Winners Summary
Lowest options commissions for frequent traders - tastytrade
| Company |
Minimum Deposit |
Stock Trades |
Options (Per Contract) |
 tastytrade
|
$0.00 |
$0.00 |
$0.50 info |
tastytrade, my top pick for options trading for 2024, is an options trader’s dream. I found the platform to be lightning-fast, and the default layout came about as close to plug and play for me as a trading platform could ever be. Analytics appear intuitively when and where they matter most and it’s my favorite for adjusting open trades on the fly — which I do often.
Trading platform: The tastytrade platform's best feature is its seamless and highly intuitive interface, which is crafted for speed. tastytrade’s workflow supports frequent, on-the-fly adjustments — critical for traders like myself who rely on quick, responsive controls to make split-second decisions. The layout is simple enough to keep focus on core trading, yet advanced enough to give me everything I need to analyze and adjust options trades within seconds. This balance is rare, especially for a downloadable platform that’s equally at home on a laptop, which is something I don’t find with other options brokers.
Pricing: tastytrade also excels in pricing, with some of the lowest options commissions available—particularly beneficial for high-frequency options traders. At just $1 per contract to open and a maximum of $10 per leg, tastytrade is priced for efficiency, beating major brokers like Schwab and Fidelity on overall cost. For anyone trading in higher volumes, this maximum-per-leg cap translates to significant savings over time. I’ve noticed that for trades with multiple legs, these savings add up quickly, making tastytrade not only accessible but also incredibly cost-effective, especially in options-heavy portfolios.
Education: Another edge tastytrade brings to the table is its embedded education and live market commentary through tastylive, a media channel dedicated to discussing market action and trading strategies. The videos feel less like formal lessons and more like conversations with knowledgeable friends on the trading floor, helping me stay informed while keeping the atmosphere relaxed and relatable. This combination of practical trading insights and real-time market analysis makes tastylive a one-of-a-kind resource, solidifying tastytrade’s position as a go-to for experienced traders who crave both community and continual learning.
Check out my full tastytrade review to learn more about their offerings beyond options trading.
Best for intermediate-level options traders - Charles Schwab
| Company |
Minimum Deposit |
Stock Trades |
Options (Per Contract) |
 Charles Schwab
|
$0.00 |
$0.00 |
$0.65 |
Charles Schwab’s thinkorswim platform is a premier choice for intermediate-level options traders, offering a comprehensive suite of tools that balance power with usability. Available on web, desktop, and mobile, thinkorswim provides a cohesive experience across devices, enabling you to dive into options strategies and technical analysis from anywhere. The desktop version, in particular, stands out for its intuitive design, which is easier to navigate than Interactive Brokers’ Trader Workstation. With customizable layouts and user-friendly charting tools, I found it a breeze to conduct thorough option analyses without feeling overwhelmed.
Options scanner: An extremely useful feature for options traders is Schwab’s Options Hacker, a powerful scanning tool that simplifies opportunity discovery by filtering potential trades based on dozens of criteria, from volatility and implied probability to delta and other greeks. This is a tool that goes beyond basic watchlist monitoring, allowing me to uncover options plays that might have slipped under my radar. Options Hacker is especially valuable for intermediate traders looking to build confidence in identifying new trades, as it presents opportunities in a way that is both accessible and actionable.
Education: Schwab’s comprehensive educational resources also make it ideal for intermediate options traders eager to expand their knowledge. Through thinkorswim, traders gain access to live webinars, tutorials, and interactive learning paths focused specifically on options strategies. The platform also features a paper trading tool that lets you practice advanced trades with real-time market data, allowing for hands-on learning without risk. With its unique blend of educational support, innovative tools, and user-friendly design, Schwab offers a balanced platform that suits intermediate options traders aiming to advance their skills while executing informed trades.
Head on over to my complete Charles Schwab review to read more about the thinkorswim platform and its other features.
Best for professional options traders - Interactive Brokers
| Company |
Minimum Deposit |
Stock Trades |
Options (Per Contract) |
 Interactive Brokers
|
$0.00 |
$0.00 |
$0.65 |
Interactive Brokers (IBKR) is a top choice for professional options traders, largely due to its industry-leading margin rates and flexibility in global markets. IBKR's margin rates are some of the lowest available across all balance tiers, making it a standout for traders seeking cost-effective leverage. The competitive pricing structure is built for high-frequency and sophisticated trading strategies, and Interactive Brokers’ access to over 150 markets worldwide enables traders to diversify their positions beyond U.S. exchanges. With this range of international offerings, IBKR stands out as the best option for traders needing flexibility across global markets while maintaining cost efficiency.
Trading platform: The platform's mainstay, Trader Workstation (TWS), is among the most powerful trading platforms on the market. It’s packed with professional-grade tools like the Options Strategy Lab and Risk Navigator, designed to help traders analyze options spreads, volatility, and risk management in real-time. While TWS has a reputation for its steep learning curve, Interactive Brokers has been addressing this by introducing a more approachable platform called Desktop. This upcoming platform blends TWS’s complex features with a cleaner design, making tools like the multidimensional Options Lattice — one of my favorites for analyzing and adjusting spreads by strike and expiration — accessible to more traders. The flexibility and depth of these tools give traders the high level of control needed for complex options strategies.
Pricing: Interactive Brokers’ pricing structure further cements it as a leading platform for options. The Pro tier’s commission-based pricing offers exceptional order execution quality without relying on payment for order flow, which is crucial for professional traders who prioritize best price execution. Options trades are competitively priced, with tiered rates depending on contract premiums, making it easy for traders to manage costs on a per-trade basis. For those who require reliable execution and global reach in options trading, Interactive Brokers delivers unmatched resources, making it a clear choice for professionals in 2024.
Visit my exhaustive review of Interactive Brokers for a deeper dive into the wide variety of markets and platforms it offers.
Best for casual options traders - E*TRADE
| Company |
Minimum Deposit |
Stock Trades |
Options (Per Contract) |
 E*TRADE
|
$0.00 |
$0.00 |
$0.65 |
E*TRADE ranks as the best stock broker for casual options trading thanks to its intuitive Power E*TRADE platform, which simplifies complex trading processes while maintaining access to essential tools and insights. When I first navigated Power E*TRADE, I found its interface refreshingly clear and beginner-friendly. Data is well-organized, with key information easy to locate, ensuring new options traders can focus on strategy without being bogged down by cluttered screens or unnecessary jargon. The thoughtful design, including features like automatic spread groupings, makes trading accessible without sacrificing the depth serious traders need.
Trading tools: E*TRADE’s standout tools for options trading, StrategySEEK and tradeLAB, make it the top choice for casual options traders by simplifying both strategy selection and risk assessment. StrategySEEK enables users to scan for options strategies based on anticipated market movements and volatility, with a range of predefined setups for easy alignment with personal goals. tradeLAB complements this with detailed risk/reward breakdowns, visualizing potential outcomes and adjustments for each trade in an accessible way. This combination allows users to make strategic decisions with confidence, even if they’re new to options trading.
Pricing: E*TRADE’s pricing structure is also highly competitive, especially for options traders looking to manage costs effectively. Options trades cost $0.65 per contract, which drops to $0.50 per contract after reaching 30 trades in a quarter—making it budget-friendly for casual and active traders alike. Additionally, the lack of hidden fees and low minimum account requirements align with E*TRADE’s mission to make trading accessible, ensuring that users can focus on developing their strategies without worrying about prohibitive costs. This affordable pricing, combined with E*TRADE’s top-tier tools, makes it an excellent choice for anyone easing into options trading.
For more informations about its overall offering, read more about the broker at my complete E*TRADE review.
Best for first-time options traders - Merrill Edge
| Company |
Minimum Deposit |
Stock Trades |
Options (Per Contract) |
 Merrill Edge
|
$0.00 |
$0.00 |
$0.65 |
Merrill Edge ranks as my top choice for first-time options traders, thanks to its streamlined, user-friendly tools designed to simplify the options trading process. Merrill’s Options Strategy Assistant is an invaluable tool for beginners, guiding new traders through the complex landscape of options. Its step-by-step approach offers a clear introduction to various strategies, along with associated risks, so users can build their confidence as they learn. For those who are just getting started, this methodical process balances simplicity and educational value, making it easy to choose strategies aligned with both goals and risk tolerance without feeling overwhelmed.
Education: Another beginner-friendly feature for Merrill Edge is its educational suite, uniquely tailored to bring options trading and other investment concepts to life through engaging “Story” formats. Stock Story and Fund Story transform research into easy-to-digest visuals, making the learning experience less intimidating for beginners. These tools walk traders through fundamentals and performance insights for individual securities, empowering them with context before jumping into options trades. In my view, the combination of high-quality research, visual aids, and educational resources offers a solid foundation for first-time traders.
Banking integration: Finally, Merrill Edge’s seamless integration with Bank of America’s banking services provides added convenience for new investors looking to manage finances in one place. With $0 commissions on stock and ETF trades, affordable options pricing at $0.65 per contract, and the potential rewards of Bank of America’s Preferred Rewards program, Merrill Edge presents strong value. It’s an ideal choice for those seeking a user-friendly experience that grows with their investment skills — transitioning easily from guided tools to more advanced platforms like MarketPro when you're ready to dive deeper into the world of trading.
For a further exploration of its full offering, click on over to my Merrill Edge review for a complete look at its fees & features.
Options trading platform pricing comparison
Options trading platform tools comparison
FAQs
What is options trading?
Options trading involves buying and selling the rights to buy or sell securities at specific prices at certain dates. Picture betting on a sports game and being able to buy and sell that bet as the game progresses. That, in a nutshell, is how options trading works, though of course it’s a bit more nuanced than that. Option prices fluctuate on the price and volatility of their underlying investments and the time remaining until the options expire. Traders use options to speculate, reduce risk, or generate income. Check out our full educational guide on the topic for a deep-dive into how to trade options.
Where can I practice options trading?
What is the best trading platform for options?
The best trading platform for options in 2024 is tastytrade, thanks to its fast, intuitive design and competitive pricing structure. tastytrade’s platform is built for high-frequency options traders, with responsive tools for quick adjustments and advanced analytics that simplify complex strategies. With some of the lowest options commissions, a maximum of $10 per leg, and embedded market analysis through tastylive, tastytrade offers a unique blend of speed, savings, and real-time insights that’s hard to beat.
What options broker is best for beginners?
For first-time options traders, Merrill Edge is my top choice, largely due to its intuitive Strategy Assistant tool. This tool guides users step-by-step through selecting an options position, explaining each strategy and its potential risks in clear, beginner-friendly terms. In addition to the Strategy Assistant, Merrill Edge’s platform offers educational resources, such as Stock Story and Fund Story, that simplify stock research, providing essential insights to help new traders understand the underlying assets before they trade options. Combined with low-cost pricing and seamless integration with Bank of America’s banking services, Merrill Edge creates an ideal environment for learning and growing in options trading.
Which broker has free options trading?
Instead of calling their revenue per trade “commissions,” many brokers charge per-contract fees (including some brokers who claim to have "zero commission" options trading). The exceptions are Robinhood, SoFi Invest , Firstrade, and Webull, which charge no commissions or fees for options. Of these, I prefer Webull, which has a silky-smooth desktop platform.
What is a call option?
A call option locks in the right to buy a stock (or other security) at a certain price (called the “strike”) until a specific date (the expiration). If the price goes above the strike price, then the call owner can buy the stock for the strike price and sell it for the market price. The premium is what the call buyer pays the call seller for this privilege. If the stock doesn’t rise above the strike price before expiration, the call buyer loses the whole premium. Investors can also sell call options to earn premiums. A contract usually represents a call on 100 shares of stock.
What is a put option?
A put option locks in the right to sell a stock (or other security) at a certain price (called the “strike”) until a specific date (the expiration). If the price goes below the strike price, then the put owner can sell the stock for the strike price, which is higher than the market price. The premium is what the put buyer pays the put seller for this privilege. If the stock doesn’t fall below the strike price before expiration, the put buyer loses the whole premium. Investors can also sell put options to earn premiums. A contract usually represents a put on 100 shares of stock.
What are 0DTE options?
“0DTE” stands for “zero days until expiration.” These options are inexpensive because they have only a day or less before the option expires. They are also extremely speculative because, in the short term, stocks’ movements are close to unpredictable. We at StockBrokers.com think they are only suitable for highly sophisticated options traders.
How much money do you need for options trading?
You should have at least $5,000 that you are prepared to lose, and speculative options trading should only account for 10% of your portfolio. Though you can get started with as little as a few hundred dollars, that’s more or less rolling the dice. Experienced options traders maintain several positions at once that tend to offset risks, and that can’t be done with a few hundred dollars.
Is options trading risky?
Yes. Options trading is a form of leveraged investing and is inherently risky. Any time an investor is using leverage to trade, they are taking on additional risk. Many times, this risk is unforeseen and not easily quantified.
On the most basic level, investors who buy a call or put option are only risking the money they invested in the contract. However, when selling a call or put, if the trade isn't protected (also known as going naked), the investor is taking on potentially unlimited risk.
As a protective measure, there are different options approval levels (usually four), and being approved requires an application through the online broker platform to unlock. The riskier the options strategy, the more demanding the requirement will become to be approved.
What kind of platform features do I need for trading options?
All of the best brokers for options trading offer the following features.
| Feature |
Definition |
| Has Education - Options |
Provides a minimum of 10 educational pieces (articles, videos, archived webinars, or similar) with the primary subject being options. All content must be easily found within the website's learning center. Platform tutorials, FAQs, etc. do NOT count. |
| Option Chains - Streaming Real-time |
Option chains with streaming real-time data. |
| Option Chains - Greeks Viewable |
When viewing an option chain, the total number of Greeks that are available to be viewed as optional columns. Greeks = delta, gamma, theta, vega, rho. |
| Option Chains - Quick Analysis |
The ability to jump straight from the option chain to a P&L chart or probability chart for deeper analysis. Viewing a summary P&L within the chain itself also qualifies. |
| Option Analysis - P&L Charts |
When analyzing a theoretical option trade, a P&L chart is available. |
| Option Analysis - Probability Analysis |
A basic probability calculator. |
| Option Analysis - Probability Analysis Adv |
A tool to analyze a hypothetical option position. Displays a probability histogram / chart with optional customizations. |
| Option Positions - Greeks Viewable |
View at least two different greeks for a currently open option position. |
| Option Positions - Greeks Viewable Streaming |
View at least two different Greeks for a currently open option position and have their values stream with real-time data. |
| Option Positions - Advanced Analysis |
Ability to analyze an active option position and change at least two of the three following conditions - date, stock price, volatility - and assess what happens to the value of the position. |
| Option Positions - Rolling |
Ability to pre-populate a trade ticket and seamlessly roll an option position to the next relative expiration. |
| Option Positions - Strategy Grouping |
Ability to group current option positions by the underlying strategy: covered call, vertical, etc. Can be done manually by user or automatically by the platform. |
| Level 2 Quotes - Options |
Level 2 options quotes available. |
| Screener - Options |
Offers an options screener. Commonly referred to as a spread creation tool or similar. |
Our Research
Why you should trust us
Sam Levine, CFA, CMT, formerly a lead writer for StockBrokers.com, has over 30 years of investing experience and actively trades stocks, ETFs, options, futures, and options on futures. He's held roles as a portfolio manager, financial consultant, investment strategist and journalist. He holds the Chartered Financial Analyst (CFA) and the Chartered Market Technician (CMT) designations and served on the board of directors of the CMT Association.
Blain Reinkensmeyer, head of research at StockBrokers.com, has been investing and trading for over 25 years. After having placed over 2,000 trades in his late teens and early 20s, he became one of the first in digital media to review online brokerages. Blain created the original scoring rubric for StockBrokers.com and oversees all testing and rating methodologies.
For this guide:
- Whenever possible, we used our own brokerage accounts for testing. For several brokers, we used a test account that was provided to us.
- We collected more than 250 data points related to options trading across 17 brokers.
- We personally placed multiple options trades.
How we tested
For this guide to the best platforms for options trading, our research team rigorously tested platform usability and quality of tools, such as options chains (e.g., optional views, total optional columns, streaming data quality, total Greeks offered), options analysis (e.g., P&L charts, calculators), and option position management (e.g., whether Greeks stream, rolling functionality, grouping availability, and advanced position analysis).
StockBrokers.com uses a variety of computing devices to evaluate trading platforms. Our reviews were conducted using the following devices: iPhone 12 Pro, iPhone 15 Pro Max, MacBook Pro M1 with 8 GB RAM running the current MacOS, and a Dell Vostro 5402 laptop i5 with 8 GB RAM running Windows 11 Pro. In testing platforms and apps, our reviewers place actual trades for a variety of instruments.
As part of our data check process, we sent a data profile link to each broker summarizing the data we had on file and the data they provided us last year, with a field for entering any data that had since changed. For the brokers that filled out these profiles, we audited the information for any discrepancies between our data and the broker’s data to ensure accuracy.
As part of our review process, all brokers had the opportunity to provide updates and key milestones in a live meeting that took place in the fall. Meetings with broker teams also took place throughout the year as new products rolled out. Insights gathered from these calls helped steer our testing efforts to ensure every feature and tool was assessed.
Trading platforms tested
We tested 17 online trading platforms for this guide:
Fidelity
Merrill Edge
E*TRADE
TradeStation
Interactive Brokers
Charles Schwab
tastytrade
eToro
