When it comes to trading options, things can get a little expensive — especially if you are an active trader. As a result, it makes sense to minimize the fees you pay.
Options brokers often charge a transaction fee for each trade, plus a contract rate for each individual contract that is part of the trade. Before you sign up with an options broker, make sure you understand the fee structure, as well as how options are traded.
Do the math, and decide which options broker makes the most sense for your situation. Here are some of the lowest priced options brokers:
Another low cost option is Ally Invest. This low-cost broker often receives good reviews for customer service, as well as for the low-cost options commissions. Stock options are fairly straightforward. You pay $4.95 per trade, plus $0.65 per contract. There are no minimums in terms of deposits to get started. However, you do need to meet minimal requirements to avoid an annual fee of $50. As long as you keep at least $2,500 in your account, and complete at least one commissioned-charged trade every 12 months.
Use TD Ameritrade if you are looking for a solid options broker. Their options base $9.99 with $0.75 per contract. TD Ameritrade, with their ThinkorSwim platform has many tools to help you create a options trade — from the simple to the complex.