Commissions Add Expense, Complexity to Options Trades

Options trading is complicated enough. But the commissions brokers charge to trade options add an additional baffling layer of complexity.

The differences in commissions from broker to broker are amazing. You can pay anywhere from $1.95 per option contract to $40 or more.

Fortunately, as you'll see in a moment, competition's helping bring down the price of options trading, and brokers are simplifying their fee structures. But many have a ways to go. (If you want to brush up on your options basics before going any further, see Dan Colarusso's Mirror Mirror on the Wall, Explain for Me a Put and Call.)

Dazed and Confused

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