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Best Trading Options Brokers and Platforms in 2023


Best Trading Options Brokers and Platforms

Trading Options  gained significant traction over the past five years, particularly with retail investors. In response to the increased demand, the best trading options brokers now offer features once only available to the pros, combining amazing trading tools with low commissions and high-quality research tools. 

Beginner investors and advanced active traders can now trade with options confidently thanks to risk management analysis tools that many brokers offer. We’ve looked into the best brokerages for options traders and found the following platforms offer the most value to investors. With options trading, brokers earn a much higher profit margin than on a stock trade, but competition is intense, which offers more opportunities for investors. 

The best trading options brokers offer low options contract fees, quality trading tools, an abundance of high-quality research and the customer service necessary to support everyone from beginner investors to advanced traders.

While most of the brokers on our list of best brokers for stock trading would be a good pick for options as well, this list highlights brokers that excel in areas that matter most to options traders. Many of the below brokers also appear on our list of best online trading platforms for day trading.


Best Trading Options Brokers and Platforms in 2023

Charles Schwab

Charles Schwab does so many things well, all while keeping a keen focus on what’s good for the investor, making it a great selection for options. In addition to fair pricing for options, Schwab also gives you fundamental research that should prove valuable in selecting the options you want to trade. Add on fantastic customer support and the highly regarded StreetSmart Edge trading platform, and it’s hard to go wrong here.

Options commission: $0.65 per contract 

Fidelity Investments

Fidelity is neck and neck with Schwab on so many features, and it’s another solid pick if you’re looking for an options broker. Besides options commissions that are right in line with Schwab’s, Fidelity offers a solid customer experience, and its Active Trader Pro platform is one of the tops among brokers. Investors also like the fact that Fidelity doesn’t ding you for every little thing, unlike many brokers, which helps improve the overall experience significantly.

Options commission: $0.65 per contract 

Interactive Brokers

Interactive Brokers has long been regarded as a place for professionals, and with good reason. The broker to the pros offers three capable trading platforms, and it’s well known for its ability to access virtually any security. Options commissions start at $0.65 per contract with no base commission, and the fee falls from there for truly high-volume traders (think 10,000 contracts or more.)

Options commission: $0.65 per contract, with volume discounts available


TradeStation is another broker that caters to higher-volume traders, and its pricing reflects this focus. You don’t have to trade thousands of contracts to achieve a more attractive price than Interactive Brokers, and TradeStation offers options trading at $0.50 to $0.60 per contract, depending on which account type you select. That fee won’t get you fundamental research, but it does allow you to access the broker’s Options Station Pro, a tool that evaluates and places your trades.

Options commission: $0.50-$0.60 per contract, depending on account type 

Ally Invest

Ally Invest is a solid choice for those looking to reduce their trading costs. Like much of the industry, Ally has reduced its commissions, slashing its options pricing from a $4.95 base commission and $0.65 per contract to a simple $0.50 per contract, and you won’t need to be a volume player to get this better-than-average price. Ally offers basic research and works well for those traders who are existing customers of Ally Bank and prefer a consolidated account.

Options commission: $0.50 per contract 


If low pricing is your biggest objective, then you’re likely to find Robinhood an attractive broker. The trading app is well-known for its $0 stock commissions, but it also offers the same for options. Traders will get an easy-to-use interface on a mobile app that allows you to place trades intuitively, though you can also use a desktop platform if that’s your style. What you won’t get, however, is the same level of research and tools that many other brokers offer, though you can upgrade your account to Robinhood Gold for additional reports.

Options commission: $0 


Firstrade’s low costs will appeal to options traders, with the broker charging no commissions or contract fees. You can also trade stocks and ETFs commission-free in one of the many accounts offered, including retirement accounts and education savings accounts. Traders that are new to options may benefit from Firstrade’s educational content, which includes articles and videos that explain topics such as how to place a trade and how to generate income using options.

Options commission: $0 

TD Ameritrade

TD Ameritrade offers a healthy array of features for options traders, including its highly regarded thinkorswim trading platform and research from Morningstar and Credit Suisse among others. If you prefer to perform your options trading on mobile devices, the broker has you covered there, too, with its Mobile Trader app that allows you to input complex multi-leg trades. TD Ameritrade charges $0.65 per contract and doesn’t charge for option exercises or assignments.

(Charles Schwab has purchased TD Ameritrade, and will eventually integrate the two companies.)

Options commission: $0.65 per contract 


E-Trade brings research and solid trading platforms to the table, and has discounted pricing, too. The broker’s Power E-Trade platform offers technical studies and a snapshot analysis that lets you see the risk and reward on a trade. You’ll get almost the same functionality on the Power E-Trade mobile app, including the ability to trade multi-leg orders. The broker chops its per-contract commissions, too, if you make more than 30 trades in a quarter, not a particularly high hurdle.

Options commission: $0.65 per contract, or $0.50 for more than 30 trades per quarter 


Before Getting Into Options Trading

If you’re new to the options market, avoid jumping into it without fully understanding how these derivative products work and what the risks are by using them. Educate yourself about options trading by reading expertly-written books and articles — your prep can help to avoid pitfalls. 

Plotting and reviewing payoff profiles for any options strategies you’re considering entering into also generally makes sense. This allows you to assess the upside and downside potential of an options trade and lets you know when you might need to anticipate or take evasive action after a market shift. 


Frequently Asked Question (FAQ) 

Q: How Much Money Do You Need to Trade Options?

A: That depends on your broker and the type of options strategies you employ. In general, the minimum required deposit is less than $1,000 for level 1 (entry-level) options trading or as much as $10,000 for level 2 or level 3 options trading. Even if the required minimum is low, it's always a good idea to have at least $5,000 to $10,000 to start trading options. 

Q: Can you trade options with $100?

A: Yes, you can trade with a start capital of only $100 if your broker allows. 

Q: Can you get rich off options?

A: Options traders can profit by being an option buyer or an option writer. Options allow for potential profit during both volatile times, and when the market is quiet or less volatile. 

Q: What is safest option strategy?

A: Covered calls are the safest options strategy. These allow you to sell a call and buy the underlying stock to reduce risks. 

Q: How can I trade online without a broker?

A: All you need to do is contact a Depository Participant (DP). All Demat Accounts are backed by Central Depository Services India Ltd (CDSL) and National Securities Depository Ltd. (NSDL) and regulated by the Securities and Exchange Board of India (SEBI). So, they are entirely secure. 

Q: Do you need 100 shares to sell options?

A:Since a single option contract usually represents100 shares, to run this strategy, you must own at least 100 shares for every call contract you plan to sell. As a result of selling (writing) the call, you'll pocket the premium right off the bat. 

Q: Which broker has free options trading?

A:Free options trading is like free stock trading. It has some associated costs, like payment for order flow, or PFOF. While many brokers no longer charge commissions on options trades, almost all charge per-contract fees (including some brokers who claim to have "free" options trading). The exceptions are Robinhood, SoFi Invest, Firstrade and Webull, which charge no commissions or fees for options.

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