Iron condors are four-legged trades. Every time you open or close one, you're executing four options contracts. That means commissions multiply quickly — especially at brokers with higher per-contract fees.
The difference between $0.65/contract and $0.35/contract might seem small, but across a portfolio of 10 or 20 iron condors opened and closed each month, it adds up to hundreds or thousands of dollars annually.
How Iron Condor Commissions Work
Most brokers charge per-contract fees. For a one-contract iron condor (four legs), the commission to open is:
| Broker | Per-Contract Fee | Cost to Open 1 Iron Condor | Cost to Open 10 Iron Condors |
|---|---|---|---|
| Tradier | $0.35 | $1.40 | $14.00 |
| Tastytrade | $1.00 (open) / $0 (close) | $4.00 | $40.00 |
| Schwab/Thinkorswim | $0.65 | $2.60 | $26.00 |
| IBKR (tiered) | ~$0.65 | ~$2.60 | ~$26.00 |
Note: Tastytrade's commissions are $1/leg to open and $0 to close. That means a round trip (open + close) on one iron condor costs $4 total, same as opening at Schwab and closing at the same $0.65 rate. For positions held to expiration (where the short legs expire worthless), Tastytrade is effectively cheaper.
Tradier at $0.35/contract is the cheapest for iron condors regardless of whether you hold to expiration or close early.
Tastytrade's Per-Leg Cap Matters
Tastytrade caps options commissions at $10 per leg (for both open and close). This means:
- 10-contract iron condor: $1.00 x 4 legs x 10 contracts = $40 to open... but capped at $10/leg, so the cap kicks in at 10 contracts per leg
- Above 10 contracts per leg, you pay a flat $10/leg regardless of size
For traders running 10+ contracts per position, Tastytrade's cap becomes highly competitive versus Schwab's flat $0.65/contract (which keeps scaling with size).
Strategies to Minimize Commission Drag
1. Use fewer, larger contracts rather than many small ones. Commission drag is proportionally larger on smaller trades. A 1-contract iron condor at Schwab ($2.60) represents a much higher percentage of the premium collected than a 10-contract iron condor ($26.00 on the same percentage premium collected per contract).
2. Hold to expiration when appropriate. At Tastytrade, closing is free. But at other brokers, every close incurs a cost. Holding a position to expiration on a short-premium strategy where the options expire worthless eliminates the closing commission entirely.
3. Choose the right broker for your contract size. Tradier wins at small contract counts. Tastytrade's cap makes it competitive for larger positions. IBKR has tiered pricing that rewards very high volume.
4. Avoid brokers that charge per-leg on closings. Some brokers charge both to open and to close. Tastytrade's $0 close is a meaningful cost advantage for active traders.
Annual Commission Impact
Say you open and close 20 iron condors per month, averaging 2 contracts each. That's 160 contracts opened per month (20 x 4 legs x 2 contracts).
| Broker | Monthly Open Cost | Monthly Close Cost | Annual Total |
|---|---|---|---|
| Tradier | $56 | $56 | $1,344 |
| Tastytrade | $160 | $0 | $1,920 |
| Schwab | $104 | $104 | $2,496 |
Tradier is cheapest for this profile. Tastytrade becomes more competitive if you hold more positions to expiration (reducing close costs to $0 on those).
How Tradematic Reduces Commission Impact
Tradematic supports both Tradier and Tastytrade. Both are among the lowest-cost brokers for iron condors. For $5,000–$20,000 accounts — Tradematic's typical range — commission drag at these brokers is manageable and doesn't significantly erode returns.
Tradematic places all trades as combo orders (all four legs simultaneously), which is the most execution-efficient approach. This reduces slippage alongside commissions.
FAQ
Does Tradier charge to close options positions? Yes, Tradier charges $0.35/contract to close as well as to open. Unlike Tastytrade, there's no "free to close" policy. However, even with bilateral commissions, Tradier is typically cheaper than Tastytrade for small contract counts.
Are there no-commission options brokers? Robinhood offers $0 options commissions but has limited options functionality, no multi-leg support via API, and no Tradematic integration. The "free" model has tradeoffs in execution quality and available features.
Does commission drag matter more for smaller accounts? Yes. A $25 commission on a $5,000 account represents 0.5% of capital. On a $50,000 account, the same commission is 0.05%. Commission efficiency matters more at smaller account sizes, which is one reason Tradier's $0.35/contract pricing is particularly valuable for accounts in the $5,000–$20,000 range.
How does Tastytrade's cap help on larger trades? At Tastytrade, once a single leg exceeds 10 contracts, the commission for that leg is capped at $10 regardless of how many contracts you add. For a 20-contract iron condor (80 total contracts), you'd pay at most $40 to open (4 legs x $10 cap) instead of $80 (80 contracts x $1). This makes Tastytrade increasingly competitive as position size grows.
For automated iron condor execution at the lowest-cost compatible brokers, Start your 7-day free trial with Tradematic.
Related reading: Tastytrade Commissions for Iron Condors: Complete Breakdown and Best Brokers for Iron Condors in 2025.
Trading involves risk and losses can occur. Past performance does not guarantee future results. Options trading is not suitable for all investors. Only allocate capital you are comfortable risking.
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