How to trade options?

I would like to trade options. Would you recommend doing it in Australia or US ?
Which broker offers the best fees when trading options ?

Thank you

joe2000 said:

I would like to trade options. Would you recommend doing it in Australia or US ?
Which broker offers the best fees when trading options ?

Thank you

Click to expand...

Hi joe, definately start trading them in Australia first I think. The options market here is tiny compared with the U.S, but if you're just learning about them, then start in the small, local pond first before jumping in the deep end over there. I use Sanford at the moment, but have been looking at optionsxpress- they are alot cheaper than Sanford, and you can trade spreads online with them. On these forums speak to sails about OX, she uses them, and she sounds like she's fairly happy with them.
If you are thinking about trading in the U.S, then wayne is probably the best person to speak to about this- He's a bit of a guru on all things options, and is a yankee as well!

Personally, I find online is not always better. If you don't have a screen showing the breakdown of the bids & asks, I prefer to speak to a broker over the phone; you might pay an extra $20 or so for each leg but will often more than make that up by not losing the extra half cent on entry and/or exit.
If a depth screen is available (ie placing the trade/spread from home, not work) online is great.

If you're doing more than just trading to try and pick direction, it may be worth going for a broker that offers more services, not just the cheapest you can find.