Options commissions have dropped dramatically over the past few years, but "free" isn't always free. Between per-contract fees, regulatory charges, assignment costs, and execution quality, the true cost of trading options varies more than most people realize.

Full Fee Comparison Table

| Broker | Per Contract | Closing Fee | Assignment | Index Options | Regulatory Fees | Robinhood Gold$0.00$0.00$0$0.00Included Webull$0.00$0.00$0N/AIncluded tastytrade$1.00$0.00$0$1.00Included Schwab/thinkorswim$0.65$0.65$0$0.65Pass-through Fidelity$0.65$0.65$0$0.65Pass-through E*TRADE$0.65$0.65$0$0.65Pass-through | IBKR (Tiered) | $0.15-$0.65 | $0.15-$0.65 | $0 | $0.15-$0.65 | Separate |

The True Cost of "Free" Options Trading

Robinhood and Webull offer $0 options commissions, but they make money through payment for order flow (PFOF). This means your orders are routed to market makers who pay the broker for the privilege of filling your order. The concern is that you may not get the best possible fill price.

For a single contract on a liquid stock like AAPL, the difference is typically a penny or two. On a 10-contract iron condor on a less liquid underlying, poor fills can cost you $20-50 — far more than the $13 you'd pay in commissions at Schwab.

Cost Scenarios for Different Traders

Casual trader (5 trades/month, 1-2 contracts each):

  • Robinhood: ~$0/month
  • Schwab: ~$6.50/month
  • IBKR Tiered: ~$3.25/month

    • At this volume, the cost difference is negligible. Choose based on tools, not fees.

    Active trader (30 trades/month, 5 contracts each):

  • Robinhood: $0/month
  • Schwab: ~$97.50/month
  • IBKR Tiered: ~$22.50-$60/month

    • Now the savings start to matter. IBKR's tiered pricing becomes attractive.

    High-volume trader (100+ trades/month, 10+ contracts):

  • Robinhood: $0/month
  • Schwab: $650+/month
  • IBKR Tiered: $150-$300/month

    • At this level, IBKR's tiered pricing saves thousands per year vs. traditional brokers.

    Hidden Costs to Watch For

    Regulatory fees — Most brokers pass through SEC and FINRA fees. These are tiny (fractions of a cent per contract) but they do exist.

    Exercise and assignment fees — All major brokers now charge $0 for assignment. This wasn't always the case, so double-check if you're using a smaller broker.

    Margin interest — If you trade on margin, rates vary wildly. IBKR charges around 5.8%, while most others charge 8-12%. On a $50,000 margin balance, that's a $1,000-3,000 annual difference.

    Data fees — Real-time options data is free at most brokers, but some charge for Level 2 quotes or historical options data.

    The Best Value Pick

    For most retail options traders, tastytrade offers the best value. The $1.00/contract cap with free closes means your cost is predictable, and the platform is purpose-built for multi-leg options strategies. If you trade high volume, IBKR's tiered pricing is the cheapest option available.

    Regardless of which broker you choose, tools like OptionsPilot help you find better trades in the first place — reducing the number of losing trades matters more than saving $0.50 per contract on the winners.