The Best Options Trading Platform UK 2024

In 2024, options trading platforms in the UK have evolved to meet the needs of traders at every level. From social trading features and advanced analytical tools to competitive spreads, UK traders have a range of powerful options to choose from.

This guide covers the best options trading platforms UK traders can use, spotlighting their key features, fees, and ideal uses. Find a platform that aligns with your trading style and goals, and start trading options with greater confidence.

How we chose the best options trading platforms UK

We selected the best options trading platforms UK by assessing essential factors such as platform usability, available options trading strategies, and competitive spreads.

Our methodology focused on features that support all trader levels, from beginners to professionals. These features included educational resources, risk management tools, and account flexibility to accommodate UK traders’ unique needs.

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Here’s a closer look at the top platforms for options trading in 2024.

1. eToro – Best UK options trading platform for social trading

Overview of eToro

eToro is a leading platform for options trading UK investors seeking an interactive experience. Known for its unique social trading feature, CopyTrader, eToro allows traders to mirror the actions of seasoned investors.

The platform’s easy navigation and extensive educational resources make it suitable for beginners and experienced traders alike. Its options range from forex to a range of asset classes, including commodities, stocks, and cryptocurrencies.

Regulated by the Financial Conduct Authority (FCA), eToro prioritizes transparency and security, establishing trust with its user base in the UK options trading market.

Why eToro is one of the best options trading platforms UK

eToro’s social trading features make it one of the top options brokers in the UK for beginners searching for a more guided experience.

Its competitive spreads, integrated risk management, and fun mobile app all put this broker in a position to provide traders with the option to trade on the move. For the more ambitious options traders who want to expand their options trading education, eToro offers a virtual account, plus several helpful learning resources, to help them become more confident and adaptive traders.

All of these factors, combined with low fees and sound advanced trading tools, make eToro a very good option for retail investors.

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2. XTB – Best UK options trading platform for competitive spreads

Overview of XTB

XTB is recognized among options trading platforms for its competitive spreads and high-speed execution.

Known for its advanced trading tools and easy navigation, XTB appeals to both novice and professional options traders. Offering a blend of CFDs and forex options, XTB provides retail investor accounts with access to various asset classes, including commodities, indices, and stocks.

XTB’s proprietary platform, xStation 5, stands out for its user-friendly design and integrated market data tools. Regulated by the FCA, XTB also prioritizes compliance and security, making it a trustworthy choice among UK options trading brokers.

Why XTB is one of the best options trading platforms UK

XTB’s competitive edge lies in its tight spreads, designed to reduce trading costs for UK options traders.

For those interested in trading CFDs and forex, the xStation 5 platform provides powerful charting and analysis features, enabling precise strategy building and efficient options trading. This platform is particularly valuable for traders focused on market conditions and quick execution.

With its FCA regulation and customer support, XTB is suitable for UK retail investor accounts, especially for traders looking to minimize costs in a secure trading environment. The platform’s educational resources also support traders in enhancing their options trading knowledge, making it ideal for ongoing development.

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3. AvaTrade – Best UK options trading platform for beginners

Overview of AvaTrade

AvaTrade is a popular choice among beginners for options trading UK due to its intuitive design and extensive educational resources.

The platform supports various options trading strategies and provides access to forex, commodities, indices, and cryptocurrencies. For newcomers, AvaTrade’s easy-to-use interface, demo account, and comprehensive trading tools simplify the learning curve.

Regulated by the FCA, AvaTrade ensures security and transparency, which is reassuring for those new to the options trading landscape. AvaTrade also offers advanced features such as risk management tools and an options trading example library to support foundational knowledge.

Why AvaTrade is one of the best options trading platforms UK

AvaTrade is tailored to those learning how to trade options with straightforward educational content, an easy trading platform interface, and a demo account for practice.

Beginners benefit from low fees, clear options trading permissions, and an emphasis on risk management, ideal for navigating the market without overwhelming complexity. AvaTrade’s resources help users understand options trading strategies and adjust to market conditions before committing fully to real money.

In addition to beginner-focused features, AvaTrade’s access to multiple asset classes and tools like implied volatility and strike price data make it a solid starting point for any UK options trading journey.

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4. Trade Nation – Best UK options trading platform for transparent pricing

Overview of Trade Nation

Trade Nation is a standout options trading platform for UK traders who prioritize transparency in fees and trading costs.

Well-renowned for its transparent pricing, Trade Nation eliminates hidden fees and complicated commission structures so traders can more confidently focus on their options trading strategy. The Trade Nation platform is very user-friendly and packed with educational resources, so it will suit complete beginners as well as seasoned traders.

Besides trading options, Trade Nation allows placing spread bets on several markets, such as forex, commodities, and indices. Being an FCA-regulated broker, Trade Nation provides a high level of security and reliability for UK retail investor accounts.

Why Trade Nation is one of the best options trading platforms UK

To traders sensitive to platform fees and other concealed costs, Trade Nation’s pricing model is pretty comforting. Its extremely strong focus on low spreads means that traders will be able to enjoy more competitive rates without unexpected expenses.

In addition, it also possesses risk management tools such as stop-loss orders and margin requirements, making it suitable for retail investors who would want a clear view of potential losses.

With its easy platform and transparent pricing, Trade Nation is an excellent choice for UK traders looking for simplicity and economy in options trading.

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5. Pepperstone – Best UK options trading platform for forex options

Overview of Pepperstone

Pepperstone is a popular options trading platform in the UK, particularly appealing to traders interested in forex options.

Because it offers the best pricing and advanced trading tools, Pepperstone seems to be one of the favorite brokers for investors in the UK who focus on currency markets. Having an FCA license means that this platform meets very strict regulatory requirements and provides a safe place for retail investor accounts.

Aside from forex, Pepperstone offers a wide array of trading instruments, from CFDs and indices to commodities, which allows traders to diversify portfolios. Equally appealing, this platform integrates MetaTrader 4 and 5 with advanced charting and technical analysis features that are fit for professional options traders and beginners alike.

Why Pepperstone is one of the best options trading platforms UK

Pepperstone stands out as a top choice for UK options traders focused on forex. It offers competitive spreads and a suite of powerful tools like cTrader and MetaTrader. Its options trading permissions make it ideal for those looking to develop and execute advanced trading strategies in the highly volatile forex market.

Pepperstone’s platform supports flexible trade sizes and offers in-depth market data for precise decision-making. With competitive trading costs and a strong emphasis on risk management tools, Pepperstone helps traders minimize potential losses, making it a balanced choice for those navigating high-risk forex options.

Pepperstone pros and cons

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6. FP Markets – Best UK options trading platform for market access

Overview of FP Markets

FP Markets is a comprehensive options trading platform that is among the best in market access to UK traders,granting access to various trading instruments across multiple asset classes.

The broker operates under the regulation of tier-one regulatory bodies, including the FCA and ASIC, offering a safe and credible trading environment for retail investor accounts. The diversity in its offerings comprises forex, CFDs, commodities, indices, and stocks, making it a great way to diversify portfolios.

FP Markets is also integrated with the most popular platforms, such as MetaTrader 4 and 5. Such integrations make this particular brokerage firm quite appropriate for both experienced options traders and total beginners.

Why FP Markets is one of the best options trading platforms UK

FP Markets’ standout feature is its extensive market access. This is a great way for UK traders interested in option trading to diversify from core assets, with global market access at very competitive spreads and low trading costs.

This is the ideal platform for forex and option strategy traders, with abundant resources to formulate, test, and implement those strategies with a high degree of efficiency. With rapid execution speeds, a strong offering of trading tools, and portfolio simulations, FP Markets supports high-precision trading.

Moreover, via its training facilities, FP Markets allows traders to have much better clarity about market conditions and enhance their trading strategy.

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7. PrimeXTB – Best UK options trading platform for leverage

Overview of PrimeXTB

PrimeXTB is one of the most dynamic platforms for options trading, adapting to the purposes of traders seeking to leverage positions in the market.

Commonly recognized for high-leverage options and customization, PrimeXTB allows UK traders to maximize trading strategies with larger market exposure but controlled initial capital outlay. Offering a range of options within the financial markets, this platform offers Forex options, commodities, and indices that provide various asset classes to create a diversified portfolio.

The platform is aimed more at advanced users, integrating professional-grade trading tools to provide precise analysis and control over risks. That being said, the risk management settings and friendly interface arguably make the platform appropriate for both professional traders and those starting to trade options with a leveraged position.

Why PrimeXTB is one of the best options trading platforms UK

One of PrimeXTB’s most attractive aspects is its high leverage, which allows traders to amplify potential returns. For UK traders looking to increase exposure to market movements without full capital commitment, PrimeXTB provides flexibility across asset classes with tight spreads and competitive trading fees.

Other impressive features include risk control abilities, which form the core of managing risks in leveraged options trading. PrimeXTB’s high-leverage options work well with its live market feeds and tools that analyze volatility.

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8. Admiral Markets – Best UK options trading platform for advanced analytical tools

Overview of Admiral Markets

Admiral Markets is one of the best options trading platforms for UK users who need detailed analytics and full market data.

Famous for its advanced tools, Admiral Markets offers deep insight into various financial markets, allowing them to make the best trades based on available data. From charting to market indicators and analytical tools, such features can be utilized by very experienced options traders as well as those refining complex trade strategies.

The platform offers access to a wide range of assets, from forex options to commodities, and thus can be considered quite versatile for users who would like to diversify their options’ portfolios. The FCA regulation maintained by the platform also ensures security and transparency for retail investor accounts in the UK.

Why Admiral Markets is one of the best options trading platforms UK

Advanced analytical tools, including real-time charts, technical indicators, and customizable dashboards, will appeal to UK traders in Admiral Markets.

These tools allow traders to respond quickly to the market and create customized strategies that match their trading goals. For traders who are keen on risk management tools, Admiral Markets provides features that help monitor possible losses, an important consideration for options trading.

Further, the cost is kept highly competitive through low spreads and negligible fees. Thus, this facility is accessible without a trade-off in trading quality. 

Educational resources and market insights also place Admiral Markets among the best options trading platforms in the UK for those committed to the advancement of their trading skills.

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What is options trading?

Options trading is the act of purchasing or selling a contract that gives the holder the right (not the obligation) to buy or sell an asset at a stated price, within a specific expiration date.

This system allows a trader to benefit from volatility without actually owning the underlying asset.

Options are primarily exercised by traders to hedge, generate income, or predict future price movements.

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Buying vs selling options

Buying options entitles a trader to the right, but no obligation, to buy or sell an underlying asset at a particular price, known as the strike price, before the option’s expiration date. The buyer risks only losing the premium paid, making this a lower-risk strategy if the market doesn’t move as expected.

On the other hand, selling options involves a commitment to honoring the obligation if it is exercised, which can be disastrous when the market moves against your position. The seller earns a premium but takes on high risk, especially when selling uncovered options, as losses can be unlimited if the market moves significantly.

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What assets can you trade options with?

Options trading provides flexibility across various underlying assets, allowing traders to strategize in multiple markets. Here are the primary asset classes available for options trading:

• Stocks: Stock options allow traders to speculate on price changes or hedge against potential losses in individual companies. Stock options trading remains one of the most widely used options types due to its versatility.
• Indices: With index options, traders can target entire markets, like the S&P 500 or FTSE 100, helping manage exposure to market volatility across global sectors.
• Forex: Currency or forex options are available for popular pairs, enabling strategies around interest rate changes or market conditions in the global currency markets.
• Commodities: Options on commodities like gold, oil, and agricultural products enable traders to take advantage of market data related to economic and supply factors.
• ETFs: ETF options offer a way to trade or hedge sectors and markets via exchange-traded funds, bringing diversified exposure without needing to trade each underlying stock.
• Cryptocurrencies: Crypto options, covering assets like Bitcoin and Ethereum, are becoming more popular. They offer opportunities to trade on implied volatility and price changes in digital currencies.
• Bonds: Options on government or corporate bonds allow traders to hedge or speculate on interest rates and bond price movements.

Common options trading strategies

Options trading strategies can be used to manage risk, target profit, or hedge against market changes.

Here are a few of the most popular methods:

• Long Call: Very easy for beginners, long calls involve buying a call option. The gamble is that the underlying asset price will rise above the strike price before the expiration date. Returns can be pretty lucrative, but losses are always limited to the premium paid.
• Long Put: This strategy would be good for bearish markets. The trader has a chance to buy the put option and profit once the price goes down below the strike price. This strategy hedges a fall in some other holding.
• Covered Call: In the covered call, the owner sells options on an underlying stock. In this case, the owner receives a premium in return while hoping that the stock price either remains stable or slightly increases to offset any losses accrued in it.
• Protective Put: Also referred to as a “married put,” this is an approach to owning an asset and buying a put option to prevent potential losses. This technique is mainly used for expensive assets so that they do not fall steeply down without selling.
• Straddle: A straddle involves purchasing both a call and a put option at the same strike price and expiration date. It is used when one believes that the underlying security’s price may change wildly within this period, but its movement is uncertain as to its direction.
• Iron Condor: Iron Condor is a position that takes several options contracts to earn on a low-volatile price action. Two calls and two puts with different strikes are bought, so the premium will be collected if the price doesn’t break out of a chosen range and stays in there.

Options trading example scenario

Imagine you’re interested in trading options for a well-known stock currently priced at £50. You believe its price will rise soon, so you buy a call option with a strike price of £55 and an expiration date of one month.

The premium for this option, or the price you pay to hold the right to buy the stock, is £2 per share. These are the possible outcomes:

1. Stock price rises above the strike price

If the underlying stock rises to £60 before the option’s expiration, you can exercise your right to buy it at the strike price of £55, well below the market price. Your profit is the difference in prices minus the premium: (£60 – £55) – £2 = £3 per share. This outcome provides you with a profit, validating your initial outlook.

2. Stock price remains below the strike price

If the stock price remains at £50 or below the strike price by the expiration date, the option expires worthless, and you lose the £2 premium. Here, the risks involved are limited to the premium you paid, capping your loss at that amount.

3. Stock price reaches the strike price

If the stock reaches exactly £55, your break-even point, you neither gain nor lose money beyond the premium. Exercising the option at the strike price covers only the initial cost of the premium, leaving you with a net balance of zero.

This example highlights the nature of options: they are a high-risk, high-reward strategy that can offer significant upside with limited downside, making them attractive for retail and advanced options traders alike.

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How to trade options in the UK?

Here is a basic step-by-step guide for options trading in the UK.

1. Choose an options broker: Pick from the best options trading brokers available in the UK. Look for a secure, regulated platform offering the underlying assets you want to trade and reasonable option trading fees.
2. Open and fund your account: Sign up on the chosen broker’s platform and fund your account. Options trading brokers have some of them with minimum deposit requirements.
3. Obtain options trading permissions: Most platforms require extra permissions to trade options. These permissions typically involve a series of questions about your knowledge and experience in trading because options contracts are complex financial instruments with high risk.
4. Develop a trading strategy: Understand your risk tolerance and determine the best options for your goals, such as buying calls, selling puts, or using spreads.
5. Select the underlying asset and strike price: Choose the underlying asset you want to trade, such as stocks, indices, or forex options, and determine the specified price or strike price based on your expectations for the asset’s future movement.
6. Place your trade: Determine the type of option you want, entering your strike price, date of expiration, and the number you want, and then confirm your order. Be aware that there is an exercise fee, in addition to assignment, if you are going to hold to expiry.
7. Monitor and adjust: Track the position day by day. Update when conditions change, especially with an event approaching, in a scenario where you could potentially lose money quickly.

Pros and cons of options trading

Advantages of options trading

• Flexibility in strategy: Options offer various options strategies, such as calls, puts, and spread betting, which enable traders to formulate methodologies according to the prevalent market conditions and their risk tolerance.
• Leverage potential: They provide leverage, meaning traders get to control more significant underlying asset positions with less capital, increasing returns if the market moves in their favor.
• Risk management: Options are a hedge, where the investor may sell at a pre-specified price if the market starts moving south in case of downside risk in other investments.
• Cost efficiency: They are inexpensive to buy compared with trying to buy the underlying security outright; this is one of the major reasons options are such a popular derivatives product for traders wanting to achieve a similar economic exposure but with less capital tied up.
• Profit from market volatility: One of the attractions of options is that they can be profitable in both rising and falling markets, making them particularly attractive when price movements are uncertain.

Disadvantages of options trading

• High risk: Options can give spectacular returns, but they may still be highly risky to undertake. Particularly if the ‘underlying’ moves against them because they can result in substantial losses.
• Complexity: Options are a complicated form of financial derivatives. The unique terminology comprises strike price, date of expiration, and implied volatility, which makes options somewhat difficult for novices to understand.
• Constraints of expiration date: Options do expire, and therefore, their value can be worn away with time, placing added pressure on traders to take quick action lest they risk losing money quickly.
• Exercise and assignment fees: Some option trades even carry exercise and assignment fees, which raise the cost of trading and consequently impact bottom-line profit, especially if more frequent trades are made.
• Limited liquidity: Some options contracts have low liquidity, making buying and selling at good prices impossible. This can also widen the bid-ask in spread betting.

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What causes the price of options to rise or fall?

Option prices depend on volatility, time to expiration, and interest on the underlying asset.

When the price of the asset approaches the strike price, the price of that option usually rises. Higher market volatility, resulting from a greater potential for price fluctuation, also increases option premiums.

As the expiration date approaches, the option’s value decreases due to time decay. If the option is long-term, interest rates and dividend payments may further influence the option price.

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UK tax and legalities of options trading

In the UK, tax treatment for options trading hinges on whether HMRC classifies the activity as an investment or a trading business.

If viewed as an investment, Capital Gains Tax (CGT) applies to profits exceeding the annual tax-free allowance. However, for frequent traders, HMRC may classify gains as trading income, which would subject them to Income Tax rather than CGT based on trading frequency and intent.

When options are exercised with a transfer of the underlying asset, the option’s cost can be added to the asset’s basis, impacting any capital gains calculation. HMRC clarifies in its capital gains manual that “an option may be defined as a right, binding in law, to accept or reject a present offer within a specified time in the future.”

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Methodology — How we chose the best options trading platform UK

Our selection of the best options trading platforms for UK investors follows a comprehensive evaluation process, ensuring reliability, functionality, and value across varying trading needs.

Here’s how we assessed each platform:

• User experience: Platforms were selected based on their ease of use, particularly for beginners entering options trading. A streamlined, intuitive interface that simplifies trading options and supports seamless navigation is highly rated.
• Security measures: Since options trading involves significant financial risks, we rigorously examined each platform’s security protocols. We prioritized options trading brokers that implement robust features like two-factor authentication, data encryption, and investor account protection to safeguard user assets.
• Trading tools and analytics: Advanced tools and analytics were essential for our selection. Platforms offering in-depth options strategies, such as spread betting, risk management tools, and real-time market data, were favored, as they provide the support needed for both basic and advanced options traders.
• Costs and fees: We assessed platforms for transparent fee structures, evaluating costs related to trading CFDs, options contract fees, and exercise fees. Low trading costs and flexibility in contract terms made platforms more favorable, ensuring users could trade options effectively without unnecessary expenses.
• Asset range: We prioritized platforms that offer a wide array of underlying assets, including stock options, forex, and commodities. This diversity allows UK traders to diversify their options trading strategies across multiple financial instruments.
• Customer support: Reliable customer support is crucial, especially for beginners and high-volume traders. Platforms with responsive and knowledgeable support teams scored higher, as they provide essential assistance on issues ranging from account management to trade execution.

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Conclusion

The UK offers trading options platforms for all requirements, from beginner-friendly interfaces to more advanced tools for seasoned traders. Each one in this guide features competitive spreads, robust risk management tools, and a wide selection of underlying assets.

Our top pick of the platforms is eToro, as it features user-friendly designs and its CopyTrader facility, where one can follow the trades of several investors. With a competitive spread scheme and abundant educational resources, eToro supports traders of all levels.

Now that you have the right tools, it’s time to take the next step: choose the platform that best suits your needs. With the right choice, you’ll be set to trade confidently and maximize your options trading opportunities in the UK.

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FAQs