ETRADE charges $0.65 per options contract with no base commission, no exercise fee, and no assignment fee. The Power ETRADE platform is widely regarded as one of the most user-friendly professional options trading interfaces available to retail investors — particularly strong for intermediate traders who want powerful tools without the steep learning curve of thinkorswim.
E*TRADE Options Fees (2026)
| Fee Type | E*TRADE | Schwab | Fidelity | Vanguard |
|---|---|---|---|---|
| Per-contract fee | $0.65 | $0.65 | $0.65 | $1.00 |
| Base commission | $0 | $0 | $0 | $0 |
| Exercise/assignment fee | $0 | $0 | $0 | $0 |
| Futures options | $0.65 + $1.50/futures | $0.65 + $2.25/futures | N/A | N/A |
Example: A bull call spread (2 legs, 5 contracts each) costs $6.50 to open ($0.65 × 10 contracts total) and $6.50 to close. Total round-trip for the 10-contract spread: $13.
Power E*TRADE Platform
Power ETRADE is ETRADE’s flagship active trading application, available on desktop, web, and as a dedicated mobile app (Power ETRADE mobile). It is free for all ETRADE account holders.
Key Options Features
Snapshot Analysis: Enter any options position and immediately see a profit/loss graph, probability of profit, maximum gain, maximum loss, and breakeven prices — all before you place the trade. This is Power E*TRADE’s signature feature and is more accessible than thinkorswim’s risk profile tool.
Options Strategy Screener: Filter the market for options opportunities based on your preferred strategy. Scan for covered call candidates by expected yield, or find high-IV options for premium selling. Pre-built scans are available for common strategies.
Multi-Leg Order Ticket: Enter spreads, condors, and butterflies in a single order ticket. E*TRADE’s multi-leg ticket is considered one of the cleanest implementations in retail brokerage.
Live Options Chains: Streaming real-time bid/ask, delta, theta, implied volatility, probability OTM, volume, and open interest — fully customizable column layout.
Paper Trading: Simulated trading mode using real market data. Practice strategies before committing real capital. Reset your paper account at any time.
Options Analytics: Real-time implied volatility analysis, volatility charts showing how IV has changed relative to historical volatility, and options expiration calendar.
Options Approval Levels at E*TRADE
E*TRADE uses five approval levels:
| Level | Strategies |
|---|---|
| Level 1 | Covered calls on existing positions |
| Level 2 | Long calls, long puts, protective puts, cash-secured puts |
| Level 3 | Spreads (long and short), covered short straddles/strangles |
| Level 4 | Naked puts |
| Level 5 | Naked calls, uncovered combinations |
To apply: log in → My Profile → Financial Information → Options Trading → Apply. Approval for Level 1-2 is typically same-day. Higher levels require documented trading experience.
Getting Started with Options at E*TRADE
- Apply for options approval — My Profile → Financial Information → Options Trading
- Download Power E*TRADE — or use the Power E*TRADE web platform (no download required)
- Use Snapshot Analysis before every trade — the P&L graph prevents common beginner errors
- Start with the Options Strategy Screener — find covered call opportunities on stocks you already own
- Practice in paper trading mode — minimum 20 simulated trades before trading with real money is strongly recommended
Covered Call Example at E*TRADE
You own 300 shares of a stock trading at $75. You sell 3 covered calls at the $80 strike expiring in 35 days for a $1.20 premium each.
- Gross premium: $360 ($1.20 × 100 shares × 3 contracts)
- Commission: $1.95 ($0.65 × 3 contracts)
- Net premium: $358.05
- Annualized yield: ~18% ($358.05 ÷ $22,500 position × 10.4 periods/year)
- If stock stays below $80: options expire worthless; you keep the premium and the shares
- If stock rises above $80: shares called away; you keep premium plus $5/share gain from $75 to $80 strike
Power E*TRADE vs thinkorswim for Options
| Factor | Power E*TRADE | thinkorswim (Schwab) |
|---|---|---|
| Learning curve | Moderate | Steep |
| P&L visualization | Snapshot Analysis (excellent) | Risk Profile (excellent) |
| Customization depth | High | Very high (thinkScript) |
| Paper trading | Yes | Yes (paperMoney) |
| Futures options | Yes | Yes |
| Community/scripts | Limited | Large thinkScript community |
| Mobile options experience | Excellent (Power E*TRADE mobile) | Good (thinkorswim mobile) |
Bottom line: Power ETRADE wins on intuitiveness; thinkorswim wins on raw power and depth. Choose ETRADE if you want a great options platform that does not require weeks of learning. Choose Schwab if you want the maximum depth of customization.
See the full E*TRADE review, the Power E*TRADE platform guide, and E*TRADE vs Schwab.
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