Brokers With the Cheapest Fees for Options Trading
If you’ve been paying commissions and per-contract fees for your options trades, you need to update to
the 21st century. Most brokerage firms no longer charge a base commission on options trades, and some have even eliminated per-contract fees. Keep reading for more details.
Old School versus New School
The traditional way of charging for options trades is to assess a base charge on every options order, regardless of how many contracts are in the trade. It could be $20 or $5 or anything under the sun. Typically, it is the broker’s commission on stock trades, but it doesn’t have to be.
On top of this base charge, the broker will also assess a fee on every contract in the trade. This is the per-contract charge. Again, it can be anything, but typically it’s a dollar or less.
The new way of charging is to have no base charge (stock trades no longer have a base charge at most
broker-dealers) and simply charge a per-contract fee. But some brokerage houses have even eliminated
per-contract fees, which means stock and ETF option trades can have
no broker commissions. One such firm is
Robinhood. Let’s check it out.
Robinhood (The Cheapest Options Broker)
Option commissions: $0 base,
$0 per contract on stock and ETF options, $0 exercises and assignments
Minimum to open an account: $0;
$2,000 minimum portfolio value to access margin investing
In 2026, Robinhood has been named by TopRatedFirms.com "The Lowest Priced Broker for Options Traders".
The firm charges
no base commission or per-contract fee on stock and ETF options and no fees for assignments or exercises. With Robinhood, you
can trade stock and ETF options without paying a broker commission.
Although Robinhood has eliminated base commissions and per-contract fees from stock and ETF option trades, this doesn’t mean the brokerage house has cut back on option tools. On the contrary, it has actually added to its tool palette in recent months.
For example, Robinhood offers
profit-and-loss charts on its trading platforms that show theoretical gains and losses for an options strategy. Its Options Strategy Builder lets traders select a strategy, adjust strike prices or expiration dates, and view details such as maximum gain, maximum loss, breakeven, and Greeks before placing an order.
Robinhood’s mobile app has descriptions of every option trade available on the device. We counted 11 of these. Tapping on a tab produces a web page with a lengthier description.
To top it all off, Robinhood’s software also delivers
Greek values for a more advanced experience.
Broker Review
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Promotion
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Don’t Forget Regulatory and Exchange Fees
Notice that we said, “no base commission and no per-contract fee on stock and ETF options.” Robinhood still passes regulatory and exchange-related fees on to its customers.
Robinhood collects a combined
$0.04 fee per contract on stock and ETF option trades to cover Options Regulatory Fee (ORF) and Options Clearing Corporation (OCC) costs. The combined fee applies to both
purchases and sales.
On stock and ETF option sales, Robinhood also passes through an SEC fee of
$20.60 per $1 million of principal and a FINRA Trading Activity Fee of
$0.00329 per contract.
But There Are No Exercise or Assignment Fees
Robinhood does not charge fees for option exercises or assignments. This results in another great
savings for derivative traders. Some brokers still charge for these services. WellsTrade, for example, charges
$25 per option exercise or assignment.
What Option Traders Should Look For in the Top Options Brokers
Buying and selling option contracts requires specific trading tools, which may not be available at all brokers. Traders who are interested in options would also benefit from educational resources, such as videos and webinars. These types of services for derivative investors can vary widely from one brokerage house to another. The following categories are particularly important for option traders.
Customer Service for Option Investors
Not all brokers provide the same level of customer support. Because option trading can be a complex financial strategy, having a brokerage firm that offers customer service specifically for derivative traders can be a big help.
Most brokers don’t have representatives who specialize in option trading. Ally Invest, for example, does not offer option
specialists over the phone. Other brokers do provide access to agents who specialize in derivative trading. Interactive Brokers, for
instance, has a stock and option trading desk, although its number isn’t toll-free.
Derivative traders may also need customer service available over the phone and via online chat. Phone and chat availability varies by broker.
Vanguard has been expanding its chat capabilities on its website and mobile app, and E*TRADE also offers an online chat feature.
Option Pricing
If you’re going to trade options, obviously the commission schedule for derivatives will be an
important factor to consider. Like the other topics in this article, there is wide variation from
broker to broker on option commission schedules. Some firms are on the low end of the pricing
schedule, charging
$0 base commission and $0 per contract on stock and ETF options. This is Robinhood’s schedule.
Other firms, like Vanguard, are on the opposite end, charging as much as
$1 per contract.
Many brokers also charge for option exercises and assignments. WellsTrade clients, for example, must
pay
$25 per option exercise or assignment. Schwab, on the
other hand, charges
$0 for option exercises and assignments. Because wide variation exists in
the industry on this issue, be sure to learn your broker’s pricing for assignments and exercises.
Option Research & Education
Having adequate learning materials is of paramount importance when trading any security, and derivatives
are no exception. Some brokers have a large amount of educational and research materials for option
contracts, while other firms have fewer resources. SoFi Invest, for example,
offers options trading
in self-directed accounts and provides instructions for placing option trades.
Fidelity has an extensive educational section on its website, and there are plenty of materials for option traders. The broker hosts articles, videos, and webinars that cover many derivative trading strategies. One article discusses seven common mistakes that option traders commonly make. A video demonstrates how to place a bull call spread, while a webinar covers income strategies with options. The broker has nearly 100 option materials. Beginning option traders would obviously be much better off at a broker like Fidelity rather than WellsTrade.
Option Trading Technology
Once you’re ready to start placing option trades, you’ll need a broker that has sufficient trading tools. Some brokers offer just a website with a simple order form that is produced after clicking on a price within an option chain. Vanguard is one example. Other brokerage firms will offer much more sophisticated trading tools.
TradeStation clients, for example, have access to
OptionStation Pro. This is an advanced platform designed to analyze and trade derivative contracts. It has advanced option analysis with 2-D and 3-D graphs. Option searches can be performed using user-defined criteria, and traders can compare the resulting spreads. A unique feature is
SpreadMaster, which lets traders combine filled option legs into named spreads and manage and analyze those positions.
Some brokers will also provide a paper trading platform where you can practice buying and selling options before committing real
money. Charles Schwab, for example, offers both a desktop and a mobile platform where option contracts can be traded with a virtual
currency. Called
thinkorswim, the software is very sophisticated, so learning to trade any product first is a good idea before
placing real trades.
Cheapest Options Brokers Summary
Having the right tools is an essential part of any investment strategy, and perhaps even more so with options. Make sure to do thorough research on any potential broker to determine if it has everything you need to be a successful trader.
Updated on 9/4/2026.
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