Best Online Brokers for Options Trading in March 2024 | Bankrate (2024)

James Royal, Ph.D.

Mercedes Barba

Robert R. Johnson

Mercedes Barba

Robert R. Johnson

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• 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 thinkorswim trading platform, and it’s hard to go wrong here.

• 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.

• Interactive Brokers has long been regarded as a place for professionals, and with good reason. The broker to the pros offers five capable trading platforms with access to options, and it’s well known for its ability to access virtually any security. You’ll also get tools such as the Options Wizard to help you select and build the right option strategy. 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.)

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• 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 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.

• 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.

• 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 who 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.

• Webull is another mobile trading app that offers low-cost options trading. You’ll pay $0 commissions on options trades, though there are some minor regulatory fees. The app makes it easy to trade on the go and you’ll also have commission-free trading on stocks and ETFs. Webull isn’t as well known as Robinhood, but it offers a similar experience that’s superior in some ways.

• 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.

• Tastytrade is geared toward active traders, who will benefit from the broker’s low-cost options pricing. You’ll pay $1 per contract on the buy and $0 on the sell, for a round-trip price of $0.50. But tastytrade takes it a step further by capping commissions at $10 per leg, so if you’re trading lots of contracts you won’t have to worry about racking up commissions.

• 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 $0.60 per contract, just a bit lower than the industry standard. 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.