Choosing the right broker for covered calls can significantly impact your returns. Let's compare the top options brokers for 2026.

Quick Comparison Table

| Broker | Options Fee | Assignment Fee | Platform | Best For | Fidelity$0.65/contract$0ExcellentOverall best Schwab$0.65/contract$0Very goodLong-term investors TD Ameritrade$0.65/contract$0thinkorswimAdvanced traders Robinhood$0$0BasicBeginners Tastytrade$1.00/contract$0Great for optionsActive traders | Interactive Brokers | $0.65/contract | $0 | Professional | High volume |

Best Overall: Fidelity

Pros:

  • Excellent options tools
  • Active Trader Pro platform included free
  • Great customer service
  • No assignment or exercise fees
  • Strong research and education

    • Cons:

  • Mobile app not as modern as Robinhood
  • Options approval can be strict

    • Best for: Most covered call sellers, especially those who value research and customer service.

    Best for Beginners: Robinhood

    Pros:

  • Commission-free options
  • Simple, intuitive interface
  • Easy to get started
  • No minimums

    • Cons:

  • Basic analysis tools
  • Limited customer support
  • No advanced order types
  • Execution quality concerns

    • Best for: New options traders learning the basics.

    Best Platform: TD Ameritrade (thinkorswim)

    Pros:

  • thinkorswim is industry-leading
  • Advanced charting and analysis
  • Paper trading included
  • Great mobile app

    • Cons:

  • Steeper learning curve
  • Being merged into Schwab

    • Best for: Traders who want professional-grade tools.

    Best for Active Traders: Tastytrade

    Pros:

  • Built specifically for options
  • Great probability tools
  • Excellent education
  • Follow feature for strategies

    • Cons:

  • Higher per-contract fee ($1.00)
  • Less suited for long-term investing

    • Best for: Active premium sellers doing many trades.

    Key Features for Covered Call Trading

    Must-Have Features:

  • Low/no options commissions - Saves $0.65+ per contract
  • No assignment fees - All major brokers now offer this
  • Good mobile app - Manage positions on the go
  • Option chain analysis - Greeks, probability data
  • Roll order support - Close and open in one order

    • Nice-to-Have Features:

  • Probability of profit display
  • Expected move indicator
  • Covered call screener
  • Paper trading
  • Dividend calendar integration

    • Execution Quality Matters

    Price improvement can add up. Brokers ranked by execution quality:

  • Fidelity (best price improvement)
  • TD Ameritrade/Schwab
  • Interactive Brokers
  • Tastytrade
  • Robinhood (payment for order flow concerns)

    • Account Minimums and Requirements

    | Broker | Minimum | Options Approval | Fidelity$0Level 1 for covered calls Schwab$0Standard approval TD/Schwab$0Standard approval Robinhood$0Easy approval Tastytrade$0Easy approval | IBKR | $0 | Tiered approval |

    Our Recommendation

    For most covered call sellers: Start with Fidelity or Schwab. Both offer excellent platforms, no assignment fees, competitive commissions, and great customer service.

    For active traders: Consider Tastytrade despite the higher per-contract fee - the tools are worth it.

    For beginners: Robinhood to learn, then graduate to Fidelity/Schwab.