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tastytrade began operating in 2017 as tastyworks, before rebranding in 2023. It was founded by the same team behind the highly successful options trading platform, thinkorswim. Despite its young age, it has established itself as a reliable firm, earning several accolades along the way, such as the Best Broker for Options in the 2023 Investopedia awards.
The tastytrade platform is available online, via a downloadable desktop app, and on mobile. It offers a broad selection of tradeable securities, including stocks, exchange-traded funds (ETFs), options, futures, and cryptocurrencies. Stocks and ETF trades are free, with the other asset types incurring reasonable, and in some cases, very low commissions and fees.
tastytrade is a brokerage platform that is part of IG Group Holdings plc. The latter is also parent to tastylive, a financial content and education platform.
Although you can still buy stocks and ETFs on tastytrade, this is an options- and futures-centric platform. Specifically, tastytrade offers a compelling solution to active options traders who are weary of paying hefty commissions and using inferior trading technology.
With this platform, you not only get to keep more of your profits, but you’ll also have access to sophisticated tools to help you trade more effectively.
tastytrade is best suited for seasoned active traders, particularly those who deal with riskier assets like options and futures. The brokerage boasts one of the most competitive options pricing structures on the market.
For example, tastytrade charges $1 per contract for stock and ETF options when opening a position and $0 when closing. In essence, each round-trip trade costs just $1. This is significantly lower than the industry standard, which is typically $0.65 on each side of a trade, for a total of $1.30 per contract.
What’s more, tastytrade caps its options commissions at $10 per leg. So, whether you trade 10 contracts or 20 contracts in one leg, you’ll only pay $10 total in commissions.
When trading futures, there’s an opening and closing commission. However, it’s only $1.25 per contract or $2.50 per round trip—which is still lower than what many other brokerages currently charge.
Active investors will also love tastytrade’s wide selection of trading tools. For example, there’s a quick roll feature that enables you to effortlessly roll your option position into the next expiration with just one click. The quick order adjustment tool, meanwhile, lets you easily cancel, replace, duplicate, and invert working orders that haven't been fulfilled.
Furthermore, tastytrade provides a dedicated feed where you can see fellow active traders discuss their transactions and a tastylive video stream where you can watch them navigate the market in real time.
| Feature/Product | Pricing |
|---|---|
Stocks and ETFs trading | $0 |
Options on stocks and ETFs trading | $1 to open an options contract (capped at $10 per leg); no commission to close |
Options on futures trading | $2.50 to open a contract, no commission to close |
Futures trading | $1.25 per contract to open; $1.25 to close |
Cryptocurrency trading | 1% of total crypto purchases to open a position; 1% of total crypto sales to close |
Account opening | $0 |
Account transfer | $75 |
Withdrawal | ACH withdrawals are free; $25 for outgoing wire transfers (domestic); $5 for domestic checks, $75 for outgoing ACAT transfers |
IRA closing | $60 |
IRA maintenance | $0 |
Disclosure: Exchange, clearing, and regulatory fees still apply for all opening and closing equity options trades. All futures options and the following index products are excluded from this offer: SPX, RUT, VIX, OEX, XEO, DJX, and XSP. Applicable opening and closing commissions apply to all cryptocurrency trades.
tastytrade offers a wide range of investment options, including stocks, ETFs, options, futures, and cryptocurrencies.
There are multiple types of accounts on offer to accommodate different needs. These include:
Individual brokerage accounts
Joint brokerage accounts
Traditional individual retirement accounts (IRAs)
Roth IRAs
SEP IRAs
Beneficiary traditional IRAs
Beneficiary Roth IRAs
Entity accounts
Trusts
One of the most attractive features is that there’s no minimum deposit required to become a tastytrade customer and that you can open more than one type of account if you want.
For individual and joint brokerage accounts, tastytrade offers cash and a margin option. With the cash option, you must have enough money in your balance to cover any trade you wish to participate in. As long as you meet the margin requirement, you can trade on margin.
Note that you need to have a balance of at least $2,000 to access margin trading privileges. Also, this feature isn’t free—you’ll have to pay back any borrowed money with interest. tastytrade’s margin rates are as follows:
| Margin balance | Current rate | Standard rate |
|---|---|---|
$0-$24,999 | 11.00% | Base rate + 1.00% |
$25,000-$49,999 | 10.50% | Base rate + 0.50% |
$50,000-$99,999 | 10.00% | Base rate |
$100,000-$249,999 | 9.50% | Base rate minus 0.50% |
$250,000-$499,999 | 9.00% | Base rate minus 1.00% |
$500,000-$999,999 | 8.50% | Base rate minus 1.50% |
$1,000,000 + | 8.00% | Base rate minus 2.00% |
^Subject to change without notice
To get started with tastytrade, the first step is to ensure you meet the company’s eligibility requirements. To qualify, you must:
Be at least 18 years old
Have a valid phone number, email address, and residential address
Have a valid social security number
Have an existing bank account that you can use to fund your account
Applying for a tastytrade account is relatively straightforward. It takes between 10 and 15 minutes in total.
Here are the steps to follow:
Go to the company’s website and click “Open an account” at the top left of the page.
Fill in your details on the registration form that pops up. This includes your email address, username, and password. You’ll need this info to access all tastytrade products in the future.
Select the type of account you wish to open, such as an individual brokerage cash account.
Provide the following info to complete your application: full name, mailing address, phone number, social security number, date of birth, employment status, and a trusted contact.
Agree to the terms and conditions and submit your application.
tastytrade will email you in one to three business days to tell you if it has approved your account. From there, you can sign in to your account, deposit funds, and start trading.
The brokerage offers several ways to fund your account, including;
Automated clearing house (ACH) transfers
Wire transfers
Checks
Automated Customer Account Transfer Service (ACAT) transfers
Yes, tastytrade offers a mobile app that’s available for both Android and iOS devices. I found it to be quite neat and user-friendly. If you’re in a situation where you can’t access the online or desktop version of the platform, the app allows you to perform several important tasks, including:
Replacing and canceling working orders
Rolling positions
Closing trades
Creating watchlists
The app isn’t as feature-rich as the company’s desktop and online platforms, and there are a few user complaints online about it occasionally freezing. However, even with these issues, the app has a high user rating on Google Play and the App Store, which shows that most users are satisfied with it.
tastytrade employs several security measures to keep your information and account safe.
For example, it uses the Transport Layer Security (TLS) v1 256-bit encryption protocol to ensure that all data transmitted between you and the company is secure. And to prevent illegal access to your account, tastytrade provides secure login features, including facial recognition, fingerprint ID, two-factor authentication, and password hashing.
The brokerage also regularly reviews, audits, and fortifies its systems and code to ensure there are no security threats or vulnerabilities.
tastytrade is regulated by several financial authorities, including the United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This means that the company has to adhere to strict regulatory standards mandated by these entities to protect investors' funds and data.
Furthermore, tastytrade is a member of the Securities Investor Protection Corporation (SIPC). This membership covers claims of up to $500,000 (including $250,000 for cash) in case of a brokerage’s insolvency or failure.
The company has an A+ rating on the Better Business Bureau (BBB), the highest possible grade on the platform. This implies that the firm has a solid track record of meeting its commitments to customers—including promptly responding to their queries—and that it operates in a transparent and trustworthy manner.
On Trustpilot, tastytrade has an impressive customer review rating of 4.5 out of 5 stars.
tastytrade’s customer support services are available Monday-Friday, 7am-5pm, via email, phone, and live chat.
Overall, support is quick to reach. On online review sites, multiple customers report receiving fast, relevant answers to queries and having their issues resolved promptly.
tastytrade also has a comprehensive help center on its website, with a wealth of user guides and helpful information about its products, tools, and features.
Unlike some of its competitors, there isn’t much educational content on investing on tastytrade’s website—which is why the platform might not be appropriate for beginners. However, users looking for articles, videos, and guides on various investing topics can find this type of content on tastytrade’s affiliate website, tastylive.
tastytrade is a legitimate brokerage that could be worth a look for seasoned investors who are familiar with the market and confident in their trading strategies. Active options and active options and futures traders will love its competitive pricing structure and the advanced tools it provides to help with trading.
That said, if you’re a novice, a long-term investor, or if you’re looking to trade primarily in stocks and ETFs, there may be more suitable alternatives for you out there.
tastytrade, Inc.
1330 W. Fulton St.
Suite 600
Chicago, IL, 60607
Is tastytrade a good broker?
tastytrade is a good broker for experienced, active traders looking to maximize their returns while enjoying access to advanced technical analysis and trade execution tools. The firm is mostly options and futures focused, offering a competitive pricing structure on these assets that can rival some of the top players in the industry.
Is tastytrade good for beginners?
tastytrade isn’t as beginner-friendly as some of its competitors. There are limited investing education resources on its website, and some of the tools and features on the platform can be somewhat intimidating to rookies.
If you’re brand new to trading, you might be better off exploring other options. But if you’re an experienced trader and you know what you’re doing, tastytrade is worth a look.
Why did tastyworks rebrand to tastytrade?
The current brokerage known as tastytrade used to be called tastyworks before changing its name in February 2023. According to tastytrade, the name change was inspired by a desire to align the company’s identity with the activity its users engage in—trading.
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 anendorsement 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.
