moomoo charges $0 per contract on options. E*TRADE charges $0.65 per contract, both to open and close. For a trader running 100 contracts a month, that gap is roughly $65 in commissions alone, before counting moomoo’s free real-time Level 2 depth. The question isn’t really “which is cheaper.” It’s whether E*TRADE’s Morgan Stanley research and Power E*TRADE scanner are worth paying for.
Key Takeaways
- moomoo: $0 per contract on options, free real-time Level 2 market depth, built-in paper trading
- E*TRADE: $0.65 per contract to open and close (with a $0.50 active-trader rate for 30+ trades/quarter), Morgan Stanley research, Power E*TRADE’s LiveAction scanner
- Neither broker supports futures options, so this isn’t a fit for traders who need that asset class
- Both offer paper trading, so that’s not a differentiator here, just a shared baseline
- Rates verified directly against each broker’s current published terms (moomoo: 2026-10-03, E*TRADE: 2026-10-09)
Commissions: The Actual Dollar Difference
moomoo charges $0 commission on both stocks and options, with no per-contract fee at all. That’s confirmed directly from moomoo’s own pricing page as of 2026-10-03. The only cost that shows up on a moomoo options trade is the regulatory pass-through fee (things like the OCC’s $0.025/contract), which applies at essentially every broker, moomoo included, on top of the headline $0.
E*TRADE charges $0.65 per contract, charged on both the open and the close of a trade, confirmed as of 2026-10-09. There’s a wrinkle worth knowing: E*TRADE also offers a $0.50 per contract active-trader rate for accounts that execute 30 or more stock, ETF, or options trades in a quarter. If you’re trading often enough to hit that threshold, the real gap narrows, but it doesn’t close. It’s still $0.50/contract versus moomoo’s $0.
Run the math on a trader who opens and closes 50 two-leg spreads a month, 100 contracts total. At moomoo, that’s $0 in commissions (plus the small regulatory pass-through). At E*TRADE’s standard rate, that’s $65/month, or $32.50/month at the active-trader rate. Over a year, standard-rate E*TRADE commissions alone run about $780 more than moomoo for that same trade volume.
Market Data: Level 2 Depth
This is where moomoo’s pitch gets more interesting than “we’re free.” moomoo includes real-time Level 2 quotes, the full order book depth, at no extra charge. That’s typically a paid add-on or a feature gated behind a higher account tier at most brokers. For an options trader who wants to see where size is sitting on the bid and ask before entering a multi-leg spread, that’s a genuine edge moomoo gives away for free.
E*TRADE doesn’t lead with free Level 2 as a selling point. What E*TRADE leads with instead is research and scanning tools built into Power E*TRADE, which is a different kind of value, not raw order-book data, but curated analysis.
Research and Tools: Where E*TRADE Pulls Ahead
E*TRADE is owned by Morgan Stanley, and account holders get access to Morgan Stanley’s own research notes and analyst coverage, bundled into the platform at no extra cost. That’s a real advantage for a trader who wants institutional-grade research alongside their execution, rather than having to piece it together from separate sources.
Power E*TRADE also ships with a built-in options scanner (LiveAction) for screening unusual volume, volatility, and spread opportunities across the market. moomoo doesn’t natively replicate either of these: it’s built around fast, low-cost execution and raw market data, not curated research or built-in scanning.
Neither platform supports futures options. If your options trading touches commodities or index futures, both brokers’ futures: false designation in their current terms rules this comparison out for you entirely; you’ll need a broker like Interactive Brokers that actually supports that asset class.
Paper Trading: A Tie, Not a Differentiator
Both moomoo and E*TRADE offer paper trading, so if you were hoping this comparison would turn on “only one of these lets you practice first,” it won’t. Both do. The real decision comes down to cost structure and what kind of tools you actually use day to day.
moomoo vs. E*TRADE: Side-by-Side
| Feature | moomoo | E*TRADE |
|---|---|---|
| Options commission | $0/contract | $0.65/contract (open and close) |
| Active-trader rate | N/A, already $0 | $0.50/contract at 30+ trades/quarter |
| Stock commission | $0 | $0 |
| Real-time Level 2 quotes | Free, included | Not a headline feature |
| Research | Not a focus | Morgan Stanley research included |
| Options scanner | Standard screener tools | Power E*TRADE LiveAction scanner |
| Paper trading | Yes | Yes |
| Futures options | No | No |
| Account minimum | $0 | $0 |
Who Fits Each Broker
moomoo fits a cost-conscious, active options trader who trades enough volume that per-contract fees add up fast, and who wants free depth-of-book data without paying for a market data subscription elsewhere. If you’re running frequent multi-leg spreads and want to see the order book before you enter, moomoo‘s combination of $0 commissions and free Level 2 is hard to beat on price.
E*TRADE fits a trader who values research and scanning tools bundled with execution and doesn’t mind paying per contract for it. If you want Morgan Stanley’s analyst notes sitting next to your trading platform, and you’d rather have a scanner surface ideas than build your own screens, that bundled value can be worth the $0.65 (or $0.50 at active-trader volume). E*TRADE’s account page has the current details on Power E*TRADE access.
Neither is a fit if you trade futures options. That’s a hard no for both brokers as of their current published terms, and no amount of comparing commissions changes it.
A Hypothetical Example
Say a trader runs an illustrative iron condor on a liquid ETF, four legs, opened and closed once a month, roughly 20 contracts total per round trip. At moomoo, that round trip costs $0 in commissions. At E*TRADE’s standard rate, that same round trip costs $13 in commissions (20 contracts times $0.65, doubled for open and close). Over a year of monthly round trips, that’s $156 in commissions at E*TRADE versus $0 at moomoo, for the exact same hypothetical trade. This is illustrative math only, not a recommendation to trade either broker or this strategy.
Bottom Line
moomoo wins on pure cost and free market data; E*TRADE wins on research and built-in scanning tools. Pick moomoo if commissions and order-book visibility matter most to your trading; pick E*TRADE if you want Morgan Stanley research and Power E*TRADE’s scanner bundled with your execution.
FAQ
Q: Does moomoo really charge $0 per contract on options?
A: Yes, confirmed directly from moomoo’s published pricing as of 2026-10-03. The only extra cost is small regulatory pass-through fees like the OCC’s $0.025/contract, which apply industry-wide, not a moomoo-specific charge.
Q: Does E*TRADE ever charge less than $0.65 per contract?
A: Yes. E*TRADE offers a $0.50/contract active-trader rate for accounts placing 30 or more stock, ETF, or options trades per quarter, confirmed as of 2026-10-09.
Q: Can I trade futures options on either platform?
A: No. Both moomoo and E*TRADE currently show futures support as false in their published terms. Neither broker is built for futures options trading.
Q: Which broker has better research tools?
A: E*TRADE, by a clear margin. It’s Morgan Stanley-owned and bundles Morgan Stanley’s own analyst research into the platform, plus Power E*TRADE’s LiveAction scanner. moomoo doesn’t natively offer comparable research.
Q: Do both brokers offer paper trading?
A: Yes, both moomoo and E*TRADE support paper trading, so that’s not a deciding factor between the two.
Keep Learning
Comparing the cost side of a different pairing? See how moomoo stacks up against Firstrade or how E*TRADE compares to Webull for another $0-commission matchup.