Choosing the right options trading platform that fits the needs of the investor is important. To choose the right platform you need to consider several factors such as fees and commissions, platform usability, tools and features, security and liability and so forth. We break down what you should be looking for in an options trading platform and how Tiger Trade compares.
Here's a list of what to consider to ensure it aligns with your trading and investing needs and goals:
Fees and Commissions
• Trading costs: Look for competitive commission rates for options trades. Some platforms offer zero commissions but may charge per contract. Always read the platform's Financial Services Guide (FSG) which outlines all the fees associated with trading options on the platform.
• Hidden fees: Check for additional fees like exercise and assignment fees, margin fees, or account inactivity fees. If you can't locate these on the FSG or the platform's website or app, check with the customer service team.
Tiger Brokers has competitive fees for options contacts starting a USD 3 per order or USD 0.75 per contract, whichever value is greater*. Tiger Broker's also doesn't charge account opening, inactive or closing fees to its clients.
* Regulatory fees still apply.
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Platform Usability
There are three main points to consider when looking at the usability of the platform.
• Interface: Ensure the platform is intuitive, user-friendly, and offers a smooth experience.
• Mobile app: Check if the platform provides a fully functional mobile app for trading on the go.
• Customisation: Advanced traders may prefer platforms with customisable dashboards and tools.
The Tiger Trade app offers customisation on its user-friendly platform. Investors can customise the app to suit their needs for quick and easy access to the functions. The app also allows customisable options chain data allowing clients to see the types of options contracts they want. The Tiger Trade app provides full functionality so investors can trade on the go when opportunities strike.
Tools and Features
• Options-specific tools: Look for tools like options chains, strategy builders, and probability calculators.
• Charting tools: Ensure the platform offers advanced charting features and technical indicators for analysis.
• Research and insights: Access to market data, news, and expert analysis is essential for informed decision-making.
Tiger Trade offers clients a plethora of tools and features to assist with options trading. The app offers in-depth market data, options analytics, an options calculator, charting features and technical indicators, 24/7 stock market news and a demo account to practice trading strategies. Use tools like the options screener to filter out and view the options contracts available for the selected stock you are looking at trading.
Tiger Trade also has features that are not commonly found on other platforms such as:
to B/E% i.e. to breakeven percentage
Prob. ITM and Prob. OTM
Source: Tiger Trade app. APPL options screener example.
Educational Resources
Having educational resources made available on the trading platform you choose is extremely important especially if you are new to options trading.
• Learning materials: A good platform offers educational content, webinars, tutorials, and guides on options trading.
• Simulators: Paper trading or demo accounts help you practice strategies without risking real money.
Tiger Trade offers webinars and videos through Tiger Academy and Tiger Live as well as articles (like this one) focusing on educating investors and helping them navigate what options trading is and how to grasp a clearer understanding of it. Tiger Trade also offers a demo account (as previously mentioned) allowing users to sharpen their strategies and get a feel for options trading before putting their practice into play on the stock market. Tiger Brokers also offer educational content via their YouTube channel so even if users miss a live webinar they will be able to watch the re-play on YouTube.
Order Execution
• Speed: Fast and reliable trade execution is crucial in volatile markets.
• Order types: Ensure the platform supports various order types, including limit orders, stop-loss orders, and conditional orders.
Tiger Trade offers fast reliable speed and fast deposits, to help you grasp opportunities. Tiger Trade currently offers options trading for long calls and puts, short-covered calls and cash-secured puts. The app also offers an early exercise feature.
Range of Investment Options
• Asset variety: Check if the platform supports multiple asset classes, including equities, ETFs, and indexes for options trading.
Tiger Trade offers options trading of US stocks and ETFs allowing investors to invest in some of the world's largest companies and industries.
Costs for Advanced Features
• Premium tools: Some platforms charge for advanced data feeds, charting tools, or analytics.
• Subscriptions: Verify whether premium features are worth the cost for your trading style.
Tiger Trade offers most of its tools and features for free. However, there may be some market data that requires a subscription.
Customer Support
• Availability: Look for customer service support options available via chat, phone, or email.
• Knowledgeable staff: Ensure the support team is knowledgeable about options trading.
The Tiger Brokers team is based in Sydney and is available to assist clients when they need it. Our knowledgeable Client Service team is available by phone, email, or chat Monday through Friday during business hours.
Community and Reviews
• User Feedback: Research online reviews, forums, and social media for opinions on the platform.
• Community Forums: Some platforms offer trading communities where users share ideas and strategies.
Researching the platform's online presence is essential to understanding its network and finding consumer sentiment. When it comes to community forums, Tiger Trade has its own global community, Tiger Community. Here users can share ideas and opinions on the stock market and foster Tiger Trade user relationships, education and growth.
Source: Tiger Trade app
Security, Regulation and Reputation
• Account protection: Look for insurance or other protections relevant in case of platform insolvency.
• Data security: Verify encryption standards and protection against cyber threats.
• Regulation: Ensure a reputable financial authority regulates the platform.
• Licensing: Confirm the platform is licensed in your country.
Tiger Brokers holds an Australian Financial Services Licence (AFSL) and is a member of the Compensation Scheme of Last Resort CSLR program. Our platform Tiger Trade has over 10 million global users and over 2.4 million account holders, as well as Tiger Brokers being listed on the NASDAQ (NASDAQ: TIGR). Data is encrypted with SSL to protect users.
By evaluating these factors based on your trading style, experience level, and goals, you can select an options trading platform that best meets your needs. Remember, all investing involves risks and speaking to a financial adviser is recommended before investing in options trading if you are unsure.
Are you considering Tiger Trade as your trading platform? Tiger Trade offers 4 x zero monthly brokerage for options, US or ASX stocks, & ETFs*.
*New clients & unfunded existing clients only. Only min. brokerage waived for 4 ASX, US stocks & ETFs or options trades. Third-party fees and other fees still apply. See T&Cs for details.
Capital at risk. Options trading carries a high level of risk and may not be suitable for all investors. You should only trade with money you can afford to lose. See FSG, PDS, TMD and T&Cs via our website before trading. Information provided may contain general advice without taking into account your objectives, financial situations or needs. Past performance is no guarantee of future results. Graphics and charts are for illustrative purposes only. Tiger Brokers (AU) Pty Limited. ABN 12 007 268 386 AFSL 300767
