Best Options Brokers 2016
Next to active traders, there is arguably no client more valuable to an online broker than an options trader. Options trades offer much higher profit margins for brokers than stock trades, and, as a result, competition is fierce in attracting these clients. This type of market atmosphere is great for investors because with healthy competition comes innovation and competitive pricing.
Our winner again this year, OptionsHouse, understands what it takes to succeed in this niche. Thanks to joining forces with tradeMONSTER back in 2014, OptionsHouse not only offers highly competitive options commissions, but also a fantastic platform. Options trades are a flat $4.95 + $.50 per contract. Platform wise, OptionsHouse’s web-based platform offers all the tools an options trader could want and displays them in magnificent form. Attention to detail, like automatic alongside custom spreads groupings, effortless scanning through strategySEEK, and easy-to-understand risk/reward data through tradeLAB, make OptionsHouse a truly unique experience. The OptionsHouse platform is the best in the industry.
Compare These Brokers
Options: $4.95 + $0.50 per contract
Exclusive: Trade Commission-Free For A Full 90 Days! - Learn More
Options: $9.99 + $0.75 per contract
Exclusive: Trade free for 90 days + get up to $600 - Learn More
Stocks: $0.01 per share
Options: $0.00 + $1.00 per contract
Special Offer: Save 20% on commissions through December 2016. Learn More
Options: $8.95 + $0.75 per contract
Special Offer: Earn over $4,250 in commission-free online trades. Get Details
Options: $7.95 + $0.75 per contract
Exclusive: Get 300 commission-free trades and 2 years to use them - Learn More
Keeping the spotlight on high-octane platforms and tools for options traders, TD Ameritrade’s thinkorswim and TradeStation cannot be left out. Strategy Roller from thinkorswim allows clients to create custom rules and roll their existing options positions automatically. The number of settings and depth of customization available is impressive, and something we’ve grown to expect from thinkorswim. Not to be outdone, TradeStation’s OptionsStation tool makes analyzing potential trades a breeze, and even goes as far as including 3D P&L charts. Investors note, however: Popcorn and 3D glasses are not required, and while visually appealing, we did not see any distinct advantage over the traditional 2D P&L chart.
If unique features and functionality matters to you, Charles Schwab’s “Walk Limit” order type, which will "walk" your order to try to get the most favorable price within the National Best Bid or Offer (NBBO), is really impressive. The broker also offers Idea Hub, which uses targeted scans to visually break down new possible options trades.
There are a lot of great brokers to choose from in the world of options trading. In 2015, investors should expect their broker to include scanning, P&L analysis, risk analysis, and easy-order management. Position management functionality and tying the experience all together is where platforms like tradeMONSTER and thinkorswim really stand out and distinguish themselves. Ultimately, it comes down to personal preference and weighing priorities, such as cost per trade versus ease of use and tool selection.
All pricing data was obtained from a published web site as of 2/16/2016 and is believed to be accurate, but is not guaranteed. The StockBrokers.com staff is constantly working with its online broker representatives to obtain the latest pricing data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page. For stock trade rates, advertised pricing is for a standard order size of 500 shares of stock priced at $30 per share. For options orders, an options regulatory fee per contract may apply.
TD Ameritrade, Inc. and StockBrokers.com are separate, unaffiliated companies and are not responsible for each other’s services and products.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading privileges subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Offer valid for one new Individual, Joint or IRA TD Ameritrade account opened by 9/30/16 and funded within 30 days of account opening with $3,000 or more. To receive $100 bonus, account must be funded with $25,000 or more within 30 days of initial minimum funding. To receive $300 bonus, account must be funded with $100,000 or more within 30 days of initial minimum funding. To receive $600 bonus, account must be funded with $250,000 or more within 30 days of initial minimum funding. Please allow 3-5 business days for any cash deposits to post to account. Offer is not transferable and not valid with internal transfers, accounts using the Amerivest service, TD Ameritrade Institutional accounts, and current TD Ameritrade accounts or with other offers. Qualified commission-free Internet equity, ETF or options orders will be limited to a maximum of 250 and must execute within 90 days of account funding. Contract, exercise, and assignment fees still apply. Limit one offer per client. Account value of the qualifying account must remain equal to, or greater than, the value after the net deposit was made (minus any losses due to trading or market volatility or margin debit balances) for 12 months, or TD Ameritrade may charge the account for the cost of the offer at its sole discretion. TD Ameritrade reserves the right to restrict or revoke this offer at any time. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Please allow 3-5 business days for any cash deposits to post to account. Taxes related to TD Ameritrade offers are your responsibility. Retail values totaling $600 or more during the calendar year will be included in your consolidated Form 1099. Please consult a legal or tax advisor for the most recent changes to the U.S. tax code and for rollover eligibility rules. (Offer Code 264)
TD Ameritrade Inc., member FINRA/SIPC.. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2016 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.
TD Ameritrade, Inc. (“TD Ameritrade”) has entered into a Marketing Partner Agreement with Reink Media Group, LLC (“Marketing Representative”) whereby TD Ameritrade compensates Marketing Representative for recommending TD Ameritrade as an executing broker. The existence of this Marketing Partner Agreement should not be deemed as an endorsement or recommendation of Marketing Representative by TD Ameritrade and/or any of its affiliated companies. Neither TD Ameritrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Representative or this website. TD Ameritrade does not warrant the accuracy or content of the products or services offered by Marketing Representative or this website. Use of this website and its services and/or products is the decision of and at the discretion of the individual or entity choosing this service and/or product. TD Ameritrade makes no guarantees or warranties of any kind of the products or services offered by Marketing Representative or by or through this website and shall have no liability therefore.