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Tastyworks Review & Rating [yyyy]

Tastyworks Review & Rating 2022

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This Tastyworks review is required before you open an account with them. Are they reputable or a scam forex broker? Find out more by reading Tastyworks AtoZ Markets forex broker reviews.

We have reviewed this company thoroughly and are happy to recommend it. A wide variety of trading accounts are offered by this broker. The broker offers traders the chance to trade on many markets and products.

We're always looking for potential pitfalls in the history, biography, and reputation of brokers. The same standards apply to Tastyworks reviews.

Overview

Company
9/10
Trust
8/10
Trading Platform
9/10
Account Types
8/10
Costs
9/10
Customer Support
8/10
Regulation
8/10
Cryptocurrency
8/10

Company

9 /10

TastyWorks, a US-based brokerage company, offers its clients tools to trade the short-volatility options spreads advocated by Tom Sosnoff's financial network TastyTrade. The Tastyworks platform and fee model are optimized for these types of trades.

Tastyworks, a sophisticated options broker and futures broker, is designed for experienced traders. Thinkorswim's founders designed the platform with precision and functionality for complex options trades and strategies. Tastyworks also offers ETFs and stocks for trading, but the focus is on options.

Options on tastyworks only charge a $1 per-option commission, which is far less than most competitors. You don't need to open a cash account in order to receive commissions on futures or micro futures. If you wish to use margin, it's $2,000

The Pros and Cons Of Tastyworks

Pros: 

  • Tastytrade produces eight hours of original, live programming every weekday. It provides financial information, investment strategies and entertainment related to options trading. All trades are posted to the platform's "follow page", where you can filter, sort and select the underlying stocks for which you would like to see trades. Delicioustrade provides actionable information that is rooted in research and can help you grow as a DIY investor.
  • You can customize many features for the web, mobile and desktop platforms. These include watchlists and position details as well as trade page details like delta, theta and volume.
  • The platform is designed with options traders in mind. It includes almost all the tools that you need to analyze and trade derivatives. You can evaluate the risk profiles for multiple open positions. It also has common drawing tools and important charting indicators that allow you to quickly make informed decisions when trading options.

Cons

  • The platform may be confusing or overwhelming for new investors and traders. It's designed for experienced traders and has a steeper learning curve that other platforms with more basic functionality.
  • Tastyworks was created specifically for options traders, so its offerings are very limited. Investors who seek exposure to conservative asset classes or fixed income are likely to find this disadvantage.
  • Tastyworks research facilities are poor as it doesn't have screeners or provide market news, professional research or trading ideas. Paper trading is not supported by tastyworks, which can be useful for learning and testing strategies.

Trust

8 /10

Tastyworks is a member the Securities Investor Protection Corporation ("SIPC") Funds are available to pay customer claims up to $500,000 (including a maximum $250,000 cash claim).

Trading Platform

9 /10

Tastyworks has a variety of platforms with their own unique properties. The technology developed by Tastyworks is well-received. Let's have a look at what they offer.

Tastyworks offers multiple desktop platforms. There is a web browser, a downloadable desktop platform and a mobile platform. However, the latter is slightly faster. The UI is almost identical and should feel natural to traders who are experienced.

The web version is compatible with most popular browsers. The desktop version can be used on Windows, Mac, or Linux. The platform is very stable and secure in all instances.

The iPhone 6 and newer, as well as all Android phones, can download the mobile app. You can use drag and drop controls to reduce data entry on the mobile app for Android and iOS.

Most features that you'd find on the desktop or web platforms are available on the mobile platform. You cannot open an account via the mobile app. To open one, visit tastyworks.com.

The platform allows you to easily create portfolios or watchlists. You can also view trades made by other traders using the "Follow tab" in the platform. The platform gives clients simultaneous access to multiple accounts. This is great for traders who prefer a certain level in complexity.

Tastywork users place more than 90% of their trades as derivatives. Futures traders have a wide range of tools and options to choose from. When you plan your trades, the analytical package that you receive can calculate your probability of profit.

The built-in options strategy creator can be used. You can see if you have an active position in a particular strike on the trading mode that you are using. The system is well-designed so that you can easily access graphs, reports, and any other information necessary to make smart trade decisions.

Account Types

8 /10

You have a variety of account options. The individual margin account is the most flexible type of account. It comes with unlimited trading access.

This account allows users to trade stock and futures stocks, as well option spreads, covered and uncovered trades for options or options on futures.

A lack of account types is one of the main drawbacks of online brokerages. But, you don't have to worry about this at tastyworks. You can open many different types of investing accounts that suit your needs.

Types of Tastyworks accounts include:

Individual Accounts: You can open a cash or margin trading account. Margin trading requires that you maintain a minimum balance $2,000 in order to gain access.

Retirement Accounts: Tastyworks offers Traditional, Roth, SEP IRAs.

Entity Accounts: You can open a corporate account to hold a C-Corp or S-Corp. LLC, Partnership, or Partnership. Trust accounts can also be opened.

Joint Accounts: Tastyworks allows you to open a tenant in common account or an account "with rights of survivorship" (WROS).

The broker offers international customers both individual cash and margin accounts. It currently supports traders in many countries, as well as the United States, and continues its international expansion.

Tastyworks estimates that approvals for domestic accounts take one to three days. Approval for international accounts can take anywhere from five to seven days. Tastyworks has a wide range of accounts and is expanding its international reach.

Cryptocurrency

8 /10

The popularity of cryptocurrency is growing and tastyworks allows you to have it. However, many online brokers won't allow you to use it (TradeStation Robinhood, Webull and Robinhood being just a few examples). You'll also get a good percentage of the commission, but it will have a cap.

Tastyworks allows you to trade 22 types of cryptocurrency including Bitcoin, Dogecoin Ethereum, Litecoin, and many more.

Costs

9 /10

Tastyworks really made its brokerage appealing to active traders in niche securities like options and futures. Even stock and ETF traders will find plenty to love here with the broker's $0 fee, which is a standard in the industry.

You'll notice a distinct difference between Tastyworks and other brokers in the way they pay commissions for other products. Consider options. The broker charges a flat fee for buys, and no commission on sales. This is in contrast to other brokers who charge a commission for buying and selling. Tastyworks charges $1 for each contract, which is $0.50 per round trip, as opposed to industry average of $0.65. Only a few brokers (TradeStation, Ally Invest for two) reach that $0.50 level without a discount. This doesn't include any other no-commissions players like Robinhood or Webull.

Options traders get more from tastyworks than that. The commissions for each leg of an option trade are actually limited to $10. It will cost $10 to trade 10 contracts. You'll still only pay $10 if you trade 20 contracts. You will pay more if you trade more exotic options with multiple legs. Each leg will still be charged $1 for each contract, with a maximum of $10. A two-legged trade would have 20 contracts, and 40 would be $20.

Tastyworks also offers crypto trading. It charges a 1% fee for both the buy or sell but caps it at $10. You don't pay any additional commission if your trade value exceeds $1,000. Your effective commission for trading $10,000 per day is only 0.1 percent, which is in line with the highest-rated brokers for crypto. If you trade large volumes at once, it is a very attractive commission structure.

If you are interested in futures, however, you will pay a $1.25 opening and closing commission for standard futures contracts. You can also purchase micro futures or small futures at a lower cost.

Customer Support

8 /10

Customer support can be reached via phone, email, chat, and live chat. You can also use special email addresses to address specific types of questions.

You can access the help center by visiting tastyworks.com. There is a chatbot that can be tailored to your specific issue. Customers can also contact an agent after reading the FAQ. We have found that customer service is very responsive to any queries. There is nothing to be concerned about.

It's a good idea for you to be familiar with the options and futures markets before you open an account at tastyworks. You're not looking for a brokerage that will hold your hand and teach you how to trade. The tastyworks education library doesn't offer advice about retirement or mutual funds.

You will also find a wealth information and videos explaining the nuances of the platform.

Support teaches the user how to use the many features of the service, as well as how platform plumbing works. Questions about trading, margin calls and trading techniques, account types as well as account management, order entry, and account management will be answered.

Regulation

8 /10

The young and upcoming US broker, tastyworks, focuses on options trading. It is regulated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Australian Securities and Investments Commission for Australian clients.

Conclusion

Tastyworks is geared towards active traders who know their needs and want a low-cost, easy way to get involved in the action.

Low options commissions are great for market participants, especially if they have volume. Even if they make small trades they still get discounted pricing comparable to the best in the industry.

Other securities, such as stocks, ETFs and cryptocurrency, may attract and keep traders.

Investors looking for bonds and mutual funds will be disappointed to learn that they aren't available.

Tastyworks can be a good choice if you are looking to trade a lot of cryptocurrency, but Binance.US is an excellent option for those who want low trade costs. Fidelity or Charles Schwab are great options for traders and investors looking for a brokerage that offers everything you need. E-Trade and Interactive Brokers are good options for fully featured trading experiences with robust trading platforms.

Reviewed By

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