What Brokers Need to Support Retail Options Traders
By Jon Light
AI summary of the source article
US options volumes surpassed 15 billion contracts in 2025, driven by surging retail participation in short-dated contracts. As retail traders adopt riskier strategies, brokers require specialized risk profiling, analysis tools, and account tiering to manage supervision and regulatory compliance.
Why it matters
The retail shift from equities to options has opened up 'a variety of riskier, high-leverage strategies to retail,' meaning 'the task brokers really have before them is more about effective classification, supervision, communication, risk management, and the provision of tools that enable their clients to make sense of the instrument’s complexities.'
Key facts
- US options volumes reached over 15 billion contracts in 2025, a 26% increase from the prior year.
- Retail options traders represent 50% to 60% of SPX 0DTE trading, with 0DTE contracts accounting for roughly 59% of all SPX options volumes in 2025.
- FINRA Rule 2360 requires US brokers to approve each account for options trading and record the specific transaction types approved.
Source excerpt · FinanceFeeds
Options are emerging as a new instrument of choice for retail traders. This article explores what functionalities brokers can offer so that both their clients and staff are able to face the unique challenges of options trading. Six years of record volumes US options markets have been growing at a truly impressive rate in recent years. US options volumes in 2025 reached over 15 billion contracts. T…