Tastyworks is the brokerage companion of Tastytrade, a financial news platform, and education agency. Is it the right broker for you? To answer this question, here is the 2020 review of Tastyworks. We will look at Tastyworks trading platforms, mobile apps, Tastyworks’ commissions, and more. Let’s get to it.
Who is the Ideal Tastyworks Trader?
Tastyworks aims squarely at active traders, and the broker is very upfront about this fact. The company reports that 90% of trades placed on the Tastyworks platform are derivatives. No wonder the broker offers a lot of tools for futures and options traders. Tastyworks CEO Tom Sosnoff describes the broker’s target customer as “an unregenerate market junkie that can spit out the price of AAPL 260 faster than the mother’s birthday.
Account Types: 7
Tastyworks offers its clients a variety of account types. Different account types cater to the needs of different traders. The “Works” account, for example, was designed for the active trader. This account type offers access to all investment products under the Tastyworks umbrella. There are no minimum deposit requirements for cash accounts, but you will need at least $2,000 to enjoy full margin privileges on margin accounts.
Below is a highlight of the different account types offered by Tastyworks:
- Works Account: It is a standard retail trader account
- Individual Account: Either cash or margin
- Retirement Account: Traditional IRA, Roth IRA, or SEP IRA
- Corporate Account
- International Account
- Trust Account
- Joint Account
Virtual trading is available via the Tastyworks demo account. New customers can use the demo account to acquaint themselves with the broker and offerings. Newcomers to trading can use the demo account to learn how to trade, and the experienced lot can try out new strategies on the Tastyworks demo account.
Range of Offerings: 6
As you know by now, the target customers for Tastyworks are the futures and options traders. The broker does not have any international offerings or limited fixed income. To trade mutual funds, you will have to contact a broker. Tastyworks also does not support OTCBB (penny stocks). However, the broker can close such positions that were transferred in from other brokers.
Below are the assets that you can trade on Tastyworks:
- Stocks: Both long and short stocks. You can short assets from an easy-to-borrow list of more than 4,500 stocks.
- OTCBB (Penny Stocks): Available via a live broker. There are no transaction fees, and it is only available for closing positions. You cannot open penny stock positions on Tastyworks.
- Mutual Funds: Available via a live broker. There are no transaction fees and about 10,000 assets on offer.
- U.S. Treasuries: Available via a live broker. You cannot open corporate bond positions; however, you can close them via a live broker.
- Futures/Commodities: include those listed on The Small Exchange.
- Simple and Multi-Leg Options
- Futures Options
Commissions and Fees: 8
The Tastyworks customer does not pay commissions to trade U.S. equities online. There are also no per-leg fees on options trades. The broker features a unique fee structure for trading options. Tastyworks charges $1 per contract to open options positions while it costs nothing on the close. Options trades are subject to a maximum of $10 per leg for options trades. The large spread trader will be pleased by this rate. Stock and ETF Trades are commission-free. Apart from commissions, transactions are subject to regulatory and exchange fees.
Trading Platforms: 8
Tastyworks facilitates trading over a variety of platforms, including desktop, web, and mobile. These trading platforms are reliable, fast, and secure.
1. Tastyworks Desktop Trading Platform
This P.C. application runs well on Windows and can support high-volume trading. The desktop platform comes with all the bells and whistles you would expect from a top broker, including a complete set of trading and charting tools. The dashboard and workflow are intuitive and easy to use.
2. Tastyworks Web Platform
Most web browsers can support the Tastyworks web trading platform without the need for downloading additional plug-ins. All you need to access this platform is a computer and a standard internet connection.
3. Tastyworks Mobile App
Tastyworks mobile trading is available for both iOS and Android. The app is available for download on both Google Play and Apple App Store. From the app, you can access and manage your account on the go. You can enjoy the same features that you would find on other platforms, like IQ Option’s.
Deposits and Withdrawals: 6
There are limited choices in deposit and withdrawal methods. Those available include bank wire transfers, checks, electronic bank transfers (ACH), and transfer of funds between brokerage firms. Online payment processors are quite popular, and some clients may prefer to use services like PayPal, Skrill, or Neteller.
Tastyworks may charge an amount on certain withdrawal methods. Deposit and withdrawal processing times vary and depend on the payment provider and method. Bank transfers may take a few business days to process. Accounts only use U.S. currency, and conversion fees apply.
Education and Research: 6
Tastyworks has a section on its website that is dedicated to education. The topics available are tailored to the needs of traders of different skill levels. Tastytrade is a partner website to Tastyworks. From Tastytrade, you can access educational videos, learning, and research tools. These resources are aimed at helping traders improve their knowledge and sharpen their skills.
Research resources on Tastyworks include the following amenities:
- Stock screener
- Options screener
- ETF screener
- Trading idea generator
- Trading tools and calculators
- News streaming from Acquire Media
- Charting tools
Customer Support: 9
Customer services are available 24/7 in English via phone lines, online chat, and email. The customer support agents are prompt, professional, and friendly. You can get accurate answers to technical questions.
Tastyworks was built for the active trader that has some interest in derivatives. The broker is relatively new to the industry, but it is backed by teams of experienced individuals with proven track records. To access some educational tools, you may have to browse the partner site. Such an arrangement may be difficult for some traders, and others may not mind.
All in all, Tastyworks is a good option for the active trader that deals with derivatives.