Is Your Brokerage Right for You?

Question 6: E - If you plan on trading options, then you definitely need a brokerage firm that specializes in these kinds of trades. Brokerage firms that specialize in options generally offer better trade execution, lower costs and more experienced customer service representatives. These firms also offer great educational tools to help investors learn the proper ways to trade options.

Question 7: True - Paper trading an options account is a great way to try out new strategies and to learn trading concepts. You can buy and sell puts and calls, and test out spreads, straddles or other trading strategies, all without putting any real money at risk. Much like a pilot who trains on a flight simulator, paper trading allows you to make mistakes — and even crash and burn — without the ill effects of any lost capital.

Question 8: E - This was an easy question, we know, but it underscores the fact that when it comes to brokerages that specialize in options, there are many great choices out there.