Options trading

Here are the broad steps involved in becoming an options trader.

1. Learn how options work

2. Research and choose an options trading strategy

3. Create a spread bet or CFD account

4. Pass our options suitability test (unless you’re a professional client)

5. Practise options trading with your demo account

6. Start trading on your live account when you’re ready

You don't need a separate account. If you’re a retail trader, you'll need to pass our suitability test before you can trade options using your existing spread betting or CFD account. If you're a professional client, you can trade options using your existing spread betting or CFD account, without needing to pass the suitability test.

As a CMC Markets customer, you won’t pay any commission, holding fees or financing fees when you trade options with us. The only costs you’ll pay are the spread and, if the instrument you’re trading is priced in a currency other than your home currency, a currency conversion fee. We charge 0.5% of the realised profit or loss to convert foreign currencies into your home currency.

There is no minimum amount needed to open an options account with us.

Our website has a range of learn articles, guides, and resources to help you navigate your options trading journey. You may find the following resources useful:

• What is options trading?

• Trading options with CMC

• Options volatility

Option trades on our platform are cash-settled. Trading options with us doesn’t entitle you to any rights in relation to the underlying asset, and exercise of an option doesn’t result in the acquisition or disposal of an instrument. Instead, an option contract which has reached its expiry date will be closed and cash settled, with an amount payable to you (if the market moved in your favour) or by you (if the market moved against you).

Currently, you can trade options on top stock indices, including the S&P 500, Nasdaq 100, FTSE 100, and more. We plan to add more underlying assets later.

There's no cost to open a live trading account with us. You can also view prices and use tools such as charts, Reuters news, or Morningstar quantitative research equity reports, free of charge. You'll need to deposit funds in your account to place a trade.

Yes, CMC Markets UK plc (registration number 173730) is fully authorised and regulated by the Financial Conduct Authority (FCA) in the UK. Retail client money is held in segregated client bank accounts and money held on behalf of clients is distributed across a range of major banks, which are regularly assessed against our risk criteria.

Under the FCA's Client Money rules, we're required to segregate client money (unless you agree with us otherwise) from CMC's own funds. The funds held in segregated bank accounts do not belong to CMC, and will be held in a way that enables it to be identified as client money. Learn more about client money regulations

Our income primarily comes from our spreads, while other fees, such as overnight holding costs, also make a contribution to our overall revenue.