Would fraxel be an option on hands? If so which one?

Yes, Fraxel laser can certainly be used to improve the
appearance of the hands. In fact Courtney Cox undergoes these treatments for
the same purpose. There are basically
two types of treatments: ablative and non-ablative. In ablative procedures,
tissue is removed. For example, with Fraxel Repair, cells within a vertical
laser light column are evaporated to tighten the skin and reduce the surface
area of the skin. Fraxel Dual, which is ideal for rejuvenating the hands is a
non-ablative treatment. It offers two modalities of wavelength energies: 1550nm
for deeper tissue and 1927nm to refine more superficial issues. Laser energy is
still administered through long, microscopic beams of light. The objective is
to apply specific amounts of heat to the dermis layer to trigger processes in
the skin that create new collagen fibers. This is what enables the hands to
achieve a firmer, smoother texture.

Fraxel is a great choice for sun damage on the hands.  I laser a lot of brown spots on the hands because it is very aging.  Fraxel will treat overall sun damage on any area of the body, the face, chest, hands, arms, legs.  It can take more treatments on the body than the face to rejuvenate the skin due to the different type of skin involved.  

Fraxel restore or DUAL lasers can stimulate collagen and fade brown age spots. These lasers can be used on almost any areas. Just use sun protection afterwards.