A low‐cost optical receiver circuit, which includes a photodiode preamplifier, an active band‐pass filter, and an instrumental amplifier is experimentally achieved. Using the proposed circuit for measurement and on‐line automatic monitoring in this paper, the efficiency of fiber‐optic characteristics monitoring can be enhanced and on‐line noise interference can be suppressed. The transfer functions and frequency response of the optical receiver are derived. The signal‐to‐noise ratio of the on‐line fiber‐optic characteristics monitoring system can be improved using this low‐cost optical receiver. © 2002 Wiley Periodicals, Inc. Microwave Opt Technol Lett 35: 354–357, 2002; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/mop.10605