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Tastytrade Review: Options-Focused Broker With Some Unique Features

Review Updated
Cole Tretheway
Emma Newbery
By: Cole Tretheway
Cole Tretheway
Cole Tretheway

Cole Tretheway is a full-time personal finance writer whose articles have been featured on The Ascent and The Motley Fool. He has a degree in English with a Certificate in Professional and Technical Communication from California Polytechnic University, SLO.

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 and  Emma Newbery
Emma Newbery
Emma Newbery

Emma lives in Bogota, Colombia, where she owns the English-language newspaper The Bogota Post. She began her editorial career at a financial website in the U.K. over 20 years ago and has been contributing to The Ascent since the summer of 2019.

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Ashley Maready
Check IconFact Checked Ashley Maready
Ashley Maready
Ashley Maready
Writer and Editor

Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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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.

Tastytrade
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On Tastytrade's Secure Website.

Ratings Methodology
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Tastytrade

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Our Rating:

Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
= Poor
Bottom Line

A solid pick for options and futures investors wanting both a high-quality trading platform and cheap commissions. What's more, Tastytrade's mobile app simplifies on-the-go options trading.

Fees:

$0 for stocks, $1 per option contract (opening trades only), 1% per crypto purchase and sale

Account Minimum:

$0

Open Account for Tastytrade

On Tastytrade's Secure Website.

Alternatives to Consider

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.

Account Fees Account Minimum
Featured Offer
Logo for Robinhood
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold $0
Open Account for Robinhood
Logo for SoFi Active Investing
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
$0 for stocks, $0 for options contracts $0
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Logo for E*TRADE
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Commission-free; other fees apply $0
Open Account for E*TRADE

Full Tastytrade review

Author's note: In over five years of personal investing, I have used several brokerages. I'm a buy-and-hold investor, and I like platforms that are easy to use, don't charge me hidden fees, and have plenty of investment information.

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Investment offerings

Tastytrade is aimed at active options and futures traders, and this is reflected in the available investments and account types. For example, unlike many top online stock brokers, it does not offer mutual funds. Nor does it offer SIMPLE IRAs or Solo 401(k)s. To trade futures, you'll need to qualify for The Works -- Tastytrade's highest level of trading account.

Investments

  • Cryptocurrency
  • ETFs
  • Futures
  • Options
  • Options on futures
  • Stocks

Brokerage accounts

  • Corporate account
  • Individual brokerage
  • IRA
  • Joint brokerage
  • Margin account
  • Roth IRA
  • SEP IRA
  • Trust

Commissions and fees

Tastytrade's pricing is one of its more unique features, especially for options trading. At first glance, Tastytrade's $1 per contract options commission might sound high. However, bear in mind that:

  • Tastytrade only charges commissions on opening trades. All closing options trades (when you exit a position) are free, This effectively cuts the commission in half.
  • Tastytrade caps its commissions at $10 per leg. In other words, if you buy 100 contracts of a certain call option, your commission will only be $10. The $10 cap also applies to cryptocurrency trades.

Here's a breakdown of other common commissions and fees:

Reason Cost
Stocks and ETFs $0
Options $1.00 per contract (opening trades only)
(Max $10 per leg)
Crypto 1% to open and 1% to close
(Max $10)
Futures $1.25 per contract to open and close
Mutual Funds Not available
ACH Deposits & Withdrawals Free
Outgoing wire transfers (domestic/foreign) $25/$45
Returned check fee $30
Paper statements $5 per statement
Paper trade confirmations $2 each
IRA closing fee $60
Data source: Tastytrade.

Margin rates

If you use margin (borrowed money), you'll pay interest, just as you would on any other type of loan. 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 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%
Data source: Tastytrade as of June 2024.

Research and education

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. It does provide fundamental data such as balance sheets and cash flows, but you won't be able to access in-depth research reports.

On the plus side, Tastytrade features a big library of in-platform video content. This includes beginner courses on options and futures trading, as well as advanced courses on trading strategies. The Tastylive stream also lets you watch professional options traders in real time. Investors can even copy their investment strategies with a click of a button.

Interface

Tastytrade's desktop trading platform is its most powerful and full-featured choice. You can also trade via a web browser and the company's mobile app. Tastytrade's trading platform was developed by the team that pioneered retail options trading. That deep knowledge shows through in its highly intuitive interface.

Put simply, it's tough to find a better place to actively trade options. The platform's high-tech options trading tools make complex options trading as user-friendly as possible. Tastytrade has some of the best technology for experienced traders. That said, the breadth of features on offer can feel overwhelming at first. Indeed, the learning curve may be a bit much for new investors or someone who only plans to buy stocks and ETFs to hold for the long term.

READ MORE: Best Options Trading Platforms

App

Use Tastytrade on your mobile device to manage your investments, access advanced charting tools, stock fundamentals, and more. It's an excellent way to place orders on the go. Personal watchlists on both the app and desktop make it easy to track specific stocks. You can open and close positions, set price alerts, view charts, read recent news, and more.

READ MORE: Best Free Stock Trading Apps

The app has fewer features than the desktop. But it still benefits from the same user-first principles that drive the whole brokerage. Tastytrade's mobile app is highly rated for both Android and Apple devices. Be aware that some users complain of glitches, especially after updates.

Customer service

Tastytrade generally gets good reviews on Trustpilot. Users are full of praise for the knowledgeable support team who go the extra mile.

Contact its customer service team in office hours in the following ways:

  • Toll-free phone line open 7 a.m. to 5 p.m. CST (Monday to Thursday) and 7 a.m. to 4 p.m. CST (Friday)
  • Live chat
  • Email
  • Fax

Security

Tastytrade's security measures are in line with many other top brokerages. It uses data encryption, real-time monitoring, and strong internal protocols to protect your account. Two-factor authentication is available at a user level. Accounts are covered by the SIPC against brokerage failure.

About

The executive team behind Tastytrade, formerly Tastyworks, are both seasoned traders and tech heavyweights. CEO Scott Sheridan co-founded thinkorswim, now TD Ameritrade's active trading platform. The rest of the Tastytrade team all held executive roles when thinkorswim was still independent. Tastytrade's high-tech trading platform is born from staff experience and desire to give active retail options traders the tools they need.

Learn more about Tastytrade

Keep reading about Tastytrade on these pages:

Our brokerage rating methodology

At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology