Question for the option experts

Discussion in 'Options' started by gkishot, Mar 3, 2006.

  1. What brokers do you guyes know that do not have the approval process for different levels of option trading? As far as I know IB & thinkorswim do not have the approval levels? What are the other ones?
     
  2. MTE

    MTE

    With thinkorswim and ib why would you need anyone else!?
     
  3. Right.
    Just to check out what is out there.
     
  4. Although IB and Thinkorswim may not have approval levels I would bet that you still have to qualify to trade options. If I am correct maybe the real question is, does a broker with "levels" provide beginners the ability to trade restricted options where IB and Thinkorswim may not give any ability.

    Sorry, I don't know that answer.

    Don
     
  5. MTE

    MTE

    I have no way of gauging how easy or hard it is to qualify for options trading at IB, Thinkorswim or OptionsXpress reltaive to each other, but Thinkorswim "prides" itself on the fact that they understand risk in options and thus can allow each person who is approved for options trading to trade any strategy that he/she wants.
     
  6. Hard to believe that Thinkorswim would allow beginners to trade naked calls. So I suspect it might be hard for a newbie to get approved there.

    Don
     
  7. MTE

    MTE

    As I said, I don't know how hard or easy it is to get approved for a newbie as I wasn't when I opened an account at Thinkorswim, but I suspect it is not harder than getting approval at say Optionsxpress. After all, as I said, the key is that Thinkorswim understands risks and manages them accordingly irrespective of the client being a newbie or a seasoned trader.

    Anyway, this seems to be a pointless discussion so let's just leave it at that.
     
  8. flyers&divers

    flyers&divers Guest

    There is an options competence test as part of the account application (at least when I applied years ago there was one) at IB and the results of the tes determine the level of approval.

    The test is interestingly structured in that after the test is completed it cues you in to the right answers and they let you go through the test again thus inproving one's chances for being approved to the next higher level.
     
  9. One thing worth mentioning is that thinkorswim believes it can TEACH people how to use options thru their free seminars and wants (and demonstrates that desire) to help people become smart options users...therefore they do not have "levels"
     
  10. dugan176

    dugan176

    Td AMERITRADE will approve you for tier 2 options provided you label yourself as somewhat experienced .. But maybe not level 4 (which is option w/ margin acct..). They will gladly let you blow your own cash acct !!
     
    #10     May 8, 2016