Options Trading

Compare Options Trading

Ally Invest

• Options Trading: $0 base + $0.50 per contract

Pros: Low commission for stock trades No account minimums Ally platform

Cons: No physical locations

Our Review: (4.4) Ally Invest (formerly TradeKing) offers free trades for stocks and ETFs, but is it good? Read this review to learn the pros and cons and see comparisons with other online brokers... Read full review

Get Up to $3,500 Cash Bonus

TD Ameritrade

• Options Trading: $0.65 per contract

Pros: Easy to Use Thinkorswim Platform Customer Service

Cons: Trade Fees

Our Review: (4.2) TD 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

Commission-Free Trading - Online Stock, ETF and Option Trades

E*TRADE

• Options Trading: $0 per trade + $0.65 per contract
  $0 per trade + $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 $100 Cash Credit

Fidelity

• Options Trading: $0 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

Commission-Free Trading - Online Stock, ETF and Option Trades

Charles Schwab

• Options Trading: $0 + $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: 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 low fees, no account minimums, and robust research tools, it's a good brokerage for all levels of investors... Read full review

$0 Commissions on Online Stock, ETF, and Options Trades

Interactive Brokers

• Options Trading: $.15-$.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

ZacksTrade

• Options Trading: $3 for First Contract + $0.75 per additional

Pros: Fees starting at $3 per trade Outstanding research tools No additional fees for broker assisted trades

Cons: Not beginner friendly $2,500 minimum to start

Our Review: (4.4) Stock traders that hear the name Zacks likely think of research. That's because Zacks has been a top provider of investment research for many years. The company has since broadened their services to offer an online brokerage firm... Read full review

Scottrade

• Options Trading: $0 + $0.65 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: $0 + $0.65 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

Get $150 with New Merrill Edge Account

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
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
Trading options is complex, but could be highly profitable. Educate yourself with this options trading tutorial for a simple introduction.
Implied Volatility
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
Imagine being able to limit your losses while predicting your profits. Sound too good to be true? It's possible with the iron condor. Read on to learn more.
Butterfly Spread
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
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
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
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
A protective put offers protection when investing in stocks. It's not a guarantee against losses. But coupled with the right strategy, a put can help make the most of your investment.
Covered Call
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 ...
Bull Call Spread
When you think a stock is going to increase, it makes sense to jump in while it's low, right? What about the potential loss? Is it something you can risk? What if you could take advantage of the increase while protecting your losses?
Options Trading
Options offer leverage when trading stocks. Can they boost your portfolio? Learn the benefits and risks before you invest.
Options Trading Strategies
Bears, bulls, calls, and puts can make your head spin. Options trading does have the tendency to get overwhelming. But breaking it down can help you understand the strategies.
Calls and Puts
What is a put and a call option? Learn the basics here. Understand how options help you gain leverage while using less capital.
Put Options
Learn what is a put option. See trading examples and understand when you should consider buying (or selling) put options.
Call Options
Learn what is a call option. See trading examples and understand when you should consider buying (or selling) call options.
Options Trading Mistakes
The right options trades can be profitable. The wrong trades can be devastating. Read this to learn the most common mistakes and how to avoid them.

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