Tastytrade Review: Advanced Tools and Customizable Trading
Written by
Suchetana Bhattacharyea
Edited by
Elizabeth Constantineau
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
GOBankingRates Score
-
Cost
4.2
-
Accounts and Trading
3.8
-
Education and Resources
3.8
-
Usability and Platforms
4.0
Pros
- Large collection of educational resources
- Highly customizable trading experience with tools like curve analysis, quick roll, quick order adjustments and more
- Can be used on desktops, browsers and mobile devices
- Unique features like Follow Feed allows users to seek trading inspiration from other users
Cons
- Suitable for advanced traders but might scare away beginners with a steep learning curve
- Limited access to fixed-income products
- Although the educational content is exhaustive, tastytrade does not have market news or screeners
Tastytrade Overview
Tastytrade launched its operations to the public in 2017 but the founding members have been in the trading business for years. The team behind tastytrade has combined their practical trading knowledge and incorporated the same into their technology to create a comprehensive and skilled trading experience for their users.
The technology of tastytrade was designed by the creators of thinkorswim (a Schwab advanced trading platform) and has emerged to be one of the fastest-growing brokerage networks. For traders who like to be independent, tastytrade is a great platform with plenty of useful resources and trading tools.
Key Features
Tastytrade claims to create an integration of competitive rates, cutting-edge technology, inspiration-based trading and great customer support. Here are some of the remarkable features of tastytrade.
Cost
Tastytrade maintains an extremely transparent policy regarding its payment structure so that there is no concept of “hidden fees.” The fees are quite competitive in comparison to other options in the market. There are no closing commissions on stocks, ETFs, and all other options trades. In fact, the low fees and convenient trading facilities make it one of the best brokers for futures trading and commodities.
Here’s a breakdown of tastytrade’s current pricing:
- Stocks and ETFs: No commissions.
- Stock and ETF options: $1.00 per contract, capped at $10 per leg. There are also options on futures and micro futures which charge $2.50 and $1.50 per round-trip contract, respectively.
- Futures: Futures trades charge $1.25 per contract for both opening and closing. There are also micro and smalls futures for $0.85 and $0.25 per contract, each way, respectively.
- Cryptocurrency: Crypto trading is available for just a 1% spread fee and no commissions.
Thanks!
| Trade Type | Opening Commission | Closing Commission |
|---|---|---|
| Options on stock and ETFs | $1.00 per contract ($10 max per leg) | $0 |
| Options on futures | $2.50 per contract | $0 |
| Options on micro futures | $1.50 per contract | $0 |
| Stock and 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 |
| Smalls futures options | $0.50 per contract | $0 |
| Cryptocurrency | -$0 per crypto purchase -There is a 1% spread charged on crypto transactions |
-$0 per crypto sale -There is a 1% spread charged on crypto transactions |
Accounts and Trading
Tastytrade offers the following trading products:
- Stocks
- ETFs
- Stock and ETF options
- Futures
- Options on futures
- Commodities
- Indices
- Cryptocurrencies
Although it seems like a lot of products, the options are actually limited in many of the categories. For instance, only four cryptocurrencies are available on the tastytrade platform for trading.
Tastytrade also does not offer access to some fixed-income products (like individual bonds or CDs) and you can’t buy mutual funds on the platform. Plus penny stocks are not available either.
Additional Account Types
Tastytrade has the following available account types:
- Individual and joint taxable
- Traditional individual retirement account
- Roth IRA
- A simplified employee pension (SEP) IRA
- Inherited IRA — Roth and traditional
- Corporate
- Trust
- International
Trading Features
Tastytrade offers innovative trading tools to give you more control. You can customize your trading interface to see exactly what you want and tastytrade allows traders to work with predefined strategies like butterfly, straddle and iron condor.
They can use tools like Quick Roll to roll their option position into the next expiration cycle. Quick Order Adjustments are also available and allow users to cancel, replace, duplicate or even invert working orders.
Trading Inspiration
Follow Feed is a unique feature on the tastytrade platform where users can seek inspiration from their favorite traders and replicate their strategies. The in-platform video feed allows you to watch real traders perform their trades and become a part of their trading conversations.
Education and Resources
Tastytrade has a massive education section called the “Learn Center” with detailed articles on different types of trades and how they work on the platform. You can also watch entire video series on how to trade as well as join a live workshop to learn from professionals on different trading strategies.
If you cannot find what you are looking for in the resource section, you can contact the toll-free number which is accessible from 7 a.m. CST to 5 p.m. CST, Monday through Thursday and 7 a.m. to 4 p.m. on Friday.
Usability and Platforms
Tastytrade has three types of user platforms that can be accessed from phones — both Android and iOS, desktops and browsers. However, the advanced features can often seem to be overwhelming for beginners.
- Desktop software: The desktop version of tastytrade is the most powerful with hundreds of trading tools, charting tools and complete customization of the layout.
- Web version: You can use the tastytrade browser version to access your trading tools from anywhere with most of the same features available on the desktop version.
- Mobile: You can trade on the go with the tastytrade mobile app with the ability to place and track order, scroll your news or Follow Feed and even fund your account.
How Tastytrade Stands Out
Tastytrade truly stands out with the Follow Feed and advanced trading features. The platform is extremely well-equipped for skilled traders because of the professional strategy executions. It also allows you to fully customize your trading interface to set it up exactly how you want it — allowing you to see everything on one screen.
Other Comparable Options
If you are looking for other comparable options like tastytrade, here are a couple of choices for you.
Tastytrade vs. Fidelity
Fidelity is one of the most established brokers in the United States and charges reasonable commissions. Its Active Trader Pro platform offers access to advanced trading tools, detailed research and stock screeners. There is no minimum amount required and offers customizable trading options. It is suitable for all kinds of investors and may be regarded as a superior alternative to tastytrade, especially if you want access to fixed-income assets.
Tastytrade vs. Schwab
Both tastytrade and Schwab thinkorswim offer advanced trading, transparent low fees and access to options and futures trading. Tastytrade has a more customizable dashboard and options trading platform but thinkorswim lets you access far more types of investments. Both are great for active trading and have competitive pricing — it really comes down to preference.
How To Apply
To open a tastytrade account, you simply have to enter your details and create a password to get started. There is no minimum amount required to open an account but you would need a minimum of $2,000 for margin privileges.
Who Is Tastytrade Best For?
As a trading platform, tastytrade is best for experienced traders who trade in large volumes because the platform is not very beginner friendly. And the options trading platform is one of the most unique (and powerful) on the market. Although there are multiple educational resources, beginner traders might not feel comfortable using tastytrade because of the complicated structure.
Final Take
If you are an experienced trader and have been using online brokerage platforms for some time, tastytrade can be a good option. However, if you are new to buying stocks and do not understand trading jargon, tastytrade might not be the best choice.
FAQ
Here are the answers to some of the most frequently asked questions regarding tastytrade.- Is tastytrade reputable?
- Yes. Tastytrade is a legitimate brokerage platform in the United States that allows users to trade in stocks, options and cryptocurrencies.
- How much does it cost to open a tastytrade account?
- You can open a tastytrade account with $0, but for margin privileges, you must deposit a minimum of $2,000.
- Is tastytrade better than Robinhood?
- Tastytrade and Robinhood both offer commission-free trading, but tastytrade is geared more towards experienced traders with advanced tools and features. Robinhood is more user-friendly for beginners.
- Does tastytrade have a monthly fee?
- No, tastytrade does not charge a monthly fee. Instead, it maintains a transparent fee structure with competitive rates for trading stocks, options and other financial instruments.
Jacob Wade contributed to the reporting for this article.
Information is accurate as of July 24, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
