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E*TRADE's Options Trading Platform
E*TRADE has been one of the biggest names in the brokerage business for a number of years now, and has helped traders of all kinds. The options trading platform is also quite extensive and offers a number of functionalities that will meet the needs of the novice and the professional trader.
1. User-Friendly Interface
One of the most appealing features of E*TRADE’s options trading platform is the ease of use of the interface. It is designed to be easy to use, especially for new users. The traders can also benefit from a simple design of the platform with easily identifiable menus and tools that help access information quickly.
For instance, the platform has a customizable dashboard where users can watch their options positions, track market movements, and get real time quotes. This feature is particularly useful for the new user, who needs some basic information without being overwhelmed.
2. Educational Resources
Another great feature of the options trading platform of E*TRADE is the education section. Newcomers to the world of trading can gain access to a wealth of information in the form of articles, videos, webinars and tutorials.
Such resources are structured to address issues starting from the basic concepts of options trading to the complex strategies. This information can be useful for beginners to gain more knowledge and make better investment decisions.
3. Advanced Tools and Analysis
The platform of E*TRADE also includes a set of professional tools and analysis. These tools help the new traders in identifying the potential, decoding the market movements and in the management of their options positions.
For instance, in order to determine the list of available options for a given stock, the traders can use options chains. They can also use advanced charting tools that enable them make predictions of the market on the basis of graphs.
Ally Invest's Options Trading Platform
Ally Invest is another major brokerage firm that provides a good options trading platform. While it is not as popular as E*TRADE, Ally Invest has some advantages that can be useful for the beginner trader.
1. Low Costs and Fees
One major benefit of the platform offered by Ally Invest is that it is fairly cheap and has low fees. New traders who may not have a clear understanding of how costs affect their potential profits can benefit from Ally Invest’s affordable pricing for options trades at $0.50 per contract.
This model is especially attractive to the beginners who are still learning the ropes of the market and may not want to invest a lot of money into trading.
2. Robust Research and Analysis
The platform has a number of research and analysis tools that help the novice trader make reasoned decisions. You can get market data, news, and even create your own watch list.
In addition, you can view full options chains and use advanced charting tools to analyze the market. These features can help the beginners in identifying the trading opportunities and making sensible investment decisions.
3. Integration with Ally Bank
The only disadvantage of Ally Invest’s platform is that it is not integrated with the Ally Bank which is a bank that offers products like high interest bearing savings and checking accounts.
This is useful for the new trader who wants to combine all his financial activities in one place. This makes it very easy to transfer funds between the brokerage and bank accounts when conducting trades.
E*TRADE vs Ally Invest
Now that you have a general idea of the main characteristics of both E*TRADE and Ally Invest’s options trading platforms, it may be helpful to compare them more directly to assist the new trader in their choice.
User-Friendly Interface
- E*TRADE: The layout of the platform is quite simple and easy to customize.
- Ally Invest: It has real time market data and watch list which can be customized to suit ones trading needs.
Educational Resources
- E*TRADE: Offers a lot of learning content including articles, videos, webinars and tutorials.
- Ally Invest: Has a similar level of access to the research and analysis tools that can be useful in making trading decisions.
Advanced Tools and Analysis
- E*TRADE: Offers a wide range of analytical tools including options chains and charting tools.
- Ally Invest: Also provides full options chains and a good charting package for analysis.
Costs and Fees
- E*TRADE: Has a charge of $0.65 per options contract.
- Ally Invest: Cheaper than E*TRADE at $0.50 per options contract.
Banking Integration
- E*TRADE: Does not have integration with the banking services.
- Ally Invest: Combines with Ally Bank and enables easy account switching.
Conclusion
E*TRADE and Ally Invest are both good options trading platforms for beginners. E*TRADE has a friendly user interface, a rich education section, and many analytical tools. On the other hand, Ally Invest has some great features that include low fees, a good research tool, and an integration with Ally Bank.
It is therefore important for the novice traders to understand their needs and preferences. If a platform that is easy to use and has a lot of educational content is what the user wants, then E*TRADE can be recommended for use. But if someone wants to save money and also have integrated banking, then Ally Invest could be the right choice.
In the end, both platforms offer essential features and resources that can assist novice traders in navigating the options trading market. It is therefore important for the beginners to take the time to consider these options and do some more research to ensure that they make decisions that are very close to their trading goals.
