Best Options Brokers for 2021

Like many people, I was intimidated by options when I first started investing almost 10 years ago. They seemed complicated, because they are. It soon became obvious, however, that locking in the ability to buy or sell securities at a set price would be a powerful way to tap into good investment ideas I might not otherwise be able to afford. Through the years, I’ve discovered that all of the best options brokers share a few things in common: low fees, no account minimums, and a user-friendly interface. In this article, I’m going to walk you through the three best options brokers out there, and how they’ll be able to help you with your own investment strategy.

If you already have a firm handle on your investment strategy and want to maximize your profits, there’s no cheaper online options broker than OptionsHouse. If you’re an active trader that’s looking to stay on top of daily trading volume trends or hourly changes in a stock’s chart, OptionsXpress is going to give you the most effective tools to do it. Each of these brokers caters to a different type of investor, but they all share a focus on low fees, no account minimums, and a user-friendly interface.

In this article

    Disclosure: has an advertising relationship with some of the offers included on this page. However, the rankings and listings of our reviews, tools and all other content are based on objective analysis. For more information, please check out our full Advertising Disclosure. The offers that appear on this site are from companies from which receives compensation. All products are presented without warranty and all opinions expressed are our own.

    The Simple Dollar’s Top Picks for the Best Options Brokers

    What to Look for in an Options Broker

    I have managed my own investments for a decade and use Merrill Edge as my primary trading platform because it’s linked up with all my other accounts. However, as a traditional broker, it’s pretty darn clunky when it comes to researching options. In all honesty, the only reason I stick with Merrill is because I have multiple accounts and enough money invested with them that they grant me some pretty nice perks to keep my business. For those just starting off with options, those with a small account, or those who are very active and need a responsive interface of high quality, an old-school broker like Merrill that has simply bolted on an options trading platform probably isn’t going to be ideal for you.

    The good news is that there is a host of brokers out there that cater almost exclusively to options traders. The best have the following things in common:

    • An options-specific platform: If you want to be serious about options, you’re going to want a broker that is too. A traditional broker focused mainly on stocks or ETFs can typically be clunky when it comes to researching options, or use a fee structure that doesn’t make active options trading cost effective. The good news is that there are a host of brokers out there that cater almost exclusively to options traders. And that’s because they were built primarily as a platform for options first and foremost – even if some were eventually bought by a larger company, or added tools for other kinds of traders down the road.
    • Low fees: Minimizing risk also goes hand-in-hand with minimizing cost. It’s important to acknowledge that even a modest amount of fees will quite literally take the place of other profitable trades you could be making. Whether you’re trading options in the hopes of big profits or just using them for a defensive strategy, cost matters a great deal.
    • Low account minimums: Many traders of modest means use options as a cheaper alternative to going long with a high-priced stock. If you have to have a minimum of $100,000 in your account or trade 50 times a month to get cost-effective access to those options, what’s the point? Most options traders can easily get by with a limit of $1,000 or so, but a lack of minimums at all is more preferable.
    • Intuitive interface: The given price on an options contract can fluctuate significantly across the trading day. If you have to fumble around with poorly formatted options chains, it can cost you.
    • Education: Speaking of multi-leg options trades, when is it right to do a bull call spread? And what the heck is an “iron condor?” A good broker will provide resources to teach you more about the sophisticated option trading strategies you may not be familiar with out of the gate.
    • Flexibility: If, like me, your favorite option is a covered call, that means you need to research and purchase plain old stocks and ETFs, too. And you’re not going to want to use another broker to do it. Nobody likes the hassle and cost of having multiple platforms to do multiple things.

    The Best Options Brokers

    Best for beginners – TD Ameritrade

    If you’re just getting started in options, TD Ameritrade offers the most educational resources to help you make smart decisions early on.

    Stock Trading Fee
    Option Trade Fee
    $0.65 fee per contract
    Customer Satisfaction Score
    4.4 / 5.0
    SimpleScore TD Ameritrade 4.4
    Mobile App 4
    Products 4
    Resources 5
    Support Channels 5
    Customer Satisfaction 4

    If you’re looking to explore options without sacrificing some of the investment options you’re used to, like low-cost ETFs, then TD Ameritrade strikes the perfect balance between worlds – and offers plenty of tips and tricks to help you learn how to trade options effectively, including webinars and an archive of educational videos to explain specific strategies. There’s no element of financial planning you can’t find through TD Ameritrade, which makes it a great one-stop shop, as well as a great entry into options for those more familiar with traditional stocks and bonds.

    TD Ameritrade may be a discount brokerage, but it is still one of the largest trading platforms in the world with almost $740 billion assets and almost 7 million client accounts. It has won new business in recent years mostly by catering to rookie traders, winning accolades for its accessibility, including five consecutive awards as the best platform for novices as ranked by respected investing magazine Barron’s.

    TD Ameritrade also recently acquired Scottrade in 2017. With Scottrade’s numerous customer service awards and brick-and-mortar stores, TD Ameritrade just amped up its market share of investors of all kinds.

    Easy-to-Execute Options Trades

    When I first started dabbling in options, simply learning the lingo was hard enough. What the heck is a bull call spread? How can I be sure I’m making a covered call on my existing stocks and not accidentally selling shares I want to keep? Thankfully, TD Ameritrade cuts out the guesswork with easy-to-understand options trading tabs. Simply click on the “spread” tab if you want a spread, or click on the “single order” tab if you just want one leg. There’s also clickable links at the ready explaining the strategies on the order page, so you won’t have to find the answers to any last-minute questions elsewhere before placing your trade.

    Full-Service Platform

    You can make stock trades for $0 on the platform, and trade from over 100 commission-free ETFs. There’s also the capability to trade futures and even forex if you really want to get sophisticated, or an avenue to buy annuities if you’re thinking about income in retirement. The fees are admittedly sometimes higher than some other providers – about 10% higher than the typical discount broker, and more than 50% higher than the best discount broker you’ll read about next. But those fees fund customer service resources that are available 24/7, so you’re getting something for that extra money. TD Ameritrade also has over 100 branches across 33 states for in-person consultation if you need it.

    Educational Resources

    As stated, the robust customer service and physical branches are great resources for newbies to options trading. But there’s also plenty of online resources for the self-starter, including both options screeners to help you identify new ideas, as well as hours of webinars and on-demand video to teach you about options strategies. Most importantly, you’ll also be able to learn how to execute those strategies within the TD Ameritrade platform. Reading a blog post is one thing, but seeing someone click through a trade is by far the best way to learn the ropes/

    A Word On Options Expiration and Alerts

    Options can be very profitable if done right, but I’d like to use this space for a public service announcement: Options are contracts that must be acted on, or they expire worthless. That means making sure you have a good grasp of your specific option expirations, and that may mean finding out how to set reminders or alerts via your broker.

    It is not uncommon for less vigilant or inexperienced options investors to just throw up their hands and eat a bad trade. But, remember: sometimes it’s financially advantageous to close an option position early, or to close an option at a smaller loss than allowing it to execute.

    Let’s say you spent $100 to for an options contract that gives you the right to buy 1000 shares of XYZ Corp. at $10 a share, and the contract expires in two months. Your hope is that shares will rise to $12 so you can buy 1000 shares at $10 per your option contract and then immediately sell them at $12 for a $2,000 gain.

    Unfortunately, some bad news in a week or two pushes XYZ down to $8 a share – meaning you’re deeply “out of the money” and buying at $10 would result in a $2,000 loss instead.

    Again, the great thing about options is that you don’t have to buy those shares at $10 if you don’t want to, and can just let the contract expire. You’re out $100, but that’s better than a $2,000 loss.

    However, you could also sell that options contract to someone else instead of waiting until expiration. They probably will give you a fraction of what you paid since the options are pretty unattractive, maybe only $5 or $10. But hey, it’s better than zero.

    Your personal strategy and specific trades are up to you, but all options traders run into scenarios like this eventually and many just throw up their hands and give up. Believe me, over time that extra $5 or $10 you salvage from seemingly worthless options will add up; particularly if you’re an active trader.

    To this end, I highly recommend emails, text alerts, or calendar reminders to let you know when your options are set to expire. Whatever your broker, spend some time exploring the tools they provide to help, and find a system that works for you.



    The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.

    For every review, our editorial team:

    • Identifies five measurable aspects to compare across each brand
    • Determines the rating criteria for each aspect score
    • Averages the five aspect scores to produce a single SimpleScore

    Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best stock trading platforms and brokerages of 2020.


    Why do some brands have different SimpleScores on different pages?

    To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

    However, it’s also possible for brands to have multiple SimpleScores, as we measure each category individually with a separate set of criteria. For example, when we apply our methodology to Chase’s stock trading product, it scores a 3.6 out of 5. On the other hand, when we compare Chase checking accounts, it scores a 4.4 out of 5.

    Questions about our methodology?

    Email Hayley Armstrong at

    Mobile app rating

    We took an average of each stock brokerage’s iOS App Store and Google Play ratings and scored brands based on the result.

    Additional products

    Investing is not just about stocks. We rated brands based on their product variety including ETFs, bonds, mutual funds, IRAs and options. The more products means higher the score.


    We rated brands based on how many educational and investing resources are available. This includes Morningstar reports, market trends, how-to guides and more.

    Customer support

    When you run into trouble with your stock investment account, how can you get in touch for support? We award brands with more channels of support with higher scores in this aspect.

    Customer satisfaction

    We leveraged J.D. Power’s 2020 U.S. Self-Directed Investor Satisfaction Study to rate each brand’s customer satisfaction. As always, a higher customer satisfaction rating means a higher SimpleScore.

    Jeff Reeves

    Contributing Writer

    Jeff Reeves is a financial commentator with 20 years of newsroom and stock market experience. His work has appeared in numerous finance publications and broadcast outlets, including The Wall Street Journal network, CNBC,, Fox Business Channel, USA Today. He also did a stint as an editor for the New York Times Co.