading gurus with the highest success rates.
FP Markets
✔Low minimum deposit requirement
✔Hosts numerous learning and market analysis tools
Pros & Cons
Fees
Trading Assets
Pros
- Low commissions and spreads starting from 0.0 pips
- Offers over 10,000 tradable securities, from options to indices and commodities
- Cost-free deposits via Neteller, bank transfer, and credit/debit cards
- Wide scope of third-party platforms, including MT4 and MT5
- Social and copy trading is supported
- Some payment methods have no withdrawal fees, including VISA and international bank transfer
- No inactivity fees
Cons
- Iress deposits can take up to 1 business day
- Iress accounts have a £1,000 minimum deposit requirement
We reviewed the applicable FP Markets fees, and like that the broker has a transparent structure. This allows users to efficiently plan for their activities without worrying about incurring additional costs. There are no hidden charges and no price manipulation with this broker.
| Trading and Non-Trading Charges | Details |
|---|---|
| Account Opening | $0 |
| Management Fee | $0 |
| Minimum Deposit Requirement | From $50, depending on your jurisdiction |
| Commission | From 0% |
| Spreads | From 0.0 pips on major currency pairs |
| Deposits and Withdrawals | Free deposits. Withdrawal fees apply based on the payment method used |
| Inactivity | $0 |
| Overnight Funding | Varies based on global market conditions |
| Copy Trading | Free |
4. AvaTrade – Best UK Options Trading Platform for Educational Resources
To newbies, sufficient education is the key to building a strong foundation, managing risk exposure, and magnifying confidence. On the other hand, seasoned traders need ongoing education to keep up with market changes, refine their strategies, and maintain a competitive edge. That said, when it comes to education, AvaTrade has no equal.
This options trading platform has a broad selection of educational resources. A few minutes after starting our evaluation of AvaTrade, we discovered countless articles and tutorials. They covered the most fundamental topics, like what forex is and how to trade CFDs. Then, we shifted to Ava Academy and were blown away.
We have yet to encounter a better educational platform for traders than Ava Academy. It has every imaginable learning material, starting with hundreds of courses. While evaluating the platform, we discovered diverse courses, from an 80-minute course tailored to introduce newbies to how to start trading quickly to a 205-minute crash course to the most popular trading platforms.
Accessing most of Ava Academy’s courses is easy. Just visit the platform, sign up, and pick a fitting course. You can access the courses on your PC, tablet, or mobile phone. After completing each course, use the incorporated quizzes to test yourself before moving on.
Education aside, this broker offers a powerful platform to options traders – AvaOptions. It’s a professionally designed powerhouse that allows users to trade an impressive array of options at competitive prices. You can test AvaOptions with a free demo account before making any long-term commitment.
AvaTrade
✔Regulated by FCA
✔The platform supports algorithmic trading
Pros & Cons
Fees
Trading Assets
Pros
- Top-caliber educational materials and resources
- Professionals have access to AvaOptions, a powerful platform for trading options
- Newbies can set off with copy trading and learn as they earn
- Diverse additional platforms are available, including MT4 and MT5
- Beginners can follow seasoned gurus’ strategies and signals, courtesy of DupliTrade
Cons
- Higher inactivity fees than its counterparts
- Dormant accounts are also subject to a £100 annual administration fee
Our experts investigated the AvaTrade broker’s fees and charges. We first noticed that the platform has a modest minimum deposit requirement of $100. What’s more, its users pay no additional costs while depositing funds or cashing out. That makes AvaTrade an ideal broker for both cost-conscious and newbie traders who want to test their waters with small capital before going all in.
That said, AvaTrade requires dormant account holders to pay $50 after every 3 consecutive months of inactivity. Moreover, if you let your account remain inactive for over successive months of inactivity, the broker will charge you a $100 administration fee. Not to forget, AvaTrade requires traders who hold positions overnight to cover a premium.
Here’s a breakdown of the fees you should expect to encounter while trading with this service provider:
| Fees and Charges | Amount |
|---|---|
| Spreads | From 0.9 pips |
| Administration fee | $100 |
| Inactivity fee | $50 |
| Overnight premium | Yes |
5. Plus500 – Simplest Options Trading Platform in the UK
If, like us, you prefer trading with platforms with a streamlined, intuitive interface and features, we have something for you: Plus500. This platform has a minimalist design, tailored to ensure users aren’t overwhelmed by unnecessary clutter and complex features. Moreover, the broker has simplified trade execution, and its users can open and close positions with a few clicks.
When it comes to informing users, Plus500 doesn’t hold back. The platform’s dashboard contains indispensable information, from strike prices to expiry dates. Furthermore, the broker has provided clear, unambiguous information regarding potential risks and returns associated with online trading.
We also recommend this platform because it has transparent, concise pricing. The service provider doesn’t beat around the bush or use the tactics other brands use to hide some fees from traders. Our team found everything relatively easily, from the minimum deposit requirement to spreads and commissions.
Open a Plus500 account and get a chance to place call and put options on Meta, oil, Germany 40, etc. You’ll have the opportunity to enhance potential returns with up to 1:5 leverage. Lastly, while trading options with this platform, you can manage your risk exposure with trailing stop, stop loss, and other excellent tools.
Plus500
✔Easy-to-use trading platform
✔No hidden charges
Pros & Cons
Fees
Trading Assets
Pros
- Clutter-free, minimalist platform design
- Easy account registration and set-up process
- Clear, transparent pricing
- Users can contact professional support agents 24/7
- Thousands of tradable instruments are available
Cons
- Most offered securities are CFDs
- £10 monthly inactivity fee
Many traders prioritize brokers they can afford. Since fees vary with a broker, we decided to go through Plus500’s fee structure. Here are some of the trading and non-trading charges to expect when you commit to this broker.
| Trading and Non-Trading Charges | Details |
|---|---|
| Account Opening | $0 |
| Minimum Deposit Requirement | $100 |
| Commission | $0 |
| Spreads | From 0.0 pips on major currency pairs |
| Deposits and Withdrawals | $0 |
| Inactivity | $10 monthly |
| Currency Conversion | Up to 0.7% |
| Overnight Funding | Varies based on trade size |
Options Trading in the UK
You can trade options in the UK with one of the top platforms; it’s legal. But you must be an adult, i.e., aged 18 and above, to sign up with any of the recommended service providers and engage in options trading. Once you get started, you must be ready and willing to pay taxes. That is because, according to government mandates, all gains from options trading are subject to taxation.
What is Options Trading?
In options trading, traders buy and sell contracts that allow, but don’t obligate, the holders to purchase or sell the involved underlying asset at a specific, predetermined price at or before the stipulated expiration date. In simpler words, as an options trader, you get to speculate on the future prices of assets like stocks, commodities, and bonds.
How to Choose the Best Options Trading Platform UK
Options trading platforms are plenty in the UK, which is good since it keeps service providers on their toes. But there’s one noteworthy downside: the crowded space has given many lousy and scammy brands plenty of hiding room. To avoid getting scammed or experiencing countless issues stemming from poor services, let the following aspects help you find the best options trading platform in the UK:
Regulation and Security
Platform Features
Fees and Commissions
Asset Range
Customer Support
Reputation and Reviews
We urge you to trade with a multi regulated broker. After identifying a promising service provider, assess its regulatory status. It should be regulated by the FCA in the UK as well as other respected authorities, such as ASIC and SEC.
Check every platform’s features and functionalities. Start with the user interface and its ease of use. Then, evaluate the available order types, charting tools, etc. Don’t forget to test and assess the mobile app, especially if you like trading options on the go.
Options trading platforms on a per-trade and per-contract basis. Before signing up with a specific provider, check the supported criterion. Additionally, research other relevant charges, from inactivity and overnight fees to commissions and spreads.
Before committing, evaluate your chosen platform’s range of underlying assets tied to options trading. Additionally, check if the service provider gives you exposure to other instruments for diversification. Remember, a diversified portfolio is your best protection against catastrophic financial losses.
For an options trading platform to earn bragging rights, it must have excellent support availability and knowledgeable representatives. We urge our readers to contact each broker’s support team and vet availability, as well as the quality of responses before signing up.
Reviews from other people can give you indispensable insights into an options trading platform’s reliability and trustworthiness. As such, we encourage you to visit Google Play, the App Store, and Trustpilot and read as many testimonials as possible while assessing every service provider.
Risks to Trade Options for UK Traders
Britons are often exposed to diverse risks while trading options, including:
- Leverage risk: Most options trading platforms support leverage trading. Unfortunately, leverage can magnify losses. Many options traders have lost all their capital to this issue.
- Steep learning curve: Unlike conventional securities like forex pairs, options are often hard to grasp. If you are a novice, expect to spend a vast amount of time learning the ins and outs of options trading.
- Market risk: Markets are often highly volatile. Sadly, extreme price changes can decrease the value of a specific option and cause immense losses.
Pros & Cons of Trading Options
Before you go off and dive into options trading, here’s a brief list of this activity’s must-know pros and cons:
Pros:
- Options can help you profit from diverse strategies, from speculation to hedging and straddles.
- With options trading, you get to control a large selection of securities without putting too much capital on the line.
- Individuals can earn significant income from options trading.
- Options, unlike shares, don’t obligate the holders to execute the trades even after the market has moved in an unfavorable direction.
Cons:
- Selling naked options exposes you to enormous financial losses.
- Options have fixed expiration dates.
Conclusion
We urge you to take every precaution when trading options in the UK. For instance, protect yourself against devastating losses with practical risk management strategies and tools like stop-loss orders. Also, research and learn all you can regarding the risks of options trading, from time decay to high market volatility and low liquidity.
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