There are many brokers out there that can handle your options trades. You should look for an options broker that is accredited. The options broker must be accredited within the exchange that they are trading. Accreditation means that they have been tested and passed the requirements of the exchange for understanding option trades. There can be different levels of accreditation offered to the broker and they must satisfy all requirements of the process. If a broker offers an execution-only service, without providing advice, accreditation may not be required for their representatives. Options can be traded through full-service, or ‘advisory’ brokers, as well as discount, or ‘no advice’, brokers. A full-service broker would need to be accredited in options trading to offer the service to you.
Choosing an options broker means looking at and comparing the different costs associated with trading. Costs such as commission charges can vary between brokers as they need to provide a competitive service to you. Your other costs will be internet and phone costs as well as banking fees and charges. If you are trading international exchanges then there could be further costs in exchange rates and money transfer fees. Choosing an options broker also requires comparing the trading platforms offered as part of the service. The trading platform can be broker-sponsored or software that has to be purchased by you. Broker-sponsored software can be reliable in that it is owned and operated by the broker through the internet.
Trades are usually reliable and straight to market without time delay. Using software that is downloaded and installed on your computer can be effective as this software will include charts and other features to help you make your decisions with the options trade. However, this software can cause problems if it does not function properly on your computer. Delays in trading and inaccurate data can be an issue. Your options broker should be able to offer a competitive commission rate on transactions, an accurate reliable trading platform, and good advice on trading options. With the number and different combinations of options trades available to you, the broker should be able to advise you on your proposed trade.
Good advice also means getting the best price and spreads in combination trading. Be prepared to ask the full-service broker for advice. Options can be complicated and fast-moving markets to trade. A good options broker will assist you with accurate, up-to-date information and advice. For further information on what to look for in an options broker you can contact the exchange you are trading or talk directly to your broker.