Why You Should Trade Options with Tiger Brokers

Tiger Brokers offers the lowest fees for options traders, multi-market access and an interface made for all experience levels. 

Tiger Brokers has come a long way in a relatively short time. Since its inception in 2014, it has clawed its way to the top and today stands as a leading global online brokerage serving nearly 10 million account holders worldwide. 

Clearly, Tiger Brokers is a popular choice among the investing community. But what sets it apart is the brokerage’s focus on technology to create an unparalleled trading experience for its customers.

Leveraging proprietary infrastructure and advanced technology to enable trading across multiple currencies, markets, products, execution venues and clearinghouses, Tiger Brokers provide seamless access to equities, funds and futures across the U.S., Hong Kong, Singapore and Australia markets – as well as options for the U.S. and Hong Kong markets.

As part of its ongoing mission to empower traders with versatile tools, Tiger Brokers is shining a spotlight on its options trading capabilities. While not a brand-new capability, it’s gaining fresh attention as more traders explore the benefits of options trading through Tiger’s intuitive platform. Let’s take a closer look at what’s purring under the hood.

Table of contents

• What are Options?
• Why you should trade Options on Tiger
• Options: Potential for high returns, but heed risks
• Conclusion: Trade Options with Tiger Brokers

What are Options?

Options are a type of financial derivative. They are contracts that provide the holder with the right — but not the obligation — to buy or sell an underlying asset at a specified price (known as the strike price) by a certain date (the expiration date).

Rather than providing direct ownership of a security or asset, options can be used to gain exposure to its price movements. These contracts are associated with various cases, including managing market exposure, generating income through premiums, or engaging in strategies based on market expectations.

Options are highly flexible, with two main types available: 

• Call options, which relate to the right to buy the underlying asset.
• Put options, which relate to the right to sell the underlying asset.

Participants can choose to buy or sell these contracts depending on their trading objective. In addition, it's possible to combine multiple option contracts into what are known as multi-leg strategies. These structures vary in complexity and are often designed to respond to different market conditions — such as rising, falling, or sideways price movement.

Some of these strategies are known by distinctive names, including Iron Condor, Jade Lizard, and The Wheel.

With the above benefits, do note that there are risks to options as well, such as higher complexity than trading stocks. Additionally, naked calls or puts also carry unlimited or substantial risk. 

For all skill levels

Options trading can be complex at first glance, but Tiger Brokers makes trading easy for traders of all skill levels to participate. 

Those new to options will find a lower barrier to entry thanks to a collection of beginner-friendly tools offered by Tiger Brokers. These include:

• Free real-time market data that lets you keep up to date with market trends and emerging opportunities
• Trade Feed, where you can subscribe to seasoned investors’ orders and get trading inspirations and leverage tools to enhance your trading strategies
• Access to Tiger Community, where you can hone your trading expertise by tapping into the knowledge of the community, exchanging insights and investment ideas with other traders 
• Demo account to practice options trading with up to $1 million in paper trading

And for advanced users, Tiger Brokers supports multi-leg orders that lets you execute a variety of advanced strategies according to your view of the markets. For U.S. options, you can trade options with up to four legs combo, giving you the following advantages:

• Margin discounts, especially benefitting income strategies (more on this later)
• Risk management, by placing multi-leg orders that ensure simultaneous execution to more effectively hedge your portfolio against risk
• High degree of customisation, matching different market outlooks, investment objectives and individual preferences

Furthermore, you’ll gain access to a series of advanced tools to help you execute multi-leg strategies more effectively. These include:

• Multi-leg Strategy Analysis. The Tiger Brokers app calculates real-time strategy-level Greeks, maximum profit and loss, and breakeven points, giving you complete control over your strategies
• Estimated margin calculation, allowing you to deploy your funds more efficiently
• P&L curve that supports both intraday and expiration curves, to better visualise the difference in breakeven points

Why you should trade Options on Tiger 

Lowest fees in Singapore

Other brokers support only single-leg options, which means options trades are charged on a per-order basis, with every order incurring a fee. This fee, while small individually, can add up over time. This means that multi-leg orders attract multiple fees, resulting in a much higher cost for more sophisticated options trades. 

Trading Options on Tiger is different; it is built to support multi-leg orders, and fees are charged only once per order – as low as S$0.65 per contract! As such, you can enjoy a significant discount on fees when trading advanced options strategies with up to four-leg combos.

With Tiger Brokers, you can enjoy cheaper, more cost-efficient trades when using multi-leg options. Also, you can set up multi-leg options at one go instead of entering each leg individually, saving you time and effort. 

Access to U.S. and H.K. markets

Tiger Brokers offer access to both the U.S. and H.K. markets, allowing you to trade a variety of stocks, indices, commodities and other assets. With both markets, investors can pick from the most dynamic price action in both Western and Eastern markets, offering more flexibility and diversification in your trading strategy.

Real-time data and advanced charting tools

As mentioned earlier, Tiger users can benefit from a variety of helpful and powerful tools, ranging from real-time market data feeds, to advanced charting and visualisation tools. 

These features empower traders of all experience levels to trade options with confidence, whether you’re trading basic single-leg options, or complex strategies in combinations of up to four legs. 

In-app tutorials and educational resources

Refresh your knowledge or hone your skills at any time with Tiger’s in-app tutorials you can access with just a few taps within the Tiger Brokers app! Just head to Community > Academy > Options to check out the Tiger courses!  

Options: Potential for flexibility and high returns, but heed risks

Options trading offers flexibility and potential for high returns, but it also comes with higher risks and complexity. Traders should approach with caution, especially if they’re new to options trading.

Here are some risks that option traders should be aware of: 

Assignment risk

If you're selling options (especially covered calls or cash-secured puts), you may be assigned at any time before expiration. This means you could be forced to buy or sell the underlying stock, sometimes at an unfavorable price—especially during heightened market volatility or when dividend payment dates are imminent.

Volatility risk

The prices of options contracts are heavily influenced by market volatility. Sudden spikes or drops in volatility can increase or erode option premiums in unpredictable ways, throwing off projected revenue or profit potential. This can happen even if the underlying stock doesn’t move much. Traders betting on price direction may still lose if volatility doesn't behave as expected.

Time decay (Theta risk)

Options lose value over time, especially as they near expiration. This time decay works against option buyers, since the contract’s value diminishes even if the stock price stays flat.

In short, do your homework. Options trading requires knowledge and attention. It certainly isn’t a “set and forget” game; traders need to know the risks – what could go wrong, how and why – before they dive in. 

Conclusion: Trade options with Tiger Brokers 

Tiger Brokers has a lot to offer investors who are interested in trading options as part of their wealth journey. Experienced options traders will benefit from native support for up to four-leg strategies, 0DTE Options, advanced analysis tools, and competitive multi-leg options fees in Singapore.  

Meanwhile, beginners will find a warm welcome to the exciting world of options trading with a variety of helpful tools and educational resources right at their fingertips. 

PROMO: Tiger Brokers is currently running a campaign with SGX, enjoy no custody fees and 0 Commission* for SGX Listed Securities! SGX CDP custody fees for Tiger users — is waived until further notice, no additional action required. 

For more information, please visit: https://www.itiger.com/sg/marketing/SGXCustodyFeesWaived *T&Cs apply. Please refer to Tiger Broker's website at https://www.itiger.com/sg/commissions for other applicable fees.

If you’re looking to give options trading a go, you’ll likely find Tiger Brokers to be one of the best options trading platforms on the market today. Click the button below to get started!

Disclaimer: 

Not financial advice. Investment involves risk. This advertisement has not been reviewed by the Monetary Authority of Singapore.