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Best Options Broker Trading Platform

For traders specifically looking to trade options, choosing the best options trading platform can be particularly crucial. Most major brokers have options trading capabilities, but not every platform is geared specifically for options trading. Below, we’re taking a look at the top choices for these trading platforms, from free options trading to paid platforms.

Quick Look: Our Favorite Options Brokers

In general, options trading is a very profitable offering for brokers, so there are plenty of great deals out there for traders.

What is options trading?

When it comes to the stock market, most people think no further than buying and selling individual stocks. Truthfully, the process of options trading isn’t much different than stock trading.

However, an option is simply a contract to buy or sell a stock at a pre-negotiated price and by a certain date. Simple as that.  Learn more about how to trade options.

Options traders bet on which direction they think the price of a stock will go. Options contracts can be based on a wide variety of underlying securities, however, and many different types of orders can be placed, which makes them more versatile than stocks.

For example, those trading options can decide whether the prices could go up or down on the following:

  • Individual Stocks
  • Indices
  • Foreign currency
  • Commodities

Make sense? Sure, it does.

Buying and selling options, and more

To buy options, you simply choose exactly what you’d like to buy and how many, and then place a buy to open order with a broker. If your order goes up or down in value, you have some options. At any rate, you can:

  • Sell at the agreed upon price
  • Sell the contract to another investor
  • Let the contract expire

Enter calls and puts, too.

Considerations for options traders

Low commissions are just the tip of the iceberg when it comes to choosing the best option 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 broker, 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 top option-trading platforms based on several different criteria.

Best low cost broker: Ally Invest

Best For
  • Active traders
  • Beginners looking to start trading
  • Low fees

It takes a lot of hard work to consistently turn a profit trading options, and every cent spent on commissions and fees weighs on overall returns.

When it comes to minimizing option trading costs, Ally Invest is the best platform available. Option pricing at Ally starts at only $4.95 per trade plus 65 cents per contract. For high-volume traders making at least 30 trades per quarter, pricing drops to only $3.95 per trade plus 50 cents per contract.

Traders with at least a $100,000 balance in their accounts also get access to the $3.95 per trade plus 50 cent per contract rate.

Ally Invest also offers some of the lowest margin rates among major trading platforms at just 8.75% for balances between $0.01 and $9,999. TD Ameritrade and E*TRADE charge traders 9.50% and 9.75% in margin rates for similar balances. Ally Invest’s margin rates dip as and as low as 5.5% for balances above $1 million.

Read Benzinga’s full Ally Invest Review

Best For
  • Active traders who make multiple trades a day or week
  • International traders looking for options support
  • Users who want an automated trading experience
  • Users who are most concerned about commissions and fees cutting into profits

Best low cost broker: eOption

eOption provides an industry solution to active traders looking to avoid the high costs associated with their trade frequency.

They specialize in options trading and pride themselves in having some of the lowest commissions and margins among their competitors. eOptions offerings don’t stop there. Investors interested in ETFs and stocks can also benefit from eOption’s low fees.

Pricing for eOption starts with an account minimum of $500 with stocks costing an amazing $3 per trade, options trades coming in at $3 plus $.015 per contract.

As for their low margin rates, eOption stands out among the competition. Their base rate for an account with a balance of $49,999 or lower is 7% and comes in at 4.5% for accounts with $1 million and over.

Read Benzinga’s full eOption Review

Best lost cost broker: Tastyworks

Best For
  • Options traders
  • Advanced and hands-on investors
  • Investors who look for competitive pricing relative to other brokerages

Tastyworks has made a name for itself in options trading. The brokerage, led by its parent financial media company Tastytrade, offers some of the best rates in options trading paired with excellent tools and options for traders.

The brokerage boasts a low commission structure, complete with zero closing trade fees, depending on the type of opening contract: options on stock, stock, options on futures, and futures. 

Options on stock, stocks, and options on futures get zero commissions on the closing trade and range between $1.00 and $5.00 per contract at the opening trade.

Future contracts do get charged at the closing trade, but only $1.25 per contract at the open and another $1.25 per contract at the close. but Tastyworks does not include other applicable fees – so watch out for fees that can pile up and eat at your profits.

Read Benzinga’s full Tastyworks Review

Best for beginners: TD Ameritrade

Best For
  • Beginner investors
  • Advanced traders
  • Investors who want portfolio-building advice.

There’s no better place to get started trading options than TD Ameritrade. Right off the bat, TD Ameritrade’s $0 account minimum makes the platform accessible to every options trader. The Trade Architect platform provides a simple, easy-to-navigate trading environment that isn’t intimidating for new options traders and provides easy order execution.

Traders have access to 24/7 customer support over the phone, as well as email support and more than 100 local branches. The platform also offers virtual trading, so beginners can get a feel for the market without putting real money at risk. For more advanced traders, the thinkorswim platform provides professional-grade advances option trading features, such as Options Statistics for identifying trading opportunities and the Sizzle Index for identifying the hottest contracts.

TD Ameritrade recently completed an acquisition of Scottrade, which will provide option traders with another level of flexibility as well. Right now, TD Ameritrade charges a reasonable $6.95 plus $0.75 per contract for options trades. New users get 60 days of free trades plus up to $600 bonus cash (for deposits over $250,000) for opening up a new account. Customers also get up to $1,000 bonus cash for referring a friend.

Read Benzinga’s full TD Ameritrade Review

Best for active traders: Interactive Brokers

Best For
  • Forex traders
  • Professional traders
  • Frequent traders with a thirst for different order types (63!)

The Interactive Brokers Trader Workstation provides a comprehensive list of options trading features and has been compared to the look and feel of a commercial airline cockpit. The workstation includes integrated tools such as IB Risk Navigator, Options Analytics and Model Navigator. It has a configurable format, quick-click order entry capabilities, and is extremely customizable.

The OptionTrader Combo tab allows traders to monitor price variations, view all available chains or filter for specific contracts and configure columns to view calculated model prices, implied volatilities open interest and Greeks.

Interactive Brokers also helps active traders minimize commissions and fees as well. Interactive Brokers charges only 70 cents per contract with a minimum of $1 per order. However, it also offers volume-tiered pricing that varies depending on the geographical region that can drop commissions as low as 25 cents per contract in the U.S.

Read Benzinga’s full Interactive Brokers Review

Best research & education: Fidelity

Best For
  • Retirement investors
  • Active traders
  • Premium research
  • Low fees
  • No-transaction-fee mutual funds

Option trading can be intimidating and complicated for new traders. However, Fidelity’s platform points traders in the right direction and provides all the resources they need along the way. Fidelity offers a massive amount of free research and data presented in a way that’s not overwhelming for inexperienced traders.

The platform provides advanced research from more than 20 reputable sources, including Recognia and S&P Capital IQ. Fidelity also offers free webinars and online classes through its online learning center for traders that prefer a more structured educational environment. For a more personal touch, customers can attend seminars in person at more than 180 branch locations explaining how to navigate the platform.

Fidelity provides phone support 24/7, and active traders who place at least 10 trades per month and maintains a $25,000 minimum balance have 24/7 access to dedicated trading specialists via Fidelity’s Active Trader Services. Despite the massive trove of research and first-class educational resources, Fidelity won’t break the bank with its commissions either. Fidelity charges just $4.95 per trade plus 65 cents per contract.

Read Benzinga’s full Fidelity Review

Best options trading platform: E*TRADE

Best For
  • Mobile traders
  • Traders looking for research and data
  • Investors looking for retirement planning guidance

E*TRADE’s Power E*TRADE platform and mobile app are the gold standards of option trading platforms. Power E*TRADE currently offers traders premium-quality tools without the premium price tag.

According to a customer service rep, the long-term plan is to have the Power E*TRADE platform replace E*TRADE Pro as the premium service, but for now, it is free for all E*TRADE users.

Power E*TRADE is the perfect combination of speed, quality, tools, and navigation capabilities. The platform offers virtual trading for testing strategies. The option chain screen provides access to customizable real-time streaming option chains with up to 30 columns. The tradeLAB Snapshot Analysis breaks down risk/reward in an easy-to-understand way, indicating pros and cons as well as key events to watch for and a profit and loss chart. The strategySEEK tool allows users to scan market data and identify potential trading strategies.

For all E*TRADE’s advances option trading features, the broker charges a reasonable $6.95 per trade plus 75 cents per contract for users making less than 30 trades per quarter. More active traders pay just $4.95 per trade plus 50 cents per contract.

Read Benzinga’s full E*TRADE Review

Best For
  • Mobile traders
  • Traders looking for research and data
  • Investors looking for retirement planning guidance

Best mobile app: E*TRADE

For traders on the go, mobile trading doesn’t get much better than it does with E*TRADE. E*TRADE currently offers clients two free mobile apps.

For the average trader, the E*TRADE mobile app will likely meet all your trading needs and has even been named “Best in Class” by Stockbrokers.com.

The app live streams CNBC TV, provides access to third-party research, and delivers breaking news alerts.

For advanced traders, the Power E*TRADE app has a wide range of professional-grade trading tools which make complex options trading a breeze, including customizable options chains and 4-legged spreads.

Read Benzinga’s full E*TRADE Review

Best For
  • Retail investors
  • Traders new to options
  • Social traders
  • Millennial traders

Best for Social Traders: Gatsby

It can be intimidating if you’re not a current follower of trade lingo or a professional trade enthusiast, but that’s why Gatsby has created its platform. Gatsby merges everyone’s resources and expertise to give you the chance to optimize trading strategies. 

Gatsby leaves the commissions for other brokers so that you can begin earning instantly after signing up, and ss a new trader or professional, you’ll have the option to trade for companies and ETFs.

If you don’t want to to trade for companies? You have the choice to trade against them. 

Read Benzinga’s full Gatsby Review

Compare options brokers

Still can’t decide if the above brokers are for you? Check out this side-by-side comparison for a bird’s-eye view. 

Broker Best For Commissions Account Minimum Choose your platform
TD Ameritrade
  • Beginner investors
  • Advanced traders
  • Investors who want portfolio-building advice.
$0 $6.95 for OTC Stocks $0
Get started securely through TD Ameritrade's website
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Pros
  • Superior technology
  • No account minimum balance
  • Excellent customer support
  • Premier data and news partnerships
Cons
  • Slightly higher commissions
  • Can be for more advanced users
Current Promotion

Trade commission–free for 90 days & get up to $2500

Gatsby
  • Retail investors
  • Traders new to options
  • Social traders
  • Millennial traders
Get started securely through Gatsby's website
1 Minute Review

Gatsby Options is an upcoming options trading platform, which aims to democratize the world of finance through its unique API and targeted wealth-building strategies. Similar to Robinhood, Gatsby has done away with commissions, opened up social engagement and leveled the playing field between retail and institutional investors.

Pros
  • No commissions
  • Simple but stylish platform
  • Social trading features
Cons
  • Little market research
  • Access is via invite only
Current Promotion

eTrade
  • Mobile traders
  • Traders looking for research and data
  • Investors looking for retirement planning guidance
$0 $0
Get started securely through eTrade's website
1 Minute Review

E-Trade is best known for its user-friendly browser, desktop and mobile trading platforms and its extensive research and educational information. E-Trade may not have the lowest commissions compared to discount online brokers, but customers certainly get their money’s worth from E-Trade’s comprehensive offerings.

Pros
  • Extensive resources
  • Full banking services
  • Easy-to-use platforms
Cons
  • Limited access to ETrade Pro
  • Higher commissions than discount brokers
Current Promotion

60 days of commission-free trades with deposit of $10,000 or more

Ally Investment
  • Active traders
  • Beginners looking to start trading
  • Low fees
$0 $0
Get started securely through Ally Investment's website
1 Minute Review

If investors are on the hunt for a bargain broker, Ally Invest could be the one. With low commissions across the board, Ally Invest (formerly TradeKing) stops potential investors in their tracks with its especially low mutual fund commissions. Commissions on stocks and ETFs are notoriously inexpensive as well, and for more active traders or those with larger account balances, commissions can dip as low as $3.95 per trade.

Pros
  • Volume discounts available
  • Among the lowest fees in industry
  • Good for every experience level
  • Excellent customer service
Cons
  • Lacks physical locations
Current Promotion

$3.95 per stock trade for Active Traders at Ally Invest

Tastyworks
  • Options traders
  • Advanced and hands-on investors
  • Investors who look for competitive pricing relative to other brokerages
$5 flat rate, includes closing costs $0
Get started securely through Tastyworks's website
1 Minute Review

A DIY discount brokerage run by founders of TD Ameritrade’s thinkorswim platform, tastyworks specializes in options trading. Launched in 2017, it is supported by its parent tastytrade, an online financial content network. Tastyworks, which offers low-cost options, is a niche player in the options trading arena.

Pros
  • Convenience of trading through three platform options
  • Tools and options for an active trader to make informed decisions, primarily with respect to options
  • With capped commissions, it’s one of the lowest-priced brokerages for options
  • Doesn’t charge an account opening fee or have a minimum balance requirement
  • Access to tastytrade educational video channel is a definite advantage
Cons
  • Limitation with respect to product options (predominantly an options and futures trading platform)
  • Allows investment in only U.S.-focused financial assets
  • Limited research and analysis tools
  • Not suitable for beginners or passive traders
Current Promotion

Interactive Brokers
  • Forex traders
  • Professional traders
  • Frequent traders with a thirst for different order types (63!)
$0.005 per share minimum $1 and maximum 0.5% of trade value; volume discount available $0 for cash account, or a margin account with $2,000
Get started securely through Interactive Brokers's website
1 Minute Review

If you consider yourself a sure-footed professional trader, Interactive Brokers might be a major possibility for you, particularly if you’re adept at navigating tricky trading platforms (can you say 124 option indicators?) or have done more than just dipped your toe a “coupla times” into the complex world of international markets.

Pros
  • If you’re into trading on margin, you’re in luck. Interactive Brokers offers the lowest rates in the industry.
  • Low pay-per-share commissions on stock trades (up to 1,000 shares) and on options trades (up to 20 contracts)
  • Vast order types options for professional traders
Cons
  • Interactive Brokers charges account fees (including annual, transfer, closing an inactivity fees) and offers an extremely complex trading platform
Current Promotion

Lower minimum activity requirements ($3/month) and opening account minimum requirement ($3,000) for clients 25 and younger.

Fidelity Investments
  • Retirement investors
  • Active traders
  • Premium research
  • Low fees
  • No-transaction-fee mutual funds
$4.95 $0 for IRAs. Some accounts may require a minimum opening balance of $2,500
Get started securely through Fidelity Investments's website
1 Minute Review

Fidelity's customized market research for individual investors is unmatched. Fidelity is best for experienced traders willing to make a minimum 36 trades per quarter. Not only does Fidelity offer 24/7 customer support, there are branches nationwide that offer in-person seminars and webinars to ensure that customers are always informed on the latest market research and technologies.

Pros
  • Low cost trade commissions
  • Commission free ETFs
  • Excellent customer support
Cons
  • Platform can be complex
  • Minimum investment balance of $2,500
Current Promotion

Commission-free trades good for 2 years

Want to learn more about options trading? Check out Benzinga’s guides to the best options trading strategies, the best options trading books and the best options trading courses.

Compare Online Brokers
Broker Commission Account Min Get Started

$0 $6.95 for OTC Stocks $0 Learn More

$0 $0 Learn More

$0 $0 Learn More

Free $0 Learn More

$0 $5,000 for individual retirement accounts (IRAs) Learn More