Categories: Tools

Best Options Trading Platform UK: Top 5 Reviewed for 2025

Options trading is an advanced investment strategy that offers flexibility, allowing traders to hedge risks, generate income, and speculate on market movements. Whether you’re an experienced trader or just starting with options trading, selecting the right platform from the best options trading brokers is crucial for success.

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In this guide, we’ll review the best options trading platforms in the UK for 2025, comparing features, fees, and tools to help you find the perfect fit for your trading strategy.

Best Options Trading Platform UK: Quick Overview

Platform	Best For	Key Features	Fees
Interactive Brokers	Advanced Options Traders	Direct market access, low trading costs	£0.85 per contract
Saxo Bank	Sophisticated Investors	Advanced trading tools, multi-asset support	Variable, based on volume
IG	Beginners & Pros	Strong educational resources, user-friendly	£0 commission on EU stocks
DEGIRO	Low-Cost Trading	Competitive fees, wide market access	Low commission structure
Plus500	CFD Options Trading	Simple interface, risk management tools	Tight spreads, no commission

Here’s a quick overview of the best options trading brokers in the UK.

1. Interactive Brokers (IBKR) – Best for Advanced Options Traders

Interactive Brokers is renowned for its professional-grade tools and broad market access, making it ideal for active traders and advanced options traders. IBKR offers a powerful Trader Workstation (TWS) platform, enabling sophisticated options trading strategies.

Key Features:

Direct Market Access: Trade globally with over 135 markets.
Advanced Tools: Risk management, volatility analysis, and strategy builders.
Low Fees: £0.85 per contract, with volume-based discounts.

Pros:

Comprehensive analytical tools.
Supports complex multi-leg options strategies.
Suitable for high-volume traders.

Cons:

Steep learning curve for beginners.
Minimum deposit required.

2. Saxo Bank – Best for Sophisticated Investors

Saxo Bank is one of the best options trading brokers, catering to professional traders with a robust trading platform that supports a wide range of financial instruments, including stock options, futures, and CFDs.

Key Features:

Multiple Asset Classes: Trade options, forex, stocks, ETFs, and more.
Powerful Platform: Advanced charting tools and real-time market data.
Educational Resources: Webinars, guides, and in-depth market analysis.

Pros:

Excellent risk management tools.
Customizable interface for advanced traders.
Direct market access.

Cons:

Higher trading fees compared to discount brokers.
Best suited for experienced traders.

3. IG – Best for Beginners and Professionals

IG is a popular choice among options trading brokers in the UK for both beginner and professional traders. Known for its intuitive platform and comprehensive educational materials, IG makes options trading accessible to all skill levels.

Key Features:

User-Friendly Interface: Great for beginners to learn options trading.
Demo Account: Practice trading with virtual funds.
Strong Regulation: Regulated by the Financial Conduct Authority (FCA).

Pros:

Competitive pricing with tight spreads.
Extensive educational content.
Reliable customer support.

Cons:

Limited advanced features for complex strategies.
Inactivity fees may apply.

4. DEGIRO – Best for Low-Cost Options Trading

DEGIRO is a leading discount broker known for its low trading fees and broad market access, making it perfect for active traders. It’s perfect for cost-conscious traders looking for an affordable way to trade options.

Key Features:

Low Trading Costs: Minimal commissions, ideal for frequent traders.
Global Market Access: Trade on major exchanges worldwide.
Simple Platform: Clean design with efficient tools for quick trades.

Pros:

Extremely low fees for options trading.
Access to a wide range of global markets.
Transparent fee structure.

Cons:

Limited advanced analysis tools.
No forex trading.

5. Plus500 – Best for CFD Options Trading

If you’re interested in CFD options trading, Plus500 stands out among options trading brokers for its streamlined platform with a focus on simplicity and risk management. Its intuitive design makes it ideal for beginners.

Key Features:

Simple Interface: Easy-to-use platform with a quick learning curve.
Risk Management Tools: Stop-loss and trailing stop features.
Mobile App: Trade on-the-go with a responsive mobile interface.

Pros:

No commissions on trades; revenue comes from spreads.
Regulated by the FCA.
Good for short-term speculative trading.

Cons:

Limited advanced tools for professional traders.
Mainly suited for CFD traders rather than direct options traders.

What to Look for in the Best Options Trading Platform

When choosing the best options trading platform in the UK, consider the following factors:

1. Trading Fees and Costs

Look for platforms with low trading costs and transparent fee structures, especially if you are among the active traders who execute multiple trades.
Some brokers charge per contract, while others include fees in the spread.

2. Range of Tradable Assets

A good platform should support multiple asset classes like stocks, ETFs, and forex.

3. Advanced Trading Tools

Look for platforms offering risk management tools, market data, and options strategy builders.

4. User-Friendly Interface

Beginners and active traders will benefit from intuitive platforms like IG, while advanced traders might prefer Interactive Brokers for its professional-grade tools.

5. Regulation and Safety

Choose a platform regulated by the Financial Conduct Authority (FCA) to ensure the safety of your funds.

Understanding Options Trading: Key Concepts

What is Options Trading?

Options are financial derivatives that give you the right (but not the obligation) to buy or sell an asset at a specific price (the strike price) before or on a certain date, facilitated by options trading brokers.

Basic Options Strategies:

Buying Calls: Betting the price will go up.
Buying Puts: Betting the price will go down.
Spreads: Combining multiple options to limit risk.

Key Terms to Know:

Strike Price: The price at which the option can be exercised.
Premium: The cost of purchasing the option.
Implied Volatility: A measure of expected price fluctuations.

Options Trading for Retail Investor Accounts

Options trading can be a valuable addition to a retail investor’s portfolio, offering unique opportunities for speculation and hedging. However, it’s essential to understand the risks involved, as 68% to 74% of retail investor accounts lose money when trading CFDs with certain providers. To mitigate these risks, retail investors should consider the following:

Start with the Basics: Before diving into options trading, ensure you have a solid understanding of the fundamentals. This includes knowing the different types of options, such as calls and puts, and familiarizing yourself with various options trading strategies and risk management techniques.
Choose a Reputable Broker: Selecting a reputable and regulated options trading broker is crucial. Look for brokers that offer a user-friendly platform, competitive pricing, and robust trading tools. This will help you execute trades efficiently and manage your portfolio effectively.
Develop a Trading Strategy: Having a well-thought-out trading strategy that aligns with your investment goals and risk tolerance is essential. Stick to your strategy and avoid making impulsive decisions based on market fluctuations.
Practice with a Demo Account: Many brokers offer demo or simulated trading accounts. These accounts allow you to practice trading options without risking real money, helping you gain confidence and refine your trading strategy.
Continuous Education: The world of options trading is constantly evolving. Stay up-to-date with market news, analysis, and educational resources to enhance your knowledge and improve your trading skills.

By following these steps, retail investors can navigate the complexities of options trading and increase their chances of success.

Options Trading Regulations and Compliance

Options trading is subject to various regulations and compliance requirements, which vary depending on the jurisdiction and type of trading. In the UK, options trading is regulated by the Financial Conduct Authority (FCA), which requires brokers to adhere to strict guidelines and standards. Some key regulations and compliance requirements include:

Capital Gains Tax: Options trading is subject to capital gains tax, except for financial spread betting, which is unique to the UK and is free of capital gains tax. Understanding the tax implications of your trades is crucial for effective financial planning.
Margin Trading: Margin trading is readily accessible in the UK, allowing traders to leverage their positions. However, options markets are not as liquid and can be more expensive. It’s important to understand the risks associated with margin trading and manage your leverage carefully.
Trading Permissions: Retail investors need specific permissions to trade options. Brokers must ensure that clients have the necessary knowledge and experience to trade options, often requiring them to complete a suitability assessment.
Risk Warnings: Brokers are required to provide clear risk warnings to clients, highlighting the potential risks and losses associated with options trading. These warnings help ensure that traders are fully aware of the potential downsides before they start trading.
Compliance with MiFID II: Brokers must comply with the Markets in Financial Instruments Directive II (MiFID II), which regulates the trading of financial instruments, including options. MiFID II aims to increase transparency and protect investors by enforcing strict reporting and operational standards.

By understanding these regulations and compliance requirements, retail investors can ensure that they are trading options in a safe and secure environment. Being aware of the potential risks and rewards involved in options trading is essential for making informed decisions and achieving long-term success.

FAQs

Which platform is best for option trading?
Interactive Brokers is the best for advanced traders, while IG is ideal for beginners due to its educational resources.

Can you trade options in the UK?
Yes, you can trade options in the UK through regulated brokers like IG, Saxo Bank, and Interactive Brokers.

Which broker is best for trading in the UK?
It depends on your needs—DEGIRO for low fees, Interactive Brokers for advanced tools, and IG for beginner-friendly platforms.

Can I trade options on Interactive Brokers UK?
Yes, Interactive Brokers UK supports a wide range of options contracts across global markets.

Conclusion

Choosing the best options trading platform in the UK depends on your trading goals, experience level, and preferred strategies. Whether you’re a beginner seeking an intuitive interface or an advanced trader looking for sophisticated tools, platforms like Interactive Brokers, Saxo Bank, IG, DEGIRO, and Plus500 offer solutions tailored to your needs.

Always consider factors like trading costs, platform features, and regulatory status to ensure a secure and profitable trading experience.

Disclaimer: Options trading involves significant risks and is not suitable for all investors. Ensure you understand the risks involved before trading.