Best Options Trading Platforms in 2025

Choosing the right options trading platform isn’t just about finding the lowest contract fees – it’s about the tools, approval levels, support, and ease of use. With options trading, small differences in pricing or functionality can mean big differences in cost or performance. At The College Investor, we evaluate the top US brokers and traders based on real-world trading considerations, making sure you can compare not just fees but the full trading experience before making a decision.

Whether you’re just getting started with single-leg buying and selling, or you’re building multi-leg spreads and advanced strategies, the platforms below represent the strongest options through 2026 – and are compatible with different types of traders. Use the table for a quick view, then read the in-depth section on how to choose the right option for you.

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1. Charles Schwab (The Thinker)

Charles Schwab is a classic company that continues to try to reinvest itself for the next generation of investors. However, it has created a structure for profitable options pricing and is building better tools for options traders. In addition, through its acquisition of TD Ameritrade, it was able to acquire the best options trading platform: Thinkorswim.

With the acquisition of Thinkorswim, Charles Schwab has the best options trading platform available to investors today. The amount of tools available for finding trades, chart spreads, and more makes it extremely powerful and easy to use. Check out this complete guide on how to set up Thinkorswim.

Read Charles Schwab’s full review here.

2. Interactive Brokers

Interactive Brokers (IB) has powerful desktop and mobile applications. You can also trade through their website.

Their pricing structure is one of the most complex, designed for active traders. Although they are not as options-oriented as Thinkorswim, options traders will still feel at home on their platform.

Read our full Interactive Brokers review here.

3. Tradestation

TradeStation is one of the most customizable platforms on this list, and it’s really geared toward options traders (and other traders in general). TradeStation has dedicated desktop and mobile apps.

TradeStation also has some of the best entry level prices for options traders.

The big drawback here is that their platform can be a bit complicated for the inexperienced. However, if you are trading options, you need to be a strong investor.

Read our full TradeStation review here.

Commissions: $0.00 + $0.50 per contract.

Customer Service: Available Monday through Friday, 9am to 5pm ET via phone and chat.

4. Investment ally

Ally Invest has really been attracting new investors over the past couple of years, and options traders are no exception. Ally Invest does not offer a dedicated mobile app. Their website is based on HTML5 and can be accessed from any device.

Their pricing structure is very competitive, and their volume discount makes it top notch. The great thing about their discounted rates is that they also apply if you maintain a daily balance of $100,000, which is something that can be done for many investors.

Read our full Ally Invest review here.

5. E-commerce from Morgan Stanley

E*TRADE is a popular trading platform that has turned out to be powerful in options trading. E*TRADE has a dedicated mobile app. It’s not the cheapest, but it’s one of the most powerful options on this list.

They also have a full brokerage platform that allows you to invest in a wide range of investment products. Read our full E*TRADE review here.

6. Public

Public recently launched options trading on their mobile app, and it has a great interface for doing basic options trading. Right now, they only allow you to trade long calls and long options, but in the near future you will be able to trade covered calls and options, as well as straddle setups and strangles. Other types of spreads are also coming soon.

They also have a full brokerage platform that allows you to invest in a wide range of investment products. Read the full review of the Universal app here.

What to look for in an options platform?

Before opening an account, check each of these categories:

• Options approval levels:Platforms typically have multiple levels. Multilateral strategies require higher approval; Check which level you qualify for.
• Contract fees + hidden costs: Focus on the price for each contract and How non-standard strategies are charged (spreads, iron condors).
• Trading tools and strategy support: Does the platform have a strategy builder, profit/loss charts, mobile support for spreads, alerts and backtesting?
• Mobile versus desktop experience: Some traders only need mobile access while advanced traders often prefer the full desktop interface.
• Customer service and support hours: 24/7 support gives peace of mind for complex strategies and live markets.
• Volume discounts or tiered pricing: If you trade options heavily, look for platforms that reduce the cost of each contract once you reach a minimum.
• Educational resources and paper trading: If you’re new to options, a platform with simulators and educational tools reduces the risks.
• Integration with brokerage services: If you also trade stocks, ETFs, or futures, using a single platform can streamline your workflow.
• Regulatory approval and margin requirements: Learn about the margin rules and disclosures for options trading – they are stricter than stock trading.

Understand the risks of options trading

Options trading can offer flexibility and leverage, but it is not suitable for everyone. Unlike investing in stocks, options have expiration dates, time decay, and complex strategies that can magnify losses.

Before you begin, understand the following key risks:

• Limited lifetime: Options contracts expire, and their value decreases as they approach expiration (known as theta decay).
• Probability of total loss: You could lose 100% of your investment if the contract expires worthless.
• Margin requirements: Some strategies require margin approval, which can magnify gains and losses.
• Mission risks: Traders who sell options at unfavorable prices may be assigned shares if the contracts are exercised.
• Complex tax treatment: Options trades often have short-term capital gains tax implications and may require detailed record keeping.

Always review Characteristics and risks of standardized options (ODD)(PDF file) Document from the options clearing company prior to trading. Beginners should start with simple call or put puts before moving on to spreads or multi-leg strategies.

How we chose these platforms

Our goal is to help you choose the brokerage that best suits your experience level, budget, and business goals. To build this list, The College Investor reviewed dozens of brokerages and trading platforms that support options trading for US investors.

We focused on four basic categories:

1. Fees and contract costs:We compared the basic commissions and per-contract fees for single-leg and multi-leg strategies. Where applicable, we have observed platforms that reduce fees for high volume traders or offer commission-free options.
2. Platform tools and strategy support:Advanced options traders want access to multi-leg trade builders, live Greeks, and real-time analytics. We evaluated how each platform handles custom strategies, charts, and profit/loss visualization.
3. Beginner and Paper Trading Resources:Because options can be intimidating, we looked for brokers that offer solid educational content, demo trading accounts, and approval level guidance.
4. Quality of implementation and user experience:Fast implementation and intuitive design are essential. We examined usability on mobile and desktop devices, real-time quotes, and risk management features.

Each platform has been tested using publicly available data, verified price disclosures, and actual platform experiences. There is no paid brokerage for listing, although we may receive compensation if you open an account through a link on our site (see our policy).

Frequently Asked Questions (FAQ)

1. What is the cheapest platform for trading options?

Many platforms charge fees in between $0.50 and $0.65 per contractalthough a few now offer commission-free options. The right choice depends on whether you value price or advanced tools.

2. Do I need special approval to trade options?

Yes. Brokers use a tiered system of approval levels. Level 1 typically covers covered calls, while higher levels (2-4) allow for spreads and naked options.

3. Is options trading free if the broker advertises “zero commission”?

Usually it’s not completely free. While the broker may waive the base commission, the per-contract fee still applies.

4. Can I trade options in an IRA?

Yes, but only limited strategies are allowed – typically covered calls or cash-guaranteed puts. Margin trading is generally prohibited in IRA accounts.

5. What is a good platform for beginners?

Platforms that offer paper trading, visual strategy creation tools, and educational videos (such as Ally Invest or E*TRADE) are great starting points.

6. What are multilateral strategies?

These are trades that combine multiple options, such as spreads, straddles, or iron condors, to manage risk or speculate on volatility.

7. Do I need margin to trade options?

Not always. Buying or putting the underlying does not require margin, but putting or short selling options does.

8. Can I lose more than I invest in options?

Yes – if you sell options without protection, your losses can exceed your initial capital. Always know the risk exposure of your strategy.

9. How are options taxed?

Most options trades are taxed Short-term capital gains or lossessince you usually keep them for less than a year.

10. Where can I learn to trade options safely?

Start with your broker’s education center, read the ODD handbook, and consider paper trading until you become confident with pricing and expiration management.