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Best Options Trading Platforms for August 2022

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Best Options Trading Platforms for August 2022.
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Options can be used to generate income, hedge your risk, or add more fuel to your portfolio by increasing your exposure to certain stocks and indexes. But because options trading is inherently more complex than simply buying stocks or funds, options traders often need to be more selective in choosing the right options trading platform. In the guide below, we'll share our top picks for the best options trading platforms and what you should look for when choosing an options trading platform.
The Ascent's best options trading platforms.
Commission free options trading: Robinhood Low options trading fees: Ally Invest Options app trading: E*TRADE Active traders: TradeStation Traders: TD Ameritrade Commission free options trading: Webull Low option trading fees: Interactive Brokers Options-first trading platform: tastyworks.
Bottom Line.
Robinhood is an efficient options trading platform that captures a spot as one of the cheapest options brokers. Commission free options trading round out a feature set to trade stocks, ETFs, fractional shares, and cryptocurrency without commissions as well.
$0 for stocks, ETFs, options, and cryptocurrencies.
Account Minimum:
Special Offer Info Icon Circle with letter I in it.
Earn a $25 to $600 reward.
On Robinhood's Secure Website .
Bottom Line.
Impresses with a low option trading fees per contract, while also offering $0 stock commissions and $0 account minimums.
$0 per options trade, $0.50 per contract.
Account Minimum:
Special Offer Info Icon Circle with letter I in it.
Up to $3,000 bonus cash.
On Ally Invest's Secure Website .
Bottom Line.
Caters to active traders with multiple options trading platforms, while also appealing to long-term investors with thousands of mutual funds and ETFs that can be traded for free.
$0 per options trade, $0.65 per contract.
Account Minimum:
Special Offer.
Open and fund an E*TRADE account & get up to $600 or more.
On E*TRADE's Secure Website .
Bottom Line.
One of the best platforms for options trading that's designed for active traders and cost-sensitive investors. If you're willing to do the work to price each of the two commission schedules, you can often spend less than with other options platforms.
$0 per options trade, $0.50-$0.60 per contract.
Account Minimum:
Special Offer.
New accounts with qualifying assets earn $50 to $5,000 using code FOOLAFSA.
On TradeStation's Secure Website .
Bottom Line.
Stands out as not only one of the top options brokers but also a top-rated all-around brokerage with outstanding tools and comprehensive research.
$0 online commissions for stocks, ETFs, and options ($0.65 per contract)
Account Minimum:
On TD Ameritrade's Secure Website .
Bottom Line.
Like Robinhood, Webull is essentially a no cost options broker that doesn't charge options trading fees for commissions or per contract. Additionally, the platform is easy to use and offers access to more than just stock options trading. If you're considering Robinhood, compare it to Webull as well.
Account Minimum:
Special Offer.
Get up to 12 free stocks valued up to $30,600.
On Webull's Secure Website .
Bottom Line.
The competitive base options commission and tiered per-contract pricing, alone, land Interactive Brokers a spot on this list. The otherwise robust feature set and low options trading fees also make it a solid platform to trade options.
$0 per options trade, $0.25-$0.65 per contract.
Account Minimum:
Bottom Line.
A true options-first broker that sprinkles in the ability to trade mostly stocks, ETFs, and futures. The standouts are its options trading platform and commission structure.
$0 for stocks, $1 per option contract (opening trades only)
Account Minimum:
Overview of the best options trading platform.
TD Ameritrade.
Best for: Experienced options traders in search of in-depth information.
While TD Ameritrade isn't the cheapest platform for options traders, it is one of the most full-featured. Its thinkorswim desktop platform offers unparalleled trading tools and its mobile platform allows for even complex options trades on-the-go. Research from Credit Suisse and Morningstar also helps traders make informed choices.
Best for: Active traders who want a powerful trading platform.
Options trades are commission-free on E*TRADE although a standard $0.65/contract fee applies. While this fee makes E*TRADE costlier than some competitors, the brokerage does discount the rate to $0.50 per contract for active investors who make at least 30 options trades per quarter. E*TRADE also offers feature-rich trading tools, especially in its free Power E*TRADE platform which is beloved among options traders.
Best for: Options traders looking for the most affordable solution.
Unlike most competitors, Robinhood does not charge a contract fee for options trading. Since there's also no commission, this makes Robinhood the cheapest platform out there for trading options. While not the most feature-rich platform, Robinhood offers mobile trades so it's possible to buy and sell options contracts from all your devices.
Ally Invest.
Best for: Options traders with little money to invest.
Like most brokerage firms, Ally doesn't charge a commission fee for options trades. It does have a $0.50 per contract fee, which is cheaper than some alternatives out there. Ally has no minimum investment requirement and charges no maintenance fees, making it a great choice for options traders without a lot of money.
Best for: Active traders interested in a full-featured desktop platform.
TradeStation offers a choice of different pricing structures for options traders, with TS Go users paying as little as $0.50 per contract and no commission. The TS Select plan costs a bit more at $0.60 per contract, but provides access to TradeStation's feature-rich desktop platform which justifies the added cost for active traders.
Best for: Mobile users who want to trade options on-the-go.
Webull is a great choice for options traders looking for the cheapest platform around. There's no per contract or commission fees, which sets it apart from most competitors. Webull also offers an intuitive, easy-to-use trading platform and especially shines with its feature-rich mobile software that can be used on all your devices.


Interactive Brokers.
Best for: Options traders with lots of money looking for a feature-rich platform.
Interactive Brokers charges a variable per contract fee for options trading, with the price based on the size of the trade. This makes it an ideal choice for investors with deeper pockets who can qualify for lower pricing. Its WorkStation platform is a powerful trading platform chock full of features that options traders will love.
Best for: Options traders looking for advanced technology at a low price.
tastyworks is one of the only brokerage firms that is primarily geared toward options traders. It offers some of the industry's lowest costs for options trading, charging a commission only when opening a position. Its trading platform offers some of the best technologies designed by the team that pioneered retail options trading, making it an ideal choice for active traders.
How to pick the best broker for option trading.
One key point to keep in mind is that there's no such thing as the best platform for options trading for everyone, and the costs and features should be weighed with your own preferences in mind before you open a brokerage account of your own.
For example, Robinhood has no commissions for options trades whatsoever, but its platform is very light on functionality and features, which makes it appropriate for investors who don't necessarily need educational resources and just want to dabble in basic call and put trades. On the other hand, an options broker like E*TRADE charges commissions, but is packed with features and resources which could be worth far more than the commission costs for many investors.
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Features of the best options trading brokers.
Options traders typically demand more of an options trading platform than people who are simply entering market or limit orders for stocks. Active option traders may prioritize options brokers based on their selection of calculators or screeners, whereas the infrequent options user may care about commissions alone.
Some features that may be considered "make or break" when picking the best platform to trade options are listed below:
Commissions free options trading: While price isn't everything, what you pay to make a trade ultimately plays through to your profit or loss. It makes very little sense to place a trade where the only likely winner is the brokerage firm. Commissions have come down quite a bit in recent years, and most of the best brokers for option trading offer commission-free trading on stocks as well, but there's still quite a bit of difference within the industry when it comes to options. Many of the best platforms for options trading have commission free options trading but may charge options trading fees per contract. Platform : Admittedly, an options trading platform often has more to do with personal preference than anything else, as placing a trade through any brokerage is usually a matter of a few clicks. Some traders may see TD Ameritrade's full-featured thinkorswim platform as an asset, while beginning investors may see the complex interface as a liability. It's also important to note that some options brokers (like TD Ameritrade) offer a full-featured platform and an easier-to-use trading platform. Resources: Many of the best options brokers offer a full range of educational resources, which can be extremely valuable for investors who are new to options. As we mentioned, options can be very complex financial instruments and it is very easy to lose lots of money if you don't know what you're doing.
How do the best options trading platforms compare on trading fees?
Commissions and fees for options trades can vary wildly even among the best platforms for options trading, and the difference can really add up. Here's a look at the costs associated with options trading, and how much our best brokers for option trading charge.
Most of the best options brokers have eliminated flat-rate commissions for online stock and options trades, and just use a small fee for certain options traded. That means they offer commission free options trading, but charge a fee based on the number of options contracts traded. Thus, it costs more at most options brokers to trade 50 options contracts than it does to trade 10 options contracts.
The most common price point is roughly $0.65 per contract, although this can be between $0 and $1.00, depending on the stock options broker. Based on the typical fee of $0.65, to buy 10 contracts, a trader would pay $6.50 to make the trade ($0.65 × 10 = $6.50). To buy 100 contracts, the same trader would pay $65 in commissions to make the trade.
And to be clear, these are commissions for online options trades. If you conduct a trade by phone, the commission could be even higher.
The table below compares options trading platforms based on the cost to buy or sell 10 options contracts.
Options trading fee comparison for 10 contracts.
Commission free options trading used to be a pipe dream for investors, but that's no longer the case with the best platforms to trade options slashing costs to attract and retain accounts. Here's an options fee comparison when trading 10 contracts for our top picks.
Options broker Commission to trade 10 contracts Robinhood $0 TD Ameritrade $6.50 Webull $0 E*Trade $5 - $6.50 TradeStation $5.00 - $6.00 Ally Invest $5 Interactive Brokers $1.50 - $6.50 Tastyworks $10.
Options trading fees for exercise and assignment for exercise and assignment.
Options brokers sometimes charge fees to buy or sell options, but some also charge fees if you want to exercise an option, or if an option you have sold is assigned.
Exercise fees : Let's say you own 100 call options on Nike at a strike price of $80. Nike rises to $85 per share by the expiration date, and you decide to exercise your right to buy the stock at $80 per share. A few options trading platforms will charge you a fee to exercise your options and buy the underlying stock. Assignment fees : Let's say you sell a covered call on Nike at a strike price of $80. Nike rises to $85 per share by the expiration date, and the owner of the options decides to exercise them, paying you $80 per share for the underlying stock. A few options brokers will charge you an assignment fee for this transaction.
Most of the best options brokers don't charge these fees anymore. The exception is TradeStation, which charges $14.95 for both options exercise and assignment. If you don't plan on holding options until their expiration dates, this shouldn't necessarily be an issue, but it's still worth keeping in mind.
Options brokers with free options trading.
As mentioned before, most of the best options options brokers have commission free options trading, but do charge a small fee per contract traded. Robinhood and Webull are the few free options trading platforms that have 100% free options trading, both a $0 commission and no per contract fees for online trades. Robinhood and Webull also apply this same approach to stocks, ETFs, and cryptocurrency.


Best apps for options trading.
All options brokers on this list and most notable stock brokers offer many platforms from which to enact trades, including within a mobile app. Ultimately, the best apps for options trading will differ by user need, but here is a rundown of our picks of the best options brokers based on their app rating.
Options trading app Google Play Store Rating (out of 5 stars) Apple iOS Rating (out of 5 stars) Robinhood 3.8 4.2 TD Ameritrade (thinkorswim app) 3.8 4.7 Webull 4.5 4.7 E*Trade 4.3 4.6 TradeStation 4.0 4.6 Ally Invest 4.0 4.7 Interactive Brokers 2.9 3.3 Tastyworks 2.3 2.9.
Robinhood, Webull, TD Ameritrade's thinkorswim, E*Trade, Tradestation, and Ally Invest are rated as some of the best investment apps overall by everyday users. But when it comes specifically to the best app to trade options, we think TD Ameritrade's thinkorswim, Robinhood, and E*Trade are top picks to consider with this narrowed focus. These are the best apps for trading options based on a number of factors, including overall user ratings, options trading fees, simplicity to use, and the overall capabilities of their mobile app compared to full-featured online experiences.
Commission free options trading.
$0 for stocks, ETFs, options, and cryptocurrencies.
Low options trading fees.
$0 per options trade, $0.50 per contract.
Options app trading.
$0 per options trade, $0.65 per contract.
$0 per options trade, $0.50-$0.60 per contract.
$0 online commissions for stocks, ETFs, and options ($0.65 per contract)
Commission free options trading.
Low option trading fees.
$0 per options trade, $0.25-$0.65 per contract.
Options-first trading platform.
$0 for stocks, $1 per option contract (opening trades only)
Many options brokers have minimum deposit requirements for options trading. If you're interested in level one option trading, which usually includes covered calls and secured puts, the minimum requirement may be less than $1,000. But certain options strategies, such as net credit spreads, may require a much higher minimum account balance -- sometimes as high as $10,000 or more.
Trading options can be risky. You could face unlimited losses with certain trading strategies, such as selling naked calls. However, buying call or put options isn't as risky, because the most you can lose is the amount you spent to buy the options contract.
All options trading is leveraged investing, which inherently carries greater risk. Ensuring you do careful research and understand the trades you make can reduce the chance of loss.
You need a broker to access the market, so you cannot trade options without one.
Many options trading platforms allow you to practice options trading, including E*Trade and TradeStation.
Call options give you the right (but not the obligation) to buy a certain stock at a certain price by a specific date. Call options provide another way to profit on the rising price of a company's stock without buying shares. In options trading, each contract gives you the right to buy 100 shares at a given price, so if the stock price goes up before your option expires, you can profit.
Put options give you the right (but not the obligation) to sell stock at a certain price in the future. If you believe a company's shares will go down in value, put options let you profit on that assumption.
About the Author.
Christy Bieber is a full-time personal finance and legal writer with more than a decade of experience. She has a JD from UCLA as well as a degree in English, Media and Communications with a Certificate in Business Management from the University of Rochester. In addition to writing for The Ascent and The Motley Fool, her work has also been featured regularly on MSN Money, CNBC, and USA Today. She also ghost writes textbooks, serves as a subject matter expert for online course design, and is a former college instructor.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Ally is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Best Buy, Intuit, and Target. The Motley Fool recommends Interactive Brokers and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
E*TRADE services are available just to U.S. residents.
Robinhood disclosure.
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Robinhood crypto disclosure.
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