How To Choose An Online Stock Option Brokers

To start trading options, you will need to find an online brokers with option trading facility and open an account with them. Online brokers usually offer relatively lower commission charges, so it’s good for keeping the trading cost low. High commission charges can slowly eat up your capital without you realizing it.

There are many online option trading brokers out there. Finding the right online broker to meet your needs or requirements could be a quite difficult and daunting task.
Basically, there are some factors you will need to consider:

• Commission / other charges.


• Minimum initial deposit to open an account.


• Website performance (e.g. website’s loading speed especially during peak hours, whether the order placement procedure is easy and not complicated or confusing so that you won’t be prone to making mistakes, system reliability).


• Features / tools (e.g. live streaming charts / quotes, analysis tools, etc.).


• Ability to get National Best Bid and Offer (NBBO): The broker is able to get the best available ask price when a customer buys a security and the best available bid price when a customer sells a security. That means the customer’ order has to be exposed to the 6 options exchanges to get the best available price at that moment.


• Customer service: Whether there is customer service which you can contact immediately for assistance in case you encounter problems with your website during trading hours (e.g. via chatting room with the customer service).


• Contact Alternative: Whether you reach them by other means than internet, such as phone or fax, in case of emergency.

Here are some articles about choosing online brokers I came across if you’re interested to read further:

* How to Choose an Online Stock Broker

* Choosing An Online Stock Broker

For those who have had some experiences using certain online option brokers’ services, it’ll be great if you could share your experience here in the comments. This info would be very helpful for others who are considering and choosing an online broker. :)