Options trading conditions at eToro explained

Options trading is increasingly popular, but it's still something of a niche product aimed at more experienced traders, so not all brokers offer it and trading conditions can differ widely.

Unfortunately, eToro doesn't offer options trading. Check out our list of the best options brokers to find a suitable alternative.

So how did we compile our toplist for the best options brokers? Our expert team of analysts looked at hundreds of features and data points at 100+ online brokers to see which ones have the lowest options fees, the broadest options market access, the most user-friendly and sophisticated desktop trading platform, and the best research and charting capabilities.

Visit broker
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal

To assess whether eToro is a great place to trade options, we calculated a comprehensive options score that takes into account options trading fees, the potential number of options products available, and the quality of the broker's trading platform (including charting and other research tools).

eToro's overall options score of 2.6 stars is considered below average among the brokers we cover that offer options trading. Here's how eToro scored against some close rivals:

Need a refresher course on options trading? Here's a high-level overview of all you need to know about trading options. If you're already familiar with the basics, you can dive right into options trading strategies or the niceties of options pricing.

Still lacking options trading mileage? We suggest you start with our introduction to options trading for beginners.

Since eToro is a CFD/forex broker, keep in mind the possibility that the options you buy or sell may be CFDs ('contracts for difference') rather than listed options. Some traders prefer listed options because they are thought to be more liquid.

Visit broker
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal

In the table below, we listed options trading fees (calculated in USD terms) at eToro and some of its competitors for trading 10 options contracts.

Please note that some brokers don't charge a separate fee for closing an options trade. In these cases, in order to represent this discount properly, we calculated with just half of the opening fee, because most other brokers charge for both the opening and closing transactions.

So what's all the fuss about fees? Aren't they just a tiny fraction of the value of a typical trade? Well, they may be, but differences in fees among brokers can still be substantial. Of the 100+ brokers we cover, the cheapest one charges $5 for trading 10 US stock index options contracts, while the most expensive one charges $35. Even if you're just a casual trader who does one or two options deals a month, the difference in trading fees can add up to hundreds of dollars a year. Just think of all the goodies you can buy with that money!

Trading fees and product selection are only part of the story when it comes to options trading.

• A great trading interface (especially on desktop) with user-friendly search and order functions, good charting capabilities and quality research material is an option trader's best friend.
• Costs don't stop at trading fees; if you trade often and want access to your trading profits, withdrawal fees can sting.

In the table below, you can check how eToro compares to some close competitors in trading platform quality and other features.

As we have seen, eToro is not ideal for options trading; to find a better alternative, we suggest you check out our top ten list of the best options brokers in your country.

Alternatively, if you want a broader comparison or have some specific other brokers in mind, you can use our broker comparison tool to size up options brokers along many different criteria.

Visit broker
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal