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Trading Options at TradeZero
If you’re looking for a way to buy and sell option contracts, TradeZero is worth checking out. Although it succeeds in some ways, it fails in others. Here is a summary:
TradeZero Software for Options
Although TradeZero offers multiple software platforms, option contracts can only be traded on ZeroPro. This is the company’s flagship desktop program. It has a discrete window for option chains. Only calls and puts are displayed here. There are no integrated spreads.
Expiration dates are displayed horizontally. Just click on any date to pull up contracts under that expiration. Clicking on a bid or ask price will populate the trade ticket, which sits underneath the calls and puts. If you click on the Last number, the order ticket will populate with a limit price at that number, which is the last trade price. Both market and limit orders are available.
The order form has a drop-down menu for routing choices. Many other fields can be adjusted as well. These include strike, expiry date, put/call, and quantity.
There are four trade buttons to submit an order. They are:
- Buy to open
- Sell to open
- Buy to close
- Sell to close
Because it’s important to get the right trade type here, you definitely want to pay attention to these buttons and select the correct one.
TradeZero Options Application
It is necessary to fill out an options application on the TradeZero website to add options privileges to an account. The required form will be found on the options application page. To find this page, hover over the My Account tab.
Some information will be pre-populated in the electronic form. A paper form is not necessary. Scroll through the various digital pages and supply any missing details. An option level will need to be specified. There are five possibilities; margin is required for three of them.
TradeZero Options Pricing
Perhaps the biggest disadvantage of trading options at TradeZero is the cost. The required desktop program does carry a $59 monthly fee. There is no way to avoid this recurring charge.
Option trades come with no base charge, although there is a per-contract fee of $0.42. Auto exercises and assignments are free, although a manual exercise costs $35.
Webull as Alternative
Webull quickly solves the problem of cost by delivering
a desktop platform that is free to use. As a matter of fact, the broker-dealer has two more platforms—a mobile app and a browser platform—both of which carry no monthly fees.
In addition to free software,
Webull charges no per-contract fees on option trades, and exercises and assignments in auto or manual form cost nothing.
Obviously, Webull delivers the better value. And that’s before we get to integrated spreads. Yes, Webull provides some of these on its mobile app and desktop program (the browser platform doesn’t have them). Here are some we found:
- Calendar
- Strangle
- Vertical
- Collar (with stock)
On the desktop program, finding contracts is very straightforward. Simply go to the underlying asset’s profile and click on the Options tab that appears in the middle of the screen. An ETF’s or stock’s profile can be accessed by searching for the security in the top search bar or by clicking on it in a watchlist.
Once option chains are displayed, it’s easy to scroll through the available contracts. A drop-down menu is where the spreads will be found. Greek values are automatically displayed for every contract.
Underneath the order ticket, which sits beneath the chains, there are two tabs: Table and Graph. The graph mode can be used to see a profit-loss diagram. Max profit and loss numbers will also be found here.
Although prices for contracts are displayed on Webull’s software, they are delayed by 15 minutes. A subscription is required to get real-time data. It costs nothing, although a questionnaire is required. One option trade every 30 days is required to maintain the subscription.
The desktop platform has pre-installed layouts, one of which is for options trading. Look for this layout, conveniently titled Options Traders, already installed on the platform in the left-hand menu.
Free Webull Account
Get 12 free stocks when you deposit $100 with Webull!
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TradeZero Promotion Code Disclaimer
TradeZero promotion incentive details can change without notice. Read TradeZero promotion offer's
fine print on their website before opening an account.
Updated on 11/7/2023.
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