81% 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.
- Spread betting & CFDs
- UK-based, FCA regulated
- No minimum deposit
- Free market analysis tools
- Desktop & mobile trading
7 Best Options Brokers in the UK (2025)
Dom Farnell
Co-Founder
Dom, a Co-Founder at TIC, is an avid investor and experienced blogger who specialises in financial markets and wealth management. He strives to help people make smart investment decisions through clear and engaging content.
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Risk Warning
Please bear in mind that trading involves the risk of capital loss. 51% to 84% of retail investor accounts lose money when trading CFDs with the providers below. You should consider whether you can afford to take the high risk of losing your money.
Last Updated 14/04/2025
1
IG
Options Trading Score: 4.9/5
71% of Retail CFD Accounts Lose Money
SpreadEX
Options Trading Score: 4.8/5
81% of retail CFD accounts lose money.
XTB
Options Trading Score: 4.7/5
73% of Retail CFD Accounts Lose Money
4
AvaTrade
Options Trading Score: 4.5/5
76% of retail CFD accounts lose money.
Quick Answer: What is the best platform for Options Trading in the UK?
Here are the top 7 Brokers in the UK
- IG – Best overall Platform, Versatile and Reliable
- Spreadex – Intermediate Traders, Comprehensive Features
- XTB – Fast Execution, Free Market Analysis, User-Friendly Interface
- AvaTrade – Beginners, Easy to Use
- Saxo – Advanced Analytical Tools, Professional-Grade Platform
- Interactive Brokers – Low Trading Costs, Wide Market Access
- Plus500 – CFD Options Trading, Intuitive and Efficient
What Is Options Trading?
When you buy an option, you’re buying the right (not the obligation) to either buy (a call option) or sell (a put option) an underlying asset at a set price, within a certain period.
You’re not buying the stock or asset—you’re just buying the right to act on it. That’s what gives options so much flexibility, but also where things can get a bit technical.
In the UK, you can trade both UK and international options—most commonly on big-name stocks and indices like the FTSE 100, or currency pairs like GBP/USD. Personally, I started with US options on companies like Apple and Tesla through an FCA-regulated broker. They’re more liquid, have tighter spreads, and tend to offer better educational support.
The difference between direct options trading (like Interactive Brokers or IG) and CFD-based options exposure (such as eToro or Plus500). With direct options, you’re trading listed contracts—actual calls and puts. With CFDs, you’re speculating on the price of an option, but you’re not trading the contract itself. Both have pros and cons, but direct options give you more control over strategy building.
Is Trading Options Legal In The UK?
Best UK Options Trading Platforms:
IG - Best overall Platform, Versatile and Reliable
Pros & Cons
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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.
- Access to global stocks, indices, and commodities
- Professional-grade platform with strong charting tools
- Extensive educational resources (via IG Academy)
- Excellent trade execution and platform reliability
- Some options fees may be higher vs. competitors
- £250 minimum deposit may deter casual traders
- Feature-rich platform may overwhelm beginners
- Customer support can be slow during busy periods
What Do Our Experts Say?
Why I'd use it for Options Trading:
Spreadex - Intermediate Traders, Comprehensive Features
Pros & Cons
81% 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.
- Wide range of markets for spread betting and CFDs
- All-in-one platform with a user-friendly interface
- Low trading costs and competitive spreads
- Strong customer service with personalised support
- No ISAs or non-leveraged investment accounts
- Limited international access (mostly UK & Ireland)
- Doesn’t support MT4/MT5 (but does offer TradingView integration)
What do our Experts Say?
Why I'd use it for Options Trading:
XTB - Fast Execution, Free Market Analysis, User-Friendly Interface
Pros & Cons
73% 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.
- Fast execution—key for options trading timing
- User-friendly xStation 5 platform
- Tight spreads help reduce costs
- Personal account managers and responsive support
- Fewer options products vs. larger brokers
- Missing some advanced features for pros
- Options education could be more robust
- Occasional downtime during maintenance windows
What do our Experts Say?
Why I'd use it for Options Trading:
AvaTrade - Beginners, Easy to Use
Pros & Cons
76% 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.
- Strong education hub to build trading knowledge
- AvaOptions offers combined forex and options trading
- Automated trading features available
- Fully regulated and secure
- Spreads are a bit wider than some rivals
- Inactivity fees apply
- Limited instruments in some regions
- Withdrawals can be slower than average
What do our Experts Say?
Why I'd use it for Options Trading:
Saxo - Advanced Analytical Tools, Professional-Grade Platform
Pros & Cons
64% 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.
- Broad global access to options across markets
- Powerful analytical and strategy-building tools
- Industry-leading market research and insights
- Premium customer service and support
- Steep learning curve for beginners
- Higher fees on some trades
- Not ideal for smaller accounts or casual traders
What do our Experts Say?
Why I'd use it for Options Trading:
Interactive Brokers - Low Trading Costs, Wide Market Access
Pros & Cons
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.
- Ultra-low commissions on options trades
- Huge range of products: equities, indices, futures
- Pro-level platforms like Trader Workstation (TWS)
- Excellent research and risk management tools
- Platform can feel overwhelming for new users
- Market data fees can stack up monthly
- Customer support may lag during busy periods
- Desktop interface isn’t the most intuitive
What do our Experts Say?
Why I'd use it for Options Trading:
Plus500 - CFD Options Trading, Intuitive and Efficient
Pros & Cons
80% 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.
- Intuitive interface that’s easy to learn
- Built-in tools like stop-loss and guaranteed stop
- Competitive spreads on option CFDs
- Broad market access via CFD format
- No direct options trading—CFDs only
- Limited tools for advanced strategies
- Educational content could be better
- Support quality can vary
What do our Experts Say?
Why I'd use it for Options Trading:
How Do These Options Brokers Compare?
| Rank | Broker | % Retail Accounts Losing Money | Regulatory Authority | Minimum Deposit | Options Markets Available | Demo Account | Account Types | Spread Costs |
|---|---|---|---|---|---|---|---|---|
| #1 | IG | 69% | FCA (UK), ASIC (AU), MAS (SG) | £250 | Yes | Yes | Standard, ISA | CFDs, Spread Betting, Shares (variable) |
| #2 | Spreadex | 82% | FCA (UK) | £0 | Yes | Yes | Standard, Professional | Varies by market |
| #3 | XTB | 77% | FCA (UK), KNF (Poland) | £250 | Yes | Yes | Standard, Islamic | CFDs only (variable) |
| #4 | AvaTrade | 71% | FCA (UK), ASIC (AU), CBI (Ireland), BVI FSC | $100 | Yes | Yes | Standard, Spread Betting, Islamic | CFDs only (variable) |
| #5 | Saxo | 80% | FCA (UK), MAS (SG), FINRA (US) | Varies by region | Yes | Yes | Classic, Platinum, VIP | Variable (ECN accounts often lower) |
| #6 | Interactive Brokers | 62.5% | FCA (UK), FINRA (US), SFC (HK), MAS (SG) | $100 (Lite), $10,000 (Std) | Yes | Yes | Individual, Joint, IRA, LLC | Variable (volume-based commissions) |
| #7 | Plus500 | 80% | FCA (UK), ASIC (AU) | $100 | Limited | Yes | Standard | CFDs only (variable) |
What Types of Options Can You Trade in the UK?
Index options such as the FTSE 100 andS&P 500. These are great if you want broader exposure without picking individual stocks. I’ve used them a few times to hedge during choppy markets.
Forex options are another option (no pun intended)—particularly pairs like GBP/USD or EUR/USD. These are typically available on more advanced platforms. Some brokers even offer ETF and commodity options, although access is more limited. If you’re trading through a UK broker with global reach, like Interactive Brokers, you’ll usually have more of these choices.
CFD-based options, like those offered by eToro or Plus500. You don’t own the actual contract—you’re just trading on the price movement. They’re simpler to get into, but less flexible if you want to build complex strategies. Some platforms will require margin accounts for options trading, and many will ask for approval based on your trading experience . So always check the platform’s requirements before signing up.
Why Are People in the UK Still Trading Options?
What Should You Look for in an Options Trading Platform?
Key Platform Features to Prioritise
How To Match the Platform to Your Experience Level
If you’re just starting out, look for platforms with a clean layout, good educational content, and — a demo account. IG, for example, has one of the best educational hubs I’ve used.
For more experienced traders, you’ll probably want multi-leg strategy support, tiered pricing, and access to international markets. Interactive Brokers ticks most of those boxes, but keep in mind that the learning curve is steep.
And in 2025, always keep an eye out for a responsive mobile app. Whether I’m entering a trade or just monitoring my positions, a fast app with full-feature access can make all the difference.
| Platform | Best for |
|---|---|
| IG | Overall Platform, Versatile and Reliable |
| SpreadEx | Intermediate Traders, Comprehensive Features |
| XTB | Fast Execution, Free Market Analysis, User-Friendly Interface |
| AvaTrade | Beginners, Easy to Use |
| Saxo | Advanced Analytical Tools, Professional-Grade Platform |
| Interactive Brokers | Low Trading Costs, Wide Market Access |
| Plus500 | CFD Options Trading, Intuitive and Efficient |
What Option Trading Fees Should I Expect?
- Commissions – Most platforms charge per trade or per contract. It’s not always a dealbreaker, but it adds up fast if you’re trading frequently.
- Spreads – The tighter the spread, the cheaper the trade. I pay close attention to this—especially on less liquid contracts.
- Contract Fees – Some brokers charge a small fee for every contract you trade. Doesn’t sound like much, but do a multi-leg strategy and it can get pricey.
- Exercise or Assignment Fees – If I hold to expiry and the option gets exercised or assigned, there’s sometimes an extra charge.
- Platform Fees – A few brokers charge monthly fees for access to advanced tools or real-time data. I try to avoid these unless the tools are genuinely worth it.
| Rank | Platform | Commission | Strategy Tools | Mobile App | Demo Available | Account Approval Needed |
|---|---|---|---|---|---|---|
| #1 | IG | £0.10–£0.30 | Yes | Yes | Yes | Basic KYC |
| #2 | Spreadex | Spread-based | Yes | Yes | Yes | Basic KYC |
| #3 | XTB | Spread-based | Limited | Yes | Yes | Basic KYC |
| #4 | AvaTrade | Commission-free (spread only) | Limited | Yes | Yes | Basic KYC |
| #5 | Saxo Markets | £1.00+ | Yes | Yes | No | Yes |
| #6 | Interactive Brokers (IBKR) | $0.15–$0.65 | Yes (advanced) | Yes | Yes | Tiered approval process |
| #7 | Plus500 | Spread-based | No | Yes | Yes | Basic KYC |
What Are the Risks of Trading Options?
Then there’s time decay. Options lose value as they approach expiry, especially if the market isn’t moving much. I used to underestimate this, thinking I just needed to be directionally right. Turns out, timing matters just as much.
Volatility traps are another issue—an option might look cheap, but if volatility spikes or drops suddenly, your pricing can go out the window. And don’t get me started on complex strategies like iron condors or straddles unless you’ve really done your homework.
How Do I Manage Risk When Trading Options?
Here’s what I focus on:
- Stop-loss orders are my safety net. I always set a clear exit before entering a trade. If it turns against me, I’d rather take a small hit than spiral into a big loss.
- Position sizing matters. I stick to risking no more than 2–3% of my capital on any one trade—it helps manage leverage and avoid big drawdowns.
- I spread trades across assets and strategies to manage currency risk, liquidity issues, and overexposure.
- I use defined risk strategies like spreads and protective puts to control downside, especially when holding stock.
- Time decay is a constant factor—especially in short-dated trades—so I always keep an eye on the expiration date and implied volatility to time my entries better.
- I avoid surprises by understanding margin interest costs and ensuring I have negative balance protection in place—just in case the market moves faster than I can react.
- And let’s not forget counterparty risk—I stick with regulated brokers to reduce that kind of exposure.
Is Options Trading Right for You? Here are the Pros and Cons:
| Pros | Cons |
|---|---|
| Flexible Strategies – I can profit in up, down, or sideways markets. | Steep Learning Curve – It took me a while to fully grasp the mechanics. |
| Defined Risk – With the right setup (like spreads), I know my max loss going in. | Time Decay – If I’m not careful with expiry dates, time can eat away at profits. |
| Leverage – I control more exposure with less capital. | Leverage Cuts Both Ways – Small moves can mean big losses, fast. |
| Great for Hedging – I use puts to protect my stock positions during volatility. | Not Beginner-Friendly – It’s easy to jump in too fast without fully understanding the risks. |
| Low Upfront Costs – Buying options is cheaper than buying the stock outright. | Overtrading Temptation – With so many strategies, it’s easy to get carried away. |
| Advanced Tools Available – Platforms like IG and IBKR offer amazing strategy builders. | Fees Can Stack Up – Contract costs, commissions, and spreads can eat into returns. |
Where Can I Practice Trading Options?
Final Thoughts: Which is the best Platform for you?
Here are the top 3 Options Trading Platforms in the UK:
If you’re just starting out, I’d recommend starting with IGor even eToro (though eToro offers options via CFDs, not direct contracts). IG has one of the cleanest platforms I’ve used, plus their educational content is top-notch.
For more advanced traders who want access to global markets and low commissions, Interactive Brokers is hard to beat. I use them for multi-leg strategies and more complex trades.
Finally, Saxo Markets is ideal for professionals or high-net-worth traders who need speed, execution quality, and in-depth research tools. I’ve tested it—it’s slick, but the higher fees and deposit minimums make it more suited to serious investors.
To conclude, Options trading has become one of my go-to strategies, but it took time, practice, and plenty of mistakes to get there. If you’re willing to learn and manage risk properly, it can be a powerful addition to your trading toolkit. But don’t rush it—start small, keep it simple, and build confidence as you go.
FAQs
Top 5 Options Brokers
1
IG
71% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
2
SpreadEx
81% of retail investor accounts lose money when trading CFDs with this provider.
3
XTB
73% of Retail CFD Accounts Lose Money
4
AvaTrade
76% of retail investor accounts lose money when trading CFDs with this provider.
5
Saxo
64% of retail investor accounts lose money when trading CFDs with this provider.
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
- eToro UK – CFD Trading Guide