April 2022: Top Options Trading Brokers and Platforms

　　These brokers provide the tools and information required for options trading, as well as inexpensive option contract costs.

　　Low option contract costs, great trading tools, the availability of high-quality research, and the customer service required to serve everyone from novice investors to expert traders are all provided by the finest options brokers.

　　While most of the brokers on our list of the top brokers for stock trading are also strong options brokers, this list focuses on brokers that excel in areas that are important to options traders. Many of the brokers listed here are also on our list of the top online trading platforms for day trading.

　　You're not sure what you're searching for？ For additional information on what might make or break an options trading experience, see our piece on how to pick an options broker and our options 101 guidelines.

　　More information about the top options trading platforms

　　The above star ratings indicate the providers' overall performance across a variety of measures. More information regarding how each platform is rated, especially for its options trading products, can be found below. Fees, investment choices, and customer service were all included in NerdWallet's review.

The Merrill Edge

　　Merrill Edge does not charge fees on options transactions, but you will be charged $0.65 per contract, which is a very standard rate among brokerages. Merrill Edge receives great grades for account costs in general: there are no transfer, yearly, inactivity, or closure fees for brokerage accounts. In terms of investment selection, the platform ranks in the middle of the pack.

　　Merrill Edge provides reasonably high client service, including 24-hour availability.

　　Merrill Edge gives option transactions a 4 out of 5-star rating.

Fidelity Investments

　　Fidelity does not charge a fee on options transactions, although there is a contract charge of $0.65. Fidelity does not provide option volume discounts. Fidelity has eliminated practically all account fees, including transfer and account closure fees, which are frequently imposed by brokers. Fidelity gets high scores for its instructional resources and customer service choices, which include a network of more than 200 locations for in-person assistance and educational opportunities, as well as 24/7 phone, chat, and email help.

　　Fidelity gives option transactions a 4 out of 5-star rating.

E*TRADE

　　Options transactions on E*Trade are commission-free, although there is a contract fee of $0.65. For active traders, E*TRADE charges a reduced fee of $0.50. (defined as those who trade 30 or more times per quarter). E*TRADE does not impose a yearly or inactivity fee. There is a $75 charge for a complete transfer out; partial transfers are $25, although the corporation will eliminate the charge if your account balance is greater than $5,000. Investors may use E*TRADE to trade stocks, bonds, mutual funds, ETFs, options, and futures. Customer service is accessible 24 hours a day, seven days a week through phone, email, and live chat.

　　E*Trade gives options trading a 4 out of 5-star rating.

Interactive Brokers, Inc.

　　Interactive Brokers' option trading fees are competitive, with a $.65 charge per contract and no base, plus reductions for bigger volumes. The options trading commission is set at $1 per order. Interactive Brokers does not charge any annual, account, transfer, or closing fees, which is unusual among the brokers examined by NerdWallet. The platform's offers vary from typical stock, option, and ETF offerings to precious metals, currency, warrants, and futures. Six days a week, Interactive Brokers provides phone, email, and chat assistance 24 hours a day, seven days a week.

　　Interactive Brokers rates option trades with a 4 out of 5-star rating.

Ally Investing

　　In addition to not charging a flat commission on options transactions, Ally Invest's per-contract cost of $0.50 is lower than that of many other brokers. Ally Invest charges $50 for transferring all or a portion of your stocks out of your account. Futures and fractional shares, two reasonably frequent investing choices, are absent from Ally's otherwise robust array of tradable assets. Ally provides customer service by phone, email, and chat 24 hours a day, seven days a week.

　　Ally Invest gives option transactions a 5 out of 5-star rating.

Self-Directed Investing at J.P. Morgan

　　Morgan, J.P. The option price in self-directed investing does not include a per-trade charge. You will, however, be charged $0.65 per contract. The fees for withdrawing funds from your account are roughly average. There is a $75 account transfer charge regardless of whether you are closing your account completely or merely moving a part of your securities out. Self-Directed Investing does not support futures or FX trading, nor does it provide fractional shares. J.P. Morgan customer service is accessible Monday through Friday from 8 a.m. to 9 p.m. Eastern time and on Saturdays from 9 a.m. to 5 p.m. The firm also maintains physical locations open throughout business hours.

　　Option traders have a 4 out of 5-star rating from Self-Directed

　　Investing.

Webull

　　Webull is one of the few brokerage firms that provide free option transactions. Customers are not charged a per-trade or per-contract fee. Webull's transfer charge is one of the additional fees. A $75 transfer fee will be levied whether you move all of your assets from Webull to another brokerage or just a handful. Webull, on the other hand, does not charge an annual or inactivity fee. Despite having a substantial offering for active traders, Webull does not have access to many mainstream assets, such as mutual funds and bonds.

　　Webull provides phone and email service 24 hours a day, seven days a week.

　　Webull gives options trading 5 out of 5 stars.

Robinhood

　　Robinhood's dedication to low-cost trading is most visible in its options trading service, where it is one of just a few brokers that does not impose a per-contract fee. The $75 cost for moving your accounts to another broker is one of the most significant fees charged by Robinhood. There is no charge for selling your assets and having the funds sent to your bank through ACH. There are just a few securities accessible for trading on Robinhood: Mutual funds and bonds, which may help diversify a portfolio, are not supported by the site. For customer service, Robinhood lets people ask for a call back from a representative at any time of the day or night, seven days a week.

　　Robinhood has a 5-star rating for options transactions.

TradeStation

　　Options transactions are not subject to commissions, but they do incur a contract fee, which begins at $0.50 per contract. TradeStation's account fees are on the high side, and they include a $125 fee for outward account transfers. Users may use TradeStation to trade equities, bonds, mutual funds, exchange-traded funds, options, and futures. It does not provide forex. TradeStation's customer service is accessible via the phone, email, and live chat Monday through Friday, 8 a.m. to 5 p.m. Eastern time.

　　TradeStation gives option trading a 5 out of 5-star rating.

Charles Schwab & Co.

　　For options, Schwab does not impose a per-trade fee, but it does charge $0.65 per contract. Schwab provides some of the lowest account fees in the industry. There are no yearly or inactivity fees at Schwab, and the charge to transfer assets out of the account is $25. It's just $15 if you do it all online. Charles Schwab offers a diverse range of tradable instruments, including mutual funds, exchange-traded funds (ETFs), index funds, bonds, options, and futures. It does not provide forex. Phones, email, and online chat are all accessible 24 hours a day, seven days a week. If you'd rather talk to someone in person, there are over 400 Charles Schwab locations around the nation, with some even open on Saturdays.

　　Option traders have a 4 out of 5-star rating from Charles Schwab.

Firstrade

　　Firstrade is unique among brokers in that it does not impose per-contract fees for options trading. Firstrade charges a full outbound transfer cost of $75. It does, however, levy a $55 partial transfer fee. Nonetheless, there are no inactivity or yearly account fees at the brokerage. Customers of Firstrade have access to stocks, bonds, mutual funds, ETFs, and options. The platform does not provide currency or futures trading. Firstrade customer service is accessible through email and phone, Monday through Friday, 8 a.m. to 6 p.m. Eastern.

　　Firstrade gives option transactions a 5 out of 5-star rating.

Methodology

How do we evaluate brokers？

　　The extensive evaluation process at NerdWallet assesses and ranks the major U.S. brokers by assets under management, as well as new industry participants. We strive to give an unbiased evaluation of providers to provide you with the knowledge you need to make smart, educated decisions about which ones will best fulfill your requirements. We follow stringent editorial integrity requirements.

　　We gather data directly from providers through thorough questionnaires and undertake in-person testing and observation via provider demos. The questionnaire responses, together with demonstrations, interviews with provider employees, and hands-on research by our experts, drive our patented evaluation approach, which assesses each provider's performance across more than 20 areas. The final result yields star ratings ranging from “bad” (one star) to “outstanding” (five stars) (five stars). The ratings are rounded down to the closest half-star.

RISK WARNING:

　　Trading Forex and CFDs involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, and investment objectives and seek independent financial advice if necessary. Please ensure that you fully understand the risks before you make any trading decisions.