TD Ameritrade Options Fees
If you plan to trade options on TD Ameritrade, this article will tell you all you need to know about their options commissions and other fees.
TD Ameritrade Options Commissions
Executing an online options trade with TD Ameritrade will cost you a flat $0 plus $0.65 per contract. If you
choose to place a broker-assisted options trade it will cost you a flat $25 plus $0.65 per contract. It’s
important to note that implementing complex options trades, such as spread trades or straddles, will still
incur contract fees on each leg of the trade and therefore can add up quickly. We will discuss the commissions for two of these common multi-legged trades below.
Competitors
Both Webull and Firstrade don't have option per contract fee that TD Ameritrade is charging. Since there
are no account fees and an account can be opened with $0 in under 10 minutes, we recommend signing up with
both brokers and checking first-hand which one you like better.
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Two-Legged Options Spread Trade Commission
For example, if you put on a two-legged spread trade where you purchase two call options while simultaneously selling two call options of a different strike price, your total cost will consist of the standard flat internet commission plus the variable per contract fee. The total would be $2.60 and consists of one standard internet commission of $0 plus $0.65 per contract for each of the two contracts within each of the two legs (4 contracts total).
Two-Legged Options Straddle or Strangle Trades Commission
Strangles and Straddles are other common options strategies that will incur higher commissions because of the multiple legs. For example, if you were to buy two put options for the first leg and buy two call options for the second leg, your total commission would be the same as in the first example - $2.60. It consists of one standard internet commission of $0 plus $0.65 per contract for each of the two contracts within each of the two legs (4 contracts total).
Options Exercise and Assignment Fees
Unlike most brokers, TD Ameritrade charges NO fees for assigning or executing options.
Regulatory Options Fees
Like most brokers, TD Ameritrade passes through small regulatory fees to investors as well. For options, these include a regulatory fee that averages $0.014 per contract and a trading activity fee that averages $0.002 per contract. These fees are relatively tiny and really cannot be avoided with most U.S. brokers.
Options Tools That are Free
Outside of commissions, exercise, and regulatory fees, trading options on TD Ameritrade is a great experience. They don’t charge any account maintenance, software, or data fees, which means even infrequent options traders have free access to their well-regarded Thinkorswim trading platform along with real-time pricing and level II quotes.
TD Ameritrade Options Fees Conclusion
Trading options on TD Ameritrade is an enjoyable and professional experience. It’s true that you don’t get free trades like on some of the newer brokers, but the commissions are modest and well within reason for the benefits you enjoy with a TD Ameritrade account. Any avid options trader will tell you how just how valuable it is to have access to TD Ameritrade’s Thinkorswim platform, real-time quotes, speedy trade executions, and 24/7 live customer phone support.
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