When an investor begins trading options, he needs to establish trust with his option broker before depositing significant upfront capital into his option broker’s account.
There are numerous online brokers and platforms investors can choose from to begin trading options. This article will provide a list of the five best online option brokers that investors can research to see which broker fits their needs the best.
Under the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) regulates the market for all options which have a stock or index as the underlying security. Under the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA) regulates the market for all options which have forex, commodities, or futures as the underlying security.
These authorities protect investors and insure customer assets should the broker go bankrupt. No investor should trade options with a broker who is not registered and regulated by at least one of the above authorities.
The five brokers listed below are registered and regulated by at least one of the above authorities.
Each of these brokers are reputable and safe to invest with. Deciding which one to use is entirely up to an investor’s personal preference.
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