This paper presents a seismic topology optimization study of steel braced frames with shape memory alloy (SMA) braces. Optimal SMA-braced frames (SMA-BFs) with either Fe-based SMA or NiTi braces are determined in a performance-based seismic design context. The topology optimization is performed on 5- and 10-story SMA-BFs considering the placement, length, and cross-sectional area of SMA bracing members. Geometric, strength, and performance-based design constraints are considered in the optimization. The seismic response and collapse safety of topologically optimal SMA-BFs are assessed according to the FEMA P695 methodology. A comparative study on the optimal SMA-BFs is also presented in terms of total relative cost, collapse capacity, and peak and residual story drift. The results demonstrate that Fe-based SMA-BFs exhibit higher collapse capacity and more uniform distribution of lateral displacement over the frame height while being more cost-effective than NiTi braced frames. In addition to a lower unit price compared to NiTi, Fe-based SMAs reduce SMA material usage. In frames with Fe-based SMA braces, the SMA usage is reduced by up to 80%. The results highlight the need for using SMAs with larger recoverable strains.