DEGIRO options trading review
Options are a splendid tool to boost income, hedge risks, act as a strategic alternative, and leverage a trader's portfolio. Options strategies can vary from simple (buying a call option if you expect the price to rise sharply until it expires) to complex (multi-leg options strategies).
And if you've made up your mind to trade options, DEGIRO options trading can be the premier online broker (adds a cherry on the cake) to start with if you're a newbie or an expert.
Available markets at DEGIRO
Selecting a broker (intermediary between traders & stock market) is a pivotal step while investing. And in the following comparison table, we will compare DEGIRO options, Interactive brokers, and Saxo bank in a way that will allow you to look at the types of markets that DEGIRO, in conjunction with other platforms, will be able to offer. So without further ado, let's begin:
Markets | DEGIRO | Interactive Brokers | Saxo Bank |
---|---|---|---|
Forex | Not Available | Available | Available |
Bonds | Available | Available | Available |
Metals | Available | Available | Available |
Crypto | Not Available | Available | Available |
Indexes | Available | Available | Available |
Stocks | Available | Available | Available |
ETF | Available | Available | Available |
Options | Available | Available | Available |
CFDs | Not Available | Not Available | Available |
Futures | Available | Available | Available |
Furthermore, these platforms also provide access to an extensive range of options markets, such as:
DEGIRO | Interactive Brokers | Saxo Bank |
---|---|---|
There are 11 markets provided for DEGIRO options trading. | Interactive Brokers provides its traders with 33 options markets. | SAXO Bank provides its traders with 20 options markets to choose from, but their names need to be made available. Investors need to log in to the platform and trade to find available options. |
Euronext Derivatives Amsterdam | Bats EDGX Options Exchange US | |
Euronext Derivatives Brussel | Bats Global Markets (BATS) US | |
Euronext Derivatives Paris | Boston Options Exchange (BOX) US | |
NASDAQ OMX Nordic Stockholm | CBOE C2 (CBOE2) US | |
NASDAQ OMX Nordic Copenhagen | Chicago Board Options Exchange (CBOE) US | |
NASDAQ OMX Nordic Helsinki | GEMINI US | |
IDEM | ISE Mercury US | |
MEFF | ISE Options Exchange (ISE) US | |
Eurex | MIAX EMERALD US | |
CBOE | MIAX Options Exchange US | |
CME | MIAX PEARL US | |
NASDAQ OMX (NASDAQOM) US | ||
NASDAQ OMX BX US | ||
NYSE American (AMEX) US | ||
NYSE Arca (PSE) US | ||
Philadelphia Stock Exchange (PHLX) | ||
Montreal Exchange (CDE) Canada | ||
Mexican Derivatives Exchange (MEXDER) Mexico | ||
Euronext Brussels (BELFOX) | ||
France Euronext France (MONEP) | ||
Germany EUREX | ||
Italy Borsa Italiana (IDEM) | ||
Netherlands Euronext NL Derivatives (FTA) | ||
Spain Spanish Futures & Options Exchange (MEFF) | ||
Sweden Nasdaq OMX - Stockholm (OMS) | ||
United Kingdom Intercontinental Exchange (ICEEU) | ||
Switzerland EUREX | ||
Australian Stock Exchange (ASX) Options | ||
Hong Kong Hong Kong Futures Exchange (HKFE) | ||
Hong Kong Stock Exchange (SEHK) | ||
Japan Osaka Exchange (OSE.JPN) | ||
Singapore Singapore Exchange (SGX) | ||
South Korea Korea Stock Exchange (KSE) |
DEGIRO fees for trading options
Let's take a more in-depth look at the fees (commision) that DEGIRO charges for trading 10 options contract in the following table:
Options | Commission |
---|---|
UK stock index options | Not Available |
US stock options | Not Available |
US stock index options | $7.5 |
German stock index options | $8.9 |
An example of an option trade
Using a hypothetical example, let's examine how the use of options on market indexes as a hedge can be demonstrated:
Mrs. Steeve owns a diverse portfolio of U.S. stocks that have performed well over the past few months.
And because of that, she doesn't want to sell them right away, but also, she is afraid that a downturn in the stock market will lead to the loss of everything she has invested in.
As most of her stock holdings were invested in the technology sector, she decided to protect her investment by buying puts (put options) on the NASDAQ stock index at a strike price near today's closing price.
Ultimately, she opts for an option that expires in six months. In the meantime, if the NASDAQ drops below its current level, she will be able to profit from it by selling her put option whenever it does.
Due to her belief that the NASDAQ would correlate with her stocks to some extent, she felt that the option contract provided her with some hedge against the risk of riding in the markets.
FAQ
Is it possible to trade U.S. Options through DEGIRO?
DEGIRO imposes most of its fees into two rates
U.S. index Options can be traded with DEGIRO, but the same cannot be said for U.S. equity options.
What is the risk of investing too much in Options?
Investing in options is lucrative, although it also entails a high level of risk. You can end up losing more than your initial investment. Also, in some cases, losses are unlimited.
What order routing does DEGIRO use for most of its exchanges?
DEGIRO uses Direct-to-market order routing for most of its exchanges.
Which of the four types of DEGIRO options are available?
The following are the four types of options available:
Buying a call option
Selling a call option
Buying a put option
Selling a put option
Team that worked on the article
Knows about
Trading strategies, technical analysis, Forex, stock market, long-term investing
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Experience
Andrey's passion for finance began in 2009, and he has since accumulated extensive experience in trading and investing across various asset classes, including stocks, Forex, and cryptocurrencies.
He has spent over 15 years managing his own capital and working with financial portals, financial institutions, and IT companies, as a financial writer and analyst, further refining his investment expertise.
He is the author of several training courses on investing and trading in financial markets. Led multiple FX/Stocks/Crypto webinar educational presentations. Authored hundreds of articles on the global economy, stock, cryptocurrency, and Forex markets, along with trading strategies. He has also penned hundreds of professional reviews of financial firms.
Throughout his journey, Andrey has been heavily influenced by the works of renowned authors and investors like Benjamin Graham, Ray Dalio, Robert Shiller, and Nassim Taleb.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.