Compare options brokers online

Best Option Brokers.

Choosing which broker to use when trading options is without doubt one of the single most important decisions you will ever need to make in your trading career. Using a good broker can save you money, increase your profitability, save you time, help you find trading opportunities, and it will generally improve your overall trading experience.

The following is a list of the overall best online brokers that we recommend. If you are looking to sign up with a broker now, then we would advise that you take a look at any of the below online brokers. For advice on choosing an options broker, plus further recommendations in specific categories, please see read on.

Competitive Commission Structure Easy to Use Platform for Traders Allows for a Fully Customizable Experience.

Competitive Fees Interaction with a Community of Traders Educational Resources for Beginners.

One of the Best For Trading Features Top of the Line Trading Platform Extensive Customization Available.

You'll see from the above table that we provide reviews of the brokers that we recommend. For a list of all our reviews, plus information on exactly how we go about reviewing brokers, please visit this page. These reviews can help you make a decision about which of our recommendations is the right one for you.

Despite the importance of choosing a broker carefully, many traders sign up with any old broker and simply join the first one they come across or the one that offers the best sign up incentive. Not putting any thought into what broker to use is a big mistake because, this really is a decision that is well worth spending some time on.

If you are lucky enough to know an experienced trader that you trust then asking them which broker they use is a good way to find a decent broker, but that isn't a course of action that is available to everyone. Alternatively, you could try out a range of different brokers, compare them, and decide which one is best for you. However, this would be pretty time consuming.

About This Section.

We have produced this section specifically to help you choose a broker. As well as the list of our top rated online brokers above, we have also produced a number of other lists. Each one of these contains a number of recommended online brokers that are particularly suitable for a specific purpose.

You can see each of the broker categories that we cover linked over to the right. We have also provided some brief details about each category further down this page.

Full Service Brokers vs. Discount Brokers.

The first page in our section on the best options brokers is a comparison between the two main types of brokers: full service brokers and discount brokers. The distinction between the two is quite important to understand, as the services offered by the two is substantially different.

In very basic terms, a full service broker will provide clients with advice and guidance in addition to executing orders as instructed while a discount broker will simply carry out orders on behalf on their clients. Both types have their advantages, and we explain more on the following page: Full Service Brokers vs Discount Brokers.

Best Brokers For Beginner & Small Traders.

When you first begin trading, the chances are that you will be starting out with a relatively small amount of capital, and indeed you may be planning to only ever make small trades. Beginners and those trading with a low budget should be looking for fairly specific attributes before signing up with a broker. An appropriate commission structure and low minimums for both the size of your deposits and value of your trades is essential. Any sign up incentives being offered could also be significant too.

If you are a beginner when it comes to options trading we suggest taking a look at what we have found to be the best brokers for people just getting started.

Best Brokers For Stock Options.

As you probably know, contracts can be based on a variety of different underlying securities which give you many choices. Probably the most commonly traded are stock options; those contracts where the underlying security are stocks in publically listed companies.

It isn't particularly difficult to find brokers that are suitable for trading stock options, but it's still important to choose your broker wisely. If you are planning on trading mostly stock options, then please visit the following page for relevant recommendations. These all do an excellent job when it comes to trading stock options.

Best Brokers For Forex Options.

Forex options are contracts where the underlying security is foreign currencies. These are also very commonly traded, so finding an broker where you can trade forex options is not too much of a challenge.

However, there are certain brokers that particularly stand out and that we believe are worthy of our recommendation. It's very important to find a forex broker that can meet your needs. For a complete list of these recommended brokers and more details on what you should be looking for when deciding where to sign up, please visit the following page.

Best Brokers For Binary Options.

Binary options are a unique form of contract that work a little differently to most others (please see our page on Binary Options for more details) and they are ignored by many traders as they often perceived to be a bit more complicated than the more standard type of option.

In fact, the basic principle of binary options is relatively straightforward and trading binary options is becoming increasingly more popular among traders. Not all brokers will deal with binary options, but for a list of recommended brokers that do please visit the following page.

Best Brokers For OTC Options.

OTC options are those contracts that aren't listed on a public trading exchange but are instead traded over the counter. Those options tend to be highly customized contracts that have complicated terms that include many of the exotic options that exist. Because OTC options are not traded on the public exchanges they are not generally as accessible to the public and are more typically traded between large financial institutions.

Many traders do like to trade OTC options though, in which case it's important to use a broker that is suitable for the purpose. Please visit the following page for recommended brokers in this category.

Best Brokers For Active Traders.

Traders that use active trading styles, such as the day trading style, typically make a large number of transactions on a daily basis. As such, one of the most important attributes that active traders need to look for when choosing a broker is a commission structure that is very competitive and ideally provides for a discount when making a lot of trades.

However this isn't the only consideration that active traders need to take into account and choosing a broker purely based on the commissions charged is rarely a good idea. For more advice on this, along with recommendations of suitable services, please visit the following page.

Best Brokers For Auto Trading.

An increasingly popular way to try and profit from options is by using auto trading services which basically involve a trader signing up with an organization that will find opportunities for trading and then automatically place the relevant orders with the trader’s broker. There are a number of services around and although they aren't necessarily the ideal way to trade, they can potentially be profitable.

One of the biggest problems facing traders that wish to use auto trading services is that not all brokers allow it. For a list of the top places that do, please visit the following page.

Brokers with Best Trading Platforms.

The quality of the trading platform is something that many traders overlook when choosing an online broker, but it really is something that is very important for anyone that is trading options. A decent platform should be well designed with a user-friendly interface as brokers that make it easy to place orders will generally enhance your overall trading experience.

This isn't something that should be ignored if you are going to be spending any sustained length of time trading options each day. For a list of recommended brokers that meet these criteria, please visit the following page.

Options Trading Brokers 2017.

Tuesday, February 21st, 2017.

Options Trading Best Brokers.

Based on over 100 different variables, here is are the top five brokerages for options trading.

Options Trading.

Next to active traders, there is arguably no client more valuable to an online broker than an options trader. Options trades offer much higher profit margins for brokers than stock trades, and, as a result, competition is fierce in attracting these clients. This type of market atmosphere is great for investors because with healthy competition comes innovation and competitive pricing.

OptionsHouse not only offers highly competitive options commissions, but also a fantastic platform.

Our winner again this year, OptionsHouse (acquired by ETRADE in 2016), understands what it takes to succeed in this niche. OptionsHouse not only offers highly competitive options commissions, but also a fantastic platform. Options trades are a flat $4.95 + $.50 per contract. Only Interactive Brokers offers better all-around pricing for options trades.

Options Trading Tools.

Platform wise, OptionsHouse’s web-based platform offers all the tools an options trader could want and displays them in magnificent form. Attention to detail, like automatic alongside custom spreads groupings, effortless scanning through strategySEEK, and easy-to-understand risk/reward data through tradeLAB, make OptionsHouse a truly unique experience. The OptionsHouse platform is the best in the industry.

Keeping the spotlight on high-octane platforms and tools for options traders, TD Ameritrade’s thinkorswim and TradeStation cannot be left out. Strategy Roller from thinkorswim allows clients to create custom rules and roll their existing options positions automatically. The number of settings and depth of customization available is impressive, and something we’ve grown to expect from thinkorswim. Not to be outdone, TradeStation’s OptionsStation tool makes analyzing potential trades a breeze, and even goes as far as including 3D P&L charts. Investors note, however: Popcorn and 3D glasses are not required, and while visually appealing, we did not see any distinct advantage over the traditional 2D P&L chart.

If unique features and functionality matters to you, Charles Schwab offers the “Walk Limit” order type, which will "walk" your order to try to get the most favorable price within the National Best Bid or Offer (NBBO), is really impressive. The broker also offers Idea Hub, which uses targeted scans to visually break down new possible options trades.

There are a lot of great brokers to choose from in the world of options trading. In 2017, investors should expect their broker to include scanning, P&L analysis, risk analysis, and easy-order management. Position management functionality and tying the experience all together is where platforms like OptionsHouse and thinkorswim really stand out and distinguish themselves. Ultimately, it comes down to personal preference and weighing priorities, such as cost per trade versus ease of use and tool selection.

Options Brokers Summary.

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Best Options Trading Brokers and Platforms.

NerdWallet offers financial tools and advice to help people understand their options and make the best possible decisions. The guidance we offer and info we provide are deeply researched, objective and independent.

We spent over 300 hours reviewing the top online brokers before selecting the best for our readers. And to help you find the one that’s best for you, we’ve highlighted their pros, cons and current offers.

Who is the best options broker today? The answer depends on whom you ask and what they value. For some investors, the best broker for trading options is the one with the cheapest commissions. Others prioritize trading tools, platform design, research, customer service or all of the above.

While most of the brokers on our best-of list below would be a good, all-encompassing choice for many investors, we’ve also highlighted the standout candidates in specific areas that matter most to options traders.

Unsure what you’re looking for? See how to choose an options broker for more on what can make or break an options trading experience.

Summary: Best online stock brokers for options trading.

Best for low-cost.

Best options trading platform.

Best for research and education.

Best overall for options trading.

Our top picks cover all the option trader needs — access to high-quality research, analytical tools, a user-friendly platform — at reasonable prices.

TD Ameritrade and Interactive Brokers earn high marks for options investors for their advanced trading platforms, deep bench of research and tools, plus their high-caliber options trading capabilities.

TD Ameritrade handily serves option traders no matter where they are on the learning curve. The broker’s thinkorswim platform offers a robust options trading experience for active investors seeking professional-grade tools to identify trading opportunities, analyze potential risks and rewards, test trade strategies and quickly place even the most complex options trades.

The broker’s web-based Trade Architect platform is for investors just getting into options or those who don’t require a high-octane platform. Its stripped-down, easy-to-use interface won’t overwhelm newbies. And although Trade Architect isn’t as fully stocked with tools and data as thinkorswim, it’s no slouch, either. Intermediate investors will find advanced features like a market/options heat map, screening and tradefinder tools, and streaming news. Get details in our TD Ameritrade review.

For cost-conscious, active options traders looking for low costs and a platform with a lot more meat on its bones, Interactive Brokers may be more your style. Interactive Brokers charges just 70 cents per contract with no base fee ($1 minimum order), plus discounts for larger volumes, if you can manage the $10,000 account minimum. Its Trader Workstation platform (with an options strategy lab) is considered one of the best and most sophisticated around. But watch other fees to ensure that the lower commissions pay off.

Both brokers allow prospective clients to test-drive the goods without putting any real money on the line. TD Ameritrade offers a paperMoney virtual trading account to test out the thinkorswim platform. At Interactive Brokers, once customers open a real account (which has a $10,000 minimum funding requirement), they can set up a paper trading account that offers them hands-on practice using IB’s Trader Workstation platform and tools.

Best brokers for low-cost options trading.

These brokers offer competitively priced options trading commissions and have eliminated or dramatically capped minimum trading fees.

In early 2017 most of the mainstream online brokers slashed commissions to levels once reserved for their deep-discount peers. That doesn’t mean that they’re the best deal in town for every investor.

For active options traders, eOption earns five stars from NerdWallet for its low options trade commissions. The company charges a fixed $3 base plus 15 cents per contract. Another plus: eOption is known for having some of the lowest margin rates available. Although eOption charges a $50 annual inactivity fee on accounts that have placed fewer than two trades in the past 12 months or have less than $10,000 in credit or debit balances, the minimum trade workaround isn’t onerous, even for infrequent traders.

Charles Schwab’s trade commission of $4.95 base rate plus 65 cents per contract puts it within spitting distance of deep-discount peers. Schwab recently fully took over the old OptionsXpress and incorporated that broker’s options experience into its own platform, with both web-based and mobile functionality.

Commissions aren’t the only costs associated with trading options. Platform, data and other fees can quickly cancel out what you save on commissions. See our full reviews of Charles Schwab and eOption for details on what they offer. For those simply looking for a cheap way to execute options trades, Charles Schwab and eOption get the job done.

Best options trading platforms.

These brokers offer some of the most powerful trading platforms available for a reasonable price.

Judging a broker’s trading platform by the number of features it offers is like buying a car based solely on what you read in the dealer brochure. While all investors have their must-have features, what’s more important is how the platform feels when it’s in their hands.

The trading platforms at Ally Invest and TradeStation offer a wide variety of analytical tools, provide stable and speedy trade execution, and allow investors to customize the tools and design to best suit their needs.

Unlike TradeStation, Ally Invest (formerly TradeKing) is technically a deep discount broker as reflected in its commissions (options traders pay a $4.95 base plus 65 cents per contract with only one base charge per spread), $0 account minimum and free access to research and data. Frequent traders (those who place 30 or more trades per quarter or who carry a balance of $100,000 or more) pay a discounted $3.95 base and 50 cents per contract.

But don’t be fooled by the lower prices: Customers get a lot of platform power for free.

Ally is suitable for newer options investors. The browser-based platform resembles the offerings of its pricier competitors and comes with free options trading tools for screening and advanced charting. Navigation is easy and streamlined. Customers can create a custom dashboard with movable modules with the data and features they want to use. The setup extends to what users see across all devices, including mobile and tablet.

TradeStation is best left to more experienced, tech-savvy investors who want to experience options trading using the same tools as pro traders. The broker provides all the tools needed to design, test-drive, monitor, automate and speedily execute the most complex trades via direct-market access (no pesky middleman to slow down the process). Its OptionsStation Pro platform is fully integrated into TradeStation’s regular trading platform. An added bonus is the broker’s active investor forums, where traders discuss ideas, ask questions and get help.

Access to all of TradeStation’s bells and whistles used to come at a steep $99.95 monthly platform fee for those who didn’t meet account balance or trading activity minimums. But in March 2017 TradeStation eliminated the service fee, lowered its trade commissions for stocks and options and tossed in free real-time market data and free access to its market-monitoring and portfolio-level back-testing tools. Educational tools and platform tutorials are plentiful, which is a plus: Because of the sophisticated nature of the platform, it may require some time to become familiar with all that it offers. See more in our TradeStation review.

Best research and options trading education.

Both offer extensive research and data for free, as well as live classes and webinars for beginning and advanced options traders.

If you’re new to options trading or want to expand your trading strategies, a broker that devotes its resources to research and customer education is a must. Because Schwab and Fidelity each have offices across the country in addition to their online options education libraries, they’re able to offer in-person guidance and free seminars on how to trade options, as well as one-on-one guidance on using the tools each platform offers.

Fidelity’s constantly refreshed library draws from more than 20 providers, including Recognia, Ned Davis, S&P Capital IQ and McLean Capital Management. The full suite is available to customers when they sign into the broker’s web-based platform. And you don’t have to stop digging when you’re away from your computer: Fidelity has a strong mobile app that lets customers access the company’s full suite of research through a mobile browser.

Charles Schwab’s options trading capabilities and lineup of trading data and research got a big boost as the company integrated its purchase of OptionsXpress. In October Schwab re-launched its online platform under the StreetSmart name, with both web-based and mobile functionality, though for now only former OptionsXpress clients have access to the new platform. In the first quarter of 2018, Schwab will begin rolling out the new platform to all clients. While the platform name is changing, Schwab still provides a fully realized suite of offerings for options traders, including trade assessment tools, customizable screeners, access to Schwab analyst options-market commentary, live online webinars and pre-recorded seminars.

Best brokers for beginner options investors.

These brokers provide ideal conditions (educational resources, user-friendly platforms, customer support and low minimums) for investors just learning the options trading ropes.

TD Ameritrade — one of our top overall brokers — ranked highest in this category, too. But since there are many types of beginners with many different preferences, instead of highlighting the category champions we’ve focused on brokers that are excellent candidates in three key areas:

Low minimum opening balance requirements.

Ally Invest, TD Ameritrade, Merrill Edge: If you’re not yet ready to devote a lot of your capital to options trading, you don’t want to tie up much in an account to meet the minimum. Many of the brokers on our list require no money to open an account. However, industry regulations require that traders maintain a $2,000 minimum to trade options.

Strong customer support.

Scottrade and TD Ameritrade: On-call help is particularly handy when starting out. One way to test a broker’s level of service is to contact the company with any questions you have about its option trading offerings before you even open an account. Scottrade is known for its standout customer service and huge physical presence of 500 branches. So is TD Ameritrade, with around-the-clock phone and support and 100 branches where clients can attend seminars and meet with investment associates. At the end of 2017, TD’s acquisition of Scottrade will be complete, increasing each broker’s ability to serve clients.

User-friendly platforms.

Ally, Charles Schwab and TD Ameritrade: There’s nothing better than test-driving a broker’s platform before you commit. Check to see if the broker you’re considering offers paper trading (virtual trading on a platform that mimics the real deal) or contact customer service to see if they will set you up with a demo account. As for brokers discussed in this review, Ally Invest’s browser-based platform is intuitive and easy to customize. And both Charles Schwab and TD Ameritrade have multiple platforms customers can use to start learning the ropes, then graduate to more sophisticated tools and trades if desired.

Best options trading brokers: summary.

Updated June 30, 2017.

Disclaimer: NerdWallet has entered into referral and advertising arrangements with certain broker-dealers under which we receive compensation (in the form of flat fees per qualifying action) when you click on links to our partner broker-dealers and/or submit an application or get approved for a brokerage account. At times, we may receive incentives (such as an increase in the flat fee) depending on how many users click on links to the broker-dealer and complete a qualifying action.

Compare Online Brokers.

Posted by Blain Reinkensmeyer | Last modified on Nov 14th, 2017 | Published Mar 28th, 2017.

Investors searching for a new broker should compare online brokers to find the best solution that suits their needs. Below we have a breakdown of nine stock brokers sorted by overall rating: TD Ameritrade, ETRADE, Fidelity, Charles Schwab, Ally Invest, Scottrade, Interactive Brokers, and Just2Trade.

The below broker ratings makes it easy to compare and find a new online broker. While most investors simply seek out low trade commissions it is important to note that trading tools, research, and customer service are also very important factors to consider. For further research, see our guide to the best stock brokers.

Ranked #1 Overall 2017 by StockBrokers $6.95 stock trades Fantastic all-around client experience Visit Site.

Summary : A full-service online broker with over $700 billion in total client assets. Over 6.5 million brokerage accounts serviced.

Our Take : TD Ameritrade shines for its outstanding platforms and tools suited for both active and casual traders alike.

$4.95 stock trades #1 for Order Execution as well as Research Extremely diverse product offering Visit Site.

Summary : A full-service online broker with $1.71 trillion in total client assets as of Dec 31, 2016. Largest broker in the United States.

Our Take : Fidelity is a top-notch experience with quality customer support and fantastic investment research.

$6.95 stock trades Known for its OptionsHouse platform Pro platform not available to all clients Easy to use website Visit Site.

Summary : A full-service online broker with nearly $300 billion in total client assets. Known for its once prevalent E*TRADE baby commercials.

Our Take : E*TRADE provides customers a diverse offering and is the industry leader in options trading thanks to its OptionsHouse trading platform.

$6.95 stock trades Outstanding rewards program Excellent choice for Bank of America customers Visit Site.

Summary : Merrill Edge is a full service online broker providing investors the ability to easily trade stocks, ETFs, options, and more.

Our Take : Merrill Edge is a well-rounded broker with top-notch customer service and quality tools for investing. A great value for current Bank of America customers.

$5.00 stock trades Award-winning trading platform Great all-around offering for advanced traders Visit Site.

Summary : TradeStation is an online broker built for seasoned traders who seek advanced trading tools and low costs.

Our Take : For active traders who can learn to use the TradeStation platform, ample doors will be unlocked when it comes to market monitoring, trade analysis and execution.

$6.95 stock trades Known for its investment research Largest selection of commission-free ETFs (229) Visit Site.

Summary : A full-service online broker with over $2.73 trillion in total client assets. “Own Your Tomorrow” tagline.

Our Take : Schwab offers a great all-around online trading experience with fantastic research.

$4.95 stock trades Ally Invest LIVE platform Sync accounts with Ally Banking Visit Site.

Summary : Ally Invest is a discount online broker providing $4.95 stock and options trades with full banking services from Ally.

Our Take : A great solution for current Ally banking customers, Ally Invest stands out with quality customer service and low cost trades.

#1 for International Trading $.005 per share trades ($1 min) Professional traders recommended $110,000 min deposit (margin accts) Visit Site.

Summary : Trade equities, options, futures, forex, etc. with lowest commissions in industry. Tagline, “Trade on over 100 market centers in 24 countries.”

Our Take : Best rates, #1 rated for international trading, designed exclusively for professional active traders with at least $110,000 in assets and ample market experience.

$2.50 stock trades Poor support Basic site design Lack of tools Visit Site.

Summary : Discount broker advertising ultra cheap stock and options trades with no gimmicks or catches.

Our Take : Ignore the marketing, trust us, the cheap trades aren’t worth it. Just2Trade cuts every corner possible and is a terrible overall experience.

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