tastyworks at a glance
Top features you’ll love
Are you looking for a new trade idea? You can use Follow Feed to track the trades of select traders. You’ll see when they executed their trade, their strategy and their rationale. You’ll also get an idea of their trading expertise and record of returns, so you’re not following just anyone.
This feature is fully customizable, so you can add and delete traders as and when you want. It’s similar to the CopyTrader feature at eToro, and it adds a social element to the experience.
Pros: Where tastyworks stands out
Focus on trading securities
Tastyworks really focuses on securities that are popular with traders, where money can be quickly won (or lost). So if you’re looking for that kind of access and focus, then the broker may work for you. For example, tastyworks offers the following securities:
- Futures options
While some of these securities are geared more toward long-term investing, such as stocks and ETFs, the rest are more like short-term trades than investments. And, as noted below, tastyworks really structures its commissions to attract this kind of trading clientele.
Tastyworks has really designed its brokerage to appeal to active traders, especially in more niche securities such as futures and options. But even stock and ETF traders will find something to like here, with the broker’s $0 commission, which admittedly is par for the industry today.
But you’ll see a real standout difference between tastyworks and other brokers when it comes to commissions on other products. Take options, for example. Unlike most brokers that charge you a commission when you buy and sell, tastyworks charges a flat rate on buys and no charge on the sale. Tastyworks charges $1 per contract on the buy, translating into $0.50 per round-trip, compared to the industry standard of $0.65. Only a handful of brokers (TradeStation and Ally Invest, for two) hit that $0.50 level without a discount, though this doesn’t include other no-commissions players such as Robinhood and Webull.
But tastyworks actually does more than this for options traders. It actually caps the commissions on each leg of an options trade to a bare bones figure of $10. Trade 10 contracts and it will cost $10. Trade 20 contracts and you’ll still pay just $10, and so on. Of course, if you’re doing more exotic options trades with multi-legs, you’ll pay more in total because of the extra legs on the transaction. But each leg will still be charged $1 per contract and capped at $10 total. So a two-legged trade with 20 contracts would cost you $20, while 40 contracts would still cost $20.
Tastyworks also offers cryptocurrency trading and charges a 1 percent fee on both the buy and sell, but it caps this commission at $10 as well. So once your trade value surpasses $1,000, you’re not paying any extra commission on that specific transaction. If you trade $10,000 at a time, your effective commission is just 0.1 percent – in line with some of the best brokers for crypto. So it’s an attractive commission structure if you’re trading significant volume at one time.
However, if you’re into futures, you’ll pay both an opening and closing commission of $1.25 for standard futures contracts. Micro futures and small futures are also available, at a lower price.
Access to cryptocurrency
Cryptocurrency has become a popular trading vehicle, and tastyworks gives you access to it, when many online brokers still won’t touch it (TradeStation, Robinhood and Webull being a few exceptions). Plus, you’ll have a decent percentage commission with a cap on it, as mentioned.
Tastyworks is clearly geared for more active traders who know what they want in a broker and are looking for a low-cost way to participate in the action:
- The low options commissions are great for those who participate in that segment of the market, especially if they can bring some volume. Still, even if they’re making small trades, they get undiscounted pricing that’s comparable to some of the industry’s best.
- Low overall commissions on other securities such as stocks, ETFs, cryptocurrency and futures may also draw and keep traders.
- However, investors looking for mutual funds and bonds will be disappointed, since they are not offered at all.
If you’re doing some real volume on your cryptocurrency trades, Tastyworks is a solid choice, but those looking for low costs on every trade should have a look at Binance.US. If you’re looking for an outstanding all-around brokerage to invest or trade, then it’s worth checking out Fidelity and Charles Schwab. Interactive Brokers and E-Trade are also good picks for a fully featured trading experience, with solid trading platforms.
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