Does Trading 212 Offer Options Trading?

To get access to options trading, you will need to find an alternative broker such as Degiro, Plus500 (CFD broker), or AvaTrade. Options trading is usually more complex than traditional stock trading. Also, most brokers include extra steps when opening an options trading account.

Brokers Who Offer Option Trading

As we already mentioned, Trading 212 does not offer options trading. But here are 3 platforms that do.

Degiro

Degiro offers options trading on its platform. Options trading involves buying or selling a security at a specific price on a specific date. Options are also a type of derivative.

The price of the underlying asset determines the value of the product. The value is also based on how mobile the underlying value is and the terms of the contract.

There are two categories of options contracts, call options and put options. When you buy a call, it gives the right to buy an underlying asset, while a put gives the right to sell an asset. It is important to note that Degiro does not offer options on US stocks.

However, it offers options on EU stocks, VIX, SPY, DOW 30, and Rusell. Degiro also charges €0.75 per options contract. After opening an account on Degiro, you cannot start trading options immediately.

This is because an Active or Trader account is required to invest in complex financial products. This usually involves additional appropriateness tests and conditions. Since options trading is a relatively complex and high risk, it is not suitable for inexperienced investors.

Plus500

Plus500 is another broker that offers options trading. However, Plus500 only allows options CFD trading on its platform. There are options CFDs on listed stocks such as Facebook, Google, and Apple.

The website contains the full list of the available options. To trade options on Plus500, all you need to do is to visit the website and click the trade option. A list containing the different categories available will appear, and you can then select Options.

You can either choose to buy an option or sell one on Plus500. Options trading on Plus500 involves buying CFD contracts that are linked to the reference assets. 

Buying an option involves predicting an increase in the value of an underlying financial asset. Selling an option involves predicting a decrease in the value of an underlying financial asset, i.e. opening a short CFD position.

Plus500 offers a wide variety of assets for options trading. Also, the platform includes several charting tools that you can use before choosing an option you wish to buy or sell.

AvaTrade

AvaTrade is a global forex and CFD broker that was founded in 2006. AvaTrade offers options trading on more than 40 currency pairs. However, the platform does not offer options trading for stocks.

The platform only supports CFDs, cryptocurrencies, and forex. Options trading is available on AvaTrade through the AvaOptions platform. AvaOptions includes an interactive FX and options trading page that also displays historical charts and other helpful tools.

The platform also provides access to 13 options trading strategies including stops, puts, calls, and other strategies. AvaOptions offers access to several risk management tools such as portfolio simulations.

Conclusion

Options are a high-risk and high-return derivative instrument. Though Trading 212 doesn’t offer options trading, other brokers such as the ones listed above do. Still, you can use other complex instruments on Trading 212, like leverage. These are accessible through the Trading 212 app as well.

Since options trading is quite complex and high risk, it is not advisable to go into it if you are a beginner. Before you trade options, it is important to take the time to learn the strategies and risk management tools.