Picking an Options Broker? Here's What Actually Matters

2024 was insane for options—equity options volume hit 11.2 billion contracts, up 10.7% YoY. If you’re thinking about joining the party, broker choice isn’t just a detail—it’s the foundation of your whole setup.

Here’s the real talk: most brokers have ditched per-trade commissions and switched to per-contract fees. What kills your returns isn’t always the fee structure though—it’s lag time. A 5-minute platform hiccup when you need to adjust a spread? That’s money left on the table.

What to actually screen for:

Fees matter, but not the way you think. Compare total costs across your typical trade volume, not just headline rates. Tiered pricing can add up if you’re active.

Platform quality separates winners from frustration. Advanced charting, strategy builders, and speed during volatile sessions are non-negotiable. Tastytrade specifically built their whole thing around options traders—won “Best Options Platform” in 2024 for a reason.

Support responsiveness isn’t sexy but it’s critical. When something breaks, you need answers in minutes, not hours.

Education access matters more than people admit, especially for complex strategies like spreads and straddles. Interactive Brokers, TD Ameritrade (Thinkorswim), and Charles Schwab all have solid resource libraries.

Auto-trading capability is becoming table stakes. If you’re running systematic strategies, you want algorithmic execution that removes emotion and nails timing. Interactive Brokers and TradeStation lead here.

The top names pulling awards across 2024: Tastytrade, Interactive Brokers (“Best Overall”), TD Ameritrade, Charles Schwab, and E*TRADE. All solid, but your best fit depends on whether you prioritize education, tools, fees, or platform speed.

Bottom line: the cheapest broker isn’t always the best broker. Pick one aligned with your strategy complexity and trading frequency.