Fidelity Investments has reduced options-trading fees in a move mimicking discount-brokerage firms so as to recapture share of the market in option trading.

The cost of trading an option is divided into a base commission and a separate fee for each option contract. Fidelity has slashed the latter charge. Now all customers will pay 75 cents a contract. Earlier these prices composed $1.50, $1.75, and $2.25 for gold, silver, and bronze respectively.

Harrisdirect, a unit of BMO Financial Group, also lowered its option prices last month, following the cut in prices for contract by Ameritrade to 75 cents a contract from $1.50. This follows the introduction of discounts by Charles Schwab Corp., E*Trade Financial Corp., Scottrade Inc. and Toronto-Dominion Bank’s TD Waterhouse Group in 2004.

Now firms keep working on grabbing the largest possible share of the market for options as the popularity of this market keeps growing. These firms lower commissions, but to compete with online traders they also had to add new features to their contracts. Features like continuously updated price quotes on options and direct routing of orders to the customer’s choice of exchange are part of the new offerings.