quamserena parent
Regulatory fees for options is negligible. Even with $1 or $2 per contract, the quality of fill that you get matters a lot more. Robinhood has “no commission” but they have terrible fills that are a hidden cost, taking this into account the $1 or $2 charge makes more sense. You’re also paying indirectly for the UI, real time data, margin, and API, none of which are free for the brokerage. Robinhood again skimps in this regard by offering no API (except for crypto…) and a terrible UI (but at least it has confetti!).
Thanks, I found some evidence for poor fill quality here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4951825