5 . Know your costs, but don’t let the cost being your only deciding factor Trading options is a lot different than trading stocks for many reasons, but the fee structures are totally different. There are two components of trading commissions when you move into options. There is the base rate which is similar to stocks, but then there is usually a per contract fee as well. The base rate ranges between 3.99 and 9.99 whereas the per contract fees are much lower, around .15 to $1.25. If you are new to options trading, pick a broker that either charge a flat fee for options trading or one who offers a per contract, but not both. When you do decide on your broker, do not use commissions as the only determination because inmost cases, rock-bottom prices usually come with little else. This gets into value vs cost. I hope this helps you choose the right broker for your situation. !16
