Stock options are excellent tools that can boost investment returns, limit risk, and generate income. To use these tools, you must be approved for options trading by your brokerage. In this article, we will walk you through applying for options privileges with TD-Ameritrade and Robinhood [This is a referral link, if you sign up through this link we both get a free stock worth $3-$150!]. The overall process will be similar for any broker, but specifics may differ.

What you will learn:

• Gaining options privileges at Robinhood through mobile or desktop
• Gaining options privileges at TD-Ameritrade

Robinhood

1. After signing into your account, you need to get to your investing settings. On a browser, you do this by clicking on ‘Account’ in the top right corner and then ‘Settings.’ 
A. On Mobile, click on the ‘Profile’ icon on the lower right.
B. On the next screen, click on the ‘Hamburger’ menu button at the top right.
C. Finally, click on ‘Investing.’

2. Click on “Get Free Options Investing.”
A. For Mobile, Scroll down and click on “Get Options Trading.”

3. Confirm and answer three questions. These will help determine what complexity of options contracts you’ll be able to trade.
A. Do you provide investment advice as part of your job
B. Are you registered with a financial regulator?
C. How long have you been trading options?

4. Read the options agreement. I recommend you read this in full, partly because there is a joke at the end. Briefly, you’ll agree to accept the risks of options trading, you’ll allow Robinhood to make trades for you, and you will not hold Robinhood liable for your losses.

Robinhood will check your application and should approve you for options trading privileges. Initially, you may not be allowed to enter into some complex trades. You can always go back and request a higher level.

TD-Ameritrade

1. Sign in to your account.

2. Open ‘Client Services’ and then click ‘General.’

3. On the right-hand side of the screen, you’ll see your Elections. Your current trading level will be listed next to options.
– Click the link to apply for an upgrade (assuming you’re eligible).

4. The website will guide you through the application process. It may take some time before a decision is made on your account.

Conclusion

There are some hurdles to jump when applying for options, but fortunately for TD-A and Robinhood they are easy to clear [Once again, by using this referral link we’ll both get a free stock worth $3-$150].

If you’re wondering what to do once you’re approved for options trading, you should check out my series on options trading.

Are you having any difficulty getting approved for options? Let us know what broker you’re using and what the issue is in the comments below.