tastytrade

Risk Warning

Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information contained in this article is for general information purposes only.

General Information

What is tastytrade？

tastytrade is an unregulated online brokerage company founded in 2017, where client can trade options, stocks and futures instruments. The company has headquarters in Chicago, US and was created by the founders of the Thinkorswim platform, including Scott Sheridan and Tom Sosnoff, along with former CFO Kristi Ross and CTO Linwood Ma. Tastyworks is also a partnering brokerage to the financial news network Tastytrade.

In the following article, we will analyze the characteristics of this broker from various aspects, providing you with simple and organized information. If you are interested, please read on. At the end of the article, we will also briefly make a conclusion so that you can understand the broker's characteristics at a glance.

Pros & Cons

tastytrade offers a wide range of trading instruments across different asset classes. They provide competitive pricing with commission-free stock and ETF trading, along with transparent fee structures.

However, it's important to note that tastytrade operates without regulatory oversight, which can be a concern for some investors. The availability of trading platforms is limited, and high withdrawal fees for wire transfers may deter some users. As with any investment decision, it's crucial to thoroughly evaluate the pros and cons and conduct thorough research before engaging with tastytrade.

tastytrade Alternative Brokers

There are many alternative brokers to tastytrade depending on the specific needs and preferences of the trader. Some popular options include:

• TeleTrade - offers a comprehensive range of financial instruments and educational resources, making it a suitable choice for traders looking for a diverse trading experience.

• UFX - provides a user-friendly trading platform and a wide selection of trading instruments, making it a recommended choice for traders of all levels.

• Z.com Trade - offers competitive trading conditions, reliable platforms, and strong customer support, making it a reliable option for traders seeking a trusted brokerage service.

Ultimately, the best broker for an individual trader will depend on their specific trading style, preferences, and needs.

Is tastytrade Safe or Scam？

Their National Futures Association (NFA, License No. 0492333) is a suspicious clone. It is important to note that trading with an unregulated broker like tastytrade carries inherent risks. Regulatory oversight provides a level of protection for investors, including ensuring fair practices and the security of funds. The fact that there are concerns about the legitimacy of their regulatory license raises red flags. It is crucial to exercise caution and conduct thorough research before engaging with any broker.

Market Instruments

tastytrade offers a diverse range of market instruments across multiple asset classes. Traders can access options, futures, options on futures, stocks, ETFs, commodities, and indices through their platform. This broad selection allows investors to participate in various markets and take advantage of different trading opportunities.

Whether one is interested in derivatives, equities, or commodities, tastytrade provides a comprehensive suite of market instruments to suit different trading strategies and preferences. However, it's important to note that trading any instrument involves risk, and it is essential to have a good understanding of the specific market and instrument before engaging in trading activities.

Accounts

tastytrade offers a range of account types to cater to different trading needs and preferences. Traders can choose from Standard accounts, which are suitable for individual traders, Retirement accounts designed for retirement savings and investment, Entity accounts for corporate entities or organizations, International accounts for non-U.S. residents, and Trading Permissions accounts for traders who require specialized permissions for specific trading activities.

These various account options ensure that traders can select the account type that aligns with their specific requirements and goals. Each account type may have different features, eligibility criteria, and restrictions, so it is important for traders to carefully review and select the most suitable account type for their trading objectives.

Leverage

Standard margin trading accounts (non-IRA) have leverage rates of 1:2 for stocks (like GME), according to FINRA regulation. For example, if you have $10,000 of options buying power, your account will have $20,000 of stock buying power. However, the Portfolio Margin accounts allow up to 1:5 leverage.

This higher leverage enables traders to have increased buying power in their accounts, potentially amplifying their trading opportunities. It's important to note that leverage can significantly increase both potential profits and losses, so traders should exercise caution and consider their risk tolerance and trading strategies before utilizing higher leverage ratios.

Commissions

When it comes to pricing, the broker charges $1 per contract for stock options and $2.50 per contract for options on futures when opening a position. Futures contracts are charged at $1.25 per contract, while micro futures contracts have a $0.85 per contract exercise fee. One notable advantage is that stock and ETF trading is commission-free, allowing traders to execute trades on these instruments without incurring additional costs. By providing clear and straightforward commission structures, tastytrade aims to offer cost-effective trading options for its clients, particularly in options and futures trading.

Below is a comparison table about commissions charged by different brokers:

Trading Platforms

tastytrade provides its clients with versatile and user-friendly trading platforms designed to enhance the trading experience across different devices. The broker offers tastytrade for desktop, which is a comprehensive and feature-rich platform allowing traders to access advanced charting tools, market data, and order execution capabilities.

For those who prefer the convenience of web-based trading, tastytrade offers a browser platform that can be accessed from any internet-connected device, providing a seamless trading experience without the need for software installation.

Additionally, tastytrade offers a mobile trading platform, enabling traders to stay connected and manage their investments on the go. With these platforms, clients can access real-time market data, execute trades, monitor their positions, and take advantage of the various trading opportunities offered by tastytrade.

Overall, tastytrade's trading platforms are well-designed, user-friendly, and offer a range of advanced features suitable for both beginner and experienced traders. See the trading platform comparison table below:

Deposits & Withdrawals

tastytrade offers four methods for funding and withdrawing from your account with no deposit fees. However, withdrawal fees are quite high at $45 for international wire transfer and $25 for wire transfers within the US. The options are:

• ACH (4 business days)

• Wire (1 business day)

• Check (3 business days)

• Transfer your account from another brokerage firm (ACAT)

International accounts can only use the bank wire and Currency Fair methods and payments can only be made in USD. Fund transfers from international sources can take 3 - 5 business days to appear in your trading account.

tastytrade minimum deposit vs other brokers

See the deposit/withdrawal fee comparison table below:

Fees

tastytrade prides itself on its transparent fee structure, providing clients with clear information about the applicable fees on their website. Clients can access detailed fee schedules that outline the charges associated with different services. While specific fees may vary depending on the type of account and the trading activity, tastytrade ensures that these fees are openly revealed to clients. This transparency allows traders to make informed decisions and understand the costs associated with their trading activities. It is advisable for clients to review the fee schedules and familiarize themselves with the charges applicable to their specific account and trading preferences.

Trading Hours

tastytrade executes equity security trades during regular trading hours, i.e. Monday through Friday from 08:30 CT until 15:00 CT for equities and from 08:30 CT until 15:15 CT for ETFs. Extended trading hours are available on the platform from 07:00 until 08:30 CT and 15:00 until 17:00 CT for equities and 07:00 until 08:30 CT and 15:15 CT until 17:00 ETFs.

These extended trading hours provide flexibility for traders who wish to participate in the market outside of the regular trading session. It's important for clients to note the specific trading hours and plan their trading activities accordingly.

Customer Service

tastytrade offers a range of customer service options to assist clients with their inquiries and concerns. Clients can engage with the customer support team through live chat, providing a convenient and real-time communication channel. Additionally, they can reach out via phone at +1 312-724-7075 for direct assistance. For those who prefer written communication, there is the option to send a fax to 312-724-7364 or email the support team at support@tastyworks.com. You can also follow thsi broker on some social networks including Twitter, Facebook, YouTube and LinkedIn.

These various contact methods cater to different preferences and allow clients to choose the most suitable way to get in touch. Furthermore, tastytrade provides their company address as 1000 W. Fulton Market Suite 220 Chicago, IL, 60607, allowing clients to have a physical location to reference if needed.

Overall, tastytrade strives to provide responsive and accessible customer service to address client needs effectively.

Note: These pros and cons are subjective and may vary depending on the individual's experience with tastytrade's customer service.

Conclusion

In conclusion, tastytrade is a trading platform that offers a variety of trading instruments to empower traders. They provide transparent pricing with competitive commissions and fee structures. However, it's important to note that tastytrade operates without regulatory oversight, which may raise concerns for some investors. The availability of trading platforms is limited, and high withdrawal fees for wire transfers can be a drawback.

Overall, it's essential to carefully consider the advantages and disadvantages before deciding to trade with tastytrade. Conducting thorough research and seeking additional information is highly recommended to make informed investment decisions.

Frequently Asked Questions (FAQs)