Best Options Brokers 2026: thinkorswim, Tastyworks, IBKR Compared

Best Options Brokers Overview

Options trading requires more from a broker than stock trading. You need sophisticated analytics, reliable execution, competitive pricing, and educational resources. Not all brokers are created equal when it comes to options.

Top Options Brokers at a Glance

Broker	Best For	Commission	Platform
thinkorswim (Schwab)	Overall best platform	$0.65/contract	Desktop, web, mobile
Tastyworks	Active options traders	$1.00/contract to open	Desktop, web, mobile
Interactive Brokers	Professional traders	$0.25-$0.65/contract	TWS desktop
Fidelity	All-around investing	$0.65/contract	Active Trader Pro
E*TRADE	Web-based trading	$0.50-$0.65/contract	Power E*TRADE
Robinhood	Commission-free	$0	Mobile app

What Makes a Good Options Broker?

• Low Commissions: $0.50-$0.65 per contract is standard
• Superior Execution: Price improvement on orders
• Advanced Analytics: Greeks, probability, P&L graphs
• Strategy Builder: Easy multi-leg order entry
• Real-Time Data: Fast, accurate quotes
• Education: Learn options strategies
• Paper Trading: Practice without risk

TD Ameritrade/Schwab thinkorswim

thinkorswim (TOS) is widely considered the best retail options platform. Originally from TD Ameritrade, it's now part of Charles Schwab following their merger.

thinkorswim Pricing

Trade Type	Commission
Stock/ETF	$0
Options (per contract)	$0.65
Options exercise/assignment	$0
Futures	$2.25/contract
Futures options	$2.25/contract

Why thinkorswim Dominates

• Analyze Tab: Probability analysis, Greeks visualization
• thinkBack: Backtest strategies on historical data
• Risk Profile: Visual P&L graph for any position
• Option Chains: Customizable, information-dense
• Spread Builder: Create any multi-leg strategy easily
• thinkScript: Custom indicators and scans
• Paper Trading: Full-featured simulation

Key Features

Feature	Description
Probability of Profit	Shows likelihood of strategy success
IV Percentile	Compare current IV to historical range
Expected Move	One standard deviation range
Greeks Dashboard	Delta, gamma, theta, vega for positions
Sizzle Index	Unusual options activity indicator
On Demand	Replay historical trading days

thinkorswim Pros & Cons

Pros:

• Most powerful analysis tools available to retail
• Excellent paper trading platform
• Active community and education
• Free real-time data
• Integrated futures and forex
• Mobile app is full-featured

Cons:

• Steep learning curve
• Resource-intensive (needs good computer)
• $0.65 commission higher than some competitors
• Schwab integration still ongoing

Tastyworks (tastytrade)

Tastyworks was built by the founders of thinkorswim specifically for options traders. It's streamlined, fast, and designed around options-first thinking.

Tastyworks Pricing

Trade Type	Commission	Notes
Stock/ETF	$0
Options to Open	$1.00/contract	Capped at $10/leg
Options to Close	$0	Free to close
Futures	$1.25/contract
Crypto	1% spread

The Tastyworks Advantage

The cap at $10/leg is huge for active traders. If you trade 20 contracts, you pay $10, not $20. For high-volume traders, this makes Tastyworks cheapest overall.

Order Size	Tastyworks	thinkorswim	Savings
5 contracts	$5	$3.25	TOS cheaper
10 contracts	$10	$6.50	TOS cheaper
20 contracts	$10	$13	TW saves $3
50 contracts	$10	$32.50	TW saves $22.50
100 contracts	$10	$65	TW saves $55

Key Features

• Curve: Visual option chain by probability
• Follow Feed: See what other traders are doing
• Trade Page: Quick strategy entry
• Portfolio Beta: See portfolio Greeks at a glance
• tastytrade Integration: Educational content built-in
• Quick Roll: Roll positions with one click

Tastyworks Pros & Cons

Pros:

• Best pricing for active traders (cap at $10/leg)
• Free to close positions
• Clean, modern interface
• Built for options traders
• Excellent education via tastytrade
• Fast execution

Cons:

• Less research than full-service brokers
• Limited stock analysis tools
• No robo-advisor or banking features
• Fewer asset classes than IBKR

Interactive Brokers

Interactive Brokers offers the lowest per-contract rates for high-volume traders and professional-grade execution.

IBKR Options Pricing

Volume (Monthly)	Per Contract
0-10,000	$0.65
10,001-50,000	$0.50
50,001-100,000	$0.25
100,001+	$0.15

Note: IBKR Lite offers $0.65/contract with payment for order flow. IBKR Pro offers tiered pricing with better execution.

IBKR Options Advantages

• Global Options: Trade options on international markets
• Index Options: SPX, VIX, and other index options
• Futures Options: Options on futures contracts
• Smart Routing: Seeks best execution across exchanges
• API Access: Build automated trading systems
• Portfolio Margin: Lower margin for qualified accounts

Options Analytics in TWS

Tool	Description
Option Analytics	Greeks, IV, probabilities
Volatility Lab	Analyze implied vs historical vol
Strategy Builder	Create complex multi-leg orders
What-If Scenarios	Model price changes
Risk Navigator	Portfolio-level Greeks and risk

IBKR Pros & Cons

Pros:

• Lowest rates for high-volume traders
• Best execution quality (Smart Router)
• Global market access
• Professional-grade tools
• API for algorithmic trading
• Portfolio margin available

Cons:

• Complex platform (steep learning curve)
• Market data may cost extra
• Not beginner-friendly
• Customer service can be slow

Fidelity Options

Fidelity offers solid options trading as part of its full-service brokerage. Good for investors who want options alongside other investments.

Fidelity Options Pricing

Trade Type	Commission
Stock/ETF	$0
Options (per contract)	$0.65
Exercise/Assignment	$0
Index Options	$0.65/contract

Active Trader Pro

Fidelity's desktop platform for active traders includes:

• Options Chain: Customizable display with Greeks
• Probability Calculator: Chance of profit analysis
• Strategy Evaluator: Compare different strategies
• Trade Armor: Built-in risk management
• Real-Time Analytics: Live Greeks and P&L

Fidelity Pros & Cons

Pros:

• Excellent research and education
• Best customer service in industry
• Full-service brokerage features
• Good mobile options trading
• No account minimums
• Strong execution quality

Cons:

• Platform not as advanced as thinkorswim
• Less options-focused than Tastyworks
• $0.65 commission standard
• Fewer advanced order types

Commission Comparison

Per Contract Costs

Broker	Base Rate	Volume Discounts	Cap
Robinhood	$0	No	N/A
Tastyworks	$1.00	No	$10/leg
IBKR (tiered)	$0.65	Yes (down to $0.15)	No
thinkorswim	$0.65	Negotiable for high volume	No
Fidelity	$0.65	No	No
E*TRADE	$0.65 ($0.50 active)	Yes	No

Annual Cost Comparison

Assuming 500 contracts/month traded:

Broker	Monthly Cost	Annual Cost
Robinhood	$0	$0
Tastyworks (avg 20/leg)	$250	$3,000
thinkorswim	$325	$3,900
Fidelity	$325	$3,900
IBKR (tiered)	$250-$325	$3,000-$3,900

The Robinhood Catch

Robinhood's $0 commission comes with trade-offs:

• Payment for order flow may result in worse execution
• Limited analytics and Greeks
• No multi-leg order optimization
• Simpler strategies only
• Less reliable during high volatility

For casual options trading, Robinhood works. For serious trading, the platform limitations cost more than commissions saved.

Execution Quality

Execution quality matters more than commissions for active traders. Getting $0.05 better per contract saves more than $0.65 commission.

Execution Metrics

Broker	Price Improvement	Fill Rate	Speed
IBKR Pro	Excellent	High	Fast
thinkorswim	Good	High	Fast
Fidelity	Good	High	Fast
Tastyworks	Good	High	Fast
Robinhood	Limited	Moderate	Varies

Price Improvement Example

Scenario	Bid-Ask	Fill Price	Improvement
Buy 10 calls, quoted $1.00-$1.10	$1.05 mid	$1.03 (IBKR)	$20 saved
Same order (other broker)	$1.05 mid	$1.08	$30 worse

Smart order routing and execution quality can easily exceed commission differences.

Education Resources

Options are complex. Good education separates the top brokers.

Education Comparison

Broker	Free Courses	Live Content	Paper Trading
thinkorswim	Extensive	Daily webcasts	Full-featured
tastytrade	Extensive	7+ hours daily live show	Yes
Fidelity	Good	Webinars	Yes
IBKR	Good (Traders Academy)	Limited	Yes
Robinhood	Basic	No	No

tastytrade Edge

Tastyworks is connected to tastytrade, which produces 7+ hours of live options content daily. Topics include:

• Market analysis and trade ideas
• Strategy deep-dives
• Portfolio management
• Risk management
• Beginner tutorials

If you want to learn options trading, tastytrade's free content is unmatched.

Paper Trading

Broker	Paper Trading	Realistic Fills	Full Features
thinkorswim	Yes	Yes	Yes
Tastyworks	Yes	Yes	Yes
IBKR	Yes	Yes	Yes
Fidelity	Yes	Moderate	Most features
Robinhood	No	N/A	N/A

Options Approval Levels

Brokers require approval for options trading. Higher levels allow riskier strategies.

Typical Approval Levels

Level	Strategies Allowed	Risk
Level 1	Covered calls, cash-secured puts	Low
Level 2	Long calls and puts	Moderate
Level 3	Spreads (debit and credit)	Moderate-High
Level 4	Naked puts	High
Level 5	Naked calls, uncovered index options	Very High

Approval Requirements

Factor	Beginner	Experienced
Income	$25,000+	$100,000+
Net Worth	$50,000+	$200,000+
Experience	1-2 years	5+ years
Account Size	Varies	$25,000+ (margin)

Approval by Broker

Broker	Approval Ease	Notes
Robinhood	Easy	Controversial (too easy for beginners)
Tastyworks	Moderate	Options-focused, reasonable requirements
thinkorswim	Moderate	Standard requirements
Fidelity	Stricter	More conservative approach
IBKR	Stricter	Professional standards

Platform Features Compared

Analytics & Greeks

Feature	thinkorswim	Tastyworks	IBKR	Fidelity
Greeks Display	Excellent	Good	Excellent	Good
IV Percentile	Yes	Yes	Yes	Yes
Probability Analysis	Advanced	Good	Good	Basic
P&L Graph	Excellent	Good	Good	Good
Backtesting	Yes (thinkBack)	Limited	Yes	No
Custom Scripts	Yes (thinkScript)	No	Yes (API)	No

Order Entry

Feature	thinkorswim	Tastyworks	IBKR	Fidelity
Multi-Leg Entry	Excellent	Excellent	Good	Good
One-Click Trading	Yes	Yes	Yes	No
Rolling Positions	Yes	Excellent	Yes	Manual
Strategy Templates	Yes	Yes	Yes	Limited
Conditional Orders	Yes	Yes	Excellent	Yes

Recommendations by Trader Type

Best for Beginners: thinkorswim

The combination of powerful tools and excellent paper trading makes thinkorswim ideal for learning. You can practice with fake money using the exact same platform you'll use for real trading.

Best for Active Traders: Tastyworks

If you trade 10+ contracts per leg regularly, the $10 cap makes Tastyworks cheapest. The platform is fast, streamlined, and built for options traders.

Best for Professionals: Interactive Brokers

IBKR's execution quality, API access, and tiered pricing make it the choice for professionals and algorithmic traders. Global market access is a bonus.

Best All-Around: Fidelity

If options are part of a broader investment strategy, Fidelity offers solid options trading alongside excellent research, customer service, and other investment products.

Summary Table

Trader Type	Best Choice	Runner-Up
Beginner	thinkorswim	Fidelity
Intermediate	Tastyworks	thinkorswim
Active Trader	Tastyworks	IBKR
Professional	IBKR	thinkorswim
Algorithmic	IBKR	-
Long-Term Investor	Fidelity	thinkorswim
Cost-Conscious	Robinhood	Tastyworks

Final Thoughts

The best options broker depends on how you trade. For most people, thinkorswim offers the best combination of features, education, and reliability. Active traders should consider Tastyworks for the cost savings. Professionals and algorithmic traders belong at Interactive Brokers.

Whatever you choose, start with paper trading. Options are complex, and the platforms have learning curves. Master the tools before risking real money.

---

This comparison is based on publicly available information as of January 2026. Commissions, features, and platforms change frequently. Verify current offerings directly with each broker before opening an account.