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Tastytrade might be for you if: You're an active trader, especially if you trade options or futures contracts. Its trading technology and options pricing schedule are among the best in the business. Additionally, Tastytrade offers stock trading capabilities and a mobile app. In this Tastytrade review, we'll explore the features, pros, and cons to help you decide if it might be the right stock broker for you.
A solid pick for options and futures investors wanting both a high-quality trading platform and cheap commissions under one roof. What's more, Tastytrade's mobile app simplifies on-the-go options trading.
$0 for stocks, $1 per option contract (opening trades only), 1% per crypto purchase and sale
$0
On Tastytrade's Secure Website.
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
Tastytrade is one of our favorite brokerages. It ranks among the best brokers we've seen in these categories:
Keep reading for the perks that make Tastytrade one of our top picks.
For options traders, it's difficult to find a better pricing structure than Tastytrade. The brokerage only charges options commissions when opening a position. Plus, commissions are capped at a certain per-trade maximum. While there are options trading platforms with commission-free options trading, they don't have nearly as much functionality for serious traders.
Tastytrade's trading platform was developed and designed by the team that pioneered retail options trading years ago. It's tough to find a better place to actively trade options. While it isn't necessarily one of the best brokers for beginners, Tastytrade offers some of the best technology for experienced traders.
From the trading platform to the content offered on the site, Tastytrade is all about options. There is no other major brokerage that's nearly as options focused as Tastytrade.
Tastytrade offers individual and joint brokerage accounts, as well as traditional, Roth, and SEP IRAs, beneficiary IRAs, margin accounts, corporate accounts, and trusts.
If you're wondering about Tastytrade's minimum balance requirement -- there is none. That's right, Tastytrade has no minimum initial deposit when opening a brokerage account. You can make a stock or options trade as long as there's enough in your account to cover a single share or contract. However, it's worth noting that you'll need at least $2,000 to qualify for margin privileges.
TIP
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To be fair, long-term buy-and-hold investors aren't the customers Tastytrade is targeting. But the availability of mutual funds could open up the platform to a wider group of investors.
While Tastytrade's account types will be fine for most investors, it doesn't offer SIMPLE IRAs or Solo 401(k)s.
Tastytrade is in the middle of the pack when it comes to margin interest rates. Other platforms geared toward active traders have far more competitive margin rate structures.
Tastytrade's pricing is one of its more unique features, especially when it comes to options trading. First off, like most brokers, Tastytrade offers $0 commissions on stock and ETF trades.
When it comes to options, however, that's where it gets interesting. At first glance, Tastytrade's standard $1.00 per contract options commission might actually sound a little bit on the high end. After all, many rivals have per-contract prices in the $0.50-$0.75 range. However, there are two big differentiators:
The takeaway is that Tastytrade's pricing is especially advantageous for options traders who frequently deal in large quantities of contracts.
It's also worth mentioning that Tastytrade's platform is only set up for stock, options, crypto, and futures trading. (Note that futures have their own commission schedule, which is lower than most rivals.) So, there is no pricing for mutual fund trades.
Tastytrade lets users trade Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. The fees charged are significantly higher than those on other cryptocurrency exchanges, the best of which charge you less than 1% per trade. However, crypto commissions are capped at $10 per order ticket, so the pricing structure may benefit traders who frequently buy and sell large amounts of Bitcoin.
Stocks and ETFs | Options | Crypto | Mutual Funds |
---|---|---|---|
$0 | $1.00 per contract (opening trades only) | 1% to open and 1% to close | Not available |
If you're a mutual fund investor, Tastytrade isn't the broker for you. The company is strictly focused on stocks, options, crypto, and futures, at least for the time being.
In addition to the trading commission structure discussed earlier, users might face other fees. While there's an extensive fee schedule listed on the broker's website, here are some of the most common:
Tastytrade was founded and is currently managed by an executive team that formerly held leadership roles at thinkorswim, which is now TD Ameritrade's active trading platform. CEO Scott Sheridan co-founded thinkorswim. The rest of the Tastytrade team all held executive roles when thinkorswim was still independent.
So, it should come as no surprise that the focus of Tastytrade is its high-tech trading platform. The platform offers some very high-tech options trading tools. These aim to make complex options trading as user friendly as possible. Tastytrade offers a desktop trading platform (the most powerful and full-featured choice), as well as trading in a web browser and the company's mobile app.
We're generally not fans of margin trading, but many investors are. And this is especially true for active traders, which is Tastytrade's core customer base. If you use margin (borrowed money), it's important to be aware that doing so isn't free -- brokers charge interest, just like you'd expect on any other type of loan. So, a broker with relatively low margin rates can be attractive.
Tastytrade's margin rates are in the middle of the pack -- they aren't particularly cheap or expensive. Like most of its competitors, the rate you pay depends on how much you've borrowed:
Margin Balance | Interest Rate |
---|---|
Under $25,000 | 11.00% |
$25,000-$49,999 | 10.50% |
$50,000-$99,999 | 10.00% |
$100,000-$249,999 | 9.50% |
$250,000-$499,999 | 9.00% |
$500,000-$999,999 | 8.50% |
$1 million or more | 8.00% |
Tastytrade is primarily designed as a trading platform (as opposed to a long-term buy-and-hold investment platform). Therefore, you won't find much of the traditional stock research that many other brokers offer.
However, Tastytrade does have features such as in-platform video content. There are also ways to watch professional options traders in real time. Investors can even copy their investment strategies with a click of a button.
Tastytrade was developed by some of the most experienced retail options trading pros, and the product reflects this fact. This is a good brokerage for active traders, especially those who want the best tools and pricing structure to trade options and/or futures. But long-term investors who want to buy and hold stocks, ETFs, and mutual funds -- and beginning investors -- should probably look elsewhere.
Wondering how Tastytrade stacks up to the competition? Check out our reviews:
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Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
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.
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)