Best US Options Brokers & Options Trading Platforms Compared

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Our comparison table of US options brokers covers the key account features. These include, tight pricing, financial security, regulation, range of markets, added value and reviews.

Best US Options Brokers 2024

Options Trading PlatformOptions AvailableMinimum DepositOur RatingMore Info
Interactive Brokers Options Trading10,000$2,000
(4.4)
See Platform

Interactive Brokers: Best Overall US Options Broker

Interactive Brokers Options Trading Review
Interactive Brokers

Name: Interactive Brokers Options Trading

Description: When it comes to advanced options trading, Interactive Brokers outshines the competition with its unbeatable commissions, global market access, cutting-edge platforms, and tailored trading permissions. Make the smart choice and unlock your full trading potential with IBKR Advantage. Compare the facts, and see why Interactive Brokers is the clear winner for advanced options traders worldwide.

Summary

A great choice for US options traders who want access to a huge range of markets and the ability to create complex options strategies.

  • Unbeatable Commissions: With commissions ranging from just USD 0.15 to 0.65 per US option contract, Interactive Brokers offers some of the most competitive rates in the industry. Save on costs and maximize your trading potential.
  • Global Market Access: Gain access to over 30 market centers worldwide. Trade options on a global scale, opening up a world of opportunities and allowing you to diversify your portfolio across international markets.
  • Cutting-Edge Platforms: Experience the power of our professional-grade trading platforms designed specifically for advanced options trading. Take advantage of advanced tools and features, empowering you to execute your strategies with precision and confidence.
  • Tailored Trading Permissions: Choose from four levels of options trading permissions to match your unique trading strategies. Whether you’re a seasoned pro or just starting out, Interactive Brokers offers flexibility and customization to meet your individual needs.

Pros

  • Very low dealing fees
  • Wide market range
  • Direct market access
  • Complex order types

Cons

  • Customer services can be slow
  • Pricing
    (4.5)
  • Market Access
    (4.5)
  • Online Platform
    (5)
  • Customer Service
    (3.5)
  • Research & Analysis
    (4.5)
Overall
4.4

Other US Options Brokers:

TastyTrade Options Trading

TastyTrade Options Trading Review
TastyTrade

Name: TastyTrade Options Trading

Description: A good choice for traders looking for low commission, trading ideas and a followers of trading on social media. tastytrade stands out as a top choice for options traders with its low commission rates. When comparing commission fees for various lot sizes, tastytrade offers highly competitive rates. For 1 lot, the commission is $1.20, which is lower than E*TRADE ($1.30), Fidelity ($1.30), Interactive Brokers ($2), Schwab ($1.3), and TD Ameritrade($1.3). This trend continues as the lot size increases, making tastytrade an appealing option for traders looking for cost-effective options trading solutions.

Summary

tastytrade offers traders the opportunity to employ a wide range of strategies and capitalize on various market conditions and you can trade options on a wide range of underlying assets including:

  1. Stocks: Options can be traded on individual stocks listed on major US exchanges.
  2. Exchange-Traded Funds (ETFs): Options are available for numerous ETFs, providing exposure to various sectors and asset classes.
  3. Indices: Options can be traded on popular stock market indices such as the S&P 500, NASDAQ-100, and Dow Jones Industrial Average (DJIA).
  4. Futures: Tastytrade offers options on futures contracts, allowing you to trade options on commodities, currencies, and other futures products.

Pros

  • Lots of options
  • Backed by IG
  • Good education programs

Cons

  • Limited futures
  • Trading only (no investing)
  • Pricing
    (4)
  • Market Access
    (4)
  • Online Platform
    (4)
  • Customer Service
    (4)
  • Research & Analysis
    (4)
Overall
4

Webull Options Trading

Webull Options Trading Review
Webull

Name: Webull Options Trading

Description: Webull, a newer options broker founded in 2017, is gaining market share but making options trading cheaper. Webull offers commission-free options trading and zero contract fees. You can also access free real-time OPRA and index data, enabling you to make informed options trading decisions. With Webull, you can explore multiple trading strategies to suit your preferences and objectives.

Summary

Whether you prefer the convenience of the user-friendly app, the flexibility of the web platform, or the advanced features of the desktop platform, Webull offers easy-to-use options trading across multiple devices.

Pros

  • Wide range of markets
  • Good platform

Cons

  • HQ’d in Cayman Islands
  • Pricing
    (3.5)
  • Market Access
    (3.5)
  • Online Platform
    (4)
  • Customer Service
    (4)
  • Research & Analysis
    (4)
Overall
3.8

ETRADE Options Trading

ETRADE Options Trading Review
ETRADE

Name: ETRADE Options Trading

Description: ETRADE, which is now a part of Morgan Stanley, offers options trading services for US residents from 50¢-65¢ per equity and index contract. E*Trade has won numerous awards for their options tools which include automatically calculating risk/reward probabilities, customizable options chains, earnings move analysis, preset scanners, spectral analysis and their unique StrategySEEK and Risk Slide.

Summary

A good choice for traditional options traders, who want to run options strategies alongside their long-term investment portfolios.

A few things that set E*TRADE apart from competitors are:

  1. Comprehensive Options Trading: E*TRADE enables traders to access a wide range of options contracts. You can trade options on individual stocks, exchange-traded funds (ETFs), indices, and more. This diverse selection allows you to explore various strategies and capitalize on market opportunities.
  2. Powerful Trading Platform: E*TRADE offers a user-friendly and intuitive trading platform that provides real-time market data, advanced charting tools, and customizable options analytics. These features assist in analyzing options chains, evaluating option strategies, and executing trades efficiently.
  3. Education and Research: E*TRADE offers educational resources and research tools to support options trading. Traders can access articles, videos, webinars, and market insights to enhance their knowledge and stay informed about options trading strategies and market trends.
  4. Options Analysis and Strategy Builder: E*TRADE’s platform includes robust options analysis tools and a strategy builder that allows traders to evaluate potential option strategies and assess their risk and reward characteristics.
  5. Customer Support: E*TRADE provides customer support to assist with any questions or issues related to options trading. Their support team is available through phone, live chat, and email to address inquiries and provide guidance.

 

Pros

  • Lots of options markets
  • Established brand
  • Good education

Cons

  • Slightly higher option trading costs
  • Pricing
    (3.5)
  • Market Access
    (4)
  • Online Platform
    (4)
  • Customer Service
    (4)
  • Research & Analysis
    (4)
Overall
3.9

US Options Broker FAQs

Here are the answers to the most commonly asked questions by people searching for the best options brokers in America.

In stock trading, buying ‘options’ from US options brokers effectively gives you the right to buy or sell a batch of stock in a certain price. The ‘option’ is a contract to either buy or sell some stock at a later date, and instead of actually buying or selling the stock, you merely pay a fee to hold the contract for the duration of its life. This means, instead of buying 100 shares for $1000, you buy the option for 100 shares for $100.

Buying the right to buy stock is called a ‘call’. Rather than actually buying the stock outright, which could cost a lot of money, buying the ‘right’ to buy that stock at the same price later on is a kind of insurance. It means that you could end up buying that stock at the same price a few months later when it’s actually worth a lot more.

Conversely, buying the right to sell a stock is called a ‘put’. If you believe the stock is going to lose value, you can sell someone else the ‘option’ to buy the stock at a given price, and get rid of it a few months later for more than it is now worth. This means that the person buying the stock takes the loss when they are obligated to buy stock that is worth less, while you get to take the money the stock was worth when you made the deal.

There are lots of choices out there when it comes to choosing a US options broker, which is good for consumers, because there are lots of good offers available. Firstly, you should make sure the platform they offer is comprehensive and easy to use, and that it has the range of facilities you’d like. If you’re big on mobile banking, for example, you’ll want a broker that supports trading on mobile devices. You should also take advantage of free learning opportunities if you can: The best brokers will offer courses and tutorials to help you out.

Options trading involves trading the option to buy or sell stock in a company from a US options broker, so you can buy options in any publicly listed company on a given exchange. Technically, an ‘option’ can be bought in anything at all that you might want to hold back on committing to purchase, or committing to sell (such as a car, television or a house) – but in financial markets, it means stock held in companies on the NYSE, S&P 500 etc.

The advantages work similarly to an insurance policy, in that you can make a purchase or a sale at a certain price even if the value of that stock subsequently rises or falls. This means you can sell something of low value for more money or buy something of high value for less. The risk comes if the opposite happens to what you’d planned. If you buy a call from a US options broker and your option ends up falling, you don’t get the benefit of a rise in the stock’s value, and you’ve effectively wasted the money you spent on the option (but not as much as if you actually bought the stock!). Similarly, if you buy a Put that increases in value, you’ve missed out on more money further down the line than you ended up selling the stock for.

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