Power Option Broker Review

USD/ZAR

Trading Accounts

At PowerOption, all traders are regarded as VIP traders and hence there is no trading account differentiation. There is only one type of trading account and traders are required to make a minimum deposit of $100 or €100 (depending on the account currency base) when opening one.

Payouts & Bonuses

In general, PowerOption pays their traders up 85% returns for normal binaries. For One touch options, the returns can be higher reaching up 500%. Unfortunately, there is no rebate for out of the money trades. However, PowerOption did announce that rebates will be made available soon.

As the bonuses offered by PowerOption, they are based on a ladder format with the lowest rung starting at 50% (up to $299 in deposits) going up to a maximum of 100% (above $500 in deposits).

Reliability

While PowerOption may be a newly established broker, they follow the same standard of security protocols as those in AvaTrade. This means traders do not have to worry about the safety of their funds as these people uses only the most advanced security provisions in protecting their clients’ money.

Conclusion

Given the low minimum deposit requirement imposed and the single type of trading account offered by PowerOption, one can tell that this broker offer benefits which are conducive to beginner traders. And while they might be based in the Seychelles, traders need not be overly concerned about that fact. The main thing is to remember that PowerOption is part the AvaTrade group and a legitimate brokerage firm with good standing in the industry.

PowerOption Review

Update 2020: We have recently found PowerOption to be a scam, this broker cannot be trusted. For further information please seeВ Binary Options Trading Scams.

PowerOption was established in 2020 as the Binary Options trading platform for the reputable Forex broker AvaTrade. В The service and training is provided by the same staff of trading experts at AvaTrade. The backing and support of a Forex broker can only enhance the confidence that traders will have while trading on a platform such as PowerOption.

Summary of PowerOption Review

Customer Service :В Their support team is available 24/5 in English, Chinese and Arabic. В Toll Free phone support in 10 countries. I found them very helpful and responsive when I contacted them.

Deposit/Withdrawal :В Deposit via major credit cards, e payments or wire transfer. В Withdrawals are processed within 5 business days.

Trading/Execution :В Trading and execution was satisfactory.

Features : В Power Option has a full range of trading choices including 60 Second Binary Options, One Touch Options, Range and Options on Demand.

Trading Education and Market Data

PowerOption will provide you with your own personal account manager, an experienced trading expert who gives you tips about how to improve your trading performance. You have access to an economic calendar as well as educational materials such as eBook and training videos.

Another important advantage to PowerOptions is that AvaTrade is licensed and regulated by the FSC giving you an added level of security knowing that the parent company must adhere to rules of fair play and customer account security.

PowerOption Home Page

PowerOption Trading Platform

Power Option offers trading in multiple assets among Currencies, Indices, Commodities and Stocks. Returns are as high as 85% per trade. Trading features include Standard High/Low or Call/Put options, 60 Second options and One Touch and Range options with yields up to 100%. В They offer a unique feature called Option on Demand which allow you to choose the expiration and yield for a particular asset.

PowerOption Trade Screen

The trading platform is easy to navigate and offers dynamic color charts.

PowerOption Mobile App

The PowerOption Mobile App is available for both the Android and iPhone operating systems. The app is a fully functioning trading platform with all the features on the standard desktop version. App is modified specifically for use on the mobile screens. The mobile platform is an excellent way to trade binary options at any time.

Best Options Trading Platforms for 2020

The StockBrokers.com best online brokers 2020 review (10th annual) took six months to complete and produced over 30,000 words of research. Here’s how we tested.

Next to active traders, there is arguably no customer more valuable to an online broker than an options trader. Options trades offer brokers much higher profit margins than stock trades, and, as a result, competition is fierce in attracting these clients. This type of market atmosphere is great for investors because with healthy competition comes product innovation and competitive pricing.

Best Options Trading Platforms

Here are the best options trading platforms, based on over 100 variables.

Best for options overall – Open Account
Promo Offer: Get $100 when you deposit just $5,000 into a new E*TRADE account!

Built as a web-based platform, Power E*TRADE innovates and delivers speed, ease of use, and the tools needed for traders to succeed. Once again, in our 2020 Review, Power E*TRADE won our award, “Best Web-Based Platform.” E*TRADE also took our top spot for options trading. Read full review

Low costs, great platform – Open Account
Promo Offer: Commission-Free Trades on Stocks, ETFs & Options Trades

As a trading technology leader, TradeStation shines. Options trading is a breeze using OptionStation Pro, a built-in tool within the TradeStation desktop platform designed for streamlined trading and robust analysis. Options tool capabilities include custom grouping for current positions, streaming real-time greeks, and advanced position analysis, to name a few. Read full review

Best options tools – Open Account
Exclusive Offer: Get up to $600 and trade commission-free with TD Ameritrade.

Once again, for the ninth consecutive year, TD Ameritrade is number one for trading platforms and tools, thanks to desktop-based thinkorswim. Whether day trading, options trading, futures trading, or you are just a casual investor, thinkorswim is a winner. Read full review

Best for professionals – Open Account
Exclusive Offer: New clients that open an account today receive a special margin rate.

Trading tools within the Trader Workstation (TWS) platform are designed for professional options traders. From algo trading to Options Strategy Lab, Volatility Lab, Risk Navigator, Market Scanner, Strategy Builder, and Portfolio Builder, Interactive Brokers is built for professionals. Options commissions start at $.65 per contract with a $1.00 minimum and no maximum. Read full review

Unique order types – Open Account
Current Offer: $0 online stock, ETF, and options commissions at Schwab.

Schwab’s flagship downloadable trading platform, StreetSmart Edge, provides most of the bells and whistles options traders and day traders need to succeed. For options traders, Schwab’s All-in-one trade ticket, alongside the proprietary Walk Limit order type, are both excellent. Read full review

Options Trading Tools Comparison

Best Options Trading Tools

Platform wise, web-based Power E*TRADE offers all the tools an options trader could want, and displays them in magnificent form. Attention to detail, such as automatic spread groupings, effortless scanning through strategySEEK, and easy-to-understand risk/reward data through tradeLAB, make Power E*TRADE a truly unique experience.

Keeping the spotlight on excellent platforms and tools for options traders, TD Ameritrade’s thinkorswim and TradeStation cannot be left out. Strategy Roller from thinkorswim enables clients to create custom rules and roll their existing options positions automatically. The number of settings and depth of customization available is impressive, and something we have come to expect from thinkorswim.

Not to be outdone, TradeStation’s OptionsStation tool makes analyzing potential trades a breeze, and even goes as far as including 3D P&L charts. Investors note, however: Popcorn and 3D glasses are not required, and while visually appealing, we did not see any distinct advantage over the traditional 2D P&L chart.

If unique features and functionality matter to you, Charles Schwab offers the “Walk Limit” order type, which will “walk” your order to try to get the most favorable price within the National Best Bid or Offer (NBBO). The broker also offers Idea Hub, which uses targeted scans to break down options trade ideas visually.

For professionals, Interactive Brokers takes the crown. At Interactive Brokers, there is no base charge, and the per-contract rate is just $.70. Additional savings are also realized through more frequent trading. That said, the broker is built primarily for professional traders and requires a $100,000 minimum deposit for margin accounts. Lastly, its trading platform, Trader Workstation, is the most challenging platform to learn out of all the brokers we tested for our 2020 review.

There’s a healthy variety of reputable brokers to choose from in the world of options trading. At a minimum, investors should expect their broker to include scanning, P&L analysis, risk analysis, and easy-order management. Position management functionality and tying the experience together is where platforms such as Power E*TRADE and thinkorswim by TD Ameritrade distinguish themselves.

What is the best platform for trading options?

The best trading platform for options trading offers low costs, feature-rich trading tools, and robust research. Our all-around top pick in 2020 for options trading is Power E*TRADE. The web-based Power E*TRADE platform includes all the tools an options trader could want and displays them in magnificent form. My two favorites are strateySEEK and Snapshot Analysis.

What is a call option?

In its most basic form, a call option is used by investors who seek to place a bet that a stock will go UP in price. Buying a call option contract gives the owner the right (but not the obligation) to buy shares of stock at a pre-specified price for a pre-determined length of time. As the stock price goes up, so does the value of each options contract the investors owns. Each contract represents 100 shares of stock.

What is a put option?

In its most basic form, a put option is used by investors who seek to place a bet that a stock (or other security such as an ETF, index, commodity, or index) will go DOWN in price. Buying a put option gives the owner the right (but not the obligation) to sell shares of stock at a pre-specified price (strike price) before a preset date (expiration). The further the stock falls below the strike price, the more valuable each contract becomes.

What is the minimum amount required to trade options?

Each online broker requires a different minimum deposit to trade options. For most brokerages, the minimum deposit required is less than $1,000. To apply for options trading approval, investors fill out a short questionnaire within their brokerage account. Access to begin trading options can be granted immediately thereafter.

Is options trading risky?

Yes. Options trading is a form of leveraged investing. Any time an investor is using leverage to trade, they are taking on additional risk. Many times, this risk is unforeseen. With options, investors who buy a call or put risk the money they invested in the contract. However, when selling a call or put, if the trade isn’t protected (also known as going naked), then the investor is taking on significant risk. To protect investors, new investors are limited to basic, cash-secured options strategies only.

Options Trading Features

Ultimately, choosing an options brokers comes down to personal preference and weighing priorities, such as cost versus ease of use and tool selection.

On a feature by feature basis, all of our top five finishers this year offer the following features to their options trading customers.

Read Next

Explore our other online trading guides:

Methodology

For the StockBrokers.com tenth annual best online brokers review published in January 2020, a total of 3,540 data points were collected over six months and used to score brokers. This makes StockBrokers.com home to the largest independent database on the web covering the online broker industry.

Participation is required to be included. Each broker completed an in-depth data profile and provided executive time (live in person or over the web) for an annual update meeting. Our rigorous data validation process yields an error rate of less than .001% each year, providing site visitors quality data they can trust. Learn more about how we test.

Still aren’t sure which online broker to choose? Email us a question! Whether you are a beginner investor learning the ropes or a professional trader, we are here to help. Email us your online broker specific question and we will respond within one business day.

Best Options Trading Platforms

The best options brokers have a wealth of tools that help you manage risk

Investopedia is committed to rigorous editorial standards to provide our readers with the best advice and recommendations. We may receive compensation when you click on links to products we reviewed. Learn more about our methodology and review process.

We recognize that we all are living through a particularly volatile time as we deal with this global crisis, and financial markets have also seen unprecedented change, impacting all investors. Our mission has always been to help people make the most informed decisions about how, when and where to invest. Given recent market volatility, and the changes in the online brokerage industry, we are more committed than ever to providing our readers with unbiased and expert reviews of the top investing platforms for investors of all levels, for every kind of market.

Options trading has become extremely popular with retail investors since the turn of the 21st century. Our best options brokers have a wealth of tools that help you measure and manage risk as you determine which trades to place. They also include valuable education that helps you grow in sophistication as an options trader.

Best Online Brokers for Options Trading in April 2020:

• tastyworks: Best Options Trading Platform
• tastyworks: Best Broker for Advanced Options Traders
• tastyworks: Best Broker for Mobile Options Traders
• E*TRADE: Best Broker for Beginning Options Traders
• eOption: Best Broker for Low-Cost Options Trading

Best Options Trading Platform, Best for Advanced Options Trades, and Best for Mobile Options Traders: tastyworks

• AccountMinimum: $0
• Fees: $0.00 stock trades, $1.00 to open options trades $0.00 to close

Tastyworks says that more than 90% of the trades placed by its customers are derivatives, so they naturally spend their time designing a lot of tools specifically for options and futures traders. Everything is designed to help traders evaluate volatility and the probability of profit. Tastyworks’ entire platform is geared towards making decisions and taking action. Tastyworks opened its virtual doors in 2020, so it isn’t saddled with legacy systems that bog down many of the older online brokers. This has helped it tremendously in keeping the options trading experience to the essentials. Tastyworks’ executions are fast and the costs are low, with commissions capped for opening orders for options on equities and futures at $10 per leg.

Watchlists are a key component of the tastyworks platform, and they are the same on mobile, web, and download. The look and feel of the mobile platform is very similar to the desktop versions, though you’ll find price wheels and ways to define trades that minimize the possibility of making a mistake. As you build a position from a chart or from a volatility screener, a trade ticket is built for you. There’s also a video viewer embedded so you can keep an eye on the tastytrade network. Though a newcomer to options trading might be initially uncomfortable, those who understand the basic concepts will appreciate the content, features, and focus apparent throughout tastyworks’ platforms.

All of the tools you’ll need for analyzing and trading derivatives are built into the platforms.

The charting capabilities are uniquely tuned for the options trader. If you have multiple positions on a particular underlying, you can analyze the risk profiles of the combined position.

There are hours of original video from tastytrade every weekday, offering up-to-the-minute trading ideas, plus a huge library of pre-recorded videos and shows.

Newcomers to trading and investing may be overwhelmed by tastyworks at first.

There is no fixed income trading (outside of ETFs that contain bonds) for those who want to allocate some of their assets to a more conservative asset class.

Any additional portfolio analysis beyond profit and loss requires setting up a login on a separate site, The Quiet Foundation, which is also part of the tastytrade empire.

Best for Beginning Options Traders: E*TRADE

• AccountMinimum: $0
• Fees: No commission for stock/ETF trades. Options are $0.50-$0.65 per contract, depending on trading volume.

New options traders need some help in understanding how trading derivatives can help improve portfolio returns. E*TRADE’s more advanced platforms are elegantly designed and guide you along the way. When you graduate to options and derivatives, the Power E*TRADE website and mobile app can help you learn. The Power E*TRADE site and app can be set up to put the functions you use most often front and center so you don’t have to dig around for them. The platform has all the features inherited from E*TRADE’s acquisition of OptionsHouse technology, which includes a wealth of helpful educational resources for the developing options trader. Watchlists are integrated across E*TRADE’s platforms, and the full range of tradable assets is accessible on the mobile apps. The workflow is very smooth on the mobile apps. We also found that using Power E*TRADE on a tablet is quite pleasant.

Mobile apps are extremely well laid-out and easy to use and are among the most comprehensive and extensive apps tested.

Spectral Analysis on Power E*TRADE is a visually stunning tool that helps you visualize maximum profit and loss for an options strategy and understand your risk metrics

You can test strategies using the paper trading capabilities of E*TRADE Pro’s desktop platform, which uses delayed data so you won’t think you’re placing real trades.

On all platforms, you’ll find a ubiquitous trade ticket with streaming real-time data.

Tiered commission schedule for options trades, charging $0.65 per contract for less frequent traders and $0.50 for those who place more than 30 options trades per quarter.

Investors who would like direct access to international markets or to trade foreign currencies should look elsewhere.

You cannot consolidate your externally-held accounts to form a complete picture of your net worth on E*TRADE.

Best for Low-Cost Options Trading: eOption

• Account Minimum: $0
• Fees: $0 per stock/ETF trade, $1.99 base per leg plus $0.10 per contract for options trades

eOption charges $1.99 per leg for options trades, but the per-contract fee is significantly lower than its competitors, making it great for heavy options traders. eOption also offers commission-free stock and ETF trading so those who are options-oriented traders but also want access to other assets at a low cost will have no issues here. Clearing and exchange fees, typically a fraction of a penny per share, are spelled out on the order confirmation screen and are passed through to customers. eOption also scored highly for its relatively low margin rates.

eOption offers great value for frequent options traders.

The browser-based eOption Trader platform is easy to use.

Newsletter subscribers can auto-trade their alerts.

Limited education offerings.

News feeds are limited.

Any OTCBB (penny stock) trades must be made with a live broker.

Other Options Considerations

The commission structure for options trades tends to be more complicated than its equivalent for stock trades. Until the commission cuts that swept the industry in the fall of 2020, most brokers charged a fee for each leg of an options spread plus a commission per contract being traded. The per-leg fees, which made 2- and 4-legged spreads expensive, have been eliminated industry-wide, for the most part. We are also seeing some brokers place caps on commissions charged for certain trading scenarios.

Investors with fairly large portfolios can also take advantage of portfolio margining at some brokers. This is a practice that assesses the total risk inherent in a portfolio that contains stocks and derivatives. Investors with large portfolios can use portfolio margining to reduce the size of the margin loan.

What Kind of Options Trader Are You?

The first and most important piece of information to consider before selecting an options trading account is what kind of trader you are. What is your trading style and risk appetite? Which tools would you like to have handy?

Options are complex products to understand and trade. All of the brokers listed above allow customers to build complex options positions as a single order. Some brokers, such as Vanguard, only allow one position per order, leaving it to the individual trader to place multiple orders one at a time to create a combination position. Merrill Edge lets you place two-legged spreads, but anything more complex will require an additional order.

If you’re just getting started with options trading, the quality of education and help offered by your broker is important. Frequent traders and those who trade a large number of contracts will be more sensitive to commissions and fees, so check out your prospective broker’s charges and make sure you understand them.

Methodology

Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers. Our reviews are the result of months of evaluating all aspects of an online broker’s platform, including the user experience, the quality of trade executions, the products available on its platforms, costs and fees, security, the mobile experience and customer service. We established a rating scale based on our criteria, collecting thousands of data points that we weighed into our star-scoring system.

In addition, every broker we surveyed was required to fill out an extensive survey about all aspects of its platform that we used in our testing. Many of the online brokers we evaluated provided us with in-person demonstrations of its platforms at our offices.

Our best options brokers have a wealth of tools that help you measure and manage risk as you determine which trades to place. These brokers include valuable education that helps you grow in sophistication as an options trader. Investors with fairly large portfolios can take advantage of portfolio margining at certain brokers, a practice that assesses the total risk inherent in a portfolio that contains stocks and derivatives, and can reduce the size of your margin loan.

Our team of industry experts, led by Theresa W. Carey, conducted our reviews and developed this best-in-industry methodology for ranking online investing platforms for users at all levels. Click here to read our full methodology.

Power E*TRADE (formerly OptionsHouse) Review

In 2020, low-cost broker E*Trade purchased Aperture New Holdings, the parent company of the trading platform, OptionsHouse. E*Trade operated OptionsHouse as a stand alone site until late 2020 when it reopened as Power E*Trade.

Power E*Trade is E*Trade’s low cost platform for trading stocks, options, futures and more. The platform is designed for frequent traders, especially those specializing in technical analysis.

What does this change mean for you? Let’s break down what the new Power E*Trade looks like. You can also see how they compare to our best online stock brokers here.

Quick Summary

• Round up app that applies round up savings to your student loans
• $2 per month fee to use
• Can help motivate to pay off debt faster

Power E*Trade Features

Power E*Trade is a mobile app and web-based platform that offers traders best in class information features. You can easily set up charts, tickers, watch lists, futures and options chains, income backtesting calculators and more.

You can launch a Power E*Trade account by hitting the “Launch” button on the right hand side of any E*Trade account. However, to actually access an account, you have to make at least 30 trades per quarter or meet an account minimum of $250,000.

You can trade stocks, options, bonds, futures, mutual funds and ETFs from the Power E*Trade platform. You can also trade from the E*Trade app.

Power E*Trade Pricing

E*Trade has two different types of pricing. First, traders can choose whether to subscribe to certain Market Data information. Some of the subscriptions are free, while others cost up to $15.00 per month.

In addition to the subscription fee, traders will pay a fee for every trade they make.

$4.95 for every stock and options fee plus a $0.55 fee for every options contract.
$1.50 for every futures trade (for each side of the contract) plus other fees imposed by the National Futures Association.
$4.95 for each ETF trade except for one of 250 commission fee ETFs.

These prices are discounted from the $6.95 per trade plus $.75 per contract fees that standard E*Trade investors encounter.

Should You Start Trading Through E*Trade?

With a huge number of education materials, calculators, and lots of free information Power E*Trade is a reasonable place to start a trading. However, the prices on E*Trade are not as inexpensive as other places, especially if you’re trading stocks rather than options. These are a few places where you can trade stocks for free.

Also, before you start actively trading, be sure you understand the odd of beating the market are not good. While some traders outperform their indexes in the long run, successful trading takes discipline and insight along with the right tools.

Power E*Trade Review

• Commission and Fees – 90

Filed Under: Brokerages Tagged With: Review
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors’. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone’s responsibility to ensure all posts and/or questions are answered.

About Robert Farrington

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

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