Can you trade stock index options at MEXEM?
Considering trading stock index options at MEXEM? Let's see whether they offer this service, what fees you'll face, and if this broker is the best fit for you to trade options.
Yes, you can trade stock index options at MEXEM, but its fees are on the higher end, and combined with our overall assessment, it's probably not the best fit for you to trade options. Select instead from some great choices on our best options trading brokers list.
I've reviewed dozens of options brokers and made hundreds of options trades to size up whether they're the optimal platform for trading stock index options. My overall verdict is that MEXEM is not your best choice:
- You can trade stock index options at MEXEM.
- MEXEM charges high fees for trading stock index options.
- Its unimpressive options-related services also lag behind the competition.
-
For better alternatives, see the top brokers for options trading.
Before we begin, let's see if MEXEM is available in your country
Yes, you can trade stock index options at MEXEM
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.
Options trading is all about buying and selling contracts that give you the right, but not the obligation, to buy or sell an asset at a specific price before a certain date. The asset can be a stock, a stock index, a foreign currency, or even a commodity like oil.
In this article, we concentrate on stock index options - which are available at MEXEM, on a total of 34 options exchanges. You can trade the stock index options for the following countries (additional ones may be available as well):
- US stock index options
- UK stock index options
- German stock index options
Imagine stock index options like placing a bet on the overall market's future direction, rather than on a single stock. Think of it like predicting whether the S&P 500 will rise or fall. You buy an option that gives you the right to trade that index at today's level, no matter where it goes later. If you're right and the market moves in your favor, you profit. If not, you only lose the cost of the option. It's a bit like betting on the weather - predicting sunny skies ahead and locking in your beach plans before the crowd rushes in!
As with other product types, MEXEM offers an extremely wide range of options markets.
You can access the biggest ones, like the Chicago Board Options Exchange (CBOE) or the CME Group, as well as smaller markets, such as the Korea Stock Exchange (KSE) and the Mexican Derivatives Exchange (MEXDER)
Stock index options fees are high at MEXEM
Trading stock index options involves either buying or selling contracts based on a market index. When you buy a stock index option, you're paying for the opportunity to make a move on the index at a future date, without locking yourself in immediately. When you sell a stock index option, you're giving someone else that opportunity, and you collect the premium they pay for that right.
Now, let's talk fees. Every options trade comes with its own set of costs. Typically, you're looking at a base, or minimum fee per trade, plus a fee per contract. Some brokers may also cap the amount you have to pay at a certain maximum. For example, you might pay a $5 base fee for each trade, plus a $0.65 per contract fee.
Overall, MEXEM has high fees for trading stock index options. You can see the conditions in the table below.
| Stock index option type | Benchmark fee | Fee description |
|---|---|---|
| US stock index options | $20.0 | $2 per contract, min. $2 |
| UK stock index options | $31.5 | £2.5 per contract, min. £2.5, stamp tax of 0.5% |
| German stock index options | $18.9 | €1.8 per contract, min. €1.8 |
So what's all the fuss about fees? They may seem like a tiny fraction of a trade's value, but the differences among brokers can be significant. Among the 100+ brokers we cover, fees range from $0 to $40 for trading 10 US stock index options contracts. Even for casual traders, these differences can add up to hundreds of dollars a year. Just think of what else you could buy with that money!
You pay options fees depending on the number of contracts you trade.
Compare MEXEM with its competitors
To compare fees at various brokers, we calculated a benchmark fee for trading different options products. Note that some brokers don't charge a separate fee for closing an options trade - in these cases, we calculated with just half of the opening fee, as most other brokers charge for both opening and closing transactions.
You can also see an overall options fee score, which shows (on a scale of 0 to 5), how favorable the broker's fees are, with 5 being the maximum score (lowest fees).
Check in the chart below how MEXEM compares to similar brokers in terms of its options trading fees!
MEXEM is not your best choice for trading options
To assess whether MEXEM is a great place to trade options, we took into account several factors beyond merely what you have to pay in trading fees, as that is only part of the story when it comes to options trading. Here's what we checked:
-
the number of options exchanges you can access
-
the quality of the broker's trading platform (including charting and other research tools)
-
the withdrawal fees you pay when you want to access the profits of your trading activity
-
your available options for withdrawal methods
In the chart and table below, you can check how MEXEM compares to some close competitors along these lines, and why we say that it is not an ideal broker for trading options. Scores are on a scale of 0 (worst) to 5 (best).
See the top brokers for trading options
Looking for the best of the best? Check out our toplist of the best brokers for trading options.
We've rounded up the cream of the crop to help you find a broker that suits your needs perfectly. Whether you're looking for the best overall options brokers, the best options platforms in the US, or brokers tailored for beginners, we've got you covered.
Still missing something? Our knowledgeable AI assistant Nuri is here to answer all your options-related needs.
Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.
Further reading
- Options trading conditions at MEXEM explained
- Options fees at MEXEM
- Stock options trading conditions at MEXEM
- ETF options trading conditions at MEXEM
Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.
