Tastytrade is a comprehensive options and futures brokerage for low-cost active trading. It is primarily for desktop use but offers mobile and web trading access.
Tastytrade was created by the same people who made the popular Schwab thinkorswim platform.
Business Insider's personal finance team compared tastytrade to the best commodity trading apps. We found it to be an industry leader for low-cost options trading and fast trade execution.
Pros and Cons
tastytrade Pros
- $0 minimum to open account
- Stock and ETF options cost $1 per contract open and $0 to close
- Fast trade executions ideal for active day trading
tastytrade Cons
- No mutual funds, forex, or OTC trading
- Limited external research and data
- Mobile app not as efficient as main desktop platform
Open an Account
$0 ($2,000 for margin accounts)
$0 for stocks and ETFs (options start at $1 per contract and capped at $10 per leg)
Pros
Cons
- A large selection of options and futures trading
- No account minimum to open an account
- Only offers 25 cryptocurrencies for trading
- No robo-advisor or human-advisor access
- $0 for stocks and ETFs (options start at $1 per contract and capped at $10 per leg)
Compare tastytrade
Overview
Previously called Tastyworks, tastytrade is a powerful online brokerage that specializes in competitively priced options and futures trading for seasoned day traders. It has a fast-paced interface with a customizable dashboard.
In addition to options and futures contracts, tastytrade offers stocks, ETFs, cryptocurrencies, commodities, and a variety of index products. It does not support mutual funds, OTC trading, or forex. Tastytrade is not recommended for beginners.
Some standout tools and features available on tastytrade include curated wishlists, customizable chart indicators, historical options data, detailed performance metrics, a platform glossary, and a portfolio risks analysis tool. The site also offers a library of internal research but has limited research and data from third-party sources.
Its community trading features include its Follow Feed tool and in-platform video feed. These allow tastytrade users to learn and be inspired by one another while participating in informed trade-based discussions.
Tastytrade provides investors access to precious metals, livestock, and energy-based securities.
You can't redeem coins or short positions with tastytrade.
Ways to Invest
The tastytrade platform includes a range of account and investment options for advanced traders interested in day trading and retirement savings.
Tastytrade Trading Levels
How you fund your tastytrade account (cash or margin) affects the kind of securities and investment strategies available to you. Once opened, cash accounts cannot be converted to margin and vice versa.
With a tastytrade cash account, you can access the platform's selection of stocks, ETFs, options, cryptocurrencies, and covered calls. You can also sell cash-secured puts. There's only one trading level for a cash account, plus you won't be able to short stocks or futures.
Margin accounts, on the other hand, have three trading levels:
- Limited: Allows investors to buy stocks, ETFs, and options, sell covered calls, sell cash-secured put options, and trade cryptocurrencies.
- Basic: With a basic margin trading level, you can buy stock, ETFs, options, and crypto. Investors can also sell covered calls and naked puts, and access defined-risk options spreads.
- The Works: This is the highest margin trading level. It offers stocks, ETFs, options, smalls, futures, and cryptocurrencies. You can also sell covered, naked puts, naked calls, short-sell stocks, and access defined-risk options spreads.
Trading levels are based on your investor profile and self-reported trading objectives, knowledge, and financial standing. You can view your trading level under the "My Current Plan" section. If you're eligible to upgrade, the next trading level will be available to you as an upgrade.
Users with "The Works" can apply for Portfolio Margin (PM) for greater leverage and margin flexibility.
Tastytrade Brokerage Accounts
Tastytrade offers individual and joint brokerage accounts featuring adjustable positions and dividends. Only individual accounts can trade cryptocurrencies.
You must enable cryptocurrency trading on your cash account to permit crypto trading.
The two joint account options are:
- Tenants in Common Joint Account: This account permits two owners to specify the percentage of assets owned by each account owner. If one of the owners dies, the deceased owner's assets are sent to that person's estate.
- Joint With Rights of Survivorship Account: Two account owners will have an equal share of the account's assets. If one of the owners dies, all the account's assets are transferred to the surviving owner.
Tastytrade IRAs
Individual cash retirement accounts allow investors to buy stocks and options and sell covered calls and cash-secured puts in a traditional, Roth, SEP, or beneficiary IRA. Remember that you won't be able to trade cryptocurrencies in an IRA. Borrowing and shortening stock is also not available.
Retirement-focused investors can unlock additional investment strategies (including defined-risk options spreads, sellable naked calls, and futures) with a margin-funded IRA at the Basic and The Works levels.
tastytrade Entity Accounts
Entity accounts are tax-advantaged trading accounts owned by a legal entity, such as one belonging to a corporation. Corporations or limited partnerships can authorize one or multiple individuals to trade on the entity's behalf.
The online brokerage offers corporate-owned accounts, including C Corportations, S Corporations LLC, and Partnership accounts.
Tastytrade Trust Accounts
The platform offers a trust account option, an investment account that legally allows a trustee — usually a third entity — to manage the account assets on behalf of the account's beneficiaries. Beneficiaries receive legal protection over their assets through a trust account.
When you open a trade account, tastytrade provides a copy of the Certificate of Trust and Investment Powers.
Investment Options with tastytrade
The platform offers thousands of U.S. and international stocks and ETFs. Commodities can be traded as options, futures, futures options, stocks, and ETFs.
Eligible individual users can enable cryptocurrency trading to buy and sell Bitcoin, Bitcoin Cash, Ethereum, and Litecoin directly (only long positions are permitted).
Only margin accounts at The Works level can access futures trading. Futures trading includes micro futures and small futures (aka The Smalls). You can get futures for:
- Equity index futures
- Interest rate futures
- Foreign currency futures
- Energy futures
- Metals futures
- Livestock futures
- Agricultural futures
There's a range of options products, including stocks, ETFs, and index options. Additionally, you can trade futures options of different asset classes, such as equity indexes, commodities, currency, interest rates, and crypto. Mini, micro, and small futures options are also available.
Available index products on tastytrade depend on your account level. The Works account, for example, offers access to trade index futures. You can also get access to trade index options and index ETFs.
Fees
Tastytrade is transparent about its pricing and fees. There's no cost to open a cash account. To open a margin account and access these features, you must maintain at least a $2,000 minimum in your account.
The broker-dealer charges opening commission fees and closing commission fees on its assets. Here's the breakdown:
| Investment options | Opening commission fee | Closing commission fee |
| Stocks & ETFs | $0 unlimited shares | $0 |
| Futures | $1.25 per contract | $1.25 per contract |
| Micro futures | $0.85 per contract | $0.85 per contract |
| Smalls futures | $0.25 per contract | $0.25 per contract |
| Small futures options | $0.50 per contract | $0 |
| Options on futures | $2.50 per contract | $0 |
| Options on micro futures | $1.50 per contract | $0 |
| Options on stocks & ETFs | $1.00 per contract (capped at $10 per leg) | $0 |
| Cryptocurrency | $0 per crypto purchase | $0 |
When margin trading, you'll pay between 8.00% and 11.00%, depending on your account balance. The higher your account balance, the lower the rate.
Trustworthiness
tastytrade has an A+ rating from the Better Business Bureau. The BBB gives businesses grades from A+ to F when assigning its ratings. Ratings represent how well a company interacts with its customers, and tastytrade has received the highest possible score.
In November 2024, Tastytrade agreed to pay a $30,000 fine to the Financial Industry Regulatory Authority (FINRA) as part of a settlement. FINRA claimed tastytrade failed to establish, maintain, and enforce supervisory procedures and violated FINRA and securities laws from July 2021 to July 2023.
Tastytrade is a secure online brokerage that protects users' assets and personal information through industry-standard data encryption protocols, real-time monitoring systems, and routine reviews and audits of its systems and code.
It also monitors its employee's access to data and internal business units and runs routine background checks.
Tastytrade encourages users to use strong passwords and closely monitor account activity.
Alternatives
Interactive Brokers
$0 ($100 Interactive Advisors automated accounts)
$0 for IBKR Lite; $0 IBKR Pro (per-share commissions apply)
Pros
Cons
Interactive Brokers is one of the best online brokerages for advanced, active investors who trade securities frequently and value access to market analysis and trading platforms.
Interactive Brokers- Promotion: None at this time.
Interactive Brokers and tastytrade are both popular, affordable day-trading platforms suitable for active traders. However, unlike tastytrade, Interactive Brokers offers passive and long-term investing strategies suitable for less-experienced traders.
Intermediate and passive investors will prefer Interactive Brokers' wider range of trading-solutions strategies, including its robo-advisor and the IBKR Lite pricing plan. Interactive Brokers is also a good choice for global market exposure.
On the other hand, tastytrade may be better for dedicated day traders seeking fast trade execution, customizable dashboards, and low-cost options and futures contracts.
Merrill Edge
$0 ($1,000 Guided Investing; $20,000 Guided Investing with Advisor)
0% (0.45% to 0.85% for robo-advice and guided portfolios)
Pros
Cons
Merrill Edge lets you invest for your minor without running into any minimum opening deposits, annual fees, or account maintenance fees. Merrill Edge also offers commission-free stocks, ETFs, and options.
Merrill Edge investment account- Promotion: Get up to $600 when you open a self-directed account.
Similar to tastytrade, Merrill Edge offers commission-free trades. Unlike tastytrade, Merrill Edge offers a robo-advisor, making it a stronger option for beginners and passive investors. It also provides access to human advisors, another feature tastytrade doesn't offer.
If you're looking to invest in futures or options, tastytrade is stronger. It's also a better option for cryptocurrency trading, as Merrill Edge doesn't offer that.
Why You Should Trust Us
We applied Business Insider's rating methodology for rating investment products to compare fees, ethics, access, investment selection, and overall customer experience when reviewing trading platforms. Top online brokerage platforms offer multiple investment options, advanced charting tools, education resources, and more for different trading needs.
Investing platforms are given a rating between 1 and 5.
Business Insider's Overall tastytrade Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.50 |
| Investment selection | 4.00 |
| Access | 4.50 |
| Ethics | 4.00 |
| Customer support | 4.00 |
| Overall score | 4.22 |
FAQs
Is tastytrade a good platform for beginners?
Tastytrade is not a good platform for beginners since it is primarily for day trading. It offers advanced tools, features, and strategies for active traders.
Is tastytrade really commission-free?
Tastytrade offers commission-free trades for stocks, cryptocurrencies, and ETFs. Options and futures are also low-cost compared to competitors.
What makes tastytrade different from other brokers?
Tastytrade differentiates itself from other brokers with its transparent pricing and commission-free options. It primarily caters to experienced, active traders.
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