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Call and Put Options Strategies

Compare online brokers for Options Trading



Option Rates Option Spread rates
(if discounted)
Options Exercise or Assignment fee Options Market Data fees Incactivity fees Wire Fund Transfer fees Minimum Account balance
GO
Open an Account
5 contracts for $5
(1$ per contract over 5)
10 spreads for $10 
(1$ per spread over 10)
$5 Real time: Free None Out Domestic $15 $1000
GO
Open an Account
$0.7 or less per contract ($1 Minimum) No discount Free Delayed Data: free (usable)
Live: $10 per month (waived if commissions paid for the month are higher than $30)
$10 Min Monthly commission (otherwise you have to pay $10 an inactivity fee) Out - Free once a month
$10 for any extra transfer
$10000 
($5000 if you are under 25)
GO
Open an Account
$1.00 per contract $1.00 per spread contract $14.95 Real Time: $3-$25 $99.95 monthly (waived if 50 contracts are traded each month) Out Domestic $25
Out Intrntnl $35
$5000
GO
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$7.00 per trade + $1.25 per contract No discount $17 Real time: Free None Out Domestic $25
Out Intrntnl $40
$500
GO
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$7.99 per trade + $0.75 per contract $7.99 plus $7.99 plus $0.75 $19.99 Real time: Free None Out Domestic $25
Out Intrntnl $25
$500
GO
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$9.99 per trade + $0.75 per contract No discount $19.99 Real time: Free None Out Domestic $25
Out Intrntnl $25
Full Withdrowal $75
$2000
GO
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$8.95 per trade + $0.75 per contract No discount $19.99 Real time: Free to active traders (min: 30 trades per quarter) None Out Domestic $25
Out Intrntnl $25
$1000
GO
Open an Account
$1.25 Per Contract
($12.95 Minimum)
No discount $8.95 Real time: Free None Out Domestic $15
Out Intrntnl $30
Full Withdrowall$60
No minimum
GO
Open an Account
$4.95 per trade + $0.65 Per Contract $4.95 per spread contract + $0.65 Per Spread Contract Exercise: $9.95
Assignment: $4.95
Real time: Free $50 per year (waived if 1 trade is made in a year and the ballance is above $2500 Out Domestic $35 No minimum

How to find the best broker for options trading?

Investing time in finding the right broker for your trading style is very important.

There are many articles on the web with online broker reviews, however very few demonstrate an optimised list of expenses for option traders to consider before signing up with any broker.


We have identified the two most important aspects to consider after interviewing a dozen of active option traders:

1. Commissions (including fees) appeared the most important to consider regardless the size of trading capital. It should be noted that online brokers with lower commissions usually charge monthly fees if a certain amount in commissions have not been reached by traders.

2. The second aspect is "Everything else". Platform usability, customer service, quality of educational material etc.

Oscreener is not in the position to evaluate usability of each trading platform as there are many opinions towards usability and friendliness of user interfaces. Brokers tend to improve and upgrade their user interfaces, support levels and educational material. Therefore, we recommend to review annual broker surveys performed by popular magazines or independent institutions. For example perform a google search for "Barrons Annual Online Broker Survey" for the latest reviews.

It is also wise to have a clear idea of the options trading style you prefer before reviewing each options broker.

There are four different styles of options trading:

1. Long-term options trading style (1-3 yearly positions with LEAP options),

2. Medium-term options trading style (1-6 monthly positions),

3. Short-term options trading style (1-4 weekly positions),

4. Day trading style (1-4 daily positions).

 

Most option traders fall into medium/short term trading styles. Ultimately, everyone is recommended to review their brokerage services on a regular basis. Brokers are continually building new trading tools and upgrading existing platforms. Testing other platforms can provide a better understanding of options and could give a competitive advantage over other traders.

According to a 2013 broker review at stockbrokers.com, the following brokers are worth noting in specific sections related to options trading:


Section Broker Open an Account
Best for Commissions & Fees  Interactive Brokers Open an Account
Best for Research Charles Schwab Open an Account
Best for Customer Service TD Ameritrade Open an Account
Best for Education TD Ameritrade Open an Account
Best for Options Trading Options House Open an Account

Overall, the right tools for trading options are key to every successful performance; finding success in the market begins with choosing the right broker.

 

 

 

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