Tastyworks Review 2023
Deep Discounts for Active and Options Traders
Commissions & Fees - 9
Customer Service - 8
Ease of Use - 7.5
Tools & Resources - 4
Investment Options - 4
Account Options - 6
We took Tastyworks for a spin, and here’s what we found.
Tastyworks may sound like it should be an ice cream parlor or candy store, but in reality, it’s anything but.
This trading platform was developed by the online financial video channel, Tastytrade, home of popular shows such as Tastytrade Live, Splash Into Futures and Everyday Trader.
|Investment Types||Stocks, OTC/Penny Stocks, ETFs, Mutual Funds, Bonds, Options, Forex, Cryptocurrencies, Futures|
|Broker Assisted Trade||N/A|
|Customer Service||Phone: M-F 7A-5P CT; Live Chat: M-F 7A-5P CT; Email|
What Is Tastyworks?
Tastyworks is an online discount brokerage offering trades solely in the stock and options markets. It offers a unique fee structure on all trades that makes Tastyworks' pricing lower than that of many of the large discount brokerages. It is designed for active traders, particularly those who are fans of the Tastytrade online video service.
Tastyworks offers only four types of trades:
- Options on stock,
- Options on futures
- Futures trading.
If you want to trade mutual funds or bonds, you’ll need to go elsewhere. But as mutual funds and bonds are typically for longer-term investors, active traders shouldn’t be too turned off by the limited investment types.
Tastyworks offers multiple account types, but the premier account is called “The Works.” This is an individual margin account with access to stock and options trades. You can make covered and uncovered trades for options and option spreads with this account, as well as stock and futures trades.
Tastyworks also offers an individual cash account, traditional and Roth IRAs, corporate investment accounts, trusts and accounts for international customers. Joint and custodial accounts are not currently available but are listed as “coming soon” in 2018.
How Does Tastyworks Work?
Tastyworks accounts are primarily online and work through a web browser, downloadable desktop application or mobile app. All of these interfaces offer similar access to pricing, trading and account information.
The desktop and browser versions are nearly identical. The dashboard should feel comfortable to any experienced trader who has used a live trading platform. The software also includes an integration to watch Tastytrade live without leaving Tastyworks.
You can quickly view options and get quotes to enter trades on the platform, create watchlists and portfolios and follow Tastyworks traders in real time as they enter trades on the platform. Users can access multiple accounts through the platform, which makes trading easier for those with more complex needs. Clicking through gives you charts and tables packed with the data you need to make a trade decision.
The web-based version runs through most any modern browser. The desktop version is available for Windows, Mac and Linux. The mobile app is available for iPhone 6 or later and modern Android phones.
Customer service is available by email, live chat or phone, with specific email addresses easily available for various specific needs.
|Options Trades||$0.60 per contract||$0||$1|
Tastyworks has a unique pricing model that I have never seen anywhere else. For stock, options on stocks and options on futures, there is no closing fee for the second trade. You pay when you open or buy, but you don’t pay when you sell or close.
Stock and ETF trades are $0 and you can trade an unlimited amount of shares.
Options on stock are $1 per contract to open and $0 commission to close. All trades incur a $0.10 per contract clearing fee, and equity commissions are capped at $10 per leg. Options on futures are $2.50 per contract to open, $0 to close, and incur a clearing fee of $0.30 per contract plus exchange fees.
Futures are $1.25 to open and close, and all trades incur a $0.30 per contract clearing fee plus exchange fees.
For margin accounts, rates start at 8% for up to $24,999 and go down to 5% for $1 million and higher.
Tastyworks charges various bank fees and trade-related fees for certain activity as well.
Tastyworks Pros & Cons[table “proscons” not found /]
For active stock, options and futures traders, Tastyworks offers a discount brokerage that is certainly worth considering. For fans of Tastytrade who want an integrated experience, Tastyworks definitely delivers. But for the average investor, the low fees don’t make up for limited account and investment options. Tastyworks is great for some, but it isn’t perfect for everyone. (If you're not an active trader but are curious, you may want to read up on our take.)
The platform nice to use but what good does it do you…the fills are terrible. I use multiple platforms and ALL others fill better than Tastey works
Order executions come back all fouled up leaving you wondering just what positions you have which is LOUSY in flowing markets and the web platform defaults to 2 weeks out on option chains and you better double and triple check what is short and long in your spreads. Also, it has a habit of refusing to send orders when it does not like your price for the option structure you are placing so you have to brake up the order and suffer slippage doing so.
Several things missing from this firm are: no trading on the OTC
(pink sheet) and the dismal no all or none orders! Both of these
are serious issues for many investors.