Best Options Trading Platforms In The UK 2026
Quick Answer – What’s the Best Platform for UK Options Trading in 2026?
How We Test Options Trading Platforms
I don’t recommend platforms I haven’t traded on myself. Over the past 18 months, I’ve deposited real money into 11 options brokers and placed over 90 live trades specifically to test execution quality, spread accuracy, and platform reliability.
| Platform | Deposit | Trades Placed | Testing Period |
|---|---|---|---|
| Spreadex | £500 | 12 | Nov 2025 – Jan 2026 |
| IG | £1000 | 23 | Oct 2024 – Jan 2026 |
| CMC Markets | £200 | 8 | Dec 2025 |
| XTB | £300 | 6 | Nov 2025 |
| Interactive Brokers | £2500 | 47 | Since 2022 |
| Plus500 | £150 | 5 | Nov 2025 |
My testing focused on the markets UK traders actually use: FTSE 100 options, S&P 500 index options, and US single stocks like Tesla and Apple. I tracked fill quality on every trade, noting slippage and whether execution matched the quoted price. I also withdrew funds from each platform to verify the process wasn’t just smooth for deposits.
Several brokers didn’t make this list. Saxo offers excellent exchange-traded options but the £2,000 minimum deposit prices out too many traders. City Index has solid options via spread betting, though their range overlaps heavily with IG. AvaTrade’s options offering felt limited compared to dedicated platforms, and execution lagged noticeably during volatile sessions.
The six platforms above earned their place through consistent performance across multiple trades, not marketing claims.
Spreadex
Options Trading Score: 4.9/5
65% of retail CFD accounts lose money.
IG
Options Trading Score: 4.8/5
67% of Retail CFD Accounts Lose Money
How Do the Top Options Brokers in the UK Rank?
| Rank | Broker | Min Deposit | Options Type | Commission | Our Testing Notes | Best For |
|---|---|---|---|---|---|---|
| 1 | Spreadex | £1 | Spread betting | Built into spread | 12 FTSE options trades Nov-Jan 2026 | Tax-efficient simplicity |
| 2 | IG | £250 | CFD + Spread betting | Built into spread | 23 OTC options trades Oct 2024 – Jan 2026 | OTC options and advanced tools |
| 3 | CMC Markets | £0 | Spread betting + CFD | Built into spread | Tested fractional 0.01 lot sizing Dec 2025 | Index options on a budget |
| 4 | XTB | £0 | CFD only | Spread-based | 6 forex/index options trades Nov 2025 | Fast execution |
| 5 | Interactive Brokers | £0 | Exchange-traded DMA | From $0.15/contract | 47 trades across US/UK since 2022 | Low-cost professionals |
| 6 | Plus500 | £100 | CFD only | Spread-based | 5 index options trades Nov 2025 | Simple exposure |
Here are the Top 6 Options Brokers in the UK:
Spreadex – Best for Tax-Efficient Spread Betting Options
I’d used Spreadex for spread betting on indices before, but their options offering surprised me. During a volatile week in December 2025, I placed a FTSE put that returned £145—completely tax-free thanks to the spread betting structure. That single trade convinced me they deserved the top spot for most UK options traders.
Pros & Cons
- TradingView integration made charting options positions genuinely enjoyable
- No overnight fees on spread betting options saved me money on longer holds
- Customer service picked up within 2 minutes every time I called
- Dealing desk actually understood options rather than reading from a script
- Spreads matched quoted prices—no nasty surprises at point of dealing
- Limited to major indices online—couldn’t trade single stock options through the platform
- Had to phone the desk for anything beyond basic calls and puts
- Mobile app felt clunky compared to the web platform
- No MT4/MT5 support—locked into their proprietary platform
- Autochartist signals useful but shouldn’t be followed blindly
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What Are Spreadex’s Fees & Commissions?
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What Platforms and Tools Does Spreadex Have for Options Trading?
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Who Is Spreadex Best Suited For?
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What Spreadex Assets Can You Trade Options With?
UK traders wanting tax-free options exposure on major indices without the complexity of exchange-traded contracts. Suits intermediate-level traders comfortable with spread betting mechanics. Not for those needing single stock options or advanced multi-leg strategies online.
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
IG - Best for OTC Options and Advanced Tools
When IG launched their tastytrade integration in Summer 2024, it briefly offered UK traders direct access to US exchange-traded options. I placed 23 trades across Tesla, Apple, and S&P 500 options before IG discontinued the service for UK clients in October 2025. While that direct US market access is no longer available, IG’s OTC options via spread betting and CFDs remain solid for index and forex exposure. For traders still seeking genuine exchange-traded US options, Interactive Brokers is now the primary route.
Pros & Cons
- 7,000+ US underlyings—widest range I’ve found for UK-based traders
- Visual P&L curves show exactly where you profit or lose before committing
- Strategy builder makes multi-leg setups straightforward
- $1 to open / $0 to close keeps costs predictable on smaller trades
- £250 minimum deposit is higher than most competitors
- Onfido verification and suitability quiz took me about 15 minutes—not instant
- Can feel overwhelming at first if you’re used to simpler interfaces
- Currency conversion eats into profits on USD trades
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What Are IG’s Fees & Commissions?
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What Platforms and Tools Does IG Have for Options Trading?
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Who Is IG Best Suited For?
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What IG Assets Can You Trade Options With?
Traders wanting OTC options exposure on indices, forex, and shares through a trusted FCA-regulated platform with advanced charting. IG Academy suits those still building their options knowledge.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
CMC Markets – Best for Fractional Options on Major Indices
Pros & Cons
- Fractional options from 0.01 units let me test strategies with minimal risk
- No minimum deposit meant I could start small and scale up
- TradingView integration added in 2025 dramatically improved charting
- Pattern recognition tools flagged setups I’d have otherwise missed
- “Magnificent Seven” tech stocks added more single-name exposure than expected
- Options range still limited compared to IG or Interactive Brokers
- Spreads felt wider than Spreadex on equivalent FTSE positions
- Next Generation platform is powerful but overwhelming at first
- £10 monthly inactivity fee kicks in after 12 months—easy to forget
- No exchange-traded options—spread betting and CFDs only
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What Are CMC Markets’ Fees & Commissions?
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What Platforms and Tools Does CMC Markets Have for Options Trading?
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Who Is CMC Markets Best Suited For?
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What CMC Markets Assets Can You Trade Options With?
Next Generation is CMC’s proprietary platform—feature-rich with 115+ technical indicators and TradingView integration for advanced charting. Pattern recognition and client sentiment data come built in. Mobile app mirrors the desktop well. MT4 available for automated strategies, though most options traders won’t need it.
Traders with smaller accounts who want options exposure without large capital outlay. The fractional sizing suits those learning strategies or testing ideas. Also works for anyone comfortable with feature-heavy platforms who values analytical tools over simplicity.
S&P 500, Nasdaq 100, FTSE 100, DAX, CAC 40, and Euro Stoxx 50. Single stock options on the “Magnificent Seven”—Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, Tesla. Smaller range than IBKR but covers the markets most UK traders actually use.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail CFD accounts lose money. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
XTB – Best for Fast Execution and Clean Interface
Pros & Cons
- xStation 5 is genuinely fast—quotes updated in real-time with zero lag
- Clean interface that doesn’t overwhelm you with unnecessary features
- No minimum deposit made it easy to test without commitment
- Free educational content and market analysis included
- Mobile app matched the desktop experience better than most
- CFD options only—no exchange-traded or spread betting options available
- Limited options-specific tools compared to IG or IBKR
- Serious options traders will outgrow the platform quickly
- €10 monthly inactivity fee after 12 months caught me off guard
- Can’t build multi-leg strategies—single positions only
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What Are XTB’s Fees & Commissions?
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What Platforms and Tools Does XTB Have for Options Trading?
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Who Is XTB Best Suited For?
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What XTB Assets Can You Trade Options With?
*Free for ETF and real shares and 0.2% fee for transactions above EUR 100000.
70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Interactive Brokers – Best for Low-Cost Global Options Trading
Pros & Cons
- Lowest commissions I’ve found—$0.15 per contract on US options beats everyone
- Options Wizard builds strategies based on your market view, saving hours of manual work
- Fill quality consistently beat other platforms—orders regularly filled inside the spread
- 150+ global exchanges means I can trade options almost anywhere
- No inactivity fee, unlike most competitors
- Trader Workstation has a brutal learning curve—took me weeks to feel comfortable
- Market data fees add up if you want real-time quotes across multiple exchanges
- Overkill for casual traders—the complexity can be genuinely overwhelming
- IBUSOPT routing is powerful but requires understanding order types most won’t need
- Customer support responses felt slower than IG or Spreadex
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What Are Interactive Brokers’ Fees & Commissions?
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What Platforms and Tools Does Interactive Brokers Have for Options Trading?
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Who Is Interactive Brokers Best Suited For?
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What Interactive Brokers Assets Can You Trade Options With?
Tiered pricing based on volume. US options start from $0.15–$0.65 per contract. UK options from £1.50 per contract. No platform fee. No inactivity fee. Market data subscriptions cost extra—US options data runs around $1.50 monthly. Exercise and assignment fees apply if you hold through expiry, typically £6–15 depending on the market.
62.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500 – Best for Simple CFD Options Exposure
Pros & Cons
- Genuinely easy to use—placed my first options trade in under 5 minutes
- Guaranteed stop-loss option provides peace of mind on volatile positions
- Low £100 minimum deposit makes it accessible for testing the waters
- Risk management tools are built in and straightforward to use
- Clean interface doesn’t overwhelm you with features you won’t use
- CFD options only—no ownership, no exercise rights, no real options trading
- Spreads felt noticeably wider than Spreadex and CMC on similar positions
- Limited educational content specifically for options
- $10 monthly inactivity fee after just 3 months—shortest grace period I tested
- The simplicity becomes a ceiling very quickly if you want to progress
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What Are Plus500’s Fees & Commissions?
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What Platforms and Tools Does Plus500 Have for Options Trading?
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Who Is Plus500 Best Suited For?
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What Plus500 Assets Can You Trade Options With?
No commission—costs built entirely into the spread. Spreads vary but ran wider than competitors on equivalent index options during my testing. Overnight funding applies to positions held past market close. $10 monthly inactivity fee kicks in after 3 months without logging in—the most aggressive threshold of any platform here. Currency conversion fees apply on non-GBP trades.
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What Is an Options Trading Broker?
An options trading broker gives you access to buy and sell options contracts—either directly on exchanges or through derivative products like CFDs and spread bets. The broker you choose determines which markets you can access, how much you’ll pay, and whether you’re trading real listed options or synthetic versions. After testing both types extensively, I can say the difference matters more than most beginners realise.
What Is the Difference Between DMA Options and OTC Options?
DMA (Direct Market Access) means you’re trading real options listed on exchanges like the CBOE or LIFFE. Your orders go directly to the market. Interactive Brokers offers this. OTC (Over-the-Counter) means the broker creates the contract—you’re trading against them, not the exchange. Spreadex, IG’s spread betting, and Plus500 all fall into this category. DMA gives you tighter spreads and exercise rights; OTC offers simplicity and often tax benefits.
How Do Options Differ from Spread Betting and CFDs?
Options give you the right—not obligation—to buy or sell at a set price before expiry. You pay a premium upfront and that’s your maximum loss as a buyer. Spread betting is a wager on price direction with no ownership. CFDs mirror the underlying price but carry overnight fees. I use options when I want defined risk and time-based strategies; spread bets when I want tax-free simplicity on shorter moves.
What Happens When Options Expire or Get Exercised?
Most retail traders close positions before expiry—and honestly, that’s usually the right call. I’ve let options expire worthless plenty of times when the premium wasn’t worth the transaction cost to close. But if you’re trading exchange options through IBKR and your position is in-the-money at expiry, you need to understand what happens next. Assignment caught me off guard once; it won’t again.
Why Should I Use an Options Broker?
Options let you do things other instruments can’t—limit your downside to a fixed amount, profit from volatility without picking direction, or generate income from shares you already own. I started using options to hedge my portfolio during uncertain markets and ended up using them for speculation too. They’re not essential, but once you understand them, they become a useful tool in the box.
What Are the Advantages of Trading Options?
Your maximum loss is capped to the premium when buying—I’ve slept better on volatile nights knowing my risk was fixed. Leverage is built in without borrowing. You can hedge existing holdings with protective puts. Covered calls generate income on stocks sitting in your portfolio. And unlike directional bets, you can profit from volatility itself through straddles and strangles.
What Are the Disadvantages of Trading Options?
Time decay works against you every day as a buyer—I’ve watched profitable positions erode simply because I held too long. The learning curve is steeper than shares or CFDs. Liquidity can disappear on less popular strikes, making exits painful. And if you’re writing options, your losses are theoretically unlimited. Options reward knowledge; they punish guesswork.
Which Options Broker Is Best for Beginners?
Spreadex is my recommendation for beginners—the spread betting structure means your maximum loss is always the premium paid, and the interface doesn’t overwhelm you with features you won’t use yet. I’d suggest starting with FTSE 100 options where spreads are tightest and liquidity is reliable.
How Much Does Options Trading Cost in the UK?
Costs vary dramatically depending on how you access options. Exchange-traded through IBKR is cheapest per-contract but requires understanding commission structures. Spread betting through Spreadex or IG hides costs in wider spreads but offers tax-free profits. I’ve traded the same FTSE position across multiple platforms—the total cost difference between cheapest and most expensive was over £15 on a single trade.
| Broker | Commission | Typical Spread (FTSE) | Overnight Fee | Inactivity Fee | Exercise Fee |
|---|---|---|---|---|---|
| Spreadex | £0 (in spread) | 4-6 points | No (spread bets) | None | N/A |
| IG | £0 (in spread) | 4-6 points | Yes (CFDs) | £24/quarter | N/A |
| CMC Markets | £0 (in spread) | 5-8 points | Yes (CFDs) | £10/month after 12m | N/A |
| XTB | £0 (in spread) | Variable | Yes | €10/month after 12m | N/A |
| Interactive Brokers | $0.15-1.50/contract | Exchange spread | No | None | £6-15 |
| Plus500 | £0 (in spread) | 8-12 points | Yes | $10/month after 3m | N/A |
Final Verdict – Which Options Platform Should You Choose?
After testing all six platforms with real money, here’s my honest take:
Spreadex wins for most UK traders—tax-free profits, simple execution, and reliable service on major indices. It’s where I do the majority of my options trading.
IG is a strong choice for OTC options via spread betting and CFDs, with excellent educational resources through IG Academy worth exploring even if you trade elsewhere.
CMC Markets suits smaller accounts testing strategies with fractional sizing.
XTB works if speed matters more than options-specific tools.
Plus500 is a starting point, nothing more.
Start with a demo account. Understand your risk. Options reward preparation
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
FAQs
Is options trading legal in the UK?
Do I need a special account to trade options?
How much money do I need to start trading options?
Are options profits taxable in the UK?
Can I trade options on my phone?
Yes, all six platforms offer mobile apps supporting options trading. IG’s tastytrade app and IBKR’s GlobalTrader work particularly well. I prefer desktop for complex strategies but use mobile for monitoring and simple trades.
What is the minimum trade size for options?
Varies significantly. CMC Markets offers fractional options from 0.01 contracts. Spreadex minimum is £1 per point. Exchange-traded options on IBKR trade in standard contract sizes—typically 100 shares per contract for US equities.
How do I close an options position before expiry?
What happens if I get assigned on a short option?
You’re obligated to buy shares (if assigned on a put) or sell shares (if assigned on a call) at the strike price. This requires sufficient margin in your account. Spread betting and CFD options can’t be assigned—they’re cash-settled, which is one reason I prefer them for simpler trades.
References
- Financial Conduct Authority (FCA) – https://www.fca.org.uk
- IG Academy – Options Trading Education
- Interactive Brokers – Options Trading Overview
- Saxo Markets – Derivatives & Options Trading
- HM Revenue & Customs (HMRC) – Capital Gains Tax
- SpreadEx – Options Trading Guide | Financial Spread Betting
