Tastytrade, formerly known as tastyworks, is a US-based options and stockbroker with a focus on options trading.
Regulated by the top-tier SEC and FINRA in the US. Founded in 2017 with an investor protection of $500k (securities up to $500k, cash up to $250k).
This tastytrade review provides insights into its features, pros, and cons.
What you'll learn:
โค TastyTrade Review
Tastytrade is a preferred choice for options trading due to its low trading fees and a trading platform designed for efficient options trading. The broker also offers valuable educational and research materials, catering to both learning and trading needs.
While tastytrade primarily focuses on options and futures, it does provide the option to trade US stocks and ETFs, albeit with a slightly more complex process compared to other brokers.
The trading platform is particularly suited for options trading but may appear daunting to beginners, especially since it lacks a proper demo account. However, you can sign up for a live demo presentation or watch the platform overview videos.
A notable advantage is the absence of a withdrawal fee for linked bank account withdrawals.
On the downside, bank transfer (wire) withdrawals can be expensive, and the broker does not support credit/debit card deposits.
| TastyTrade | Details |
|---|---|
| ๐บ Country of Regulation | USA |
| ๐ฐ US Stock Fee | Free stock and ETF trading |
| ๐ฐ Inactivity Fee Charged | No |
| ๐ฐ Withdrawal Fee | $0 |
| ๐ฐ Minimum Deposit | $0 |
| ๐ต Available Base Currencies | USD |
| ๐ต Conversion Fee of Deposits | Only USD-denominated assets are available |
| ๐ณ Deposit with Bank Card | Not available |
| ๐ Time to Open an Account | 1 day |
| ๐ฎ Demo Account Provided | Live demo (once a month) |
| ๐๏ธ Products Offered | Stock, ETF, Options, Futures, Crypto |
โค TastyTrade Pros and Cons
TastyTrade Fees
| Fees | Details |
|---|---|
| Stock and ETF fees | |
| US stock | $0.0 |
| Margin rates | |
| USD margin rate | 11.0% |
| Options fees | |
| US stock index options | $7.5 |
| Options on stocks | $1.00/contract, max $10.00 per leg |
| Options on micro futures | $1.50/contract |
| Options on Smalls Futures | $0.18 – $0.65 /contract |
| Futures fees | |
| US micro e-mini stock index futures | $8.5 |
| Crypto fees | |
| Total crypto purchase | 1% capped at $10 |
TastyTrade Account Opening
| Pros | Cons |
|---|---|
| Fast | None |
| Fully digital | |
| No minimum deposit |
TastyTrade Deposit and Withdrawal
| Pros | Cons |
|---|---|
| No deposit fee | High fee for wire withdrawals |
| User-friendly | Credit/Debit card not available |
| Free ACH withdrawals in the US |
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TastyTrade Web Trading Platform
| Pros | Cons |
|---|---|
| Clear fee report | Not suited for beginners |
| Price alerts | Limited customizability (for charts, workspace) |
| Two-step (safer) authentication for certain functions |
TastyTrade Mobile Trading Platform
| Pros | Cons |
|---|---|
| User-friendly | No price alerts |
| Touch/Face ID login | |
| Order confirmation |
TastyTrade Desktop Trading Platform
| Pros | Cons |
|---|---|
| Clear fee report | Not suited for beginners |
| Good customizability (for charts, workspace) | |
| Price alerts |
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TastyTrade Markets and Products
| Pros | Cons |
|---|---|
| Trade US stocks, ETFs, options, and some futures | No mutual funds or bonds |
| Limited international assets |
TastyTrade Research
| Pros | Cons |
|---|---|
| Good interactive chart | None |
| Trading ideas | |
| Free real-time quotes | |
| Limited fundamental data | |
| Phone support | |
| Fast response time | |
| Relevant answers |
TastyTrade Education
| Pros | Cons |
|---|---|
| Trading platform tutorial | No demo account |
| Educational videos | |
| Good production quality |
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TastyTrade Safety
| Pros | Cons |
|---|---|
| Overseen by top-tier US regulators | No banking license |
| Strong investor protection | Not listed on a stock exchange |
| Financial information is publicly available | |
| Audited by PwC |
โค Final Thoughts
Tastytrade excels as a broker for options trading, offering low trading fees and free stock and ETF trading. The trading platform is geared towards experienced options traders but may not be suitable for beginners.
As we’ve seen in this tastytrade review, tastylive provides excellent educational and research tools.
While the deposit and withdrawal processes could be improved, and a demo account is notably absent, tastytrade’s seamless account opening process with no minimum deposit, inactivity, or monthly fees makes it worth considering for your trading needs.
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