Every major broker now offers $0 stock commissions, so the real differences come down to options commissions, platform quality, and how well they support covered call workflows — seeing Greeks, filtering by delta, and managing rolling trades.
Here's how the five most popular brokers compare for covered call sellers specifically.
| Broker | Options Fee | Platform | Best For |
|---|---|---|---|
| Schwab | $0.65 | thinkorswim | Most sellers |
| Fidelity | $0.65 | Active Trader Pro | IRA + research |
| Robinhood | $0 | Mobile/web | Beginners |
| IBKR | $0.65 | TWS | Active traders |
| E*TRADE | $0.65 | Power E*TRADE | Visual learners |
Charles Schwab
Best overall for covered calls
Stock
$0
Options
$0.65/contract
Approval
Level 1 — usually same day
Minimum
$0
Pros
- +thinkorswim is the gold standard for options analysis
- +Excellent charting, Greeks display, and probability tools
- +Strong research and education library
- +24/5 phone support with options specialists
Cons
- −thinkorswim has a learning curve for beginners
- −Mobile app can feel overwhelming at first
ThetaScout's take: The best choice for most covered call sellers. Once you learn thinkorswim, you won't want to use anything else. The probability analysis and Greeks display make strike selection intuitive.
Fidelity
Best for research and retirement accounts
Stock
$0
Options
$0.65/contract
Approval
Level 1 — 1-2 business days
Minimum
$0
Pros
- +Excellent research from 20+ independent providers
- +Strong IRA and retirement account support
- +Active Trader Pro is powerful without being overwhelming
- +Best-in-class customer service
Cons
- −Active Trader Pro is desktop-only (no web version)
- −Options chain display less intuitive than thinkorswim
ThetaScout's take: If you're selling covered calls in an IRA or want top-tier research alongside your trading, Fidelity is the pick. Slightly less powerful than Schwab for options-specific analysis, but stronger for fundamental research.
Robinhood
Best for beginners and simplicity
Stock
$0
Options
$0
Approval
Usually instant
Minimum
$0
Pros
- +$0 options commissions — the only major broker with truly free options
- +Clean, simple interface that doesn't overwhelm beginners
- +Instant approval for covered calls in most cases
- +Easy to see P&L at a glance
Cons
- −Limited charting and analysis tools
- −No Greeks display in the options chain (you see price only)
- −No probability of profit or delta filtering
- −Customer support is primarily chat-based
ThetaScout's take: If you're placing your first few covered calls and want the simplest possible experience, Robinhood gets you started fast. But you'll likely outgrow it as you get more serious about strike selection and probability analysis.
Interactive Brokers
Best for active traders and lowest margin rates
Stock
$0
Options
$0.65/contract (capped at $1.00)
Approval
Level 1 — 1-2 business days
Minimum
$0
Pros
- +Lowest margin rates in the industry (if you use margin)
- +Most comprehensive options analytics available
- +Global market access — trade options on international stocks
- +Options fee cap of $1.00/contract for orders of 10+
Cons
- −Trader Workstation has the steepest learning curve of any platform
- −Interface feels dated compared to Schwab/Fidelity
- −Not beginner-friendly
ThetaScout's take: If you're an experienced trader selling covered calls as part of a larger portfolio strategy, IBKR's analytics and low margin rates are unmatched. Not recommended for beginners.
E*TRADE (Morgan Stanley)
Solid all-around with Power E*TRADE
Stock
$0
Options
$0.65/contract ($0.50 for 30+/quarter)
Approval
Level 1 — 1-2 business days
Minimum
$0
Pros
- +Power E*TRADE is excellent for visual learners
- +Good options chain with Greeks and probability display
- +Volume discount: $0.50/contract if you trade 30+ per quarter
- +Strong educational content for options beginners
Cons
- −Less powerful than thinkorswim for advanced analysis
- −Morgan Stanley integration still evolving
ThetaScout's take: A solid middle ground. Power E*TRADE is more visual and approachable than thinkorswim but more capable than Robinhood. Good choice if you want a balance of simplicity and power.
Which broker should you actually pick?
New to covered calls? Start with Schwab or Fidelity. Both are free for stocks, $0.65/contract for options, and have excellent platforms. Schwab edges ahead for options-specific analysis; Fidelity wins for research and retirement accounts.
Want the simplest possible start? Robinhood gets you trading fastest with $0 everything, but you'll likely upgrade later. See our step-by-step first covered call guide once you're set up.
Already experienced? IBKR has the most powerful analytics and lowest margin rates in the industry.
What options approval level do you need for covered calls?
Covered calls require the lowest level of options approval at every broker. Since you own the shares, the broker considers this a conservative, low-risk strategy. This applies to taxable accounts and retirement accounts like IRAs alike.
When applying, you'll typically need to answer questions about your income, net worth, and trading experience. For covered calls specifically, you can honestly say your objective is “income generation” and your risk tolerance is “moderate.”
Most brokers approve Level 1 options within 1-2 business days. Robinhood often approves instantly.