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Standout Brokers For Options Trading

Investors use options for different reasons, but the main advantages are: 1) buying an option requires a smaller initial outlay than buying the stock; 2) An option buys an investor time to see how things play out; and 3) An option protects investors from downside risk by locking in the price without the obligation to buy.

In order to trade options, you’ll need a broker. Check out offers from our partners and compare commission costs, minimums, and more.

Broker

Highlights

Commissions

Account Minimum

Current Offers

Start Investing

NerdWallet rating

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Top research; two powerful trade platforms; educational content

Commissions

$0

per trade

Current Offers

Up to $600

cash credit with qualifying deposit

on TD Ameritrade's secure website

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NerdWallet rating

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Per-share pricing; strong trading platform.

Commissions

$0.01

per share

Current Offers

$1

minimum trade cost

on Zacks Trade's secure website

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NerdWallet rating

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$0 stock and ETF trades; large research selection.

Commissions

$0

per trade

Current Offers

None

No promotion available at this time

on Interactive Brokers IBKR Lite's secure website

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NerdWallet rating

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Sophisticated platform; exceptional research and analytical tools

Commissions

$0

per trade

Current Offers

Up to $2,500

cash credit with a qualifying deposit

on TradeStation's secure website

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See the possibilities

Predicting exactly how much money an investment will return would be magic. Unsurprisingly, no such crystal ball exists. You can, however, crunch the numbers with a compound interest calculator and guesstimate a range of different outcomes. As a starting point, the average annual return from the S&P 500 was just below 7% for the 10-year period 1996-2016.*

COMPOUND FREQUENCY

Estimated Future Balance: $14,290

PrincipalInterest
Check out those gains

With investing, time is your friend. The sooner you start, the longer you'll have to let compound interest do its thing.

Disclaimer: This is hypothetical and in no way predicts future performance. The average annual nominal return of the S&P 500 the last 30 and 10 years was calculated by the geometric mean with no adjustment for inflation. Investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. The hypothetical performance above does not take into account fees or sales charges.

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