Choosing an options broker comes down to three things: what you pay per trade, whether the platform can execute your strategy, and which tools are actually worth the subscription. We’ve broken down all ten major brokers across every variable that matters to active options traders.
Options Commission Comparison
Full Broker Comparison Table
| Broker | Options Fee | Stock Fee | Min. Deposit | Platform | Paper Trading | Best For |
|---|---|---|---|---|---|---|
| tastytrade | $1 open / $0 close | $0 | $0 | tastytrade | Yes | Active options traders |
| Webull | $0 | $0 | $0 | Webull | Yes | Commission-free traders |
| Schwab / thinkorswim | $0.65 | $0 | $0 | thinkorswim | Yes | Advanced charting, futures |
| Interactive Brokers | $0.65 (Lite) | $0 | $0 | IBKR Desktop | No | Professional traders, margin |
| moomoo | $0 | $0 | $0 | moomoo | Yes | Free Level 2 data |
| Robinhood | $0 | $0 | $0 | Robinhood | No | Simplest interface |
| E*TRADE | $0.65 | $0 | $0 | Power E*TRADE | Yes | Active traders, screeners |
| Fidelity | $0.65 | $0 | $0 | Active Trader Pro | No | Long-term investors |
| TradeStation | $0.60 | $0 | $0 | TradeStation | Yes | Strategy automation |
| Firstrade | $0 | $0 | $0 | Firstrade | No | Lowest cost, basic needs |
Our Top Picks by Trader Type
Best for Active Options Traders: tastytrade
tastytrade’s $1 open / $0 close model is genuinely the best structure for high-volume options traders. The platform is built specifically for options – probability analytics, IV rank, and the ability to manage positions from a single screen. If you’re selling premium regularly, the zero closing fee matters more than the $1 open.
Best Free Platform: Webull
Webull charges $0 per contract – no asterisks. The charting is surprisingly capable for a free platform, and the paper trading feature lets you test strategies without committing capital. The options chain is clean and functional, though it lacks the depth of tastytrade’s probability tools.
Best Platform for Analysis: Schwab / thinkorswim
thinkorswim (now under Schwab) remains the most capable platform for analysis – custom scripts via thinkScript, advanced charting, and the deepest options analytics of any retail broker. At $0.65/contract, you pay for it on volume, but for traders who need the tools, it’s worth it.
Best for Serious / Margin Traders: Interactive Brokers
IBKR Pro offers tiered pricing that gets cheaper with volume, margin rates well below competitors, and access to global markets. The IBKR Desktop 2.2 release added synthetic option price calculation directly in the option chain. It’s not beginner-friendly, but for experienced traders it’s hard to beat.
Best for Free Level 2 Data: moomoo
Level 2 quotes typically cost $25–$30/month elsewhere. moomoo includes them free. Combined with $0 options commissions, it’s worth considering if you actively use order flow data in your trading.
What to Look For Beyond Commissions
Commission comparison is table stakes. Here’s what actually differentiates brokers for options traders:
- IV Rank / IV Percentile – Does the platform show this natively? tastytrade and thinkorswim do. Most others don’t.
- Probability of Profit – For premium sellers, PoP is more useful than delta alone. tastytrade shows it on every position.
- Multi-leg execution – Can you enter a 4-leg iron condor as a single order? Essential for minimizing slippage.
- Position Greeks – Portfolio-level delta, theta, vega exposure. IBKR and thinkorswim do this well.
- Margin requirements – Vary significantly. IBKR typically has the tightest spreads and most favorable margin.
Frequently Asked Questions
Is $0 options trading actually free?
Platforms with $0 per-contract fees still make money through payment for order flow (PFOF) – they route your orders to market makers who pay for the privilege. This means your fill prices may be slightly worse than a platform that charges a commission but routes for best execution. For most retail traders the difference is negligible, but it’s worth knowing.
Should I choose based on commissions alone?
Not if you’re trading complex strategies. A $0.65/contract broker with superior analytics tools often produces better outcomes than a $0 platform where you’re trading blind on IV rank and probability. Match the broker to your actual trading style.
Can I have accounts at multiple brokers?
Yes, and many serious traders do. A common setup: tastytrade for active options trading, thinkorswim for analysis and charting, IBKR for margin/leverage strategies.
Frequently Asked Questions
- Which broker has the lowest options commissions?
- Robinhood, Webull, moomoo, and Firstrade all charge $0 per contract for options trades. Tastytrade charges $1 to open and $0 to close per contract (capped at $10 per leg), which is competitive for multi-leg strategies. Charles Schwab (thinkorswim), Interactive Brokers Lite, E*TRADE, and Fidelity all charge $0.65 per contract. Commission rates verified as of March 2026.
- Do I need a lot of money to start trading options?
- Most brokers have no minimum deposit to open an account. However, pattern day trader rules require $25,000 in a margin account if you make more than 3 day trades in 5 rolling business days. For options specifically, brokers typically require you to apply for options approval before trading. Starting with $5,000-$10,000 gives you enough to trade spreads (defined-risk strategies) without over-concentrating on any single position.
- What options approval level do I need to trade spreads?
- Spread trading (credit spreads, iron condors, vertical spreads) typically requires Level 3 options approval at most brokers, or Level 2 at some. Level 1 generally covers covered calls. Level 2 covers long calls and puts. Level 3 adds spreads and multi-leg strategies. Naked (uncovered) options require Level 4. Each broker’s system is slightly different. Robinhood, for instance, only has Level 2 and Level 3.
- Is tastytrade better than thinkorswim for options trading?
- They serve different traders. tastytrade is purpose-built for options: fast order entry, a built-in probability engine, and $0 close commissions that reward systematic profit-taking. thinkorswim (now on Schwab) offers deeper customization, ThinkScript for custom alerts and strategies, and better paper trading. Experienced traders who want to automate analysis tend to prefer thinkorswim. Active premium sellers who want a clean, fast workflow tend to prefer tastytrade.