Commissions

If you are going to trade options on a regular basis, you should be concerned about commissions. Because commissions on options trades are always higher than on similar stock trades, it is worthwhile to pick a broker who offers a reasonable rate.

With some full-service brokers, the commissions are so expensive that your potential to make a profit is significantly diminished. Until recently, even the so-called discount brokers were charging relatively high commissions on options trades. Fortunately, this is changing as several of the big-name discount brokers have reduced their commissions to be more competitive with the options specialty firms.

Nowadays, there is no need to use a broker who is charging $2 per contract along with a ...

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