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Glossary

Glossary

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How To

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How to Subscribe to Market Chameleon from Interactive Brokers

Brokerage

Options trading involves different commissions and fees at different brokerage firms. They can include a flat charge per trade, a per-contract charge or a mix of both. For online options traders, the overall cost of options trading is becoming increasingly competitive, with many major brokers now charging no commissions for stock trades. Options traders will still generally face per-contract fees, but these are typically less than $1.

Regulatory fees, including the ORF (Options Regulatory Fee) and FINRA TAF (Trading Activity Fee), are also typically passed on to the customer for options trades. The ORF is currently $0.0188 per contract, and the FINRA TAF is $0.000119 per contract. For most traders, the regulatory fees add up to a nominal amount.

Most major online brokerages now allow for the trading of basic options strategies. But for more advanced options strategies, access to specific option types, or certain account types, some brokerages may require approval or have additional requirements. Some of the online brokerages that offer options trading include TD Ameritrade/Thinkorswim, Interactive Brokers, Tastyworks, Schwab, and E*TRADE.

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