Option Trading

[zooooom]

After a lot of research we have decided we would like to hesitantly start to trade in the US options market.
We have a shares dealing account with Hargreaves Lansdown but they do not offer an options dealing service.
Could anyone recommend an online UK broker that deals in options trading.

[Slowped]

I think you will be lucky to find a UK broker to provide that service, especially online.

I can help with UK index and equity though (telephone).

[Shaoxter]

Well IG have options on indices, FX, commodities but not single stocks though.

Be very, very careful of event risk if you want to start trading in single stock options, you could easily be wiped out and then some if an unexpected piece of news comes along (or you could make a fortune ).

I assume you've done your research around vols, time decay, delta hedging and gamma, but it would be wise to open a practice account to see how option prices actually respond to the underlying factors.

[twinturboz]

Any reason why it specifically needs to be Uk? I've used Interactive Brokers for shares for a number of years, although I know they do options too.

Steep learning curve on the platform at first though!

[Newc]

Interactive is the obvious place to start. And as above, they use their account opening process and trading software UI as an IQ test to see if you're suited to options trading.

Schwab and TD Waterhouse worth looking at too, but I don't know if they support UK clients.

[sideways sid]

FXCM. Although the online platform has limited functionality so I usually end up calling them direct.

IB is better, but the platform is far from intuitive!

IG provides exposure to options on S&P500 & DJIA. the platform is very easy to use & profits can be tax-free.

I've not used OptionsExpress - American I think - but the platform looks excellent and I would consider it if I lost any of the other platforms.

[zooooom]

Thank you for the replies.
I am UK resident so I presumed it would have been more conducive to use a UK based broker.
90% of the options Im interested in are in US stocks or ETFs , this represents/matches my stock portfolio I already hold in the Hargreaves Lansdown account.
The idea is to paper trade for a few months before committing money.
Interactive traders and Option house are on short list so far.

[Condi]

Can I ask (and dont feel you have to answer, Im just being nosy) but why do you want to trade options? Are you already a trader (rather than investor) and just want to branch out?

Be very very careful about granting options, your losses can be unlimited should the stock move in the wrong direction.