I’ve been trading forex for a while and I’m thinking about diving into options.
Checking out various brokers, but I’m unsure what to focus on as a newbie. The commission structures look pretty confusing.
Start with contract fees. Most brokers charge $0.50 to $1.00 per contract plus their base trade fee. Interactive Brokers has the lowest cost at $0.15 to $0.25 per contract, but their platform is hard to navigate. E*Trade and Fidelity are easier to use and cost around $0.65 per contract. Avoid brokers that charge over $1.00 per contract; it will eat into your profits, especially on small trades. Practice with paper trading before risking real money.
TD Ameritrade or Schwab are good for beginners.
Options can be complex with factors like expiration dates and strike prices to consider. It’s best to choose a broker that offers solid educational resources and a reliable mobile app. Understanding commissions becomes clearer once you start trading. Look for one with good research tools since options require more analysis compared to forex.