The more you know about options trading in the stock market, the more you’ll understand why top investors use it.
Unlike other assets, you can use options to pursue a diverse range of goals – hedging against market risk, profiting from the upward and downward movements of the market, and benefiting from leverage, among others.
It’s all about having the right stock options trading strategies and selecting a low-cost options trading platform to cost-effectively execute your strategy.
In this article, we will consider 5 of the best low-cost options trading platforms you can explore in the UAE.
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Sarwa
Sarwa is a UAE-based trading platform that offers access to the options of thousands of US-traded stocks and ETFs.
Best known for
Sarwa is best known as an all-in-one platform where investors and traders can buy and sell different assets.
Key advantages
- Transparent fees: Sarwa charges $4 per contract traded. There are no hidden charges.
- Educational resources: They also provide educational resources on what stock options trading is about and the top strategies traders can explore.
- Beginner-friendly: Sarwa offers Level 1 and 2 access, which makes them appropriate for beginners who can’t handle Level 3 strategies.
- Free deposits and withdrawals: AED deposits and withdrawals via bank transfers are free.
Ideal for
Sarwa is ideal for traders and investors who are combining options with other asset classes as part of a broader strategy.
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IG
IG is a UK-based trading platform that is licensed to operate in the UAE market. It offers access to listed options and CFD-based options of stocks, FX, and indices across global markets.
Best known for
IG is best known for offering access to multiple assets across global markets.
Key advantages
- Low commissions: IG charges $0.85 per contract
- CFD-based options trading: Traders can buy and sell options over-the-counter (OTC) through CFDs.
- Multiple tools: They provide advanced tools like options strategy builders and risk-reward visualizations.
- Multiple access: You can trade options on the desktop, mobile, and web app.
Ideal for
IG is ideal for traders who want to explore both listed and CFD-based options.
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Interactive Brokers
Interactive Brokers is a global broker with a license to operate in the UAE market. It provides access to listed options in 30+ global exchanges. These include stock, index, and futures options.
Best known for
Interactive Brokers is best known for its global reach.
Key advantages
- Low cost: They charge between $0.10 and $0.65 per US option contract.
- Advanced tools: Interactive Brokers has many advanced charting tools on its Trader Workstation platform.
- Smart routing: The platform can scan through different exchanges to find the one with the minimum slippage and the best execution price.
- Level 1,2,3, and 4 access: Advanced traders can explore riskier strategies with Level 3 and 4 access.
Ideal for
Interactive Brokers is ideal for advanced options traders.
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Saxo Bank
Saxo Bank provides access to stock, index, FX, and commodities (listed) options across twenty different global exchanges.
Best known for
Saxo Bank is best known for its global reach and large product offerings.
Key advantages
- Tiered commissions: Saxo offers classic, premium, and VIP accounts. Classic traders will pay about $2 on each option contract, while premium and VIP accounts will pay discounted fees (VIP accounts pay the least).
- Algorithmic trading: Advanced traders can use computer programs and algorithms to automate their trades.
- Multiple platforms: Beginners can use SaxoTraderGo, while advanced traders can explore more sophisticated tools on SaxoTraderPro.
- Arabic language support: UAE traders can access the platform in Arabic.
Ideal for
SaxoBank is ideal for advanced traders who need sophisticated tools.
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Tastytrade
TastyTrade started as an options trading platform. It now provides access to other asset classes.
Best known for
TastyTrade is best known for its educational resources.
Key advantages
- Low commissions: They charge $1 to open a contract and $0 to close it.
- Advanced tools: Users can visualize Greeks, risk/reward, and profit profitability.
- Educational resources: TastyTrade provides demos, courses, strategy explainers, and daily live shows to teach users about financial markets.
- Level 1,2, and 3 access: Advanced traders can take on more complicated strategies with Level 3 access.
Ideal for
TastyTrade is ideal for traders who lean heavily towards options trading.