Best Options Trading Tools

Successful options strategies are crafted, tested and executed using sophisticated trading tools. Options traders know that the right tools for strategy building, risk visualization and multileg trade support are key. 

This guide will give you an overview of the strengths and weaknesses of each options trading platform.

How We Chose the Best Options Trading Tools

We evaluated the options trading platforms based on their pricing, platform usability, educational tools, investor resources and the quality of customer service.

5 Best Options Trading Tools

Benzinga Pro – Best for All Trading Levels

Benzinga Pro is a real-time financial news and data platform that delivers actionable information to traders quickly. Its real-time unusual options activity alerts, comprehensive news feed and tools to understand market-moving events enable options traders to make more informed trading decisions faster.

Key Features: 

• Fees: Benzinga Pro offers various subscription tiers. At $37 per month, the Basic plan is the most affordable, but it has limited options features. The Essential, at $197 per month, includes additional educational resources. Options traders can add the platform’s Unusual Options Activity data for a fee.
• Investment Access: Benzinga Pro provides information and analysis across various asset classes including stocks and options. It does not provide direct trading execution. Users must have brokerage accounts to act on information provided by Benzinga Pro. Options traders will find value in the platform’s ability to highlight potential trading opportunities through news and unusual activity in options contracts. 

• Platform Experience: Benzinga Pro’s browser-based platform is accessible on desktops. It also offers a mobile app for access to news and alerts. The platform is designed for active traders and features a customizable layout with real-time news feeds, basic charting tools, watchlists and alert settings. The Squawk provides live audio updates on market-moving events. 

• Tools/Education Highlights: Benzinga Pro’s Unusual Options Activity Alerts provide real-time alerts on options trades with higher-than-normal volume. Its Options Activity Signal highlights significant options trading activity. It also provides real-time news aggregation from numerous sources with sentiment analysis to gauge the potential market impact of news.

• Drawbacks: The subscription costs for some tiers are expensive. Benzinga Pro is not a brokerage, so users must have separate brokerage accounts to execute trades. Charting tools are available, but they are not as advanced as those on a dedicated options trading platform. 

Who It’s Best For: Active options traders who prioritize real-time news, unusual options activity alerts and tools to quickly understand market catalysts to inform their trading decisions. 

Interactive Brokers – Best for Sophisticated Options Traders

Interactive Brokers (IBKR) provides low-cost, advanced tools for active traders who specialize in options. It offers sophisticated order types and competitive pricing for executing complex options strategies across exchanges worldwide.

Key Features: 

• Fees: IBKR has competitive tiered and fixed commission structures for options trading with per-contract fees ranging from $0.15 to $0.65. Margin rates are also typically low. Account minimums may apply depending on account type.

• Investment Access: IBKR provides access to a range of global markets including stocks, options, futures, currencies, bonds and funds. Options can be traded on many exchanges worldwide.

• Platform Experience: IBKR offers several trading platforms including the customizable Trader Workstation for desktop, a mobile app and a web-based portal. Trader Workstation can have a steep learning curve for novice traders. IBKR Mobile is a more streamlined experience. 

• Tools/Education Highlights: IBKR’s advanced options trading tools include OptionsTrader, a dedicated options analytics platform that’s part of Trader Workstation, sophisticated order types for complex strategies, real-time Greeks and implied volatility data, profit/loss analytics, volatility modeling tools and a strategy builder. Educational resources include webinars and tutorials.

• Drawbacks: Trader Workstation is complex and may be overwhelming for beginners. Customer support has sometimes been reported to be less user-friendly compared to brokers with similar platforms.

Who It’s Best For: Experienced options traders who want low costs, extensive market access, advanced trading tools and the ability to execute complex, multileg strategies across global exchanges.

TradeStation – Best for Active Options Traders

TradeStation is designed for active options traders. Its TradeStation 10 desktop platform offers customizable charting, advanced analytical tools and features designed for intricate options strategies and sophisticated order management.

Key Features: 

• Fees: TradeStation’s commissions are typically $0.60 per contract with no base commission for most users. Penny options may have a different commission structure. There is zero commission for stock and ETF trades. Some advanced features or margin trading may require an account minimum.

• Investment Access: TradeStation provides access to stocks, ETFs, futures, cryptocurrencies and a variety of options contracts, allowing options traders to implement complex strategies that could involve combining options with underlying equities or futures.

• Platform Experience: TradeStation’s desktop platform is known for its professional-grade charting with numerous indicators, drawing tools and the ability to build and backtest custom strategies. Its dedicated options chains, strategy builders and sophisticated order-entry interfaces allow for multileg options order creation and management. The mobile app provides real-time quotes, charting, options chains and order entry.

• Tools/Education Highlights: The TradeStation 10 options analysis and trading tool offers advanced volatility analysis, risk/reward graphs and strategy selection. Users can create, backtest and automate their trading strategies for stocks, options and futures. The platform provides real-time market data and offers webinars, tutorials and articles covering various aspects of trading including options. 

• Drawbacks: TradeStation 10 has a steep learning curve and the platform requires a powerful computer for optimal performance. Customer support is sometimes lower to respond than other brokers. 

Who It’s Best For: Experienced options traders who want a powerful, customizable platform with advanced analytical tools, strategy backtesting capabilities and sophisticated order management for complex options strategies.

Tastytrade – Best for Low Cost

Tastytrade was built by options traders for options traders. Its intuitive platform is designed to simplify complex options strategies and facilitate rapid order entry. Its emphasis on education and engaging online media network is ideal for traders who learn by doing and through consistent market commentary.

Key Features: 

• Fees: Tastytrade’s competitive and transparent fee structure is well-suited for options traders. It charges $1 per contract to open options on stocks and ETFs, capped at $10 per leg and zero commission to close. Futures options are $2.50 to open and zero to close. Stock and ETF trades are commission-free. There are no account minimums to open a cash account, but a $2,000 minimum is required for margin trading. 

• Investment Access: Options are the primary focus, but tastytrade also offers access to investment products such as stocks, ETFs, futures and cryptocurrencies. 

• Platform Experience: Tastytrade’s desktop platform includes visual options chains, a curve analysis tool for strategy building. It also offers a browser version and mobile app, which is optimized for options and futures trading.

• Tools/Education Highlights: The tastylive Network provides live financial commentary, trading ideas and educational content from experienced traders. Its backtesting tool allows users to test how options strategies would have performed historically. It visually displays profit and loss zones for different options strategies, making it easier to understand risk and reward. The website provides guides on options basics, strategies and the Greeks.

• Drawbacks: The platform is geared toward users with an understanding of options trading. It’s not for buy-and-hold investors or those who need extensive guidance.

Who It’s Best For: Active options traders who appreciate an intuitive platform, competitive commissions and integrated educational content and market commentary from experienced traders. 

Thinkorswim – Best for Advanced Options Analysis

Charles Schwab’s thinkorswim trading platform has a customizable interface, professional-grade charting, extensive analytical tools for options and a host of educational resources, making it a go-to choice for options traders who require high-level functionality and in-depth market analysis.

Key Features: 

• Fees: Thinkorswim charges $0.65 per contract for options trades. Stock and ETF trades are commission-free. A minimum $2,000 deposit is required for margin accounts, which are often essential for options strategies. Broker-assisted trades incur an additional fee. 

• Investment Access: Thinkorswim provides access to complex options strategies on stocks, ETFs and indices, futures and futures options, forex and some cryptocurrencies.

• Platform Experience: Thinkorswim’s desktop platform offers charting with hundreds of indicators and drawing tools, customized layouts and dedicated options analysis tools for risk/reward graphing. The web browser version provides essential trading functionalities, charting and real-time data suitable for trading without a download. The mobile app has many of the desktop platform’s advanced features, including multileg order entry and advanced charting. 

• Tools/Education Highlights: The platform’s Analyze tab allows detailed risk analysis, probability analysis and options strategies backtesting. Scanning tools are available to identify potential options trades based on criteria like implied volatility, days to expiration and specific strategy types. Thinkorswim’s proprietary thinkScript programming language enables users to create custom indicators, strategies and alerts. Schwab also offers video tutorials, webcasts, articles and live events.

• Drawbacks: Thinkorswim is complex and requires time to master. Some users find the interface less intuitive compared to more minimalist platforms. 

Who It’s Best For: Advanced options traders who want comprehensive analytical tools, sophisticated charting, strategy testing capabilities and a customizable trading environment. .

Choosing the Right Options Trading Tools

Choosing the right options trading platform can impact your investment success. The platforms offer tools and features tailored to different trading styles and preferences.

Benzinga Pro’s real-time news and unusual options activity alerts are ideal for traders who prioritize immediate market intelligence. For sophisticated traders wanting global market access and advanced tools with competitive pricing, Interactive Brokers is a good choice. TradeStation caters to active traders with its customizable desktop platform, charting and strategy backtesting. Tastytrade is a low-cost option for an intuitive options-first platform. Thinkorswim provides analysis and customization for advanced options analysis. 

The right tools will have fee structures and available markets that align with your investment objectives and trading styles. 

Frequently Asked Questions