Investing can be a great way to grow your wealth, but it can be daunting if you don’t know where to start. One option is to invest in options, which are contracts that allow you to buy or sell an asset at a certain price. To do this, you’ll need to find a broker that offers options trading. In this article, we’ll be looking at the best online options brokers in the UK, and what kind of salary you can expect if you become an options trader.
What is Options Trading?
Options trading involves buying and selling contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a certain price, on or before a certain date. This allows traders to profit from price movements without actually owning the asset. Options can be used to hedge against risk or to speculate on price movements.
What to Look for in an Options Broker
When choosing an options broker, there are a few key factors to consider. First, you’ll want to make sure the broker offers the type of options you want to trade. You’ll also want to look at fees and commissions, trading platforms, research and tools, and customer support. Finally, you’ll want to consider the broker’s reputation and regulatory compliance.
Top Options Brokers in the UK
There are several options brokers operating in the UK, but some stand out from the rest. Here are our top picks:
IG is a well-established broker that offers a wide range of options, including CFDs, spread betting, and binaries. They have a user-friendly trading platform and offer competitive fees and commissions. IG is also regulated by the FCA and has a good reputation.
2. Saxo Bank
Saxo Bank is another respected broker that offers options trading. They offer a variety of trading platforms and tools, including a mobile app. Saxo Bank is also regulated by the FCA, and has won numerous awards for their services.
3. Interactive Brokers
Interactive Brokers is a popular broker among professional traders, but they also offer options trading for individual investors. They have a powerful trading platform and offer competitive fees and commissions. Interactive Brokers is also regulated by the FCA and has a good reputation.
Salary Expectations for Options Traders
If you’re considering becoming an options trader, you may be wondering what kind of salary you can expect. The truth is, it varies widely depending on your experience, skills, and the company you work for. According to Glassdoor, the average salary for an options trader in the UK is around £55,000 per year, but this can range from £35,000 to over £100,000 depending on factors such as bonuses and profit sharing.
Tips for Success in Options Trading
If you want to succeed as an options trader, there are a few key things to keep in mind. First, it’s important to have a solid understanding of options trading and the markets you’re trading in. You’ll also want to have a well-thought-out trading plan and stick to it. Finally, it’s important to manage your risk and not let emotions get in the way of your trading decisions.
Options trading can be a lucrative way to invest if you do it right. By choosing the right broker, understanding the markets, and following a solid trading plan, you can increase your chances of success. With the right skills and experience, you can expect to earn a good salary as an options trader in the UK.