Friendly Option Broker: Not all brokers are created equal.
In order to trade for a living or even trade profitably, you must have a good set of tools. One the tools that is essential is a good broker. With so many to choose from, there is no excuse for having a lousy options broker.
As option sellers, we need to have an option friendly broker. This is a broker than either specializes in options, or considers option traders a very important customer base.
By using an option friendly broker you will get
- better commissions
- better margin requirements
- better prices on your orders
- better software/platforms to trade on
- better information
- and better education
How do you tell if your broker is an option friendly broker?
- If your broker advertises on national tv, it’s probably not an option friendly broker.
- If your broker is a household name ( they have their name on a stadium), they are probably not an option friendly broker.
- If your broker’s main sales pitch is how low their stock commissions are, they are probably not an option friendly broker.
So how do you find an option friendly broker?
- A broker with the word “option” in their name probably IS an option friendly broker.
- If your broker charges less than $2 for a single option or less than $30 for a dozen, they probably ARE an option friendly broker.
- If you can trade options from their own software, on the internet, or from your cell phone, you probably have an option friendly broker.
- If your broker puts on seminars and webinars teaching option strategies, you probably have an option friendly broker.
- If you can call their help desk and have them walk you through an iron condor trade, without them asking you what an iron condor is – you probably have an option friendly broker.
Finding a broker is not hard. Finding an good option broker is a little trickier. But if you ask option traders you will get many suggestions. Of if you join my site, I will show you which ones I think are the best.
Having an options broker that is not option friendly, is like trading with one hand tied behind your back. Don’t do it.
Best option brokerage and trading
If you’re not familiar with the terminologies on this post, then chances are, you’re new to stock options trading. There are many websites that promote options trading which costs big bucks but you should be able to find a trustworthy service that introduces options trading for free. All you have to do is read what we have for you and our blog is a good start.
So make the first step and dedicate some time to learn how to use options the smart way.