Firstrade charges $0 per options contract. Schwab charges $0.65 per contract, on the way in and on the way out. That gap is the whole comparison in one line, and it is bigger than it sounds for anyone who trades size. The other half of the story is what the $0.65 buys: thinkorswim, one of the deepest retail options platforms available, plus a paper trading account, futures, and a full banking and research ecosystem. Firstrade offers none of those extras in the same form.
Key Takeaway
- Firstrade: $0 commission and $0 per-contract fees on options, $0 account minimum, no inactivity fees, but no paper trading, no futures, and no fractional shares
- Schwab: $0 stock commission and $0.65 per options contract (open and close), $0 account minimum, thinkorswim platform with paper trading, futures, fractional shares, and Schwab Crypto
- A hypothetical 10-lot, four-leg iron condor opened and closed early costs about $52 in contract fees at Schwab and $0 at Firstrade
- Firstrade runs a bilingual platform in English, Traditional Chinese, and Simplified Chinese; Schwab has no equivalent
- Pick Firstrade if cost per trade drives your decision. Pick Schwab if platform depth, practice accounts, or a single home for everything matters more
The real cost difference
Schwab’s published rate is $0.65 per contract on online equity option trades, charged when you open and again when you close. Firstrade’s is $0 on both sides. Both rates were checked against each broker’s published pricing as of 2026-11-05 (Firstrade’s own site states “$0 Commission & $0 Contract Fees”; Schwab’s pricing pages list $0 base commission plus $0.65 per contract).
| Contracts in one leg | Schwab, open and close | Firstrade, open and close |
|---|---|---|
| 1 contract | $1.30 | $0.00 |
| 5 contracts | $6.50 | $0.00 |
| 10 contracts | $13.00 | $0.00 |
| 50 contracts | $65.00 | $0.00 |
| 100 contracts | $130.00 | $0.00 |
Unlike a capped fee structure, Schwab’s charge keeps scaling with size. There is no ceiling per leg, so the difference grows in a straight line with every contract you trade.
Two details narrow the gap slightly. Schwab does not charge commissions or per-contract fees on transactions that result from an exercise or assignment, and it waives the per-contract fee on online buy-to-close orders priced at $0.05 or less, which helps sellers who buy back nearly worthless shorts. Phone and broker-assisted orders at Schwab carry an extra service charge, so the $0.65 figure assumes you place orders yourself online. Small regulatory pass-through fees can apply at any broker, so check each fee schedule for current terms.
A hypothetical example
Say a trader opens a 10-lot iron condor, which is four legs of 10 contracts each, 40 contracts in total, and closes it early for a partial profit. This is an illustration of fee math, not a trade idea.
- Schwab: 40 contracts to open at $0.65 is $26.00, and 40 to close is another $26.00, for $52.00 in contract fees
- Firstrade: $0.00
If that trader runs two of these a month, the Schwab bill comes to about $104 a month, or roughly $1,250 a year. For someone running one-lot spreads a few times a month, the same math produces a few dollars and barely registers. The break-even question is simple: how many contracts do you trade in a year, multiplied by $0.65?
What the $0.65 buys at Schwab
Schwab’s options experience runs through thinkorswim, the platform it inherited with the TD Ameritrade acquisition. The practical advantages for an options trader:
- Paper trading. Schwab’s thinkorswim includes a simulated account (paperMoney), so you can test a new multi-leg structure through an expiration cycle before using real money.
- Risk analysis tools. Position and risk-profile views let you see how a multi-leg trade changes with price, time, and volatility before you place it.
- Futures. Schwab offers futures trading alongside options. Check Schwab’s current terms for the fee schedule.
- Fractional shares and crypto. Schwab supports fractional shares, and Schwab Crypto, launched April 16, 2026, offers BTC and ETH at 75 basis points per trade. Crypto is held in a separate custodial account at Charles Schwab Premier Bank, not in the brokerage account.
- One roof. Banking, retirement accounts, research, and brokerage sit under one login, which matters if you want everything in one place.
Our Schwab options trading review covers the platform in more depth.
What Firstrade offers instead
Firstrade’s pitch is price. Options trade at $0 commission and $0 contract fees, there is no account minimum, and there are no inactivity fees, all confirmed on its published fee schedule. Its site also lists an options analytics tool (OptionsWizard), free options education courses and a video library, and research from third-party providers.
The tradeoffs are real. Firstrade has no paper trading account, so the only way to learn its interface is with real money. It does not offer futures, and it does not support fractional shares. Its charting and analytics are lighter than thinkorswim’s, which matters if you build complex positions or lean heavily on technical tools.
Firstrade also runs a fully bilingual platform, with account opening, trading, and customer support in English, Traditional Chinese, and Simplified Chinese. If you prefer to manage an account in Chinese, that can settle the decision regardless of what either broker charges per contract.
Side by side
| Feature | Schwab (thinkorswim) | Firstrade |
|---|---|---|
| Options per-contract fee | $0.65 open and close | $0 |
| Stock commission | $0 | $0 |
| Account minimum | $0 | $0 |
| Paper trading | Yes | No |
| Futures | Yes | No |
| Fractional shares | Yes | No |
| Crypto | BTC and ETH, 75 bps | No |
| Chinese-language platform | No | Yes |
Fee data from Trader Central’s broker records, last verified 2026-11-05.
Who each broker fits
Firstrade fits a cost-sensitive trader running covered calls, cash-secured puts, or simple spreads, especially anyone trading larger sizes where $0.65 per contract compounds. It also fits Chinese-speaking traders who want a native-language platform, and anyone who already knows how they trade and does not need a practice account.
Schwab fits a trader who values platform depth, wants to practice new strategies in a simulated account, trades futures, or wants brokerage, banking, and retirement accounts in one place. If you trade small size, the $0.65 is modest next to what the platform provides.
Neither is ideal if you want free contracts and a paper account at the same time. That combination does not exist between these two, so you either pay for the practice environment or skip it.
Bottom Line
Firstrade is cheaper on every trade, and the gap grows with every contract. Schwab charges $0.65 per contract for thinkorswim, paper trading, futures, and a full ecosystem. Your annual contract count, multiplied by $0.65, tells you what that depth costs you.
FAQ
Q: Does Schwab charge a per-contract fee to close an options position?
A: Yes, $0.65 per contract to close, with an exception: online buy-to-close orders priced at $0.05 or less are waived. Exercises and assignments carry no commission or per-contract fee.
Q: Does Firstrade charge anything for options trades?
A: Firstrade lists $0 commission and $0 contract fees for options, with no account minimum or inactivity fee. Check its current fee schedule for other charges that may apply.
Q: Can I paper trade at either broker?
A: Schwab, through thinkorswim, yes. Firstrade does not offer a paper trading account.
Q: Does either broker support futures?
A: Schwab does. Firstrade does not.
Q: Is Firstrade available in languages other than English?
A: Yes. Account opening, trading, and customer support are available in English, Traditional Chinese, and Simplified Chinese.
For more head-to-head broker breakdowns, see our Schwab vs. tastytrade comparison, the tastytrade vs. Firstrade comparison, and the Interactive Brokers vs. Firstrade comparison.
Ready to open an account? Schwab is the route for thinkorswim and the full ecosystem. For a $0 contract-fee approach, Firstrade is the simpler option.