Options trading is one of the few remaining areas in the trading industry where investors still have to pay commissions. While many online brokers now offer commission-free stock and ETF trades, options trading typically comes with a cost of around $0.65 per contract. However, there are now several upstart brokers that offer no-commission options trading.
Below is a list of brokers that currently offer free options trading and what you need to know about them.
No-Commission Trading on Options: What to Consider
Options have traditionally been the only securities that still incur trading fees at many brokerages. While some brokers claim to offer commission-free options trading, they may still charge a per-contract fee. The brokers listed below truly do not charge any commissions for options trading.
However, it’s important to note that some brokers may still pass on small regulatory fees, which amount to less than 3 cents per contract. While all brokers are charged this fee, some choose not to pass it on to their clients.
When choosing a broker, cost is not the only factor to consider. Other features such as research, education, and customer support can add significant value to your trading experience. Some traders may prioritize low costs, while others may value additional features offered by the broker.
Brokers Offering Free Options Trades
Firstrade
Firstrade offers a range of features to complement its commission-free trading on options, stocks, and ETFs. In addition to access to Morningstar reports, Firstrade provides educational resources. The platform also supports fractional shares, making it attractive to new investors.
Moomoo
Moomoo has recently reduced its options commissions to zero, aligning its pricing with the market. The platform does not charge for stock and ETF trades and offers advantages for trading Hong Kong and China A-shares. Moomoo also provides Nasdaq Level II data and competitive rates on margin accounts and cash balances.
Public.com
Public offers commission-free trading on options and rebates a portion of its revenue to traders. The platform also supports trading in cryptocurrency and provides social feeds for discussing stocks. Public offers fractional shares for as little as $1 and a subscription for additional research and support.
Robinhood
Robinhood was one of the first brokers to introduce commission-free trading and also offers free options trades. The platform is ideal for mobile trading and supports cryptocurrency trading. Robinhood’s user-friendly interface makes it easy to execute trades, and the platform offers a matching bonus program for IRAs.
SoFi Active Investing
SoFi’s Active Investing service allows clients to trade stocks, ETFs, and options without commissions. The platform is a convenient option for existing SoFi clients looking to consolidate their financial accounts. SoFi also supports fractional shares, making it accessible to beginners.
Webull
Webull is a mobile investment app that offers commission-free trading on stocks, ETFs, options, and cryptocurrency. The platform features advanced charting tools and supports fractional share trading. Webull also provides instant funding and allows users to trade cryptocurrency without commissions.