| Before you can even begin to start selecting trading | | | | broker, charges $8.50 per trade plus $.15 per |
| opportunities and making an investment, you'll be | | | | contract. A trade of only five lots would cost $8.20 |
| faced with perhaps one of the most important | | | | through TradeKing and $9.25 through OptionsHouse. |
| decisions of your investing career: choosing the best | | | | However, as volume increases, OptionsHouse |
| options broker to fit your individual needs. | | | | becomes considerably less expensive. A trade of 100 |
| No technological innovation has been better to | | | | lots, for example, would cost just $23.50 through |
| investors or traders than the internet. Today's | | | | OptionsHouse, but a whopping $69.95 through |
| investors can research stock opportunities, look at | | | | TradeKing. |
| charts dating back to the early 1900s, and buy and | | | | For the active trader trading large lots, OptionsHouse |
| sell in a moment's notice through the internet. | | | | would be the best online options brokerage. |
| Subsequently, it should come to no surprise that the | | | | However, for small volume traders, TradeKing would |
| top options brokers, from Scottrade to | | | | be the recommended options broker. |
| OptionsXpress, are all internet-based. | | | | Also important to selecting a broker is finding one |
| Before plunging into a broker and filling out the pages | | | | with funding options that suit your needs. Whether |
| upon pages of paperwork now needed to open an | | | | you want to be able to ACH transfer money from |
| options account, there a few things investors should | | | | your bank account to your broker or even access |
| consider. | | | | your account balance via a debit card, each broker |
| | | | has different opportunities to access your cash. In |
| 1. Initial Investment | | | | addition, each broker has different fees for |
| 2. Expected Market Activity | | | | withdrawals, often charging $2 for a check by snail |
| 3. FundingThe amount you wish to invest will have a | | | | mail or $10-20 to withdraw your cash via wire |
| dramatic impact on the selection of brokers, as well | | | | transfer. |
| as the features and options you have within your | | | | This is where broker selection is incredibly important, |
| brokerage account. For instance, some brokers allow | | | | and some traders may be better served to opt for a |
| traders to trade options with a minimum deposit as | | | | more premium discount broker. Scottrade may be |
| low as $1000, while others not specialized in options | | | | the best options brokerage for a trader looking for |
| require minimum account balances of $1000-2500. | | | | face-to-face communication and withdraws or |
| Some brokerages also offer special promotional | | | | deposits on the spot at their offices. |
| rewards and better interest on account balances for | | | | When you boil down the process of selecting the |
| traders with $25,000 or more. | | | | best options broker, ultimately it is one that fits your |
| The amount of trades you plan to complete, as well | | | | individual needs. No, you won't be able to meet every |
| as the amount of volume you will be trading, are | | | | need perfectly, but with many different brokers to |
| very important to your choice of broker. | | | | choose from, it is certain that you can at least find |
| TradeKing, for example, charges $4.95 per trade plus | | | | the best options broker for your individual needs. |
| $.65 per contract, whereas OptionsHouse, a specialty | | | | |