Brokers With Cheapest Fees for Option Trading
If you’re still paying both commissions and per-contract charges for your option trades, it may be time to review today’s brokerage pricing. Many firms no longer charge a base commission for options, and a few have removed per-contract charges on stock and ETF options as well. Keep reading for the details.
Old School versus New School
The older pricing model for options was to charge a flat base fee on each option order, no matter how many contracts were included in the trade. That fee could be $20, $5, or almost any other amount. In many cases, it matched the broker’s stock-trade commission, although it didn’t have to.
In addition to the base charge, the broker would add a separate fee for each contract in the order. This is known as the per-contract fee. It can vary by firm, although it is often $1 or less per contract.
The newer pricing model removes the base commission (because most broker-dealers no longer charge a base commission for online stock trades) and charges only a per-contract fee. Some brokerage firms have gone even further and removed per-contract fees on stock and ETF options, which means these option trades can have no broker commission at all. 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 for a cash account; $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".
Robinhood charges no base commission, no per-contract fee on stock and ETF options, and no fees for exercises or assignments. With Robinhood, stock and ETF option trades can be placed without paying a broker commission.
Although Robinhood has removed commissions and per-contract fees from stock and ETF option trades, this doesn’t mean the brokerage firm has reduced its option tools. Instead, it has continued adding features for options traders.
For example, Robinhood offers profit-and-loss charts on its trading platforms. These charts show the possible theoretical profit or loss of an option strategy at expiration before an order is placed. The horizontal axis shows the price of the underlying security, while the vertical axis shows the strategy’s profit or loss.
Robinhood’s mobile app provides access to multiple option strategies and educational explanations for many of them. Tapping into these resources can give traders more details before they enter an order.
To make the experience more advanced, Robinhood’s software also provides option chain metrics and strategy tools for traders who want more information before placing a trade.
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Don’t Forget Regulatory and Exchange Fees
Notice that we said, “no base charge and no per-contract fees.” We did not say no exchange or regulatory fees. Option trades in the United States may still come with these charges, and brokerage firms may pass them on to customers.
Options Regulatory Fees vary by exchange, execution venue, and whether the broker responsible for the trade is a member of the exchange. Robinhood currently collects a combined
$0.04 fee for each options contract traded to cover its options regulatory and exchange-fee costs.
The Options Clearing Corp (OCC) also charges clearing-related fees. OCC currently lists its clearing fee at
$0.025 per contract.
But There Are No Exercise or Assignment Fees
Robinhood does not charge fees for option exercises or assignments. This creates another area of
savings for derivative traders. Some brokers still charge for these services, and the cost can be $25 or more in some cases.
What Option Traders Should Look For in the Top Options Brokers
Buying and selling option contracts requires specialized trading tools, and not every broker provides the same level of support. Option traders may also benefit from educational resources, including videos, articles, and webinars. These services for derivative investors can differ significantly from one brokerage firm to another. The following areas are especially important for option traders.
Customer Service for Option Investors
Brokers do not all provide the same level of customer support. Because option trading can be a specialized financial strategy, having a brokerage firm with support resources for derivative traders can be useful.
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 want customer service available by phone and through on-line chat. While many brokers offer phone support,
not all of them provide an on-line chat feature. Vanguard, for example, does not; although E*TRADE does.
Option Pricing
If you plan to trade options, the broker’s derivatives pricing schedule is obviously an
important item to review. As with the other topics in this article, option commission schedules can vary widely from
broker to broker. Some firms sit at the low end of the cost range, charging
$0 for the 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 transaction for option exercises and assignments. Schwab, on the
other hand, does not charge commissions or per-contract fees on transactions that result from options exercises or assignments. Because pricing varies across
the industry on this issue, be sure to learn your broker’s costs for assignments and exercises.
Option Research & Education
Strong educational materials are very important when trading any security, and derivatives
are no exception. Some brokers provide a large library of research and education for option
contracts, while other firms offer less. SoFi Invest, for example, now offers options trading, so this is no longer an example of a broker with no option-trading access.
Fidelity has a large educational section on its website, and option traders can find many helpful resources there. The broker provides articles, videos, and webinars covering a variety of derivative trading strategies. One article discusses seven common mistakes that option traders often make. A video shows how to place a bull call spread, while a webinar discusses income strategies using options. Beginning option traders would generally be better served by a broker with stronger education and tools than by a firm with fewer option resources.
Option Trading Technology
Once you are ready to place option trades, you’ll need a broker with strong enough trading tools. Some brokers provide only a website with a basic order ticket that appears after clicking a price inside an option chain. Vanguard is one example. Other brokerage firms offer much more advanced trading platforms.
TradeStation clients, for example, have access to OptionStation Pro. This is a desktop platform designed for trading derivative contracts. It has advanced option analysis with 2-D and 3-D graphs. Option searches can be performed with results that are ranked by various characteristics, such as expiration date and strike price. A unique feature is SpreadMaster, which can open and manage multiple spreads simultaneously.
Some brokers also offer a paper trading platform where customers can practice buying and selling options before using real
money. Charles Schwab, for example, offers both desktop and mobile trading platforms where option contracts can be traded with virtual
currency. Called thinkorswim, the software is very sophisticated, so practicing first can be a smart idea before
placing live trades.
Cheapest Options Brokers Summary
Having the right tools is an essential part of any investment strategy, and this can be even more important with options. Before choosing a broker, research the firm carefully to make sure it has the pricing, tools, education, and support you need to trade successfully.
Updated on 5/4/2026.
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