Which Broker Should I Use?
If you have never traded options before, you will need to open an investment account with an online broker. There are several highly rated options brokers such as thinkorswim®, Tastyworks and Robinhood. Ideally, you want a broker whose options platform is easy to use, allows for rapid order execution, and offers Demo/Paper trading.
https://start.tdameritrade.com/select?entity=103
https://start.tastyworks.com/#/login?referralCode=FRM5MAFQGE
We recommend TD Ameritrade because its thinkorswim® trading software is compatible with the NuWealth CopyTrade Alerts. In a quick 2-step process, you can Copy and Paste the CopyTrade Alert trade string you receive in your Trade Alert Email directly into your thinkorswim® account.
Should I Open a Standard Brokerage Account or a ROTH IRA?
You can actively trade Stock, ETFs, Options, Futures, and FOREX in either an Individual Brokerage Account or a ROTH IRA. These accounts differ in their Contribution Limits, Tax Treatment of gains, and Margin eligibility. Individual Brokerage accounts are eligible for margin trading but ROTH IRA accounts are not. Most of the NuWealth CopyTrade Alert trades do not require margin, so you will be able to place these trades in your ROTH as well as your Individual Brokerage Account.
One of the first things you’ll need to do as a new options trader is learn how to use your broker’s trading software. Thinkorswim® allows you to download and practice on a modified paperMoney® trading platform before you open a TD Ameritrade account.
https://platform.thinkorswim.com/platform/index.html#!/pmregister
If you decide to open a TD Ameritrade investment account, you should download the complete thinkorswim® version.
https://www.tdameritrade.com/tools-and-platforms/thinkorswim/desktop/download.page
Once you’ve downloaded the platform software, you should watch the following Intro to thinkorswim® video to learn the basics of how the software works.
https://www.youtube.com/watch?v=K4QYVvj_RCo
NuWealth CopyTrades are based on a $2500 account, at least 20% of which should be held as a cash buffer at all times. and designed to require no more than $500 in Buying Power per contract., Larger accounts should increase the number of options contracts proportionately to keep the same allocation percentage.
You don’t need a funded account to paper trade on thinkorswim® but the paperTrade® version for unfunded accounts doesn’t have access to all the features. We recommend you contribute some money (as little as $25) to your TD Ameritrade account so that you’ll have access to the complete thinkorswim® platform.
https://www.tdameritrade.com/funding-and-transfers.page
You have undoubtedly contributed all you can reasonably afford to your employer provided savings plan and are thus wondering where you will find any additional money to invest in another account. The CARES Act makes it easier to withdraw funds from your 401(k) and contribute them to a Self-Directed Brokerage or ROTH IRA Account. https://static.s123-cdn-static-d.com/uploads/3102910/normal_5ee852b20fcef.pdf
Trading Options in a thinkorswim® paperMoney Account
https://www.youtube.com/watch?v=PZrVWnRVfYU&t=63s
Tastytrade Trading for Newbies 14 Episode Video Series