How do I choose an options broker?

How do I choose an options broker?

Before you can take advantage of options, you’ll need authorization to trade them separate from any other authorization you may have. The fact that you have a stock brokerage account does not mean you are authorized to trade options. You must request options trading authorization separately.

There are numerous brokers to choose from, and just because you like your current broker for equity trades doesn’t mean they support options trading well. Here is a comparison of online options brokers, including the brokers most often used by experienced Investing Daily members.

Investing Daily is not affiliated with any particular brokers, nor do we receive compensation from any.

To trade the option spreads that we recommend in many of our services, you will need a high-enough authorization level. Many brokers, such as Fidelity, refer to the required authorization level as Level 3. Check with your broker to determine what they call the level you would need to trade "spreads". See how to get approved for a higher level of authorization.