Online investors make their money by always expanding their knowledge. They know when companies announce earnings. They know when stocks will split. They even know how many phones their favorite companies will sell in a quarter. And over the past few years, they have learned one more thing: don’t pay trading commissions. There are many services out there that offer commission free trading, but selecting the right one can be challenging.
What do they really cost?
There are three kinds of services that offer options trading without commissions. Some that have no costs other than exchange fees. Others have a monthly fee or charge a percentage of your account. The last group offers some free trades if you sign up but then start charging after those trades are made or a time passes. We will ignore that last group because they are not rally free.
Do they help you find trades?
Whether or not a service provides good tools is always based on how much they charge. Services that do not have a monthly fee do not provide good tools. They have no money to invest in tools because they do not charge for their services. This is okay for some traders because they have their own tools and know what they want to trade when they get to the service. If you want tools that help you find the best trades, you should find a pay service.
Do they help you manage risk?
After you have positions, you need to make sure you have your risk managed. This means you need to open and close positions that make sure you are making a profit without having more risk than you are willing to lose. Like tools to find trades, this is something you should expect to pay for.
Do they help you grow your portfolio?
The goal of option investing is to make money. That means that you need a service that will help you make good trades and manage bad risk. You should look for services that offer many different approaches to option trading that include strategies like covered calls, delta-neutral trading, and gamma scalping. A balanced portfolio of these kinds of strategies can help you make money, especially if you do not have to pay commissions on every trade.
Where to start?
One company that offers commission free options trading is Quantcha. For just $99/month, you can use all their tools and not pay any commissions on your trades. This means that strategies that could cost you hundreds or thousands of dollars at other services will cost less than $100 every month.
There are a lot of ways to make money by trading options, but it can also have a lot of risk. With the right tools and commission free options trading, online investors can get the profit they are looking for.