Public.com is garnering eyeballs as an investment and trading broker, and ranks at the top when it comes to the best platforms for options trading. Public.com caters to beginners and experienced traders by providing an integrated experience with its user-friendly interface, educational resources, and innovative rebate system. Unlike most brokers that claim to be commission-free, Public.com goes one step ahead by offering zero commission and zero per-contract fee for stock and ETF options. Let’s check out how Public.com stands out in the realm of options trading through an in-depth analysis of its features, tools and overall performance.
Overview of Public.com
Public.com is a relatively new but solid player in the investing and trading segment. Public.com was made available for public use in 2019, and since then, it has rapidly gained popularity by offering commission-free trading across various asset classes, including stocks, ETFs, crypto, and options. Public.com is a member of SIPC and FINRA, which ensures its credibility through the sense of security and regulatory oversight for its users. Its user interface is clean and intuitive, making it easily accessible for new traders, while its advanced tools and features also attract seasoned investors.
Unique Rebate System
Execute trades and earn rebates! One of Public.com’s standout features is its Options Rebate Program. While traditional platforms charge per-contract fees, Public.com promotes commission-free trading and, on top of that, it offers rebates ranging from $0.06 to $0.18 per contract, depending on the investor’s trading volume and the underlying security. This innovative approach promotes cost-efficiency by effectively reducing the cost of trading options, which makes Public.com an attractive option for cost-conscious traders.
Tools and Features for Options Traders
Options Hub
All options-related activities can be tracked by traders at Options Hub on Public.com, which serves as the central hub by providing access to real-time options chains. It also allows traders to view bid-ask spreads, open interest, and other essential data. It is a good management tool for beginners as it offers a clean and straightforward interface, while for advanced traders, it might be too simple.
Strategy Builder
Strategy Builder is one of the most valuable tools available on Public.com for investors who are looking to implement specific options trading strategies. Accessible via the Options Hub, it allows the traders to plan trading strategies, from simple calls and puts, to more complex multi-leg strategies such as covered calls. It also provides educational resources for traders to help them understand the potential risks and rewards associated with each strategy.
API Access
The free API, offered by Public.com enables traders to automate their trading strategies. The API supports real-time execution for stocks, options, and ETFs, which allows custom order placement and real-time market data access. This feature primarily benefits algorithmic traders and those seeking to integrate their trading strategies into their own systems.
Educational Resources
Options trading can be complex. Public.com’s comprehensive suite of educational materials makes this journey much more convenient. Their Options Education Hub covers topics such as the mechanics of options, pricing factors, the Greeks of options, trading strategies, and much more. The suite of educational resources is designed to empower traders with the knowledge required for informed decision-making in their options trading journey.
Customizable chain
The Customizable Chain option allows the traders to select the metrics that they care about, such as ask price, bid price, etc., and arrange them in an order that aligns with their trading style.
Queue
The Queue tool facilitates planning, editing, and execution of all trades in a single location. The trader can make edits with live price information and execute multiple orders at once with the help of this tool.
Rolling Options
With the Options Rolling tool, traders can adjust the expiration date or strike price of their positions to match the evolving market outlook.
Pros and Cons
Pros:
Cost-efficient rebate system
What sets Public.com apart from its competitors is its unique “Options Rebate Program,” which allows traders to earn rebates of $0.06 – $0.18 per contract, with no per-contract fee payment, as Public.com doesn’t charge any. This helps in lowering the overall trading costs. This structure can translate into meaningful savings for active traders, making Public.com one of the best platforms for options trading in terms of affordability.
Community and Transparency
Public.com’s social investing features allow users to follow other investors, share insights, and discuss strategies. This builds credibility and trust when combined with Public.com’s transparency around order routing and absence of payment for order flow.
Intuitive and New-Age Interface
The platform’s clean design makes it easy to use for beginners and helps them understand complex options data in a simple way. The Options Hub presents real-time chains and bid-ask spreads in a user-friendly navigation layout that offers a smooth experience to its users.
Educational Support
Through its Options Education Hub, Public.com excels in user education, as it covers strategies, risk management, and option Greeks. Traders are empowered to make informed and confident decisions through integrated learning modules and community discussions.
Cons:
Limited number of Advanced Tools
Public.com’s charting and technical tools are more basic than those on professional platforms like Thinkorswim or Interactive Brokers.
Restricted Variety of Strategies
Although common strategies are supported, complex multi-leg strategies like iron condor or calendar spreads are not yet fully integrated into the platform.
Performance and Reliability
Public.com’s impressive uptime of more than 99% ensures that the traders have reliable access to their accounts and trading tools. Additionally, the platform offers instant buying power of up to $250,000, allowing the traders to capitalize on opportunities without waiting for funds to settle, which enhances their trading. Public.com provides a strong foundation for options traders who have started their options trading journey and are cost-conscious by combining cost efficiency with accessibility and education through its modern, user-friendly interface and educational resources. While it might not be the right fit for advanced options traders, it certainly holds its importance in the competitive landscape of online options trading platforms.
