Option Trading for Beginners

10 Best Option Trading for Beginners in 2023

Options trading is a sure fire way to make money, hedge your risk,  and even add value to your trading portfolio by trading stocks and indexes. However, since option trading is way more complex than buying stocks or indexes, an option trader needs to be selective about the trading broker they want to use. In the course of this article, we will be looking at the 10 best option trading for beginners.


Here are the Best Option Trading for Beginners in 2023

1. Fidelity Investments

Fidelity Investments

If you are a beginner in options trading, then you should try out the Fidelity broker and option trading platform. The Fidelity platform is ideal for beginners because they don’t charge a commission on option trades. However, they can still carry a contract charge, which is $0.65.

Another interesting vantage point of using the Fidelity option trading platform is that they don’t offer volume discounts on options. They have done away with nearly all their account fees, including account closure fees and transfer fees.

Interestingly, they also offer educational tools and customer service options that would make it easy for beginners to navigate through their product. Fidelity Option trading platform offers ETF options, in addition to option trades and commission-free stock.

The only major downside of the Fidelity Option trade platform is that they have relatively high broker-assisted trade fees.

2. Merrill Edge

Merrill Edge

Merrill Edge is another option trade broker that does not have any commissions on option trades. However, the user of this option trade platform would be charged $0.65 per contract, which is a typical charge among option trade brokerages.

An interesting take away from Merrill Edge is that it has no annual fees, transfer fees, or closing fees for brokerage accounts. That is why they are an ideal choice for beginners in option trading. In addition to their friendly fees-options, they have strong customer support, and are integrated with the Bank of America.

3. E* Trade

E* Trade

Just like the two aforementioned option trading platforms, E*Trade is commission-free. However, they can still carry a contract charge of $0.65. E*Trade is good for beginners because they do not charge any annual fee or inactivity fee.

However, they do charge a discounted fee of $0.50 for option traders that are active. Their full transfer fee is $75, and the partial transfer fee is $25. Option trading is not the only thing that you can do on the E*Trade platform; as a beginner, this platform allows you to try your hands on mutual funds, futures, bonds, and stocks.

Also worth noting is that they have excellent customer support, alongside easy-to-use-tools that can allow beginners in option trading to navigate.

4. Interactive Brokers IBKR Lite

Interactive Brokers IBKR Lite

Interactive Brokers IBKR Lite is an option trading platform that is suitable for beginners. Their trading prices are competitive, with a $0.65 charge per contract plus discounts for large option trade volumes. The minimum Interactive Brokers IBKR Lite trade commission is $1.

With this option trading platform, you can also trade ETFs, precious metals, stocks, fractional shares of stocks and mutual funds. Another key takeaway from the Interactive Brokers IBKR Lite platform is that they have strong research tools that are beneficial to beginners.

5. Webull



Webull is a top-quality brokerage that offers free option trades. This is why it is suitable for beginners. However, customers of this platform are not charged on a per-trade commission basis nor per-contract.

The transfer fee on Webull is $75, plus there are no annual or inactivity fees that can be incurred on this platform. The major downside of the Webull platform is that it has thin educational support for beginners and also does not support the trading of mutual funds.

6. Robinhood


This is an interesting option trading platform that offers users low cost trading. It is suitable for beginners as they have educational tools and a tangible 24/7 support. Although the downside of using the Robinhood platform is that they don’t offer mutual funds or bonds trading.

Also worth noting is that they charge a $75 fee for transferring your investments out of Robinhood to another broker. If you are a beginner trader that has set out to diversify your income portfolio, then make Robinhood a must-pick.

7. Ally Invest

Ally Invest

Ally Invest is an option trading platform that offers beginners an option to trade with good educational tools and 24/7 support. They do not offer any commission for option trades, but have a per contract fee of $0.50.

If you wish to perform a partial transfer out of the Ally Invest broker, you will be charged $50. The major downside of the Ally Invest Option Trading platform is that two common investment options; futures and fractional shares, are missing.

8. TradeStation


Option Trading with TradeStation is commission-free; however, they still charge a contract charge which costs $0.50 per contract. If you want to perform an account transfer with TradeStation, you will be charged $125.

Any beginner in option trading that wishes to diversify their income portfolio can turn to TradeStation to make money. Their investment options range from stocks, bonds, and mutual funds. TradeStation is a tangible platform for beginners because they offer users 24/7 customer support and educational research tools.

9. J.P. Morgan Self-Directed Investing

J.P. Morgan Self-Directed Investing

This listicle would not be complete without reviewing the J.P. Morgan Self-Directed Investing platform for beginner option traders. They charge users of their platform with $0.65 per contract.

The transfer fee for the  J.P. Morgan Self-Directed Investing option trading platform is $75. However, one major downside of this option trading platform is that they do not support investments in futures and fractional shares.

10. Charles Schwab

Charles Schwab

Charles Schwab is another interesting option trading broker that is good for absolute beginners that want to diversify their income portfolio. It is important to note that Charls Schwab platform has a wide range of educational resources that can help beginners option traders navigate investing.

Another key takeaway from the Charles Schwab broker is that they have a $0 commission. However, the major downside of this platform is that they have a low default cash sweep rate.


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