7 Best Brokers for Trading Options in Europe in 2023

The boom of online brokers of the past decade has given retail traders access to financial tools and instruments previously reserved for professionals. Among the most popular products investors can now trade in are options.

Options trading is a popular strategy traders can use to take advantage of different market conditions. One key difference between regular stocks and options is that stocks give you a share of ownership in a company. In contrast, options are derivatives that give you the right to buy or sell the actual stock at a specific price by a particular date.

Options trading may seem confusing at first, but it’s easier to wrap your head around once you understand the basics. Options contracts provide leverage, which allows you to control more stock for the same amount of money. For the knowledgeable options trader, options can be used to profit from a range of market outcomes, potentially with limited risk.

Best options brokers in Europe

Options are very popular among US retail traders, but European investors can now access them on equal footing. Here is the list of international brokers that currently allow European clients to trade US (American) options, European options, or vanilla options:

• Interactive Brokers: My recommendation
• Avatrade: Great for forex options and mobile trading*
• DEGIRO: Good for European-style options
• Firstrade: Good alternative to IBKR
• Tastyworks: Another alternative to IBKR but only fundable with CurrencyFair (get 10 free transfers with this link)

Most brokers require that you complete an appropriateness test before they allow you to buy/sell puts and calls. I recommend you do a lot of reading and spend some months with a demo account before walking headlong into this trendy endeavor.

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Interactive Brokers

Best for: Long-term investors, most investment products

• Regulated by 11 financial authorities, has been around since 1974
• Ultra-low trading fees and currency exchange fees
• Available in almost every country
• Trade whatever you want: Stocks, ETFs, mutual funds, options, futures, cryptos, and currencies
• Fund your account in local currencies

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Avatrade

Recommended for: Mobile and web CFD trading

• CFDs on FX, stocks, commodities, crypto, indices & options
• Negative balance protection
• Up to 30:1 leverage
• Regulated in jurisdictions, including Ireland, the UK, Australia
• Accepts PayPal, Skrill, Neteller, Visa, bank transfer, and more

76% of retail investor accounts lose money when trading CFDs with this provider.

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DEGIRO

Best for: Beginners and passive investors

• Used by 2+ million European investors
• Zero commissions on stocks and ETFs (other fees may apply)
• Winner of 80+ broker rewards.
• Regulated by BaFin (Germany) and publicly traded
• Some of the lowest fees in the industry

Investing involves risk of loss.

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Firstrade

Recommended for: Investor protection & zero-commission options

• Offers investor protection up to $500,000
• Zero commissions on stocks, ETFs, and options
• Has been serving investor for more than 37 years and is a member of FINRA and SIPC.
• Free professional tools such as the advanced screener, stock price alert, streaming watchlist

Brokers I don’t recommend

• Saxo Bank: Very expensive
• Swissquote: Very expensive

Saxo and Swissquote are, in my opinion, uncompetitive legacy brokers that are out of sync with the current market. Both brokers are expensive to trade with for both stocks and options.

*Avatrade risk warning: 71% of retail investor accounts lose money when trading CFDs with this provider.