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11 Best Options Trading Platforms for 2024

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Trading options can be a powerful way to maximize your portfolio, even in times of intense market volatility. While options trading isn’t right for everyone, anyone that wants to get into options needs to have a quality broker to help them place their trades.

With so many options trading platforms out there to choose from, however, selecting just one for your needs is no easy feat. To help you out, we’ve reviewed the best options trading platforms available today.

Up next, we’ll discuss the main features, fees, pros, and cons of each of these popular brokerage firms for options traders. We’ll also offer some top tips for what to look for as you search for an investing platform so you can get the perfect brokerage service for your options trading needs.

BrokerAccount minimumFeesLearn more
TD Ameritrade$0$0 per trade, $0.65 per contract Learn More
TradeStation$0$0 per trade, $0.60 to $1.50 (TS SELECT) or $0.50 to $0.85 (TS GO) per contract Learn More
tastyworks$0$0 per trade, $1.00 to open options trades and $0.00 to close Learn More
Interactive Brokers$0$0 (IBKR Lite) or $1.00 (IBKR Pro) per trade, $0.15 to $0.65 per contract Learn More
Robinhood$0$0 per trade, $0 per contract Learn More
Ally Invest$0$0 per trade, $0.50 per contract Learn More
E*TRADE$0$0 per trade, $0.65 per contract Learn More
Webull$0$0 per trade, $0 per contract Learn More
Charles Schwab$0$0 per trade, 0.65 per contract Learn More
Firstrade$0$0 per trade, $0 per contract Learn More
Fidelity$0$0 per trade, 0.65 per contract Learn More

Best Options Trading Platforms

There are dozens of excellent brokers out there for options traders to choose from. Here are the best options trading platforms on the market today to consider before you place your next trade.

1. TD Ameritrade: Best for Cutting-Edge Trading Terminal 

TD Ameritrade Homepage
Source: TD Ameritrade

TD Ameritrade is one of the largest online brokerages in the US. It offers a full slew of services for inventors, including the ability to open both taxable and tax-advantaged accounts. In addition to its support of options trades on stocks, ETFs, and futures, TD Ameritrade also lets you invest in stocks, ETFs, mutual funds, futures, forex, and bonds.

For options traders, TD Ameritrade offers commission-free trades and contract fees of $0.65 per leg. The other advantage to creating an account with TD Ameritrade is that investors can access the firm’s cutting-edge thinkorswim trading platform, which provides some of the most powerful options trading tools on the market.

But while TD Ameritrade doesn’t technically have a minimum balance requirement, you will need at least $2,000 for many options trading privileges, especially if you want to trade on a margin. The thinkorswim platform is also a bit too complex for first-time options traders. However, if powerful trading tools are what you seek, TD Ameritrade is worth considering. Read our full TD Ameritrade review to learn more.

Fees 

For options trades placed online, TD Ameritrade charges the following fees:

  • Trading Fee: $0
  • Contract Fee: $0.65
  • Exercise & Assignment Fee: $0

Pros

  • Doesn’t charge a commission fee on options trades
  • Supports options trades of US stocks, ETFs, and futures
  • Full-service brokerage with both taxable and tax-advantaged accounts
  • Includes free access to the powerful thinkorswim trading terminal

Cons 

  • Requires $2,000 account balance for many options trading privileges
  • May be too complex for first-time options traders

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $0.65 per contract
  • Exercise & Assignment Fee: $0
  • Promotion: None
TD Ameritrade

on TD Ameritrade’s website

2. TradeStation: Best for Frequent Options Traders

TradeStation Homepage
Source: TradeStation

Crafted with the active options trader in mind, TradeStation is an online brokerage firm that makes professional-level trading tools accessible to the individual investor. With TradeStation, US residents can access commission-free trades on most stocks and ETFs as well as options trades on stocks, ETFs, and futures.

For options traders, TradeStation has two different pricing plans: TS GO and TS SELECT. Most first-time options traders can make do with TS GO, which has lower contract fees and no commissions when you trade on the firm’s web-based platform.  

More experienced traders who can meet the $2,000 minimum funding requirement and are willing to pay a bit more in fees can get TS SELECT, which offers access to the company’s high-end desktop app. But keep in mind that TradeStation charges a high exercise and assignment fee, so it’s best for investors who don’t generally exercise options prior to expiration. Read our full TradeStation review to learn more.

Fees 

Fees for options trading on TradeStation are as follows:

  • Trading Fee: $0
  • Contract Fee: $0.60 to $1.50 (TS SELECT) or $0.50 to $0.85 (TS GO)
  • Exercise & Assignment Fee: $14.95

Additionally, TradeStation charges a $1.50 fee per side for options on futures contracts, regardless of your pricing plan.

Pros

  • Provides a professional-level trading terminal for individual investors
  • Lower contract fees available if you opt to use only the web-based trading platform
  • Supports commission-free options on stocks and futures
  • No minimum balance requirement for TS GO accounts

Cons 

  • Requires investors  to meet a $2,000 funding level to use the powerful TradeStation desktop app
  • Charges a high exercise and assignment fee

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $0.60 to $1.50 (TS SELECT) or $0.50 to $0.85 (TS GO) per contract
  • Exercise & Assignment Fee: $14.95
  • Promotion: Get up to $5,000 (cash credit with a qualifying deposit)
TradeStation

on TradeStation’s website

3. tastyworks: Best for High-Volume Options Traders

tastyworks Homepage
Source: tastyworks

Although it’s one of the lesser-known trading platforms on our list, tastyworks is a fan favorite among options traders. In many respects, tastyworks is an options-focused brokerage because it offers a suite of features that cater specifically to options traders.

For example, tastyworks has a unique fee schedule that only charges you contract fees when you open a position. While tastyworks’ $1.00 contract fee can seem high compared to the competition, it’s actually fairly low when you realize that this includes the costs for both opening and closing your position. Plus, tastyworks caps contract fees on equities at $10 a trade, which makes it great for high-volume investors.

The other benefit of tastyworks is that its platform is engineered specifically for options traders, so it comes with a suite of charting, screening, and research tools. Plus, while tastyworks’ platform is perhaps too complex for placing your very first trade, the firm does provide lots of educational resources to help an intermediate investor become a confident options trader.

Fees 

tastywork’s options fees schedule is as follows:

  • Commission Fee: $0
  • Contract Fee (Opening Only): $1.00 and $2.50 (futures)
  • Exercise & Assignment Fee: $5

Pros

  • Trading platform specifically designed for options trading
  • Only charges contract fees when you open a position
  • Comes with lots of research and trading tools for options investors
  • Caps all contract fees on stocks and ETFs at $10 per trade

Cons 

  • Charges exercise and assignment fees, which you can get for free elsewhere
  • Platform layout may be a bit too complex for first-time traders

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $1.00 per contract (*opening only and $10 max per leg)
  • Exercise & Assignment Fee: $5.00
  • Promotion: None
tastyworks

on tastyworks’ website

4. Interactive Brokers: Best for Experienced Options Traders

Interactive Brokers Homepage
Source: Interactive Brokers

One of the world’s largest international brokerage services, Interactive Brokers is a solid choice for the more experienced options traders among us. The biggest benefit of using Interactive Brokers for options trades is that it has a very powerful trading terminal that offers customizable charts and other market research tools.

For options traders, Interactive Brokers offers relatively low contract fees and commission-free trades on the IBKR Lite platform, which is what most individual traders would use anyway. We also like Interactive Brokers because they have an incredible tool called OptionsTrader that helps you build complex, multi-legged options trades with ease.

Do keep in mind, however, that Interactive Brokers is not really designed with new investors in mind. As a result, it’s best for people who have some options trading experience under their belts. But if you want to be able to trade options globally on more than 30+ markets with some of the best tools in the business, Interactive Brokers is a great choice. Read our full Interactive Brokers review to learn more.

Fees 

Options trading fees with Interactive Brokers are as follows:

  • Trading Fee: $0 (IBKR Lite) or $1.00 (IBKR Pro)
  • Contract Fee: $0.15 to $0.65
  • Exercise & Assignment Fee: $0

Pros

  • Lets you trade options on 30+ global markets
  • OptionsTrader feature comes jam-packed with tools to build complex options trades
  • Comes with lots of market research tools and customizable charts
  • Charges relatively low fees when you trade options on the IBKR Lite Platform

Cons 

  • Very complex interface that’s not good for first-time options traders

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 (IBKR Lite) or $1.00 (IBKR Pro)
  • Contract Fees: $0.15 to $0.65 per contract
  • Exercise & Assignment Fee: $0
  • Promotion: None
Interactive Brokers

on Interactive Broker’s website

5. Robinhood: Best For Fee-Free Trading

Robinhood Homepage
Source: Robinhood

While it’s best known as a commission-free stock investing app, Robinhood is quickly making a name for itself in the world of options trading. In fact, it’s one of the few platforms out there that support completely free options trades, which means you won’t pay a commission or contract fee when you trade options with Robinhood.

The other great thing about using Robinhood is that it supports options trades on US-listed stocks and ETFs as well as on some ADRs, which lets you gain some exposure to international markets. We also appreciate that Robinhood’s platform is super easy to use, so it’s a nice choice for first-time traders.

But, Robinhood’s interface isn’t as advanced as what you’d find at some other brokerages. It also doesn’t offer as many powerful tools for options traders, which can feel limiting to more experienced investors. Nevertheless, if you’re new to options and want a fee-free platform to place your trades, Robinhood certainly deserves your consideration. Read our full Robinhood review to learn more.

Fees 

Robinhood has no trading, contract, exercise, or assignment fees for options traders.

Pros

  • Very user-friendly design that’s good for first-time investors
  • Commission-free options trades with no contract fees
  • Lets you trade options on US stocks and ETFs plus some ADRs
  • Mobile-first trading platform that’s great for on-the-go investing

Cons 

  • Bare-bones interface can feel lack-luster to experienced traders
  • Doesn’t include a lot of the features that you need to create complex options strategies

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $0 pe contract
  • Exercise & Assignment Fee: $0
  • Promotion: 1 free stock (*for new accounts created)
Robinhood

on Robinhood’s website

6. Ally Invest: Best for All-in-One Banking & Trading

Ally Invest Homepage
Source: Ally Invest

Ally Invest is the brokerage service from Ally Financial, a Detroit-based bank that is known for its immersive and user-friendly online banking experience. The company is perhaps most famous for both its commission-free stock and ETF trades and its mostly fee-free robo-advisory services. But it also supports options trades on US securities in its self-managed accounts.

Key advantages of Ally Invest’s platform for options traders include its commission-free trades and low-cost contract fees ($0.50 per contract). Ally Invest also provides great market research features to its investors, such as profit/loss graphs, probability calculators, real-time market data, and intuitive options chains creation tools.

When compared to other options trading platforms, Ally Invest’s dashboard arguably isn’t as cutting-edge, but it is very beginner-friendly. Ally Invest is also one of the few companies that offer both comprehensive trading and banking services, so it’s ideal if you want to use one platform for all your financial needs. Read our full Ally Invest review to learn more.

Fees 

Ally Invest currently charges the following fees for its options trading services:

  • Trading Fee: $0
  • Contract Fee: $0.50
  • Exercise & Assignment Fee: $0

Pros

  • Commission-free options, stock, and ETF trades
  • Low contract fee for stocks ($0.50 per contract)
  • Includes P/L graphs and options chains creation tools
  • Offers comprehensive investing and banking services

Cons 

  • Interface isn’t as advanced as other options trading
  • Options trades only available on US-listed securities

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $0.50 per contract
  • Exercise & Assignment Fee: $0
  • Promotion: None
Ally Invest

on Ally Invest’s website

7. E*TRADE: Best for Intermediate Investors

E*TRADE Homepage
Source: E*TRADE

If you’re comfortable with the ins and outs of investing but you’re in the intermediate stages of your options trading career, E*TRADE just might be what you need. E*TRADE operates on a commission-free basis for options trades of US-listed stocks, ETFs, and futures, and it has reasonable per-leg contract fees.

Better yet, E*TRADE’s platform comes with a suite of features that help you take your options trading skills to the next level. In particular, the Power E*TRADE platform lets you easily create complex multi-legged options strategies. The company also offers advanced charting features, options-specific screeners, risk/reward probability metrics, real-time Greeks, and paper trading tools.

E*TRADE even provides plenty of additional research resources for traders to help them stay one step ahead of the markets. The downside is that E*TRADE has a $1,000 minimum account balance requirement if you want to stream Level II price quotes. It also doesn’t have quite as much educational material available as other platforms, but it’s a good all-around option for intermediate investors. Read our full E*TRADE review to learn more.

Fees 

E*TRADE’s options fees are as follows:

  • Trading Fee: $0
  • Contract Fee: $0.65 or $1.50 (futures)
  • Exercise & Assignment Fee: $0

Note that the E*TRADE’s contract fee decreases to $0.50 for stocks and ETFs when you place more than 30 options trades per quarter.

Pros

  • Supports options trades of US-listed stocks, ETFs, and futures
  • Contract fees decrease for high-volume traders
  • Power E*TRADE platform is fine-tuned for options trades
  • Includes plenty of great market research tools including screeners and real-time Greeks

Cons 

  • Somewhat limited selection of educational resources on options trading
  • $1,000 minimum balance requirement for Level II price quotes

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $0.65 per contract
  • Exercise & Assignment Fee: $0
  • Promotion: None
E*TRADE

on E*TRADE’s website

8. Webull: Best for Mobile Trading

Webull Homepage
Source: Webull

Webull is a zero-commission online brokerage firm that’s popular among younger traders. The firm’s mobile app is one of the best on the market today if you enjoy customizable charts and market data. Webull’s fee-free and intuitive platform is also chock-full of educational resources, so it’s perfect for investors that are looking to make their first foray into trading options.

A key advantage of Webull for options traders is that the company offers free Options Price Reporting Authority (OPRA) data for account holders. The Webull platform also includes 10 pre-built options strategies, such as iron butterfly and covered stock, to help you quickly execute trades. Or, you can create your own trades using Webull’s customizable options chain feature.

There’s a lot to love about Webull for options trading, but investors should note that the firm’s trading terminal isn’t as advanced as what you could find elsewhere. The other downside to Webull is that it doesn’t support options on futures or non-US assets. If you want a powerful mobile app for trading options, though, Webull is a sure bet. Read our full Webull review to learn more.

Fees 

Webull has no trading, contract, assignment, or exercise fees for options trades.

Pros

  • High-quality mobile app with excellent charting tools
  • Provides free OPRA data for options traders
  • Lets you customize your own strategies or choose between 10 pre-set strategies
  • Offers plenty of educational resources for investors

Cons 

  • No option to trade futures options or options on international assets
  • Less advanced interface for options than what you can find elsewhere

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $0 per contract
  • Exercise & Assignment Fee: $0
  • Promotion: Get 4 free stocks (*new accounts)
Webull

on Webull’s website

9. Charles Schwab: Best for Building a Well-Diversified Portfolio

Charles Schwab Homepage
Source: Charles Schwab

Charles Schwab is a world-famous brokerage service that supports options trades among investments in plenty of other asset classes. Although it’s not an options-centric platform, Schwab’s user-friendly interface and support for options on stocks, ETFs, and futures make it a good broker for investors looking to trade options as part of a larger well-diversified portfolio.

Schwab offers commission-free options trades and reasonable contract fees. The company also provides inventors with a suite of features like the Idea Hub scanner, the Trade & Probability Calculator, and the All-in-one Trade Ticket to help you create customized options strategies. Schwab even boasts the StreetSmart Edge trading terminal, which offers powerful charts and tools that are designed specifically for options traders.

We also like Schwab because the firm maintains a large team of options trading specialists who are on call if you ever want to discuss your investment strategies. But Schwab doesn’t have a paper trading feature and the firm’s mobile app lacks automatically refreshing price quotes. As a result, Schwab is best for investors who do most of their trading on a computer. Read our full Charles Schwab review to learn more.

Fees 

Charles Schwab charges the following fees for options trades:

  • Commission Fee: $0
  • Contract Fee: $0.65 or $2.25 (futures)
  • Exercise & Assignment Fee: $0

Pros

  • Supports options trades on equities and futures
  • Includes lots of features for options trading research
  • Powerful StreetSmart Edge terminal lets you create customized options strategies
  • Account holders can talk to Schwab’s options trading specialists for investing advice

Cons 

  • Doesn’t offer paper trading to help you test different strategies
  • Need to manually refresh mobile app to get real-time price quotes

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $0.65 per contract
  • Exercise & Assignment Fee: $0
  • Promotion: None
Charles Schwab

on Charles Schwab’s website

10. Firstrade: Best for Options Trading Research Tools

Firstrade Homepage
Source: Firstrade

Firstrade is a New York-based online brokerage service that’s been in business since the 1980s. It may not have as much name brand recognition as some of the other companies on our list, but it’s a top contender as far as options trading platforms go.

What sets Firstrade apart is that it has a dedicated options research platform called the Options Wizard, which lets you get instant feedback on the quality of your proposed options trades. The Options Wizard also lets you create custom charts with 65+ technical indicators, and it has P/L simulator tools. You can even use it to build complex, multi-leg options strategies. 

Like a few other brokerages, Firstrade doesn’t charge commissions or contract fees for options, so it’s great if you want to keep costs low. The drawback to Firstrade is that it only offers options on stocks and ETFs (not futures), and its overall platform layout is a bit clunky. For low-cost options trades and options-specific research tools, though, Firstrade is a superb platform. Read our full Firstrade review to learn more.

Fees 

There are no trading, contract, exercise, or assignment fees with Firstrade.

Pros

  • Doesn’t charge commission or contract fees for options trades
  • Options Wizard lets you get feedback on potential trading strategies
  • Platform supports customizable charts with dozens of indicators
  • Offers P/L simulator tools and features to help you build multi-leg strategies

Cons 

  • Only offers options on stocks and ETFs
  • User interface is a bit clunky and awkward to navigate

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $0 per contract
  • Exercise & Assignment Fee: $0
  • Promotion: Get up to 3 free stocks (*new accounts)
Firstrade

on Firstrade’s website

11. Fidelity: Best for Options Trading Educational Resources

Fidelity Homepage
Source: Fidelity

One of the most popular brokerages in the US, Fidelity is a comprehensive investing platform that’s ideal for first-time and experienced options traders alike. With Fidelity, investors can open both taxable and tax-advantaged accounts. Fidelity also offers options trades on stocks and ETFs, as well as the ability to invest in everything from bonds to precious metals.

Additionally, the suite of educational resources at Fidelity is sure to impress. The company has a collection of online articles, videos, investing courses, webinars, and training sessions to help you gain new skills. 

Fidelity also offers the powerful Active Trader Pro terminal, which lets you create single- and multi-leg options trades. The platform even comes with lots of research tools like Strategy Ideas and P/L calculators to help improve your trades. 

But, we should mention that you have to fill out an application to trade options at Fidelity, and the company can take up to five days to approve your request. Fidelity’s mobile app also isn’t as optimized for options trading and research, so the brokerage is best for people who primarily like to invest using a computer. Read our full Fidelity review to learn more.

Fees 

Fidelity has the following fees structure for options trades:

  • Commission Fee: $0
  • Contract Fee: $0.65
  • Exercise & Assignment Fee: $0

Pros

  • One of the most reputable brokerage services in the US
  • Has a truly impressive collection of educational resources
  • Active Trader Pro terminal provides all the charts and resources you need for options trading
  • Lets you trade options alongside many other asset classes, such as mutual funds, in a single account

Cons 

  • Can be slow to approve or reject options trading applications
  • Fidelity mobile app lacks the charting and research sophistication that you can find elsewhere

In A Nutshell

  • Account Minimum: $0
  • Trading Fees: $0 per trade
  • Contract Fees: $0.65 per contract
  • Exercise & Assignment Fee: $0
  • Promotion: None
Fidelity Investments

on Fidelity’s website


What to Look for in an Options Trading Platform

Finding the right options trading platform for your needs starts with knowing what to look for in an online brokerage. Here are some of the most important things to keep an eye out for as you select a platform for options trading.

Trading Commissions & Fees

While most online brokerages have done away with commission fees for stock and ETF trades, options trades are another story altogether. Many brokers still charge fees for options trades, so it’s imperative that you understand what you’re agreeing to pay for when you sign up for a platform.

As a general rule, options trading platforms have a few main fees:

  • Trading Commission Fees: Some online brokerages charge you a trading commission fee when you buy and sell stocks or other assets as part of an options contract. Keep in mind that this fee is sometimes called a “base fee,” but we refer to it as a trading or commission fee in this article.
  • Contract Fees: In addition to a trading commission fee, the majority of brokerages charge you a fee per options contract (this is called a contract or premium fee). Note that this fee is usually charged both per leg and per share of your contract. Since a contract typically has 100 shares of an underlying stock, a contract fee of $0.50 would cost you $50 ($0.50 x 100 = $50) per leg.
  • Exercise & Assignment Fees: With some brokerages, you’ll have to pay an exercise fee on long options contracts whenever you exercise your right to buy or sell your contract’s underlying assets (normally a stock or ETF). Additionally, some brokerages charge assignment fees for holders of short positions when the underlying asset holders exercise their right to buy or sell their contract’s underlying assets. These exercise and assignment fees vary, but they can be as high as $15 or $20.

Many brokerage firms have eliminated trading commissions for options trades, but contract, exercise, and assignment fees are still very common. Either way, it’s vital that you double-check the fees that a platform charges before you place options trades so that you can minimize your overall investment costs.

Account Minimums

Nowadays, many brokerage services have $0 account minimums, so you can open an account and deposit as much or as little as you want. However, there are still many trading platforms out there that have minimum account balance requirements for all traders, so this is something to keep in mind before you open an account.

Also note that some brokerages have specific minimum balance requirements only for options traders. In other words, you may be able to open an account with the firm with just a few hundred bucks, but you might not qualify for options trading privileges until you meet a certain minimum balance requirement.

Research & Trading Tools

Some options trading platforms simply offer trading terminals where you can open and close positions. But many others offer a slew of different research and trading tools so you can better time your trades.

There are many different research and trading tools out there that are valuable to options traders, though customizable charts (for price, volume, profit & loss, etc.), options scanners, and probability analysis features are all super valuable. Some platforms also offer options strategy builder tools to help you make higher-quality and complex trades.

In addition to research and trading tools, it’s worth considering what options markets a given trading platform offers to its investors. Some of the platforms on our list only support options trades of US-listed stocks, while others also support international stock options markets, index options, forex options, and options on futures contracts.

Educational Resources

There are no ifs, ands, or buts about it: Options trading can be complex. Therefore, no matter where you are on your options trading journey, it’s nice to have a brokerage service that provides you with extensive educational resources to help you become a better investor.

Educational resources from brokerage services run the gamut, from basic informational articles and in-depth videos to podcasts and exclusive webinars from industry experts. If you’re an experienced options trader, these resources might not be as important to you, but they’re still worth seeking out regardless of your comfort level with options trading.

Customer Support

Quality customer support is an integral part of any reputable online brokerage. While you hope to never have to use these services, it’s vital that you can quickly contact a real human being who can help you fix any issues that may arise with your account during the trading day.

This sort of support is especially important for options traders. That’s because you need to know that a broker has a well-trained customer service team that will be there to help you work through complex trades and options contracts at a moment’s notice.

User Experience & Interface

Last but not least, you always want to consider the user interface and ease of use of any options trading platform before you sign up. To some degree, this has more to do with aesthetics than anything else. But a well-designed trading terminal that’s easy to use can go a long way toward making your investing experience as seamless as possible.

Additionally, you should always investigate whether a given trading platform offers desktop or mobile apps. Some investors are happy to use web-based trading terminals, but you can often get more advanced features on a desktop app. If you want to be able to place trades on the go, you’ll also want to look for a broker that supports options trading in its mobile apps.


FAQs: Best Options Trading Platforms

Here are our answers to some of your most commonly asked questions about the best options trading platforms.

How Much Money Do I Need to Trade Options?

Many brokerages services don’t have clear-cut minimum account balance requirements for options trading. However, since options contracts are usually equivalent to 100 shares of an underlying asset, you won’t be able to do much options trading with less than $1,000. Most people find that they need at least $5,000 to $10,000 to place effective options trades.

Is Robinhood A Good App For Trading Options?

Robinhood is a good app for trading options, especially if you’re relatively new to this kind of investing or if you want to avoid commission and contract fees at all costs. But Robinhood’s trading terminal isn’t great if you want to build complex options strategies. Therefore, more experienced investors might want to look elsewhere for their options trading needs.

Which Brokers Offer Zero Commission Options Trading?

Most major brokerage firms, such as Fidelity, Charles Schwab, and TD Ameritrade, offer zero commission options trading. But most commission-free brokers charge a contract fee on options that’s normally between $0.50 and $0.65 per leg. To avoid these fees altogether, consider trading with a firm that doesn’t charge commission or contract fees, like Robinhood, Webull, or Firstrade.

Is Options Trading Risky?

Options trading is inherently risky—more so than standard stock and ETF trading. That’s because, unlike with regular stock trading, you can lose more money than you initially invested in a very short period of time when you trade options. Therefore, options trading is only recommended for experienced investors with a high-risk tolerance.

Can I Trade Options Without a Broker?

Technically speaking, there are ways to trade options without a broker, but these strategies aren’t available to or practical for most individual investors. If you’re interested in options trading, your best bet is usually to create an account with a low-cost brokerage that can help you place trades with ease.

Do Options Trading Platforms Offer Paper Trading?

Not all options trading platforms offer paper trading, but some do. If you want to trade options but also want to test out your strategies before you execute them in real-life, consider a platform like E*TRADE, which also offers paper trading.


Final Thoughts

Options trading is a potentially useful way for experienced traders with well-diversified portfolios to hedge risk in times of high market volatility. If you decide that trading options is right for your needs, you’ll need to make an account with a reliable brokerage service to help you execute your trading strategies.

There are dozens of excellent options trading platforms out there, each of which caters to the needs of a different kind of investor. We hope this article helped you learn more about the platforms that are available to you so that you can select the one that best aligns with your trading style.

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