Over the past decade, most types of investing have become cheaper and easier than ever before. The exception to this is day trading. Day trading requires expensive software subscriptions and high trading fees (especially for options trading). But recently, that trend has started to change.
Jellifin is one of the first companies to make day trading easier and more affordable for people with small accounts. Should you dabble with Jellifin or should you skip it?
- Commission free investing with monthly fee
- $9.99 unlimited stocks, $19.99 unlimited options trading
- If-Then Trading Triggers
Understanding What Jellifin Isn't
Unlike most consumer-facing fintech, Jellifin isn’t about automating or behavioral change. It won’t recommend trades for you, or allow you to “set it and forget it.”
Jellifin is a platform designed to reduce trading costs, but you’re still the person making the trades. Even if you implement Jellifin’s if-then logic program, you still have to make up the logic yourself.
What Does Jellifin Offer?
Right now, Jellifin offers commission-free trades on stocks, ETFs and options. For $9.99 per month you can buy or sell unlimited stocks and ETFs. You can also buy options called calls and puts.
To get into the world of selling options, you have to upgrade to the $19.99 per month where you have the option of selling covered calls and covered puts. These options allow you to generate income from your existing portfolio.
Right now, Jellifin doesn’t offer the option to buy or sell more complex options (such as long calls, long puts, long straddles, etc.). When this option is rolled out, you can expect to pay more for it.
So what does commission-free mean? It means you don’t pay for each trade, and you don’t have to pay contract fees. Since most brokerages charge several dollars per trade plus $0.75 to $1.00 per contract, Jellifin looks like a great deal. In fact, the only other brokerage that offers this low pricing is Robinhood (which offers it for free).
Another feature that Jellifin offers is its free if-then logic. This tool allows users to automate trades using basic programming logic. The if-then logic allows you to use indicators to automatically place trades when certain thresholds are reached. The logic doesn’t allow for multiple-indicator logic (and statements) or to use indicators as part of the if statement (such as: if x indicator is below y indicator, then trade). It’s basic, but a good place to start for options trading.
Is Jellifin a Good Brokerage for Trading Options?
Even though Jellifin offers commission-free trades on stocks and ETFs, it’s not a good deal for just buying and selling common stock. You can easily buy stocks for free using any number of online tools.
However, Jellifin’s real advantage is in the options space. Although Jellifin doesn’t have a great computer interface (everything is done in-app which can be slow considering the amount of data that might be needed), it seems like a good tool for learning about options.
If you’re considering active trading, Jellifin is a great app to help you get your feet wet. Since it doesn’t have leverage options, you won’t lose too much money, and you may become much more passionate about active trading.
Most people who are serious about active trading (i.e., trading is their job), don’t use apps like Jellifin. They need computer-based software that allows for more complex trades and faster data processing.
Final Take on Jellifin
Jellifin is a good platform for learning about options trading. It has a decent user interface, and it gives users access to the basic data that they need to start earning a profit from trading. The pricing makes options trading accessible, even if you only have a few thousand dollars available for trading.
The only other tool most beginners should consider is Robinhood which is 100% free unless you opt for Robinhood Gold which introduces the option of leverage (dangerous for beginners).
If you find that you’re good at options trading, you’ll probably want to look into tools outside of Jellifin. While the prices will generally be higher, the potential payoff may be worth it.