This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
Options trading fees are the most variable cost among major brokers. While stock and ETF commissions are $0 everywhere, options per-contract fees range from $0 to $0.65 — a difference of $780 per year for a trader executing 100 contracts per month. Additional costs like exercise and assignment fees, index options fees, and platform data fees vary as well.
Per-Contract Fee Comparison
| Broker | Per-Contract Fee | Volume Discount | Exercise/Assignment Fee | Index Options |
|---|---|---|---|---|
| Robinhood | $0 | N/A | $0 | Not offered |
| Webull | $0 | N/A | $0 | Not offered |
| Interactive Brokers | $0.65 | Yes ($0.25 at high volume) | $0 | Varies by exchange |
| Charles Schwab | $0.65 | Negotiable | $0 | Add $0.65/contract |
| E*TRADE | $0.65 | $0.50 (30+ trades/quarter) | $0 | Varies |
| Fidelity | $0.65 | Negotiable | $0 | Varies |
| Vanguard | $0.65 | Yes ($0.25 at high volume) | $0 | Varies |
| Merrill Edge | $0.65 | Yes (Preferred Rewards) | $0 | Varies |
Annual Cost Comparison
| Monthly Contract Volume | $0/Contract | $0.50/Contract | $0.65/Contract | Annual Difference |
|---|---|---|---|---|
| 10 contracts/month | $0 | $60 | $78 | $78 |
| 50 contracts/month | $0 | $300 | $390 | $390 |
| 100 contracts/month | $0 | $600 | $780 | $780 |
| 500 contracts/month | $0 | $3,000 | $3,900 | $3,900 |
| 1,000 contracts/month | $0 | $6,000 | $7,800 | $7,800 |
For traders executing fewer than 10 contracts per month, the fee difference is negligible. For traders executing hundreds of contracts, the difference between $0 and $0.65 per contract is significant.
Other Options Costs
Exercise and assignment fees: Most brokers no longer charge for options exercise or assignment. This was a $5-$25 fee at many brokers historically but has been largely eliminated.
Index options fees: Index options (SPX, NDX, RUT, VIX) often carry additional per-contract fees beyond the standard equity/ETF options rate. These vary by broker and exchange. IBKR charges varying rates by exchange. Schwab adds $0.65 per contract.
Regulatory fees: All brokers pass through small SEC and exchange fees on options transactions — typically a few cents per contract. These are not broker revenue; they are regulatory costs.
Margin costs for options: Selling options requires margin or cash collateral. The margin rate (if borrowing) or opportunity cost of tied-up cash is a real cost of options trading that does not appear as a line item.
Frequently Asked Questions
How do $0 per-contract brokers make money on options? Through payment for order flow (PFOF). Market makers pay for the right to execute options orders, and the PFOF payment replaces the explicit per-contract fee. The cost to the trader is embedded in the execution price rather than shown as a separate fee.
Should I choose a $0 per-contract broker for cost reasons? If you trade more than 50 contracts per month, the cost difference is meaningful. For lower volumes, platform quality and tools may matter more than the $30-$60 per year difference in options fees.
Do I need to pay for options data? Real-time options data often requires a subscription ($5-$15/month) or a minimum number of trades to waive the fee. Delayed data (15-20 minutes) is free at most brokers.
What about fees for multi-leg strategies? Most brokers charge per contract, per leg. An iron condor (4 legs, each 1 contract) costs 4 × the per-contract fee. At $0.65/contract, that is $2.60 per iron condor. At $0, it is free.
Where to Start
Calculate your monthly options volume and compare costs using the table above. Read our best brokers for options trading for platform and tool comparisons. Check our broker reviews for complete broker analysis.
Options trading involves significant risk and is not appropriate for all investors. You can lose more than your original investment. This page contains affiliate links.