Investing > Tastytrade Review

Tastytrade Review

Tastytrade features powerful trading software with the ability to watch real-time market content and trades. Both beginners and advanced traders can find plenty to like.

By
Reviewed by
Updated January 03, 2024

All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.

Tastytrade is trying to make life easier for active traders. But how?

Be it through handy technology, low pricing, or good customer service, Tastytrade seeks to solve the common problems that investors find elsewhere. Since its inception, the platform has had an enormous impact on the brokerage industry as a whole.

Tastytrade was founded in 2015 and launched to the public in 2017 by a group of highly experienced and reputable experts in the field of investing. If you’re an experienced trader, this platform could be an ideal fit.

Tastytrade is a low-cost platform with powerful technology, designed primarily for options traders. Some may find this platform lacking when it comes to investment types but active options, stocks, and futures traders can save a bundle when trading on Tastytrade.

Fast Facts

  • Account Minimum: $0
  • Fees: $0 commission for stock trades, and $10 per leg for all opening listed equity option trades
  • Best for: Experienced stock, options and futures traders
  • Highlight: Great technology

Rating

  • Usability: 7.5/10
  • Research and Education: 8.5/10
  • Customer Service & Help: 8/10
  • Commissions & fees: 9/10
  • Tools & Resources: 4/10
  • Overall: 7.5/10
Visit Tastytrade on Tastytrade’s website

Investor Warning: Options involve risk and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially significant losses. Please read Characteristics and Risks of Standardized Options before deciding to invest in options. Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC). All customer futures accounts’ positions and cash balances are segregated by Apex Clearing Corporation. Futures and futures options trading is speculative and is not suitable for all investors. Please read the Futures & Exchange-Traded Options Risk Disclosure Statement prior to trading futures products.

What is Tastytrade? 📚

Tastytrade caters to experienced stock, options, futures, and cryptocurrency traders, or those who are looking to become more skilled. If you’re new to the whole investing thing, this platform will allow you to watch other trades in real-time, which can be a great learning experience.

Although, if you want to deal with something other than the aforementioned investment types, this platform is not for you. Also, day traders might like the user experience and the nonexistent closing commissions.

Overview and Summary

Here are some key features about Tastytrade that we’re gonna go through:

  1. Powerful, one of a kind technology with a simple, customizable UI.
  2. Good analytical package with a tool for calculating the probability of profit, among other things.
  3. Available investment types include futures, stocks, options, and cryptocurrencies.
  4. Unique pricing model with $0 opening and closing commissions for stocks, and equity option commission capped at $10 per leg.
  5. No inactivity fees or minimum balance requirements.
  6. Interesting education including the option to watch traders in real-time and copy their investments just by clicking.

All in all, tastytrade is made for active and determined derivatives traders. Along with the content available on the platform, the tastytrade platform is great for advancing skills related to analyzing risks in your trading practice.

Passive mutual fund investors will definitely look elsewhere to satisfy their needs, but if you’re looking to improve your derivatives trading skills, maybe you should take a good long look at Tastytrade.

Tastytrade Compared

Fees
Commissions

$0*

$3 or $5/month

Account minimum

$0

$5 required to start investing

Minimum initial deposit

$0

$0 to open account

General
Best for

Experienced stock, options, futures, and cryptocurrency traders

People who struggle to save

Highlight

Great pricing and technology

“Invest spare change” feature

Promotion

None

Rating
Fees
Commissions

$3 or $5/month

$0

Account minimum

$5 required to start investing

$0

Minimum initial deposit

$0 to open account

$0

General
Best for

People who struggle to save

DIY stock trading

Highlight

“Invest spare change” feature

Pioneer of commission-free stock trading

Promotion

Free stock

Rating
Fees

Commissions

$0*

$3 or $5/month

$0

Account minimum

$0

$5 required to start investing

$0

Minimum initial deposit

$0

$0 to open account

$0

General

Best for

Experienced stock, options, futures, and cryptocurrency traders

People who struggle to save

DIY stock trading

Highlight

Great pricing and technology

“Invest spare change” feature

Pioneer of commission-free stock trading

Promotion

None

Free stock

*$0 for stock/ETF shares, but everything else is subject to commissions.

Tastytrade Technology 👨‍💻

Tastytrade offers a number of platforms, each with its own unique properties. The technology Tastytrade’s team developed is generally well-received. Let’s take a quick look at their offer.

Trading Platforms 🖥️

Tastytrade offers multiple desktop platforms. They offer a web browser platform, a downloadable desktop platform, and mobile platforms, though the latter is a bit faster. They are nearly identical in all respects and the UI should feel very natural to experienced traders.

The web version can run in the majority of popular browsers. The desktop version is optimized for Windows, Mac, and Linux, so all fields are covered in that respect. In all cases, the platform is a very stable and safe piece of software.

Tastytrade offers user-friendly desktop and mobile trading platforms for optimum trading experience.

Mobile App 📱

The mobile app is available for iPhone 6 or newer and all modern Android phones. The mobile version of the app runs on Android and iOS devices and is made to minimize the amount of data entry you have to do by using drag and drop controls.

The majority of features you would get from the web or desktop platforms are also available on the mobile system. Since you can not open an account through the mobile apps, you must open an account by visiting tastytrade.com.

Tools and Resources 🛠️

You can easily create portfolios and watchlists, and observe trades from other traders on the platform by referring to the ‘Follow tab’ in the platform. This platform allows clients simultaneous access to multiple accounts, which is a great feature for traders who are used to a certain level of complexity.

Over 90% of the trades placed by Tastywork’s users are derivatives, therefore, futures traders have an abundance of options and tools to choose from. The analytical package you get can calculate the probability of profit, which is helpful when you are planning your trades.

You can use the built-in options strategy builder. If you have an existing position in a specific strike, it will appear on the trading mode you’re using. Getting graphs, reports and other useful info you need to make intelligent trade decisions is fairly easy too, as the system is well designed.

Account Types 🗃

There are different types of accounts you can choose from. The most flexible account type individual margin account with “The Works.” This account gives users unrestricted trading access*.

Users can make stock and futures trades with this account, as well as option spreads and covered and uncovered trades for options and options on futures.

(*) Account approvals and related trading permission are subject to tastytrade’s suitability requirements.

Customer Support ☎

As far as customer support is concerned, it can be reached by phone, live chat, or email. There are also special email addresses that are available for different kinds of questions.

The help center can be accessed by going to tastytrade.com. They do have a chatbot based on the specific issues, but customers can also chat with an agent if needed after going through it. From our experience, customer support is usually very quick to respond to queries, so there is nothing to worry about in that respect.

What You Can Trade At Tastytrade 🤔

Tastytrade is optimized for stock, futures, options, and cryptocurrency trades, so if you want to look at other investment types, you will find Tastytrade lacking.

As the selection of investment types is limited, Tastytrade may not be the right place for bond and mutual funds traders. Although, the limited number of investment types will not deter most active traders.

📝 Important note: Based on our review, we believe tastytrade is currently one of the best platforms for trading options. Keep that in mind if you are an investor interested in trading options.

Tastytrade Pricing and Fees 💵

No online broker is truly great for investors without a great pricing system. Tastytrade offers low commissions for most investment types and doesn’t burden traders with account minimums and inactivity fees.

Tastytrade offers great prices and low fees for trading.

Special Pricing Model 💸

Tastytrade’s pricing model is unique in the brokerage industry, and it’s hard to find anything similar. The closing trade doesn’t incur closing fees whether you are dealing with options on futures or options on stocks.

This means you are charged a commission fee when you buy/open, but not when you sell/close, or vice-versa if you’re trading on the short side. Also, the minimum balance is $0, which is something that new investors might find relieving. There are also no inactivity fees. When it comes to option trades, there is a $10 capped commission for the equity options.

Stocks Trades ✅

All stock trades have a $0.0008 clearing fee per share, and there are applicable regulatory fees too. Additionally, stock trades are $0 commission (they were previously $5). Despite being commission-free, clearing and regulatory fees still apply.

Stock Options ✅

Stock options incur a $1 commission when you open, but the commission is zero when you close. The clearing fee is $0.1 per contract for all trades, and the equity options commissions are capped at $10 per leg.

Other Commissions and Fees ✅

Cryptocurrencies have a 1% commission to open and close, both capped at $10 per order. Futures have a $1.25 commission to open and to close, per futures contract. Micro futures have a $0.85 commission to open and to close, per contract. All futures trades have a $0.3 clearing fee per contract in addition to the exchange fee and $0.02 NFA Fee. The highest margin accounts’ rate is 11% for accounts with less than $25.000, and if you have $1.000.000 or more on your account, the rate is 8%.

There are also other potential trading and bank-related fees you might incur. Anyway, this pricing system gives good opportunities to many stocks, options, and futures traders. Visit a complete list of tastytrade’s commissions and fees here.

Where Tastytrade Excels 🌟

Tastytrade has made great efforts to design a platform that’s easy to use, with a bundle of handy tools for new traders and pros alike. Day traders are the target audience here, and in that respect, Tastytrade has achieved great success. Tastytrade has been voted into the top platforms for day traders for this year by The Tokenist team. 

Great Technology 🤖

The technology isn’t only safe and stable, but fast too. The pricing system is very good as it allows traders to intuitively make low-cost trades. The interface is also very smartly designed as it is easy to maneuver, and the scanners allow you to filter and screen for securities which are increasing in volatility.

The ability to use the platform directly from the browser, without downloading is something that many other brokerages do not provide. Tastytrade software is easy to use and the dashboard is customizable to meet all kinds of preferences. This gives all traders a great UI to work with without hassle.

Mobile Apps 🚀

The mobile apps are fully functional and give you roughly the same resources as the desktop or web versions. The orderliness of the UI is great for users who like to keep their data visually organized. You can also access metrics to understand liquidity, probability of profit, and volatility through Tastytrade’s mobile platform.

Pricing and $0 Commissions 💳

Day traders who deal with stocks, futures, and options will find this platform full of awesome perks. The unique pricing system allows investors to sell and close stock, equity options, and options on futures trades for $0, which can cut costs greatly, even though the trading fees for buying and opening are higher than average. An additional perk is the $0 minimum balance and no inactivity fees, which new investors might find very appealing.

Where Tastytrade is Lacking ⚠️

The number one limitation that Tastytrade has is the lack of investment types. You can only trade stocks or ETFs, options on stock or ETFs, options on futures and futures, and select cryptocurrencies; everything else is off-limits. The platform is optimized for day trading and generally lacks in features if you don’t fall into this category.

Some day traders also find that the fixed commission rates don’t work for them. Although the margin fees can be negotiated down, they are higher than average for very active trades. Also, traders can not stage orders for later entry or place multiple orders at the same time. Therefore, this platform might not be great for day traders who like to place multiple large bulk orders at the same time.

Tastytrade: The Bottom Line 🚩

Tastytrade offers a discount brokerage that is surely worth taking a look at if you are interested in active stock, options, cryptocurrencies, and futures trades. Tastytrade is a great boon for Tastytrade users who want an integrated trading experience.

The average investor might want more investment types, and the low fees don’t make up for Tastytrade’s clear scarcity in that department. Tastytrade’s does not work for everyone but is a mighty tool for its target audience.

Marketing Disclosure:

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Marketing Agent
(“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend
tastytrade’s brokerage services.

The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies.

Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website.

Marketing Agent is independent and is not an affiliate of tastytrade.

tastytrade was previously known as tastyworks, Inc.

Tastytrade: FAQs

  • Is Tastytrade a Good Platform for Beginners?

    Tastytrade is a great platform but not ideal for beginners. This broker is best for experienced stock, options, crypto, and futures traders.

    If you’re new to the investing, but you are eager to learn, this platform will allow you to watch other trades in real-time which can be an awesome learning experience.

  • Can I Trade Mutual Funds with Tastytrade?

    No, Tasyworks supports neither bonds nor mutual funds trading.

    The company's main focus is on stocks, futures, and options. And if you are interested in crypto trading, Tastytrade also supports more than 20 actively-traded cryptocurrencies.

  • What is Tastytrade Pricing?

    Their pricing system is somewhat unique and it's really hard to compare it to anyone else. Essentially, you will be charged a commission when you buy/open but not when you sell/close*. The fees are low for most investment types. *Applicable, exchange, clearing, and regulatory fees still apply to all opening and closing trades.

  • How Long is the Withdraw Period with Tastytrade?

    Withdrawn funds typically land in your bank account in 1-3 business days. They can typically be moved to your checking account the next business day if you request them before the cutoff time.

Tastytrade and the Competition

See how Tastytrade compares to the top investing platforms by reading one of the reviews below.

All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.