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Options trading is a derivative form of investing in the financial space. It allows traders to enter into contractual agreements. The contract gives you the right to buy or sell an underlying instrument at a predetermined price within a specified time frame. Options trading in the UK requires solid plans and strategies to increase your chances of success. The options trading platform you trade with must also be FCA-regulated to guarantee your funds’ safety. At InvestingGuide, we leave no stone unturned. We only recommend options trading platforms that have undergone thorough testing and are approved by our experts.
Options trading in the UK can be challenging, especially if you are a beginner getting started in this venture. You need to learn everything about this trading method, from supported assets to choosing the best options trading platform. This way, you can efficiently manoeuvre the market and maximise your potential while at it.
Today, we share the best options trading platforms UK. Our guide also sheds light on how to choose the best platform for options trading. Our goal is to ensure you trade options in the UK with the best platform that guarantees an exciting experience.
List of the Best Options Trading Platforms
- Saxo – Overall Best Options Trading Platform in the UK
- Plus500* – Top Platform For CFD Options Trading in the UK
- IG Markets – Top Options Trading Platform With Excellent Support Service
- Spreadex – Top UK Options Trading Platform With No Minimum Deposit Requirement
- AvaTrade – Best Options Trading Platform For Professional Clients
Note: 80% of CFD retail accounts lose money with this provider.
In This Guide
UK Options Trading Platforms: Comparison Table
Coming up with these recommendations was not an easy task. As professionals with decades of experience, we started by testing hundreds of options trading platforms in the UK. We compared their performances and features, including security, asset offerings, charges, support service and more.
Since we always rank the platforms solely based on their services, we ensure we remain unbiased in this process. To achieve this, we combine our test results with user testimonial findings from Google Play, the App Store, and Trustpilot.
Here is our comparison table showing our top options trading platforms’ features. You can compare them for suitable choices.
| Best Options Trading Platform | Licence | Support Service | Software | Payment | Demo Account | Money Insurance |
|---|---|---|---|---|---|---|
| Saxo | FSA, FCA, MAS, SEBI | 24/5 | SaxoTraderGO, SaxoTraderPRO | Bank Wire Transfer, Debit cards | Yes | Yes (up to €100,000) |
| Plus500* 80% of retail investor accounts lose money when trading CFDs with this provider. | FCA (FRN 509909), CySEC (#250/14), ASIC, MAS, FSA | 24/7 | Plus500 Webtrader | Bank Wire Transfer, Credit/debit cards, Paypal, Skrill | Yes | Yes (up to £85,000) |
| IG Markets | FCA, ASIC, CySEC, FSA | 24/5 | MetaTrader 4, IG trading platform, ProRealTime, Web platform, Trading apps, L2 Dealer | Debit card, Bank transfer, PayPal, HK FPS | Yes | Yes (up to £85,000) |
| Spreadex | FCA, SEBI | 24/5 | iPhone App, IPAD App, ANDROID App, TradingView | Bank Wire Transfers, Credit cards | No | Yes (up to £85,000) |
| AvaTrade | CBI, CySEC, ASIC, BVIFSC, FSA, FCA, ADGM, ISA | 24/5 | MT4, MT5, AvaTradeGO, AvaOptions, AvaSocial, DupliTrade, Capitalise.ai | Credit/debit cards, Wire transfer, Paypal, Skrill, Neteller, WebMoney | Yes | Yes (up to $1,000,000) |
Platforms Short Overview
Trading options requires a platform you can afford. The platform must also host the assets you are familiar with. Unfortunately, many options traders find it challenging to compare and select suitable options trading platforms. That is why we have prepared tables below highlighting our recommended platforms’ fee structures and asset offerings. Feel free to analyse them and choose what best fits your trading requirements.
Fees
| Best Options Trading Platform | Fees | Minimum Deposit Requirement | Transaction | Inactivity |
|---|---|---|---|---|
| Saxo | From £0.75 commission | £0 | Free | £0 |
| Plus500* | From 0.0 pips | $100 | Free | £10 monthly |
| IG Markets | From 0.6 pips | £0 | Free | £12 monthly |
| Spreadex | From 1 point | £0 | Free | None |
| AvaTrade | 0.03 pips | £100 | Free | £50 quarterly |
Note: 80% of CFD retail accounts lose money with this provider.
Assets
| Best Options Trading Platform | Forex | Stocks | Commodities | ETFs | Options |
|---|---|---|---|---|---|
| Saxo | Yes | Yes | Yes | Yes | Yes |
| Plus500* (CFDs) | Yes | Yes | Yes | Yes | Yes |
| IG Markets | Yes | Yes | Yes | Yes | Yes |
| Spreadex | Yes | Yes | Yes | Yes | Yes |
| AvaTrade | Yes | Yes | Yes | Yes | Yes |
Note: 80% of CFD retail accounts lose money with this provider.
Our Expert’s Opinion about the Best Options Trading Platforms
As mentioned earlier, we tested hundreds of UK options trading platforms to come up with these recommendations. Below are our expert opinions and reviews on the platforms based on their hands-on experience. Rest assured that the information we share here is accurate, so make a suitable choice for your requirements.
1. Saxo – Overall Best Options Trading Platform in the UK
Saxo is among the top brokers we find reliable when it comes to options trading. We explored its offerings and were welcomed by a user-friendly and customisable interface. Options trading is supported across various assets, including stocks, indices, interest rates, futures, and commodities. Plus, the platform lists additional asset classes, thus making it easier for UK users to diversify their portfolios.
Another element we like about trading options at Saxo is that users can manage their activities using desktop and mobile devices. Plus, it supports quality learning materials and advanced trading tools on its SaxoTraderPRO platform. With no minimum deposit requirement and options trading charges from as low as $0.75 on stock options, Saxo accommodates all.
Saxo
✔No minimum deposit requirement
✔Low commissions for all asset classes
Pros & Cons
Fees
Trading Assets
Pros
- Supports options trading across various asset classes
- Low options trading fees
- A user-friendly and intuitive design platform
- No minimum deposit requirement
Cons
- No third-party platforms like the MT4/5
- To sell options at Saxo, you must have an account value of over $5,000 and give a written acknowledgement of the risks involved
Saxo is one of the brokers in the UK with transparent fee structures. While analysing its trading and no-trading charges, we noted that the broker has no hidden charges. This makes it easier for users to plan and budget for their activities without worrying about extra charges once fully invested.
Additionally, we find Saxo affordable since it charges low commissions, starting at $1 on US stocks, ETFs, and futures. For traders interested in options and government bonds, Saxo charges low fees, starting at $0.75 and $0.05%, respectively.
When it comes to Saxo’s minimum deposit requirement, the broker has none. This means that any trader, whether new or budget-conscious, can create a trading account with the broker and start exploring the financial space. However, expect to incur a currency conversion fee, especially when you trade using a different currency from your account’s base denomination. The good news is this fee doesn’t apply to marginal collateral and can never exceed +/- 0.25%.
Financing charges for positions left overnight are also applicable at Saxo. For investors, expect to incur annual custody fees if your account holds stock, bond, or ETF/ETC positions. The exact fee will vary depending on your account. Our analysis showed that you will pay up to 0.15% for the classic account, 0.12% for the platinum account, and 0.09% for VIP accounts.
Lastly, Saxo charges fees for additional services besides those mentioned above. For instance, it imposes a $50 fee for online report requests. Plus, transactions are free, and there is no inactivity fee should your account stay idle for some time.
2. Plus500 – Top Platform For CFD Options Trading in the UK
From our analysis, Plus500 allows users to trade options CFDs on Germany 40, oil, and Meta. You can get started in this market with as little as £100, which doesn’t attract any transaction costs. Moreover, options trading at Plus500 come with a leverage limit of 1:5, allowing you to open larger positions with a small capital. We also like that the broker lists additional CFD assets for users looking to diversify their portfolios. These include forex, shares, indices, commodities, and more.
Plus500 is suitable for all types of UK traders. Beginners are supplied with quality learning materials, including articles, guides, recorded videos, and more. The platform also has a virtually funded demo account, where newbies can test its performance and gauge their skill levels before risking real money. For professional traders, Plus500 offers a Professional Trading platform with advanced resources. However, you must meet its eligibility requirements to enjoy the benefits. Plus500UK Ltd authorized & regulated by the FCA (#509909).
Note: 80% of CFD retail accounts lose money with this provider.
Plus500
✔User-friendly interface
✔Zero deposit and withdrawal fees
Pros & Cons
Fees
Trading Assets
Pros
- Low minimum deposit requirement
- Low trading fees from 0.0 pips
- Free deposits and withdrawals
- Quality learning and research materials
Cons
- Lists only CFD instruments
- Limited asset offerings compared to its peers
Brokers need to generate revenue and cover operating costs. That’s why many have fees and commissions. Sadly, high charges can undermine your profitability in the long run. That’s why looking for an affordable service provider is necessary.
With that in mind, we evaluated Plus500 fees UK. The process was easy since this broker values transparency. Our team was impressed by the fact that the trading platform doesn’t charge a dime for most services. First, opening an account is free. Deposits and withdrawals also attract zero charges. Furthermore, the broker offers free live CFD prices and dynamic charts. But note that the Plus500 minimum deposit UK is £100.
Plus500 primary source of compensation is the spread. While trading with this platform, you’ll have to cover the spread whenever you open a position. Your costs will depend on various factors, including your preferred instrument and current market conditions.
This broker also charges overnight funding and currency conversion fees. The former fee kicks in whenever you keep a position open overnight. On the other hand, you have to cover currency conversion fees whenever you interact with any currency besides your account’s base currency. Lastly, dormant Plus500 accounts attract a £10 monthly inactivity fee.
3. IG Markets – Top Options Trading Platform With Excellent Support Service
IG Markets has been serving UK clients for more than four decades. We like that it adjusts its services with advancing technology to ensure users remain satisfied and up to date with the latest developments. We find its platform to be user-friendly and customisable. Getting started is also straightforward, with no minimum deposit required.
IG Markets allows you to explore options trading across various instruments, including forex, shares, and indices. You will also access an additional 17,000 CFD securities for portfolio diversification. Furthermore, we like the platform’s support service team. They were very responsive when we contacted them and gave us solutions beneficial to our activities. Users can rely on IG Markets’ quality resources, most of which are listed on the MT4, ProRealTime, and L2-Dealer platforms.
IG Markets
✔Zero minimum deposit requirements
✔17,000+ available products
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- Plenty of learning and research materials on its multiple platforms
- Compatible with desktop and mobile devices
- Reliable and responsive support service via live chat, phone, and email
Cons
- High options trading fees compared to its peers
- Its listed assets are available to trade as CFDs only
Opening an IG Markets account doesn’t cost a dime. Moreover, this broker has no minimum deposit, so you don’t have to worry about compromising your budget. You can also enjoy significant savings by trading with IG Markets since it offers tight spreads, starting from 0.1 points on commodities and 0.6 points on popular currency pairs.
With that in mind, IG Markets charges overnight funding for cash CFD positions and daily funded bets (DFBs) that remain open past 10 pm UK time. The broker also requires traders to cover a small guaranteed stop fee. The fee kicks in every time the guaranteed stop feature is triggered. You should also expect to incur additional when shorting stocks and augmenting your trading experiences with premium services like live data streams.
Luckily, deposits and withdrawals are free on IG Markets. The broker only requires traders to pay a 0.5% standard currency conversion fee. Furthermore, the platform has zero inactivity fees, though your account will be terminated if it remains dormant for 24 consecutive months.
4. Spreadex – Top UK Options Trading Platform With No Minimum Deposit Requirement
We find Spreadex to be an excellent options trading platform for individuals looking to get started with small capital. With no minimum deposit requirement, users can deposit any amount they can afford and access the platform’s listed index, commodities, and stock options. Plus, the minimum bets on options are £1 per point movement. On top of that, this platform lists an additional 10,000+ securities for portfolio diversification.
We enjoyed trading at Spreadex’s user-friendly and intuitive design platform. Compatible with both desktop and mobile devices, Spreadex has a fast trade execution speed. Although there is no demo account, beginners will enjoy quality learning materials. We also discovered the popular third-party TradingView platform that lists advanced resources for market analysis.
Spreadex
✔10,000+ financial instruments
✔Zero account inactivity fees
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement
- Additional securities for portfolio diversification
- Compatible with desktop and mobile devices
- Free deposits and withdrawals
Cons
- Only CFD and spread betting assets are offered
- Options trading fees are higher compared to its peers
We analyzed Spreadex’s fees and commissions since these elements can impact a trader’s profitability. The first impressive aspect that caught our attention is this broker’s £0 minimum deposit requirement. You can deposit any amount into your Spreadex account and start trading almost instantly. Furthermore, the broker charges zero account maintenance and inactivity fees.
What’s more, Spreadex has tight spreads and commissions. While trading with this broker, you can enjoy low spreads starting from 0.9 pips for GBP/USD, 0.001 pips for USD/INR, and 0.6 pips for EUR/USD. However, note that this broker charges overnight financing fees for positions held overnight.
5. AvaTrade – Best Options Trading Platform For Professional Clients
AvaTrade is one of the trading platforms in the UK we found user-friendly and customisable. During our experience with it, we enjoyed fast trade execution speed on both our desktop and Android/iOS mobile devices. Options trading is supported on the AvaOptions platform, which we believe hosts quality trading tools primarily for professional options traders. For instance, the platform supports over 40 currency pairs for forex options trading. We also discovered a wide selection of risk management tools, which help in mitigating massive losses.
To get started at AvaTrade, you must make a minimum deposit of £100. All deposits and withdrawals are free. However, AvaTrade platform charges an inactivity fee of £50 quarterly, which kicks in after only three months. Besides options, AvaTrade lists additional securities for portfolio diversification. These include forex, shares, commodities, indices, cryptos, and more. Other features worth noting include social trading, quality support service, and automated trading.
AvaTrade
✔Free deposits and withdrawals
✔Beginner-friendly user interface
Pros & Cons
Fees
Trading Assets
Pros
- Low minimum deposit requirement
- Quality learning and market analysis resources
- Low options trading fees
- A user-friendly and customisable options trading platform
Cons
- Inactivity fees kick in after only three months
- You can only trade the featured assets as CFDs
Before going any further, note that there’s an AvaTrade minimum deposit requirement for UK traders. Fundamentally, this service provider requires Britons to fund their account with at least £100 while using supported payment methods like wire transfer, credit card, and e-payment. You should keep that in mind while funding your trading account.
That aside, while evaluating AvaTrade, we discovered that this broker has numerous fees and costs. For starters, it requires dormant account holders to pay a £50 inactivity fee. It kicks in after 3 successive months of dormancy, and the broker charges it after every 3 months.
Additionally, dormant AvaTrade accounts incur a £100 annual administration fee that takes effect after 12 months of inactivity. Not to forget, while trading with AvaTrade, you’ll have to cover an overnight premium whenever you keep a position open after the stipulated overnight funding time, which is 22:00 GMT.
Regarding spreads and commissions, AvaTrade is one of the most affordable brokers in the UK. With this platform, you will enjoy reasonable spreads starting from 0.13% while trading popular instruments like Tesla and Amazon shares are involved. AvaTrade doesn’t require traders to cover any commissions. The broker uses the Bid-Ask spread to compensate itself.
Options Trading in the UK
Options trading is legal in the UK, and any trader above 18 years can engage in the activity via brokerage firms like the ones we recommend. Note that the Financial Conduct Authority (FCA) is in charge of overseeing options trading activities in the region. It sets various rules that brokers must adhere to keep the online trading environment secure and free from imposters. The FCA also strives to protect users’ funds by encouraging brokers to secure them in segregated accounts only accessible to traders.
Note that the UK financial landscape is dynamic and volatile. Asset prices are constantly changing, thus making it challenging for options traders to make accurate predictions. However, you can maximise your potential with thorough market research and analysis. Most importantly, be familiar with the options trading assets you want to put your money in and select a suitable options trading platform like the ones we recommend above.
When it comes to tax laws on options trading in the UK, traders are required to pay capital gains tax on profits you earn from the activity. This is because the activity is considered a business venture in the region.
What is Options Trading?
Options trading allows traders to buy and sell options contracts. By engaging in this agreement, you are given the right but not the obligation to buy or sell a particular asset at a pre-determined price within a specified or set timeframe.
In the UK, you can engage in options trading through the buying and selling of physical assets per options contract terms. You can also trade options as CFD or spread betting, whereby you only make speculations on the underlying securities. Some of the assets for options trading include forex, indices, stocks, and commodities.
For instance, let’s say a stock’s price of £100 is expected to rise to £120 in a couple of weeks. In options trading, you will buy a call option that gives you the right to purchase the asset at an agreed price of £110 at any time within the specified timeframe.
From the example above, the amount to pay for buying an option is called a “premium”. Should the share price rise above £110 before the expiry date, you will buy the asset at a discount. However, in the event that the share price stays below £110, you will not exercise your options contract right and let it expire worthless. As a result, you will have lost the premium you previously paid to open the position.
Besides a call option, you can also engage in a put option, which allows you to sell an underlying asset at a predetermined price within a specified timeframe. The best element about options trading is that you can use it to hedge against already open positions and limit potential losses.
How to Choose the Best Options Trading Platform UK
Trading options in the UK comes with risks. While you can earn profits depending on your strategy, losses are inevitable. That is why it is advisable to always have a plan and conduct thorough market analysis to identify the best entry and exit points. Most importantly choose the best broker aligning with your trading requirements.
Above, we recommend the best options trading platforms UK that have been approved by our experts. Whether you prefer choosing from this list or conducting your own research, consider the tips below for the best choices.
Licences/Regulations
Charges
Platform Performance
Asset Offerings
Support Service
User Recommendations
Prioritise an options trading platform that is licensed and regulated by the Financial Conduct Authority (FCA). Having multiple top-tier regulators is a plus, as it proves a platform’s credibility even further. Remember, the online financial market is dominated by both legit and fraudulent brokers. Legit brokers have FCA licences, so avoid falling victim to scammers looking to take off with your hard-earned money.
Choose a trading platform you can afford for efficient planning and budgeting. Confirm a platform’s minimum deposit requirement, transaction costs, commissions/spreads, inactivity fees, overnight charges, and more. Also, check whether there are hidden charges to avoid surprises once you are fully committed.
Whether you are a beginner or a professional options trader, a suitable platform must be user-friendly with customisable features. Plus, it should have fast trade execution speed so you can benefit from frequent potentially profitable opportunities. For newbies, choose a platform with quality learning materials and a demo account. It should also have a native app to help you efficiently manage your activities while on the move.
You want to trade with a platform supporting options securities, including stocks, indices, interest rates, futures, commodities, and more. For those looking to diversify their portfolios, choose platforms with additional asset classes. The best element about portfolio diversification is that you get to spread risks across multiple assets. This limits massive losses that would have been incurred by investing in a single security.
Having solid support on an options trading platform will give you the peace of mind you need to focus on planning your activities. Note that even the most professional traders encounter challenges, so do not fret if you find yourself in such situations. Simply ensure your platform has a dedicated team of professionals who will respond promptly to your call. They must also provide relevant solutions that will help you improve your performance. Most importantly, confirm a support service’s communication channels and availability to ensure they fit your schedule.
Check what other users are saying regarding their experience with an option trading platform. Visit Google Play, the App Store, and Trustpilot to analyse their ratings and comments. This will help you understand a platform’s strengths and weaknesses from a user perspective. You will then decide whether to make a commitment.
How to Sign up for an Account with an Options Trading Platform
Starting your options trading venture can be exciting and challenging at the same time. If you are a beginner, you may be sceptical about making the first step due to the fear of incurring losses. However, with the best broker and strategy, you will maximise your potential in this landscape. Simply follow the steps below to create an options trading account to get started.
Step 1: Visit your options trading platform’s official website
Step 2: Register your account
Step 3: Verify your identity
Step 4: Make an initial deposit
Step 5: Start trading options
If you have chosen an options trading platform from our list above, click on any links we have shared on this page to quickly access its website. Before you create an account, understand the platform’s terms of service and install its trading app on your mobile device. This will make it easier for you to manage your activities using any device that is convenient for you.
Click the “Open Account” or “Sign Up” button. Fill out the provided form using your personal details, including your name, email, phone number, source of income, location, preferred currency, and more. You should also create a unique username and password to secure your account from unauthorised access. Ensure you provide accurate information since you will verify those details in the following step.
To comply with FCA regulatory requirements, brokers typically require identity verification. Your platform provider will ask you to upload a copy of your original government-issued ID card, passport or driver’s licence. FCA-regulated brokers also verify users’ physical addresses by requesting copies of recent utility bills or bank statements. For most brokers, the verification step may take up to 48 hours, after which an email notification will be sent.
Once your account is active, you should be able to make a deposit per your options trading platform’s minimum deposit requirement. Be mindful of transaction charges and transact using the most convenient payment methods. Platforms like the ones we recommend above support some of the most efficient payment methods, including credit/debit cards, e-wallets, and bank transfers.
Your options trading broker will confirm your deposit and redirect you to its listed securities to trade. Explore the available assets and choose those you have conducted thorough research on. You can then identify a preferred trade size and open a live position. We believe that at this point, you will have familiarised yourself with options trading, including available options contracts, factors affecting options security prices, and more.
If you are a beginner, start trading via your platform’s demo account before risking real money. Plus, apply risk management controls like stop-loss orders and track your activities to ensure everything works out as planned.
Conclusion
Options trading in the UK requires a solid plan. Start by understanding the assets for options trading, including currencies, shares, bonds, commodities, and more. Plus, choose the best options trading platform like the ones referenced in our mini reviews above for an exciting experience. For those getting started with this venture, understand that it carries risks, and applying risk management controls can help you mitigate massive losses. Additionally, avoid making decisions based on emotions but stick to your plan. You may incur losses today, but take it as a lesson to improve on yourself. With time, options trading will be rewarding.
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