Options trading

• Understand how options work
• Research and choose an options trading strategy
• Create a CFD account
• Pass our suitability test (unless you’re a professional client)
• Make your first trade

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 CFD account. If you’re a professional client, you can trade options using your existing 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.

On our website you’ll find a wide range of guides, ebooks and educational resources to help you navigate your options trading journey. To learn more about trading options, you may find the following resources useful:

• What is options trading?
• Trading options with CMC
• Options volatility

At first, you’ll be able to trade options on a range of stock indices, including the S&P 500, Nasdaq 100, FTSE 100, and more. We plan to add more underlying assets later.

Option trades on our platform are cash-settled. Our option contracts do not entitle you to any rights in relation to the underlying asset, and exercise of an option does not 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 becoming payable by us to you (if the market moved in your favour) or by you to us (if the market moved against you).

There's no cost when opening a live spread betting, CFD or FX Active account. You can also view prices and use tools such as charts, Reuters news or Morningstar quantitative equity reports, free of charge. However, you will need to deposit funds in your account to place a trade. Find out more about the costs of placing a trade .

Yes, CMC Markets UK plc (registration number 173730) and CMC Spreadbet plc (registration number 170627) are 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.

Yes, your eligible deposits with CMC Markets are protected up to a total of £85,000 by the Financial Services Compensations Scheme (FSCS), the UK's deposit guarantee scheme. If CMC Markets ever went into liquidation, retail clients would have their share of segregated money returned, minus the administrator's costs in handling and distributing these funds. Any shortfall of funds up to £85,000 may be compensated under the FSCS.

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, make a minor contribution to our overall revenue.

We never aim to profit from our clients' losses. Our aim is to build long-term relationships by providing the best possible trading experience through our technology and customer service.

You can trade on over 12,000 financial instruments when you spread bet or trade CFDs with us. See a list of all our popular markets and instruments .