Top picks for beginner-friendly options platforms
Best options trading platform for beginners - tastytrade
| Company |
Overall |
Options (Per Contract) |
Education (Options) |
Complex Options Max Legs |
 tastytrade
|
 |
$0.50 info |
Yes |
4 |
tastytrade is an excellent choice for beginners looking to master options trading. The platform’s structured educational content, including courses, videos, and articles, guides new traders through the fundamentals in a practical and engaging way. Whether you’re starting out with options or simply trying to build healthy trading habits, tastytrade makes learning accessible.
Live Education: One of tastytrade's most distinctive features is its affiliate tastylive, a separate live trading network that blends expert insights with interactive education. It’s akin to joining a community where experienced traders share real-time strategies and analysis, making it a valuable resource for anyone eager to deepen their options knowledge.
Data-Driven Trading: Data is at the core of options trading, and tastytrade delivers comprehensive, easy-to-use tools. From strike price selection to strategy management, the platform’s data-driven features are designed to support informed decision-making. Plus, the tastytrade mobile app ensures traders have full access to these features on the go.
Best full-service broker for trading advanced options - E*TRADE
| Company |
Overall |
Options (Per Contract) |
Education (Options) |
Complex Options Max Legs |
 E*TRADE
|
 |
$0.65 |
Yes |
4 |
E*TRADE is an ideal choice for beginners aiming to advance their options trading skills. The platform’s education resources are thoughtfully organized, making complex topics easier to grasp. Educational content spans live webinars, informative articles, and polished videos, offering various ways to learn.
Strategy Optimizer: One standout tool is the Strategy Optimizer for options, which helps traders develop ideas by focusing on price targets and layering in volatility and time frame expectations. This approach helps users understand how factors beyond the underlying asset's direction impact an option’s price. Additionally, the tool integrates contextual education, allowing traders to learn while planning real trades.
Profit and Loss Visualization: E*TRADE’s order tickets include optimized profit and loss graphs, which display standard deviations as price points and a plotted probability curve. This visual representation aids in modeling potential outcomes, making it easier to make adjustments as needed.
Best broker to trade options in a long-term portfolio - Fidelity
| Company |
Overall |
Options (Per Contract) |
Education (Options) |
Complex Options Max Legs |
 Fidelity
|
|
$0.65 |
Yes |
4 |
Fidelity is a great option for traders focused on integrating options within a long-term portfolio. The platform’s advanced strategy desk offers personalized support through live events, one-on-one coaching, and access to experienced representatives, making it an invaluable resource for building options expertise.
Options Pairing: Fidelity's options summary page presents a streamlined view of paired options, which is essential when combining strategies like covered calls. Seeing your positions in a paired format makes it easier to manage and adjust multi-leg trades effectively.
OptionsPlay Integration: For traders looking to explore new strategies, Fidelity offers the OptionsPlay tool. Though it requires a subscription, it’s a powerful way to analyze potential trades tailored to your portfolio or watchlist. It categorizes ideas into income and speculation, includes customizable risk settings, and even suggests exit strategies, making it a comprehensive resource for strategic planning. It's tools like these that solidified Fidelity as my top choice for high-net-worth investors.
Best broker for building a comprehensive options portfolio - Charles Schwab
| Company |
Overall |
Options (Per Contract) |
Education (Options) |
Complex Options Max Legs |
 Charles Schwab
|
|
$0.65 |
Yes |
4 |
Charles Schwab is an excellent choice for beginners looking to add options trading to their investment portfolio. The platform’s comprehensive tools and robust support make it accessible while still catering to those looking to grow as traders.
Options Pairing: Schwab’s platform pairs options for easy viewing, which is especially useful for beginners who trade multi-legged strategies. Having a clear view of combined positions simplifies trade management and adjustments.
Schwab Network: Schwab Network offers live financial news and market insights from experienced anchors, providing valuable perspectives tailored to self-directed investors. Dedicated segments on options trading offer insights into why certain trades make sense, helping new traders learn from real examples.
Best Overall Broker: Schwab nabbed our award for the best overall brokerage firm for 2025. While it’s not my top pick specifically for beginner options trading, it excels in offering a comprehensive investment experience, making it a great choice for those looking to build a well-rounded portfolio.
Best broker for simple single-legged options traders - Merrill Edge
| Company |
Overall |
Options (Per Contract) |
Education (Options) |
Complex Options Max Legs |
 Merrill Edge
|
 |
$0.65 |
Yes |
4 |
Merrill Edge is well-suited for beginners who primarily trade single-legged options. The platform’s intuitive design makes it easy to place trades, and the educational content seamlessly integrates with the trading experience, helping users build confidence in their strategies.
Strategy Builder: One of Merrill Edge’s most valuable tools is the Strategy Builder, which guides users through the process of constructing trades by assessing the underlying sentiment, time, and implied volatility. This tool combines questionnaires, educational tips, and analysis, allowing users to make informed decisions while learning key concepts.
Educational Integration: Merrill Edge’s options education hub is directly linked with its trading tools. The strategy articles offer a clear breakdown of each method, covering potential loss, breakeven, and maximum gain while integrating net greeks for a holistic view.
Single-Legged Focus: While Merrill Edge excels at single-legged trades, it lacks an options pairing feature. This can be frustrating when trading even a basic covered call, as the platform doesn’t automatically group related positions. Despite this limitation, for traders who stick to single-legged options, Merrill Edge remains a solid choice. Once pairing is introduced, it will significantly improve the user experience.
FAQs
What are the basics of options trading?
An option is a contract between a buyer and a seller. Every contract contains terms. For an option, those terms include the underlying asset (which could be a stock, index, fund, or currency), the agreed-upon price (known as the strike price), and a time frame in which the contract is valid (the expiration date). The buyer owns the right to execute the contract and wants it to contain as much value as possible, whereas the seller is obligated to fulfill the contract’s terms and prefers it to expire worthless having already received the premium (the price at which they originally sold the contract).
Options contracts are issued as either calls or puts:
- What is a call option?
A call option grants the right to buy the underlying asset at an agreed-upon price any time before expiration. Buyers of call options want the stock price to increase so they can buy shares at a lower, predetermined price (the strike price) than the market’s price. Sellers of call options, on the other hand, are obligated to sell the stock at the strike price if the buyer exercises (executes upon the terms) the option. Call sellers want the option to expire worthless, which happens when the stock price remains at or below the strike price, when the market has a more favorable buy price.
- What is a put option?
A put option grants the right to sell the underlying asset at an agreed-upon price any time before expiration. Buyers of put options are bearish and want the stock price to decrease, allowing them to sell shares at a higher price than the market is pricing. Sellers of put options, however, are obligated to buy the stock if the buyer exercises the contract. Since put sellers make maximum profit when the option expires worthless, they want the stock price to remain at the strike or increase.
Each options contract represents 100 shares of the underlying stock. However, because options contracts have an expiration date, an option’s price is influenced by more than just the stock price. Time until expiration and the market’s anticipated move (known as IV, or implied volatility) also affect an option’s value.
Options can be used to take directional views on market swings, generate steady income through premium collection, or even manage stock positions more efficiently. Whether you’re buying stocks at a discount with cash-secured puts, enhancing portfolio returns with covered calls, or structuring a multi-leg trade to hedge risk, capture volatility or take a directional view, options open up a world of opportunity.
What are 0DTE options?
0DTE stands for zero days until expiration, meaning these options expire the same day they are traded. These options contracts are highly speculative and incredibly risky since they have no time value remaining. This means the buyer is betting on a large directional move, which may already be amplified by high implied volatility.
From my perspective, trading 0DTE options outside of hedging strategies is simply gambling.
What options broker is best for beginners?
tastytrade is the best choice for beginners because it seamlessly integrates education with practical trading tools. The platform offers structured courses on options trading, covering everything from basic concepts to advanced strategies. What sets tastytrade apart is its interactive learning environment, including live content from its affiliate tastylive, where real trades are discussed in a community setting.
Another key benefit is tastytrade’s mobile app, which provides full access to educational resources and trading data, allowing beginners to learn and trade on the go. While other brokers like E*TRADE and Charles Schwab also provide valuable resources, tastytrade's dedicated focus on options education makes it my top pick for those just starting out with options.
What are some resources to learn how to trade options?
A great starting point is our in-depth article, How to Trade Options, which breaks down the fundamentals of options trading and provides step-by-step guidance for beginners. We cover essential concepts, strategies, and tips to help you build a solid foundation in options trading.
In addition, brokers like tastytrade, E*TRADE, and Charles Schwab offer integrated educational content tailored to beginners. From structured courses to live webinars and interactive tutorials, these platforms provide valuable resources to enhance your trading knowledge.
How can I practice options trading?
Paper trading is one of the most effective ways to learn options without risking real money. It replicates actual market conditions, allowing you to place trades and track performance. tastytrade offers a robust paper trading feature that mirrors the live trading experience, making it perfect for testing strategies and building confidence.
E*TRADE also offers a well-designed paper trading tool that integrates with its educational content, allowing beginners to practice complex strategies like spreads and iron condors. Charles Schwab’s thinkorswim platform includes paper trading as well, focusing on replicating the full trading experience, including multi-leg options strategies. By using paper trading consistently, beginners can gain hands-on experience and reduce the risk of costly mistakes when transitioning to live trading.
Our testing
Why you should trust us
Jessica Inskip is Director of Investor Research at StockBrokers.com, bringing 15 years of experience in brokerage and trading strategy. A former FINRA-licensed rep, she held Series 7, 63, 66, and 4 licenses. Jessica focuses on investor education and brokerage industry research, appears regularly on CNBC, Bloomberg, The Schwab Network, Fox Business, and Yahoo! Finance, and hosts the Market MakeHer podcast.
Blain Reinkensmeyer, co-founder of StockBrokers.com, has been investing and trading for over 25 years. After having placed over 2,000 trades in his late teens and early 20s, he became one of the first in digital media to review online brokerages. Today, Blain is widely respected as a leading expert on finance and investing, specifically the U.S. online brokerage industry. Blain has been quoted in The New York Times, The Wall Street Journal, Forbes, and Fast Company, among others. Blain created the original scoring rubrics for StockBrokers.com and oversees all testing and rating methodologies.
How we tested
- We used our own brokerage accounts for testing.
- We collected thousands of data points across the brokers we review.
- We tested each online broker's website, desktop platforms, and mobile app, where applicable.
- We maintained strict editorial independence; brokers cannot pay for inclusion or a higher rating.
Our research team meticulously collected data on every feature of importance to a wide range of customer profiles, including beginners, casual investors, passive investors, and active traders. We carefully track variables like margin rates, trading costs, fees, and platform features and use them to help rate brokers across a range of categories measuring ease of use, range of investments, research, education, and more.
At StockBrokers.com, our reviewers use a variety of computing devices to evaluate platforms and tools. Our reviews and data collection were conducted using the following devices: iPhone SE running iOS 17.5.1, MacBook Pro M1 with 8 GB RAM running the current MacOS, and a Dell Vostro 5402 laptop i5 with 8 GB RAM running Windows 11 Pro.
Each broker was evaluated and scored on over 200 different variables across seven key categories: Range of Investments, Platforms & Tools, Research, Mobile Trading, Education, Ease of Use, and Overall. Learn more about how we test.
Trading platforms tested
We tested 16 online trading platforms for this guide:
Charles Schwab
Interactive Brokers
Fidelity
E*TRADE
Merrill Edge
TradeStation
tastytrade
eToro
