Best Online Brokers for Options Trading

We've tried dozens of online brokers that offer options trading over the years -- some impressed us, others not quite as much. And with a litany of options brokers out there all vying for your deposits, and more popping up all the time, choosing one to invest with has never been harder.

So we've decided to put all our experience to good use by creating a definitive list of the best online brokers for options trading in August 2024, with selections for every type of investor. In a hurry? The best all-around option is Interactive Brokers, but Robinhood could be a better choice for those new to investing.

Quick Look at the Best Options Brokers:

• Best Overall for Options Trading: Public.com
• Best for Global Traders: Interactive Brokers
• Best for Beginners: Robinhood
• Best for Active Traders: moomoo
• Best for Non US Forex Trading: Avatrade
• Best for Short Selling: TradeZero
• Best for Fund Investing: Charles Schwab
• Best for Options Spreads: Options AI
• Best for Long-Term Investors: Magnifi
• Best for Advanced Traders: TradeStation
• Best for Trading on the Outcome of Events: Kalshi

12 Best Brokers for Options Trading

Low commissions are just the tip of the iceberg when it comes to choosing the best options trading platform. Traders need to consider hidden fees, such as platform fees and data fees.

Different traders have different skill levels, trading strategies and needs. Options trading can be complicated and beginners need to make sure to find a platform with plenty of educational resources and guidance. Advanced traders need to look for professional-grade features and research. Before choosing the right brokerage account, each trader needs to consider his or her trading style and which features are most important in maximizing profitability.

Here’s an overview of some of the best brokers for option-trading platforms based on several different criteria.

1. Best Overall: Public.com

Public.com makes it possible for you to diversify your investments to a great extent, including stocks, ETFs, crypto and alternative assets. This means that you can buy into art, collectibles and much more in the Public.com app.

If you want to buy into options, you can earn 50% of the options revenue that Public.com takes in on every transaction. This makes Public.com the cheapest place to trade options for all investors. You can also earn a lifetime 50% rebate when you active options trading (which may shift into a tiered offering in the future.)

There’s more than enough information on every asset, and that’s information makes it far simpler for you to understand what you’re buying and why. With informed decision-making, you can enhance your profitability. There’s also an educational section that will teach you about these alternative assets and other aspects of building your portfolio, allowing novices to get started right away and on-budget. Review the full catalog of strategies, terms and tips along with video content at any time, or you might even turn on the “education mode” that works best for new traders. 

Plus, Public.com onboards you properly so that you get the correct level of options access when you start. Check out the Options Hub at any time when you want to explore strategies, options chains and much more.

Why We Picked It: Public.com has made significant improvements in options access, offering a wider range of options for both new and experienced traders. The platform now includes a more comprehensive educational section, providing valuable resources and information to help users make informed decisions when trading options.

2. Best for Global Traders: Interactive Brokers

Did you know that Interactive Brokers’ clients trade 10x more options than at other brokers? This comes as no surprise, as Interactive Brokers offers commissions on options from as low as USD 0.15 per US options contract. IBKR’s recently introduced the Options Wizard in IBKR Mobile, IBKR GlobalTrader and IMPACT.

They also offer sophisticated options trading tools through their professional trading platforms such as the Options Strategy Builder, which allows traders to create multi-leg combo orders on the fly. Plus, you will have access to a high APY on uninvested cash and industry-leading margin rates.

Why We Picked It: Interactive Brokers is a highly reputable brokerage firm that stands out for its low costs on options trading. Interactive Brokers also offers a wide range of products for traders to choose from. Whether you're interested in stocks, bonds, options, futures or forex trading, they have you covered with their diverse selection of investment options.

3. Best for Non US Forex Trading: AvaTrade

Founded in 2006, the award-winning platform AvaTrade offers traders a diverse range of assets, including more than 50 currency pairs. The broker has an in-house platform and supports several others, including MT4 and automated trading software for copy trading. The AvaTrade Web Trader platforms have 90 indicators and three chart formats for customizable platform options.

AvaTrade offers users a wide range of educational support and has a website called SharpTrader dedicated to trader education and training.

Why We Picked It: The massive number of currency pairs and indicators of AvaTrade allows you to do quite a lot of research in preparation for each move you make with your portfolio. In addition, the educational and support options allow you to learn as you go or get help with your account without waiting around for assistance or answers

4. Best for Beginners: Robinhood

Yes, Robinhood allows traders just like you to buy and sell stocks without commission charges, but the platform is also a good place for options traders. In addition to no-fee trading and a $0 minimum deposit, Robinhood also offers no commission fees and $0 per contract, $0 options regulatory fees and $0 OCC clearing fees. 

On top of the lows fees and easy access, Robinhood provides you with an easy-to-use mobile app that's both responsive and intuitive. Sure, there are not as many advanced trading tools as some experienced traders would like, but this is a good place to start trading options, learn more about each asset and grow into the sort of trader you want to be. 

Why We Picked It: Robinhood offers low to no fees on a variety of investment instruments, making it an attractive option for investors looking to save on costs. Its user-friendly mobile app makes it even easier for users to navigate the platform and execute trades on the go, making it a convenient option for both beginner and experienced investors alike.

5. Best for Active Traders: moomoo

Moomoo is an award-winning platform for beginner and intermediate options traders. Its user-friendly design makes it easy to navigate, while providing powerful and extensive analysis capabilities. Stock options trading on moomoo is commission-free with no contract fees. The platform offers a wide range of free features, including an options calculator, options ranking, option unusual activity and more. With its robust functionality, moomoo is an ideal choice for those looking to grow their options trading skills.

When you register for an account with Moomoo, you can unlock several unique features, including:

• Real-time Level 2 stock and options market data
• Advanced technical indicators and charting too
• Smart orders
• Full extended trading hours from 4 AM to 8 PM EST
• Multi-market quotes
• Low fees including $0 commission on U.S. Stocks and ETFs, along with $0 options contract fees
• Cash sweep program at 5.1% APY and a 3.0% APY boost for qualified users

Users can reach out to the Moomoo customer support team either by phone during the trading day or via email. You can also review FAQs in the Help Center for more information or to get your questions answered.

Some new features of moomoo include:

• New User Deposit Bonus: Deposit $100 and receive 7 fractional shares of a star-stocked bundle ("Magnificent 7" at $5 each)
• New User Transfer Bonus: Get a 1.5% cashback on your initial transfer amount (up to $300)
• Referral Bonus: Invite a new user who deposits $100 or transfers in $1,000, and receive 7 fractional shares of a star-stocked bundle ("Magnificent 7" at $5 each)

The site also helps users learn more about trading through an expansive educational resource offering, provides many pro-level research tools, and features an active global community with 20M+ users worldwide.

Why We Picked It: Moomoo provides exceptional charting software for both its mobile and desktop platforms, offering users access to top-notch tools for analyzing market trends. With level 2 data available, users can gain a deeper understanding of market activity beyond just the stock price, allowing them to see real-time quotes, market depth and order book information.

6. Best for Short Selling: TradeZero

TradeZero is dedicated to making powerful trading tools as accessible as possible. You can trade for free or step up to more advanced plans when you have more money to invest.

If you need more trading power, paid orders are only$0.0003 per share. Outgoing ACH transfers are just$5, and incoming wire transfers are free. You can read more about the low prices at TradeZero here or check out a full review of the options trading platform here.

Why We Picked It: TradeZero prides itself on offering low commission fees, making it an attractive option for cost-conscious traders. In addition to competitive pricing, TradeZero provides advanced trading tools that enable users to execute trades with precision and efficiency. With access to global markets, traders can take advantage of opportunities around the world, diversifying their portfolios and maximizing potential returns.

7. Best for Fund Investing: Charles Schwab

Like most of its peers, Schwab charges $0 commission for online stocks and ETF trading and requires no account or trade minimum. There are also no hidden fees, but there are minimal charges for trading options contracts. Plus, you can invest in a broad array of multiple asset types on the platform.

Whether you're a newbie or a seasoned pro, Charles Schwab has you covered. With the app, you can get real-time quotes, place trades, create a watchlist and view your positions and balances. You can also view market indices, breaking news and in-depth charts. The Schwab Assistant, one of the app's top-shelf features, allows you to place trades, get quotes, set alerts and receive clarifications on investment questions.

Equity research reports are available from major providers like Argus and Credit Suisse. You can access daily market reports from Morningstar Morning Notes and Market Edge Daily Commentary. Schwab offers Screener on its web-based platforms, which is highly adapted for mobile views. The Schwab basic account requires zero minimum and is ideal for beginners. For passive investors, Schwab Intelligent Portfolios offers one of the best robo-advisors.

Why We Picked It: With an easy-to-use interface, investors can navigate the Charles Schwab platform with ease, whether they are beginners or experienced traders. The low fees offered by Charles Schwab make it an attractive option for those looking to maximize their investment returns. Additionally, the broker's commitment to excellent customer support ensures that investors can get the assistance they need, whenever they need it.

8. Best for Options Spreads: Options AI

If you're an experienced options trader looking for a visual, innovative platform, Options AI may be right for you. Newer investors can also benefit as the platform is great for upgrading to call option spreads or put option spreads.

Options AI includes Chart Trade, Fast Trade, and Trade Scanner. These features allow you to set a profit zone, generate credit or debit spreads, compare ways to trade any view, filter categories and scan for trades based on probability of profit or expected moves.

Fund your account and qualify for rewards that include commission-free trading and more.

Why We Picked It: OptionsAI offers a straightforward investing platform that uses AI to enhance investing. OptionsAI also offers low, standardized commissions that don't vary depending on order size.

9. Best for Long Term Investors: Magnifi

Magnifi is a marketplace that allows you, as the investor, to use common brokerage tools and AI to make the best decisions for your portfolio. Because you can pull up all the information you need on a given asset, you can easily invest in the assets that will give you the results you deserve and better match your options trading strategy.

Search for the investment options that meet your needs, invest in specific categories or scan for assets in a price range that’s affordable for you.

Best for long-term investors and those who require a bit of client support, you can also learn more about investing from this platform, utilize the AI-powered investing assistant, enjoy commission-free investing, try the mobile app and take advantage of over 15,000 possible investment options. This makes Magnifi a good place to trade for both seasoned and novice traders.

Why We Picked It: Magnifi offers access to an AI-powered investing assistant that allows users to make informed decisions about their investments with ease. Additionally, Magnifi offers commission-free investing, making it cost-effective for users to manage their investments and grow their wealth over time.

10. Best for Advanced Traders: TradeStation

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Why We Picked It: TradeStation offers a user-friendly web and mobile platform that makes trading easy and accessible for both beginner and experienced traders. With low trading fees, users can maximize their returns while keeping costs down. TradeStation also provides high-quality tools for research and education, helping users make informed decisions and stay updated on market trends.

11. Best for Trading on the Outcome of Events: Kalshi

When you sign up with Kalshi, you can do more than the traditional investor. You’re not buying into “ordinary” futures or options. You invest in the outcome of events, singular occurrences that you can carefully monitor.

Yes, you can also invest in traditional assets and access intraday or 0DTE assets, but the unique nature of this platform is the outcome of events option that allows you to truly invest in events that you feel you can predict.

With low minimums and a limit on certain investments (for your protection and theirs), you can make the most of this platform with a small amount of money and learn how to further diversify your portfolio at the same time.

Why We Picked It: Kalshi offers a unique approach to investing in future events by allowing investors to take a new angle on financial opportunities. With Kalshi, you have the ability to focus on specific events without the complexities of various factors affecting traditional investments like stocks or ETFs. This innovative platform allows users to directly invest in the outcomes of specific events, offering a more focused and targeted investment strategy.

What to Consider in Choosing an Options Trading Platform

When considering options trading platforms, there are several key factors to keep in mind in order to find the best fit for your needs and trading style.

• Commission fees: Brokers charge varying fees for options trades, which can significantly impact your profitability. Compare fee structures across different brokers, paying attention to per-contract fees and any additional charges.
• Platform usability and features: A user-friendly platform with robust charting tools, real-time data and risk management features is crucial for effective options trading. Look for platforms that offer paper trading, options strategy builders and mobile accessibility.
• Options trading levels: Brokers typically have different approval levels for options trading, determining which strategies you can use. Ensure the broker offers the level you need for your preferred trading strategies and has a straightforward approval process.
• Educational resources: Quality educational materials can help you improve your options trading skills and stay informed about market trends. Look for brokers that provide webinars, tutorials, articles and research tools specifically tailored to options trading.
• Execution speed and quality: Fast and reliable order execution is critical in options trading, where prices can change rapidly. Research the broker's execution speed and whether they offer price improvement on orders.
• Customer support: Responsive and knowledgeable customer support can be invaluable when dealing with complex options trades or technical issues. Check the broker's support hours, available communication channels and reputation for customer service.
• Account minimums and fees: Some brokers require high minimum account balances or charge inactivity fees. Consider these factors in relation to your trading capital and frequency to avoid unnecessary costs.
• Available markets and products: Ensure the broker offers access to the specific options markets and underlying assets you want to trade. Some brokers may have limitations on certain indices, ETFs or international markets

Choosing the Right Options Trading Platform

Whether you are a beginner looking for educational resources and low fees or an experienced trader seeking advanced tools and research, there are a variety of options available to suit your individual needs. By carefully evaluating factors such as commissions, platform features and customer service, you can find the best broker to help you navigate the complexities of options trading and achieve your financial goals. Remember, the key to successful options trading is not only having the right strategy but also having the right broker by your side to support and guide you along the way.

Frequently Asked Questions