Complete rookie to option trading, what platform should I use?

[Riftis]

I've been looking around the internet but I'm having difficulty finding a concise list of option trading platforms with low commissions that work in Australia. I am planning on starting with a $5000 AUD account, though I might decide to start from or move to a different platform with better commissions and a higher account minimum depending on what's out there.

I'm new to option trading and I intend to trade with a practice account for awhile to get my bearings before diving in, presuming I can make a profit on that of course. I'd be thankful for any general advice or tips.

Cheers.

 

[procras]

I've been looking around the internet but I'm having difficulty finding a concise list of option trading platforms with low commissions that work in Australia. I am planning on starting with a $5000 AUD account, though I might decide to start from or move to a different platform with better commissions and a higher account minimum depending on what's out there.

I'm new to option trading and I intend to trade with a practice account for awhile to get my bearings before diving in, presuming I can make a profit on that of course. I'd be thankful for any general advice or tips.

Cheers.

Hi Riftis, are you talking about trading Aussie or US options ?
Trading with aussie brokers will be expensive with a small account.

 

[Riftis]

Hi Riftis, are you talking about trading Aussie or US options ?
Trading with aussie brokers will be expensive with a small account.

To be honest I wasn't even aware there was a difference like that. I remember briefly hearing that with UK options you have to wait until the expiry date to exercise them whereas with American ones you can exercise them whenever. Is that correct, and are there any other differences? If American ones are cheaper and that's doable then I'll trade those I guess. Why are Australian brokers more expensive?

 

[procras]

To be honest I wasn't even aware there was a difference like that. I remember briefly hearing that with UK options you have to wait until the expiry date to exercise them whereas with American ones you can exercise them whenever. Is that correct, and are there any other differences? If American ones are cheaper and that's doable then I'll trade those I guess. Why are Australian brokers more expensive?

Yeah your confusing the exercise style of the option with the country in which their traded.
European style options can only be exercised at expiry
American style options can be exercised any time up to expiry date.

Options traded on the US markets tend to have much larger volumes allowing tighter bid / ask spreads.
The ASX website has educations courses covering the basics .

http://www.asx.com.au/education/options-course.htm

 

[Riftis]

Yeah your confusing the exercise style of the option with the country in which their traded.

Oh, I see.

The ASX website has educations courses covering the basics .

Thank you, I'll give them a look when I have time.