Webull charges nothing per options contract. E*TRADE charges $0.65. That one number decides most of this comparison before you even get to the platforms, but it is not the whole story: E*TRADE comes with Morgan Stanley’s research desk attached, and Webull does not have an equivalent. Which gap matters more depends on what you actually do with an options account.
- Webull: $0 per contract on single-leg equity and ETF options; E*TRADE: $0.65 per contract ($0.50 for accounts placing 30+ trades per quarter)
- Webull charges $0.50 per contract on index options (SPX, NDX, VIX); E*TRADE’s $0.65 rate applies to index options too, so the cost gap narrows there
- E*TRADE is backed by Morgan Stanley’s in-house research and runs two platforms: E*TRADE Web for casual trading, Power E*TRADE for active derivatives traders
- Webull is mobile-first with extended-hours and fractional-share access; E*TRADE does not offer fractional shares
- Neither broker supports futures trading, and both offer $0-minimum accounts with paper trading
The cost comparison, with the asterisks that matter
Webull’s pricing is the simplest in the industry to describe: $0 commission on US-listed stocks, ETFs, and single-leg options, full stop. Index options are the one exception, at $0.50 per contract for products like SPX, NDX, and VIX (Webull’s platform also adds a $0.10-per-contract surcharge on any order above 500 contracts, excluding index options). For a trader running small, defined-risk positions in individual-stock options, Webull’s all-in cost on a single contract is $0.00. (Verified against Webull’s own pricing page, last verified 2026-10-03.)
E*TRADE charges $0.65 per contract on options, standard rate. There is a volume discount: accounts that place 30 or more stock, ETF, or options trades in a calendar quarter drop to $0.50 per contract. That discount closes most of the gap with Webull’s index-option rate, but it still leaves E*TRADE more expensive than Webull on every single-leg equity option trade, discount or not. (Verified against E*TRADE’s current fee schedule, last verified 2026-10-09.)
Run the math on a reader who sells 10 cash-secured puts a month on individual stocks. At Webull, that’s $0 in per-contract fees for the full year. At E*TRADE’s standard rate, that’s $78 a year; even at the 30-trade active-trader discount, it’s $60. It is not a large number in isolation, but it compounds for anyone trading multi-leg strategies, where E*TRADE’s $0.65 applies to every leg of every spread.
| Feature | Webull | E*TRADE (Morgan Stanley) |
|---|---|---|
| Options per contract (standard) | $0.00 | $0.65 |
| Options per contract (active trader) | $0.00 (no volume tier needed) | $0.50 (30+ trades/quarter) |
| Index options (SPX, NDX, VIX) | $0.50/contract | $0.65/contract |
| Stock/ETF commission | $0.00 | $0.00 |
| Account minimum | $0 | $0 |
| Paper trading | Yes | Yes |
| Fractional shares | Yes | No |
| Futures | No | No |
| In-house research | Retail-facing charting, screeners | Morgan Stanley research, analyst reports |
| Platform | Mobile, desktop, web | E*TRADE Web (casual) / Power E*TRADE (active) |
What E*TRADE’s extra $0.65 actually buys
E*TRADE’s defining feature is not its options pricing, it’s what sits behind it: Morgan Stanley’s research and wealth-management infrastructure. Since the Morgan Stanley acquisition, E*TRADE account holders get access to in-house analyst reports, sector research, and market commentary that Webull simply does not generate. If part of your process before opening an options position is reading an analyst’s thesis on the underlying stock, E*TRADE’s research library is a genuine advantage, not a marketing line.
E*TRADE also splits its platform in two, deliberately. E*TRADE Web is built for investors who check in occasionally and want a simpler interface. Power E*TRADE is the derivatives-focused platform: real-time risk analysis, a strategy-building screen for multi-leg spreads, and streaming options chains with Greeks displayed inline. A trader who wants both a casual-investing view of their portfolio and a dedicated options cockpit gets that split for free, without needing two separate accounts.
What Webull’s $0 pricing actually trades off
Webull’s platform is built mobile-first, and it shows: pre-market and after-hours trading windows are front and center, and the app’s screeners and charting tools are aimed at active, on-the-go traders rather than buy-and-hold research. Webull also supports fractional shares, which E*TRADE does not. That matters specifically for options traders who get assigned stock: a trader who ends up holding 37 shares after a partial assignment, or who wants to build a covered-call position without committing to a full 100-share lot’s worth of capital, has more flexibility at Webull.
Webull’s research tools are more retail-facing. There’s no equivalent to Morgan Stanley’s analyst desk. If your options strategy depends on reading a sell-side research note before you place a trade, Webull is not where you’ll find it; you’d be pairing it with a separate information source.
Index options: where the gap narrows
Most of this comparison favors Webull on cost, but index options are the exception worth flagging directly, since SPX, NDX, and VIX options are popular with income-focused options traders for their cash settlement and tax treatment. Webull charges $0.50 per contract on index options; E*TRADE charges its standard $0.65 (or $0.50 at the 30-trade active-trader tier). At the active-trader rate, the two brokers are priced identically on index options. A trader who exclusively trades SPX iron condors and qualifies for E*TRADE’s discount is not actually paying a cost penalty to get Morgan Stanley’s research along with it.
Who fits where
Webull is the stronger fit for a cost-sensitive, mobile-first trader who wants extended-hours access, fractional shares, and does not need in-house research to make a trade decision. The $0 per-contract rate on single-leg and multi-leg equity options is a real, structural advantage for anyone trading frequently or running defined-risk spreads with several legs.
E*TRADE is the better fit for a trader who wants Morgan Stanley’s research bundled into their brokerage account and does not mind paying $0.65 per contract (or $0.50 with enough trade volume) for it. The Power E*TRADE platform is a genuinely capable options tool, not an afterthought bolted onto a stock-trading app, and the casual/active platform split is a real convenience for someone managing both a long-term portfolio and an active options book in one account.
Open a Webull account if cost and mobile access are the priority. For E*TRADE, open an account directly at E*TRADE’s account page, since E*TRADE does not currently run a public affiliate program.
Bottom line
Webull wins on pure cost for almost every options trader, charging $0 per contract versus E*TRADE’s $0.65. E*TRADE’s case rests entirely on Morgan Stanley’s research and the Power E*TRADE platform being worth that per-contract fee to you. If you already have a research process and just need low-cost execution, Webull is the clear pick; if you want research bundled with execution, E*TRADE’s fee buys something real.
FAQ
Q: Does Webull really charge $0 on options, with no catch?
A: For standard single-leg equity and ETF options, yes, $0 per contract. The exceptions are index options like SPX and VIX ($0.50/contract) and orders above 500 contracts in a single order ($0.10/contract surcharge, excluding index options).
Q: Can I get E*TRADE’s options commission lower than $0.65?
A: Yes. E*TRADE drops to $0.50 per contract for accounts that execute 30 or more stock, ETF, or options trades in a calendar quarter.
Q: Does either broker support futures trading?
A: No. As of the most recent verification, neither Webull nor E*TRADE offers futures or futures options.
Q: Which broker has better research tools for options traders?
A: E*TRADE, by a clear margin. Its Morgan Stanley-backed research and analyst coverage have no equivalent at Webull, whose tools are more retail-facing charting and screeners.
Q: Does Webull support fractional shares if I get assigned on an option?
A: Yes, Webull offers fractional shares. E*TRADE does not currently support fractional shares.