Ranking the Top Options Trading Apps in Australia ASX market

Ranking the Top Options Trading Apps

I’ve been trading options for years and have tried various apps. In this blog post, I’ll be ranking five popular options trading apps and discussing their pros and cons. I’ll also mention a new trading app that I’m considering as a replacement for my current broker.

1. Robinhood

Robinhood is my favorite trading app due to its user-friendly interface. It is incredibly easy to trade options on Robinhood, making it accessible for beginners. However, some people have concerns about the GME incident and the practice of payment for order flow, where Robinhood reroutes orders through specific market makers. While this practice is controversial, Robinhood does not charge fees for options trading.

2. Fidelity

Fidelity is known for being slow and glitchy. Its user interface can be frustrating to navigate, and there have been issues with the risk management team. Fidelity charges a 65 cent fee for each option, which can add up if you trade frequently. However, the fills on trades tend to be better on Fidelity compared to Robinhood.

3. Thinkorswim

Thinkorswim offers a better user experience than Fidelity, with a more intuitive interface. It also provides paper trading for beginners to practice options trading without risking real money. Thinkorswim charges a 65 cent fee per option. The platform allows for extensive customization of charts and studies, but this may be overwhelming for new traders.

4. Tastyworks

Tastyworks is a great option for beginners looking to learn about options trading. The platform offers tutorials and a user-friendly interface. However, it charges higher commissions compared to other apps, with a one dollar fee per option. Despite the higher fee, the user experience and tutorials may be worth it for some traders.

5. Interactive Brokers

For traders outside the United States, Interactive Brokers is a popular choice. However, the platform can be tricky to navigate for new users, and there is a learning curve involved. Interactive Brokers charges fees based on the country and the number of options traded each month.

Honorable Mention: Aries

I am considering Aries as a potential replacement for Robinhood. This app was recommended to me by Mikey Millions from Kamikaze Cash. Aries offers similar features to Robinhood and may be worth exploring for those looking for an alternative.

When it comes to user interface, Aries is very similar to Robinhood. However, there is one major advantage that Aries has over Robinhood.

Aries does not close your spread at 3 pm on your expiration date, which has been a problem for me when using Robinhood. With Robinhood, I would often be forced to close my spread at 3 pm, resulting in either a loss or suboptimal gains. However, with Aries, you can trade up to 4 pm on your expiration date.

Another great thing about Aries is that they can approve you for up to level 4 options trading, allowing you to sell naked calls and naked puts. The risk management team at Aries is a bit looser compared to Robinhood and especially Fidelity.