While options trading is hugely popular in the United States thanks to platforms like Robinhood, it's still a relatively untapped space for retail investors in Australia. That's quickly changing as more options trading platforms enter the scene offering costs that are lower than ever.
If you're already familiar with options trading, you can find our list of the top Australian trading platforms (and why we picked them) below:
Best options trading platforms in Australia (2024)
Because the fees and features can differ dramatically from one broker to the next, we've compared 40 stock trading platforms to identify the best in Australia.
If you want to learn more about how to trade options, you can check out our full guide to options trading in Australia. Alternatively, at the time of writing, Tiger Brokers and Saxo Invested offer great demo account options to get you started before trying the real thing.
Tiger is rated one of Australia's best options trading platforms because it has incredibly low fees and great features, albeit only offering US options. Commission fees for US options start at just US$1.99 per contract – the lowest we've seen to date. Its mobile platform is simple to use and features handy tools, such as technical analysis charts, analyst recommendations, financial reports and watchlists. Beyond options, you can also trade Australian, US and Hong Kong-listed stocks directly.
Low options trading fees.
Easy-to-use mobile platform.
No minimum deposits.
Buy stocks or trade options on one account.
It doesn't offer ASX options (US only).
Limited markets available.
Better suited to more experienced investors.
Brokerage fee per trade: AU stocks: $5.50 per trade US stocks: US$2 UK stocks: Not available Other markets available: Details here Options: ASX: Not available US: US$0.95/contract (Min. US$3 per order) Inactivity fee: $0 Currency conversion fee: 0.53% of trade value
CMC Invest: Best overall trading platform (Finder Awards)
CMC Invest is Finder's best overall share trading platform because it's great for new and experienced investors, has low fees and is packed full of features. You can also trade options on CMC by filling an additional options account form. Once accepted, you'll be able to trade Australian exchange traded options (ETOs) with all the features of the share trading platform, including conditional orders, stock filters, broker analysis and technical charts.
$0 brokerage on global stocks. CMC charges no commissions to trade stocks listed in the US, the UK, Germany or Japan.
A wide range of order types. You can place, buy and sell orders, amend and cancel orders and use conditional and linked orders to manage your investments.
Information from the market and experts. CMC Invest provides users with access to an extensive range of useful investment information to help you make the right trading decisions.
Customisable watchlists. It's easy to create and edit watchlists to monitor the performance of stocks.
Limited global markets. Only 4 global markets are commission-free to trade. Other global markets cost $59 per trade in brokerage while ASX stock trading starts at $11.
US options not available. You can only trade ASX exchange traded options (ETOs) on CMC.
Brokerage fees: AU stocks: $0 brokerage (for buy orders up to $1,000) and $11 or 0.10% (whichever is greater) for all other buy and sell orders. US stocks: US$0 UK stocks: £0 ETF brokerage fees: AU ETFs: $0 brokerage for trades up to $1,000 (applied to the first buy order per ETF per day). $11 fee for trades up to $10,000. $15 fee for trades equal to or greater than $15,000. US ETFs: US$0 Options: ASX: $33/contract US: Not available Other markets available: Details here Inactivity fee: $0 Currency conversion fee: 0.60% of trade value
Through both the desktop and mobile platform, you can trade options on stocks listed in the US, the UK, Hong Kong, Europe and Singapore for a low cost. Saxo also offers enough tools to keep active and quant traders happy while also offering training resources and a demo account to try out those new skills.
Packed full of features including charts and advanced trading tools.
Offers listed options from 20 global exchanges.
Low options trading fees.
Platform may be too complex for newer investors.
CFDs are mixed in, which can be confusing.
No longer offers ASX options
Brokerage fee per trade: AU stocks (Issuer sponsored): $3 or 0.08%, whichever is higher AU stocks (Chess sponsored): $14.9 or 0.1%, whichever is higher US stocks: US$1 or 0.08% UK stocks: £3 or 0.08% ETF brokerage fees: AU ETFs (Issuer sponsored): $3 or 0.08%, whichever is higher AU ETFs (Chess sponsored): $14.9 or 0.1%, whichever is higher US ETFs: US$1 or 0.08% UK ETFs: £3 or 0.08% Options: US: US$2 Inactivity fee: $0 Currency conversion fee: 0.25% of trade value
Interactive Brokers: For a diverse range of trading options
Interactive Brokers has been named Finder's best platform for active traders for the last few years running for good reason. Along with the most extensive list of trading tools we've seen, IB has some of the lowest fees and multiple account options to appeal to any investor. Interactive Brokers offers options on US, Canadian and Mexican stocks with trade fees starting from just $1 per order.
Low options trading fees.
Low brokerage fees for global stock trading.
Advanced trading tools.
No options available on Australian stocks.
Limited markets available for options.
Some features may be complicated for new traders.
Brokerage fee per trade: AU stocks: $5 or 0.08% (whichever is greater) for trade values up to $3,000,000 US stocks: US$0.0035 cents per share capped at 1.0% of trade value UK stocks: £1.00 or 0.050% (whichever is greater) for trade values up to £40,000,000 Options: AU: $0.33/contract, min $1.10 US: US$0.25 - US$0.65/contract, min US$1.00 Inactivity fee: $0 Currency conversion fee: 0.20% (Flat US$2 for transactions below $10,000 or 0.2% for amounts above $10,000)
Westpac Share Trading: For high quality research features
The Westpac Share Trading platform allows you to trade shares, warrants, exchange traded funds (ETFs) and exchange traded options (ETOs). While the trade costs can be higher than some other brokers, it has an easy-to-use interface and plenty of features to keep casual and active traders satisfied, including watchlists, live quotes, news and alerts.
Trade stocks and options from one account.
You can access live data, quotes and news to make investment decisions.
Customisable market sensitive alerts.
No US options available &ndash
ASX options only.
Brokerage fee per trade: AU stocks: $4.95 (trades up to $1,000); $9.95 (trades $1,000 - $3,000); $19.95 (trades $3,000 - $10,000); $29.95 (trades $10,000 - $28,000); and 0.11% of trade volume (trades over $28,000). US stocks: USD$19.95 (trades up to USD$5,000); USD$29.95 (trades up to USD$10,000); 0.31% of trade volume (trades over $10,000). Other markets: Details here ETF brokerage fees: AU ETFs: $4.95 (trades up to $1,000); $9.95 (trades $1,000 - $3,000); $19.95 (trades $3,000 - $10,000); $29.95 (trades $10,000 - $28,000); and 0.11% of trade volume (trades over 28,000). US ETFs: USD$19.95 (trades up to USD$5,000); USD$29.95 (trades up to USD$10,000); 0.31% of trade volume (trades over 10,000). Other markets: Details here Inactivity fee: $0 Currency conversion fee: 0.60% of trade value
Our options trading platform methodology
We think the best options trading platforms in Australia offer low fees and advanced tools. However, the best platform for you will depend on your trading style and which markets you prefer to trade in. While most traders in Australia trade ASX-listed options, US stock options are also becoming more popular here and can be cheaper.
The options trading accounts featured below are the 5 highest rated according to our latest analysis. Finder's proprietary algorithm rates platforms highly if they have the following features:
Low options trading fees
Available on desktop and mobile
Technical analysis charts
Conditional orders
Margin trading
News feed
Broker analysis
Support options
While Finder has commercial deals with some online brokers, this does not impact the final selection of brokers. Our algorithm considers the fees and features of all stock trading platforms and narrows down the winners regardless of Finder's partnership deals.
For more information on how we rate platforms, you can check out our methodology page. Bear in mind that the brokers displayed on this page may not always be best for you and we encourage you to do your own research.
What is options trading?
Options trading is a financial strategy where traders buy and sell contracts providing the right, but not the obligation, to buy or sell an asset at a predetermined price before or at the expiry date.
If that makes sense to you, great, if not, here's a analogy to help you get your head around it:
Imagine you're planning to buy a new smartphone that will be released in a few months, but you're unsure about its future price. To secure the current price and have the option to buy it later, you pay a small fee to the store owner for a "pre-order ticket."
Call option example:
You pay a small fee (option premium) to the store owner for the right, but not the obligation, to buy the smartphone at today's price within the next three months.
If the smartphone's price goes up, you can still buy it at the lower, pre-ordered price, saving money.
If the price drops or you change your mind, you're not obligated to buy, but you forfeit the initial fee you paid for the option.
Put option example:
Alternatively, you pay a small fee for the right to sell your smartphone to the store owner at today's price within the next three months.
If the smartphone's price falls, you can sell it at the higher, pre-ordered price, avoiding losses.
If the price rises, you're not obligated to sell, but you lose the initial fee you paid for the option.
Key takeaways:
Options give you flexibility. You're not forced to buy or sell but have the choice at a later date.
Small upfront cost. You pay a fee for the option, not the full price of the smartphone.
Managing risk. Options can help protect against price changes in the market.
Remember, this is a simplified analogy, and options trading involves complexities that traders should thoroughly understand before getting involved.
News update: July 2024
Leading US stock indices like the Nasdaq-100 and S&P 500 have hit new all-time highs thanks to the performance of blue chip tech stocks like Apple and Microsoft.
Economic and market outlook. Softer-than-expected US CPI data for April has prompted hopes of a Fed rate cut and led to rallies in the US and Australian stock markets, gold and Bitcoin. The S&P 500 hit a record high and is now up 11.92% for the year (as of 16 May 2024).
Sector-specific performances. Uranium and other energy stocks remain some of the best performing sectors so far in 2024, with the Betashares Global Uranium ETF up 79.64% in 12 months (as of 16 May 2024).
Options trading activity. The return of meme stock poster boy Roaring Kitty to social media prompted a huge rally in GameStop (GME) and other meme stocks, along with a "suspicious" surge in GME call options, according to Interactive Broker's chief market strategist Steve Sosnick.1
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
How to invest in stocks
Frequently asked questions
There are many great apps that do not allow you to place trades but still offer a wide range of useful features for Australian share market investors, such as share market news, company reports, financial analysis and much more. However, all the apps listed above do allow you to place trades.
Most share trading apps are available for free to customers of online share trading platforms. However, you may need to pay an ongoing membership fee when you sign up to the online trading platform.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs. See full bio
Kylie's expertise
Kylie has written 149 Finder guides across topics including:
If you’re thinking of investing in gold, our guide will explain how and where to buy gold in Australia as well as the pros and cons of investing in it.
Hi Heather, I’m afraid I can’t find any details on this specific trading platform which is a red flag in itself. Before signing up to any trading platform make sure it holds an AFS license and is regulated by ASIC. This will ensure you’re protected under Australian laws.
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Is Trade Safe a reputable trading platform?
Hi Heather, I’m afraid I can’t find any details on this specific trading platform which is a red flag in itself. Before signing up to any trading platform make sure it holds an AFS license and is regulated by ASIC. This will ensure you’re protected under Australian laws.