📖 Licensed options trading platforms: how to choose the right one
Options let you earn and hedge in any market, but your results depend on where you trade. In this guide, we break down licensed venues for classic options (not binary) and help you choose a platform that fits your goals, experience, and budget.
The goal of this guide is to unpack classic options and compare vetted venues: traditional exchanges (CBOE, CME) and crypto exchanges (Deribit, OKX, Binance, Bybit). For each, we’ll assess option styles, underlyings, fees, interface, liquidity, education, and regulation. DeFi and alternative solutions are mentioned briefly and covered in a separate review.
What options are and why they matter
- Call — the right to buy an asset at a fixed price.
- Put — the right to sell an asset at a fixed price.
- American style — exercisable any day up to expiration.
- European style — exercisable only on the expiration date.
Quick comparison of platforms
Legend of terms:
| 📍 Platform | 🎯 Assets | 🧾 Style | 💵 Settlement | 💳 Fees | 📈 Liquidity | 🎓 Demo/Education | 🛡️ Regulation |
|---|---|---|---|---|---|---|---|
| CBOE | Stocks, indices, ETFs | Mostly American | Fiat/via broker | Depends on broker | Very high | Paper trading via brokers | SEC/CFTC (U.S.) |
| CME | Indices, commodities, FX, BTC/ETH (via futures) | Mixed | Fiat/via broker | Exchange fee + broker | Very high | CME Institute, simulators | CFTC (U.S.) |
| Deribit | BTC, ETH, select altcoins | European | Crypto (BTC/ETH/stable) | Low (≈0.03%) | Highest in crypto | Testnet available | International licenses |
| OKX | BTC, ETH | European | Crypto (physical delivery) | Low (≈0.03%) | High | Guides/videos | KYC (Know Your Customer), multiple licenses |
| Binance | BTC, ETH, BNB, XRP, SOL, etc. | European | USDT‑settled | Low (≈0.03%) | High (below Deribit) | Academy, guides | KYC; local permissions |
| Bybit | BTC, ETH, SOL | European | USDC‑settled | Very low (≈0.02–0.03%) | Medium–high | Education, glossary | KYC; authorizations |
Traditional options exchanges
CBOE (Chicago Board Options Exchange)
The world’s largest venue for options on stocks, indices, and ETFs. Historically a center for price discovery and volatility (VIX).
- Option styles: predominantly American; index options are often European.
- Underlyings: U.S. equities, indices (e.g., S&P 500), ETFs, volatility.
- Fees: depend on broker and volume; exchange fees are moderate.
- Interface: via broker platforms (e.g., TWS, thinkorswim); requires some onboarding.
- Liquidity: top liquidity for equities and indices; tight spreads.
- Education: brokers offer paper trading and courses; the exchange provides learning materials.
- Regulation: U.S., strict oversight, client protection.
✅ Pros
- Top‑tier liquidity: best‑in‑class volumes and quotes.
- Wide selection: many underlyings and expiration series.
- Reliability: strict regulation and transparent infrastructure.
❌ Cons
- Access: requires a brokerage account and potential option‑approval levels.
- Entry threshold: higher due to contract size (100 shares).
- Complexity: platforms and specifications take time to learn.
Bottom line: an optimal choice for stock and index options via a broker if you’re ready for capital requirements and platform learning.
CME (Chicago Mercantile Exchange)
A flagship for derivatives on commodities, indices, FX, and interest rates; offers options on BTC and ETH futures.
- Option styles: both American and European — depends on the contract.
- Underlyings: indices (S&P 500, Nasdaq‑100), oil, gold, grains, FX, rates; crypto via futures.
- Fees: exchange fee + broker commission; justified by institutional market quality.
- Interface: professional terminals; robust infrastructure and nearly 24/5 access.
- Liquidity: very high in key markets; crypto options have moderate volumes.
- Education: simulators and courses; extensive knowledge base.
- Regulation: U.S. (CFTC), strict standards, margin requirements.
✅ Pros
- Global liquidity: top markets with the largest volumes.
- Broad instrument line‑up: from commodities to indices and crypto derivatives.
- Reliability: infrastructure and regulation at industry standard.
❌ Cons
- High bar: capital and risk‑management requirements.
- Complexity: terminals are oriented toward professionals.
- Crypto options: limited; traded via large‑notional futures.
Bottom line: CME suits pros and institutions that prioritize market depth and strict regulation.
Cryptocurrency options platforms
Deribit
The market leader in crypto options liquidity for BTC and ETH; geared toward advanced participants.
- Option styles: European style, wide grid of strikes and expiries.
- Underlyings: BTC, ETH, select altcoins; core liquidity is in BTC/ETH.
- Fees: low and transparent; fee caps relative to premium.
- Interface: full Option Chain, Greeks (risk sensitivities), volatility; testnet available for practice.
- Liquidity: deepest among crypto venues; tight spreads in near‑dated series.
- Education: documentation, blog, materials on risk parameters.
- Regulation: international licenses; mandatory KYC and geo‑restrictions.
✅ Pros
- Liquidity: deepest BTC and ETH volumes.
- Tooling: pro features and RFQ (request‑for‑quote) for block trades.
- Practice: a test environment to refine strategies.
❌ Cons
- Access limits: unavailable in some countries; strict KYC.
- Fiat constraints: deposits/withdrawals are primarily crypto.
- Interface complexity: designed for experienced traders.
Bottom line: Deribit is the optimal choice for advanced crypto options traders who need depth and professional tools.
OKX
A large ecosystem with portfolio margin and a convenient terminal; options on BTC and ETH.
- Option styles: European style; settlement primarily in the underlying crypto.
- Underlyings: BTC, ETH (focus on core assets).
- Fees: low, with additional VIP discounts.
- Interface: Option Chain, “basic/pro” modes, portfolio margin, RFQ (request‑for‑quote) for large sizes.
- Liquidity: high in near‑dated series; below the leader by market share.
- Education: guides, videos, options knowledge base.
- Regulation: KYC/AML compliance, a set of permits, geo‑restrictions.
✅ Pros
- Portfolio margin: cross‑collateral for efficient capital use.
- Infrastructure: stable operations and a user‑friendly interface.
- Fees: competitive for active trading.
❌ Cons
- Limited list: options available only on BTC and ETH.
- No public testnet: no fully open environment for practice.
- Geo‑restrictions: options trading unavailable in some countries.
Bottom line: OKX is a solid pick for users of the ecosystem who need portfolio margin and a clear terminal.
Binance
The largest exchange with an easy on‑ramp and a broad altcoin line‑up; options are settled in USDT.
- Option styles: European style, automatic settlement at expiration.
- Underlyings: BTC, ETH, and popular coins (BNB, XRP, SOL, etc.).
- Fees: low base rates; volume discounts more modest than derivatives leaders.
- Interface: two complexity levels; web and mobile “options mode” with an approachable UX.
- Liquidity: high for near‑dated BTC/ETH; below the market leader in depth.
- Education: Academy, guides, in‑interface hints.
- Regulation: mandatory KYC, local permissions; regulatory risks remain in some regions.
✅ Pros
- Low entry barrier: accessible UX and quick start for beginners.
- Broad selection: altcoins and multiple expiries.
- Unified account: spot, futures, and options under one profile.
❌ Cons
- Liquidity: shallower than specialist venues.
- Regulatory risk: uncertainty in some regions.
- No full demo: no comprehensive environment for practice.
Bottom line: Binance is a convenient entry point to options for ecosystem users, but for large sizes consider specialist exchanges.
Bybit
Focused on convenience and low costs; options are settled in USDC, with “Lite/Pro” modes.
- Option styles: European style; USDC settlement simplifies P&L.
- Underlyings: BTC, ETH, SOL.
- Fees: among the lowest on major platforms.
- Interface: “Lite” for quick start and “Pro” for advanced trading; high execution speed.
- Liquidity: growing; adequate for retail in near‑dated series.
- Education: glossary, articles, webinars; partially available test environments.
- Regulation: KYC required; steps toward licensing in select jurisdictions.
✅ Pros
- Fees: very low and transparent.
- USDC settlement: reduces volatility in P&L accounting.
- Interface: fast terminal and modern UX (Lite/Pro).
❌ Cons
- Asset list: narrower than major competitors.
- Liquidity: behind leaders in far‑dated series.
- Testnet: functionality is limited.
Bottom line: Bybit is an excellent platform to start and trade retail options with minimal costs.
DeFi options and alternative solutions
Decentralized options protocols (for example, pool‑based models on‑chain) let you trade straight from a wallet, without a centralized exchange. They’re attractive for transparency and autonomy, but still trail CEXs (centralized exchanges) in liquidity, usability, and breadth of instruments. Smart‑contract, oracle, and liquidity risks are key. We’ll prepare a standalone deep dive on DeFi options.
Risks of DeFi options
Frequently asked questions (FAQ)
How are options different from futures?
What do American and European option styles mean?
Do I need a broker to trade options?
Is KYC mandatory?
Is there a demo environment for practice?
What minimum capital do I need?
✅ Conclusion
If you need options on equities, indices, and commodities with maximum protection and market depth — use CBOE/CME via a broker. If you trade crypto assets and value accessibility, UX, and a low entry threshold — consider Deribit, OKX, Binance, and Bybit, choosing a venue for your profile: liquidity and pro tools at Deribit, portfolio margin and ecosystem at OKX, ease of use and broad coin selection at Binance, minimal costs and clear UX at Bybit.
There’s no one‑size‑fits‑all platform — each choice is a trade‑off among liquidity, costs, convenience, and regulation. Start small, test strategies, and keep risk management front and center.
Key point: trade options only on licensed venues, avoid binary bucket shops, prioritize risk control over returns, and scale strategy complexity gradually.