Why Your Options Trades Feel Too Expensive (and How to Slash Commissions to Almost Zero)

 

Feeling like every options trade chips away at your wallet? You're not wrong — commissions (and the sneaky extras) can spread out profits thinner than you think. But here’s the good news: there are platforms out there practically begging you to trade — for almost free.

---

How Are Options Commissions Actually Charged?

Most brokers charge a flat fee per contract, typically ranging from $0.50 to $0.65. For example:

• Charles Schwab, Fidelity, Interactive Brokers — all hover around $0.65 per contract, with volume discounts available at IBKR 

• Ally Invest undercuts the field at $0.50 per contract, no volume tricks needed 

However, “free” doesn’t always mean free:

• Webull charges $0.00 for stock options, making it a top pick for ultra-low cost trades 

• tastytrade offers very competitive $0.50 per contract pricing and has a dedicated options-friendly platform 

Beware of the hidden stuff — even if your commission is zero, Payment for Order Flow (PFOF) can result in worse execution prices. A study found that Robinhood users had hidden trading costs of around 6.8%, compared to 1.8% at Fidelity and a –0.3% benefit at Vanguard 

Master MetaTrader: A Comprehensive Guide to Trading with MT5: The Absolute Beginner Guide For MT5 

---

Which Platform Actually Charges the Least?

Let’s break it down:

Broker	Option Fee (per contract)	Notable Notes
Webull	$0.00	Zero commissions on stock options
Ally Invest	$0.50	Low flat fee, no strings attached
tastytrade	$0.50	Options-focused tools & pricing
Schwab / Fidelity	$0.65	Reliable all-round platforms
Interactive Brokers	$0.65, volume discounts	Pro-level tools and scaling

But remember — hidden execution costs like PFOF can make a “zero commission” broker effectively more expensive. So Webull may be the cheapest on paper, but Fidelity and Vanguard might give better overall value for most traders The Wall Street Journal.

---

Bottom Line

If you want the absolute cheapest per-contract rate, Webull wins. For solid pricing plus fewer hidden drawbacks, Ally or tastytrade are great bets. And if you're trading seriously or need robust tools, Fidelity, Schwab, or Interactive Brokers offer balanced value — especially when those hidden costs are considered.