Tastytrade (formerly Tastyworks) is an online financial news and education network which also offers a trading platform.
So, getting a Tastytrade brokerage account will give you access to sell stocks, options, futures, and other equities.
There are a lot of stock trading platforms out there. Before you make a decision on where to invest your money, let’s take a closer look at Tastytrade and examine the platform and fees and see if it’s a good fit for your investments.
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Who is Tastytrade Good For?
Tastytrade’ platform offers a lot of advanced tools for trading derivatives like stock options and futures, so it’s great for people classified as active traders—meaning you’re looking to make money in the short term on small fluctuations in the market.
As there is a steep learning curve with using the platform—beginners might need to take a look at the company’s resources and videos to be able to take advantage of the platform’s advanced features.
Tastytrade Fees & Commissions
Even Tastytrade’ unique pricing model is tailored towards derivatives—options and futures—traders. You’ll have a tough time finding a better fee and commission structure if this is your specialty. However, let’s examine their pricing model as a whole.
Account Fees
Starting a Tastytrade account is easy and there’s no minimum account deposit. Also, there are no annual or monthly account fees, and there’s no fee for inactivity on your account. Your money can sit free-of-charge.
| Activity | Fees |
|---|---|
| Monthly account fee | $0¹ |
| Monthly Inactivity fee | $0² |
| Minimum account deposit | $0³ |
Trading Fees & Commissions
Stock and ETF trades are commission-free with Tastytrade regardless of volume, which is great if you’re dealing directly in stocks. However, the trade commissions on options trading is where Tastytrade really shines, as it’s one of the lowest rates you’ll find.
Options are only $1 to open a position, and there is no charge when you close. Also, there are no closing commissions on options on futures trades, but futures and micro futures do incur a minimal commission on each contract.
Remember that when you sell any equity, there will be regulatory fees regardless of the commission charge.
| Trade Type | Fees |
|---|---|
| Stocks | $0 to open, $0 to close¹ |
| ETFs | $0 to open, $0 to close¹ |
| Options Contracts | $1 per contract to open, $0 per contract to close¹ |
| Futures Contracts | $1.25 per contract to open, $1.25 per contract to close¹ |
| Options on Futures | $2.50 per contract to open, $0 per contract to close¹ |
| Micro Futures | $0.85 per contract to open, $0.85 per contract to close¹ |
Banking Fees
Tastytrade doesn’t offer a debit or credit card to withdraw money from your account, but you can withdraw and deposit via ACH—automated clearing house—for free. However, outgoing wire transfers incur a $25 fee for domestic transfers and $45 for international. Withdrawal checks are $5 for domestic addresses and $10 international.
| Transfer Method | Fees |
|---|---|
| ACH Deposit & Withdrawal | $0¹ |
| Outgoing Wire Transfer | $25 (domestic), $45 (international)¹ |
| Check | $5 (domestic), $10 (international)¹ |
| Transfer money overseas at the mid-market exchange rate with Wise. It takes just a few minutes to open an account. |
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Tastytrade Platforms
Tastytrade offers three software platforms that have overall similar interfaces with some key differences for you to examine. Regardless which platform you use, there is a learning curve. It was developed with active traders in mind—let’s see what's to know about Tastytrade' platforms.
Browser Platform
Once you log in to Tastytrade site, you’ll have access to the online browser platform. But if you want to go beyond basic account management, you’ll need to log in again to access the actual trading platform screen.
Their ‘follow tab’ allows you to see what the team at Tastytrade is trading, so there’s some added benefits with access to expert portfolios. Also, you have the ability to quickly copy any trade that’s posted on the platform, and you can add securities to a watchlist if you want to keep an eye on things.
One of the best resources on the browser platform is the live stream that provides trading comments and on-demand videos featuring a variety of market topics—most of the videos deal with derivatives. The platform offers a journal function so you can keep notes and tag items within the notes for reference.
If you’re ready to trade, there are three modes: stock, table and curve. They allow you to trade stocks with no charts or graphs, with a graph, or to put the graph into a table format.
Tastytrade Mobile App
If you don’t have access to your computer, Tastytrade offers a mobile device that works with Apple and Android phones and tables.
You can trade using the same strategies as the other two platforms, and the live-stream and Tastytrade team trades are still available. Also, the mobile platform has a good color scheme that makes it easy to read.
Desktop Platform
Most active traders will like the desktop platform the best as it offers better charting. For launch, simply download and install the software, and from there, you can log in and begin your research, tracking, and trading.
The graphing interface on the desktop platform is more comprehensive as it offers drawing tools, four different graph styles, and more price history options. It also allows you to expand to full-screen or put multiple charts within one window for comparison.
You won’t be able to automatically click and trade, but if you click on the price or bid above a graph, an order ticket appears. Though it offers expanded duration choices on trades, it has the same advanced trade limitations as the browser platform.
Tastytrade Customer Support
Tastytrade offers support on their site by clicking the ‘get help’ link at the bottom of any page. You can try to work through their chatbot, but it will direct you towards support articles. If you need to directly contact Tastytrade, you can do so by the following means:
| Service | Details |
|---|---|
| 1330 W. Fulton St. Suite 600 Chicago, IL, 60607 | |
| Phone | 888-247-1963 (312-724-7075 (local line) |
| [email protected] |
Tastytrade Pros & Cons
With a breakdown of their model, fees, commissions, and platforms, let’s look at the positive and negatives of Tastytrade, so you can make an informed decision on your investment platform.
Tastytrade Pros
One of the best factors when it comes to working with an investment platform is simplicity at sign up. Tastytrade is known for having an easy sign-up process, and as long as the information you provide is solid, your account should be open within 1-3 business days for domestic accounts and 5-7 days for international accounts.⁴
As we mentioned, there are no monthly account fees, monthly inactivity fees and no minimum deposits, which is definitely a positive when compared to many other investment platforms.
Last, Tastytrade offers free ACH withdrawals when withdrawing your money.
Tastytrade Cons
On the negative side, there are limitations when it comes to withdrawing your funds.
At $25 domestic and $45 international, Tastytrade’ bank wire rates are high and must be submitted by 1 PM Central Standard Time.⁵ And there is no credit or debit card available for clients to withdraw money. Unless you go with an ACH withdrawal, you’re going to have to pay to get money back into your bank account.
Also, as a beginner, there’s a steep learning curve due to the complexity of their platforms, but the company offers a lot of resources and videos to help you get started.
Verdict: How Good is Tastytrade?
Whether Tastytrade is good or bad is completely up to how you intend to use the platform and your proficiency in trading.
If you’re a beginner who just started trading to invest in secure, long-term equities, then you’ll probably need some time to adjust to Tastytrade’ platforms—but their resources and videos are a great help to get started.
If you’re an experienced trader looking to profit on derivatives like options and futures in the short term, then Tastytrade is already a great option for you.
Remember that Tastytrade has no monthly account or inactivity fees and no minimum deposits, and they offer free ACH withdrawals. On the flip side, they have high wire fees and offer no debit or credit card to withdraw your funds. Also, their platform leans towards knowledgeable, active traders.
Frequently Asked Questions
Is Tastytrade Safe?
Yes. Tastytrade is licensed and registered with the SEC as a broker and investment adviser in all U.S. states and territories. They’re also self-regulated by FINRA—Financial Industry Regulatory Agency.⁶
Is Tastytrade Better than Robinhood?
It all depends on your investment strategy, experience, and how you intend to use their platforms.
Both Tastytrade and Robinhood have pros and cons. Robinhood differs from Tastytrade in that it has an easy-to-use platform that’s tailored for beginner traders. However, there’s no phone support at Robinhood which can be a dealbreaker for many investors.
Aside from catering to beginner investors, it’s free to withdraw money from Robinhood through international or domestic wire or via ACH.⁵ But if you wire the money internationally, you might be hit with some high exchange rate fees on the currency transfer.
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Sources:
All sources checked on 24 May 2023
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