Options Trading

Compare Options Trading

Interactive Brokers
• Options Trading: $.70 per contract ($1 minimum per order)
Pros: Large number of investments, including options, futures, and forex Customize trading platform Tools and opportunities for research

Cons: $10,000 minimum to open an account. Platform can be too much for a beginner to understand Inactivity fees if you don't meet the trade commission requirements.
Our Review: (4.3) Do you have $10,000 and plenty of trading knowledge? Interactive Brokers may provide you with a solid trading platform. With their competitive fees and robust trading options, they are a common choice for the experienced trader... Read full review


Ally Invest
• Options Trading: $4.95 base + $0.65 per contract (50 cents per options contract special pricing for high-volume/high-balance traders)
Pros: Low commission for stock trades No account minimums Ally LIVE platform

Cons: No physical locations
Our Review: (4.4) Ally Invest (formerly TradeKing) offers one of the lowest trade fees, but is it good? Learn the pros and cons and see comparisons with other online brokers in this in-depth review... Read full review
Get Up to $3,500 Cash Bonus and Commission Free Trades for 90 Days


Fidelity
• Options Trading: $4.95 per online trade, plus $0.65 per contract
Pros: Research reports Beginner-friendly tools Mobile app

Cons: Restricted platform
Our Review: (4.4) Thinking of opening a brokerage account with Fidelity? There are many reasons to love Fidelity and a few reasons to think about going elsewhere... Read full review
Get 500 Free Trades for 2 Years


Charles Schwab
• Options Trading: $4.95 + $0.65 per contract
Pros: Vast selection of commission-free ETFs and mutual funds 2 platforms (one for beginners and one for advanced traders) 24/7 customer service including online chat

Cons: $1,000 minimum to open a brokerage account Commission costs on mutual funds outside of the commission-free funds Robo-advisor option requires a minimum investment of $5,000
Our Review: (4.2) Charles Schwab is one of the oldest names in the world of investing. With something for investors of all levels, it's often the go-to brokerage for investors looking for a new broker... Read full review


TD Ameritrade
• Options Trading: $6.95 + $0.75 per contract
Pros: Easy to Use Thinkorswim Platform Customer Service

Cons: Trade Fees
Our Review: (4.2) Ameritrade fees are higher than competitors, but is it worth it? We say yes and here's why. We analyze and compare it for you in our in-depth review... Read full review
Get 60 Days of Commission-Free Trading


E*TRADE
• Options Trading: $6.95 + $0.75 per contract
  $4.95 + $0.50 per contract if you make 30+ trades a quarter
Pros: Expansive set of resources and tools Easy to use website Industry leader

Cons: Trade fees
Our Review: (4.2) E*TRADE is a highly well-known name, but does that mean it's that much better than its competitors? Read our in-depth review and see how it compares... Read full review
Get up to 500 Commission-Free Trades


Scottrade
• Options Trading: $6.95 + $0.70 per contract
Pros: Low per trade fees Physical locations Easy-to-navigate website

Cons: No futures trading High broker-assisted fee
Our Review: (4.2) With low trade fees, excellent resources, and superior customer service, Scottrade is a highly trusted online broker. Read on for our in-depth review... Read full review
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Merrill Edge
• Options Trading: $6.95 + $.75 per contract
Pros: No account minimums Current Bank of America customers experience seamless account integration Robust research opportunities

Cons: Platform is not friendly for frequent traders who execute quick trades No commission-free ETFs available Market research reports can be hard for beginners to understand
Our Review: (4.3) If you are looking for excellent customer service, competitive pricing, and robust investment options, you may have found what you are looking for in Merrill Edge... Read full review


Vanguard
• Options Trading: Less than $500,000: $7 + $1 per contract.
  $500,000+: $2 + $1 per contract
Pros: Large selection of mutual funds and commission-free ETFs Broker assistance is available at no additional cost Easy to use

Cons: Commission structure penalizes frequent traders Customer service wait times Commission costs on non-Vanguard investment options
Our Review: (3.9) Vanguard Brokerage may be a full-service broker, but typically long-term investors preferring ETFs and mutual funds see the greatest return on their investment with them... Read full review

Articles on Options Trading

Best Options Broker
October 13, 2017 - Reviews
The best options broker offers great service, low prices, and a user-friendly trading platform. Find the top options brokers to consider.

How to Trade Options
Tips
Trading options is complex, but could be highly profitable. Educate yourself with this options trading tutorial for a simple introduction.

Implied Volatility
February 9, 2018 - Tips
Wouldn't it be nice if someone could tell you which options to trade? If you had a crystal ball that showed you how an option would perform?

Iron Condor
February 2, 2018 - Tips
What if you could limit your losses while predicting your profits? It sounds too good to be true. It's possible with the iron condor, though.

Butterfly Spread
January 26, 2018 - Tips
Predicting a stock's future can be a profitable investment. It can also lead to tremendous loss. Wouldn't it be nice if you could limit your losses? It may be possible with the butterfly call spread.

Strangle
Tips
Trading options means you predict what a stock will do. That's not an easy job. If you want a little more leverage on either side, you can use the strangle strategy. You strangle the stock on either side with an option. This gives you protection ...

Collar Option
Tips
What if you could minimize your losses on a stock? It sounds like a dream come true, right? The collar option gives you that chance. It comes at a cost, though. You'd have to maximize your profits. Is it worth it?

Call Long
Tips
You think a stock's price will increase, so you want in on that trade. What if you didn't have to fork over the entire amount of capital? What if you could pay a much smaller premium and still make money?

Protective Put
Tips
If you could have protection while investing in stocks, wouldn't you jump at the chance? That's what a protective put offers. It's not a guarantee - there can still be losses. But, with the right strategy, it can help you make the most of your ...

Covered Call
Tips
Making an extra premium while you wait for a stock to increase sounds like a dream come true. That's what a covered call does for you. It's not an exact science. There are no guaranteed profits. There are also no limits to your losses. It can be ...

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