Opening this guide is the first step to locking down your financial future – so you’re well on your way.
You’ve also decided to do something that most investors are too afraid to consider – and for all the wrong reasons: trade options.
The funny thing is… trading options is easy. And the advantages speak for themselves: lower cost, lower risk, greater potential gains.
But before you’re ready to trade, you’ve got to actually open your account with an options broker.
Now you may already have one: a retirement account, such as an IRA or a 401(k). What you may not know is that you can trade options in your retirement account. So if you’d like to use your retirement account to trade options, then contact your broker to get your account converted for options trading. Then, you’re ready to move on to the next step: Getting Your Options Clearance.
And if you don’t already have one or would prefer using a separate account for options trading, you’ll need to choose your broker first.
Here’s how you do that:
Choosing Your Broker
Finding a broker – the right broker, one that’s capable of handling each of your particular needs – requires a variety of considerations. Everything from account minimums, acceptable trade types and commissions fees… to trading platforms, customer service availability, and regulatory standing.
It’s a lot to think about. And the best option, of course, depends on what’s important to you.
Thankfully, there’s never been a better time for making such a choice…
Fierce competition within the brokerage industry has created unprecedented value for individual investors. This is especially true among the major online discount brokers, where firms like TradeStation, TD Ameritrade, and Fidelity are continuously driving down commissions, adding account features, and providing their clients with access to an ever-growing list of powerful trading tools.
As a result, you can trade virtually any asset class now, whenever and wherever you want… all for about the cost of a no-frills latte.
Of all of the “major” brokers out there, one I particularly like is TradeStation, especially if you’re new to options trading, as the company’s education and ongoing training materials are top-notch. I also like its fast trading platform, its super low-cost commissions, and its intense focus on customer service. For more information, you can call them at 1.800.328.1982. And please note: I don’t receive any compensation from TradeStation, in any form. I simply like their product.
Now, if you decide to open a TradeStation account, make sure you’ve got the following information handy:
- Your Social Security number
- Your driver’s license or government-issued state identification information
- Your employer’s name and address (if applicable)
- Statement of information for the assets or cash you want to transfer to your new options account
Once you have everything, simply call 1.800.328.1982. TradeStation will take it from there.
And if you don’t want to use them as your broker, that’s fine, too. After all, you’re the only person who can decide which broker is right for you. Just be sure to do your own research before you commit. Don’t worry if you end up with a different broker – most trading platforms look and work alike.
TradeStation isn’t the only online options broker around. In fact, there are dozens out there, all specializing in different things. While I can’t personally vouch for any of them, many of my Fast Fortunes Club members, and students have told me that Charles Schwab, TD Ameritrade, and Fidelity work well for them.
So if you’re interested in either one, here’s how you can learn more about them, any offers they may currently have, and (when you’re ready) open your account:
- For Charles Schwab, go to www.schwab.com or call (888) 279-0888
- For TD Ameritrade, go to www.tdameritrade.com or call (800) 454-9272
- For Fidelity, go to www.fidelity.com or call (800) 343-3548
Your Next Step
You’re already way ahead of the investor pack – but you’ve still got a few more things to do. And one of those things is getting your options clearance. Simply put, this determines which types of options you can trade. And all you have to do is answer a series of questions.
To see exactly what these questions will look like – and how to answer them – open your How to Get Your Options Clearanceguide next.