When looking at brokerages for stock trading, only a few can truly stand out. In our TastyWorks review, we take a look at the excellent trading platform. TastyWorks provides a free platform and extraordinarily cheap commission pricing, especially attractive for high volume options traders.
It is run by professional traders that have been right where you are and have now taken their careers to the next step as they run their own shop.
Originally pit traders in Chicago, the staff at TastyWorks has been in the markets for years and understand what the advantages and disadvantages for retail traders are. Because of this, you will find that the firm is highly sensitive to the individual needs of their clients.
Let's discover if tastyworks belongs to the best brokers for trading options.
Does Tastyworks Have Paper Trading?
- Tastyworks does not have paper trading available. Read our extended article about the best paper trading accounts to learn more about the best alternatives. The best risk-free solutions for international clients are Interactive Brokers for options trading or Webull for stock trading. U.S citizens tend to consider TD-Ameritrade for stocks and options trading.
Can You Day Trade on Tastyworks?
- Day trading is possible with Tastyworks when you have at least $25,000 in your account due to the pattern day trader rule (PDT). If you do not have sufficient funds in your account, you can only execute three day trades within five business days. So, day trading is possible on Tastyworks, but the number of trades depends on your available funds.
Trading Platforms and Tools
TastyWorks offers different trading platforms for various needs. In fact, the Think or Swim platform that so many of you know out there was developed by the same people here at TastyWorks.
So the technology looks very similar which is a great thing, considering how great that platform is. In fact, this platform is so similar, that if you have used Think or Swim, you will already know how to operate most of the features.
Desktop trading is available through this version, which is the flagship platform. It gives you higher powered speed, with a particular emphasis on high-volume trading. Multi-account support and reporting is available along with the intuitive dashboard layout and workflow.
Ultimately, this is a market tool that will keep you up-to-date on news, offer blazing fast pass through technology, all with very little in the way of demand on your computer. Excellent charting, analytics, and the ability to access videos and news from the TastyWorks cast of analyst, this gives you all of the technical analysis and information that you need to trade the markets.
Not only do they have videos, but they also have research that is easily available on the platform. Create a watch list, an overview, watch various markets with streaming quotes, and of course completely customize the way the look of the platform appears.
You can trade all markets that TastyWorks offers through the platform seamlessly and in one account. If you compare it to TD Ameritrade, you will notice that the platforms have a few similarities. This is not by surprise because the heads behind Tatsyworks worked for thinkorswim, now owned by TD Ameritrade.
There is also a browser-based platform that you can use, for those who prefer to trade within a browser.
Even though it is a browser-based client, it is extraordinarily robust and able to be accessed from any computer with Internet access. You get all the same functionality as the download version, but with a light footprint that you can use anywhere.
The browser version is completely customizable just as the desktop version is, and it can be saved on the cloud so that your trading environment is the same regardless of where you are accessing it from. This offers a major advantage over most web based platforms, as it is fully functional, and you will be hard pressed to see a difference between it and the downloaded version that you run on the desktop.
Not to be outdone by other brokers out there, TastyWorks has a fully functional and robust mobile app that you can use on both iOS or android, in a sleek and easily readable design.
It's fast enough to trade a moving market, while on the go. The mobile app allows you to keep an eye on the financial markets and take advantage of opportunities wherever they happen. Both versions of the mobile app are identical, so it doesn't matter if you are using a Samsung, Apple, or any other type of phone, TastyWorks has you covered with this application.
These apps are available both in the Apple Store, and of course the Google Play store. Both are free, just as the other applications at TastyWorks are.
TastyWorks offers the ability to trade US centric financial instruments such as the typical stock markets, options on those stocks, futures markets, and options on futures.
Because of this, if you are looking to trade international markets, TastyWorks won't be the brokerage for you. However, if you are a US trader or at least looking to trade the United States based markets, the cheap commissions are certainly attractive, and you will find enough in the way of trading opportunity with the listed products.
That being said, TastyWorks is currently working on something called "The Small Exchange", which is a futures exchange coming out later this year to facilitate smaller futures contracts for retail traders.
While the details are a bit thin at the moment, the ability to 'purchase a seat' is offered and given free for those who open a TastyWorks account. More information is expected to be released in the next few months.
- Individual Margin
- Traditional IRA
- Roth IRA
- SEP IRA
Commissions and Fees
Commissions and fees are where TastyWorks truly shines. TastyWorks offers stock trading at a flat $0.00 since October, 2019. Options on stocks are charged at $1.00 per contract, with a maximum of $10.00 per leg. Closing out is also free. Options on futures are only $2.50 per contract, while closing is also free.
Futures markets are traded at $1.25 per contract per side. These are extraordinarily low costs, which of course can help over the longer-term. What is of particular interest is the fact that stock trading is a flat $0.00 charge upon opening a position, regardless of the size of the trade. Clearing fees of $0.0008 per share apply.
If you are trading large amounts of stock, that could truly make a massive difference down the road. You would be hard-pressed to find better pricing on futures as well.
Learn more: https://tastyworks.com/pricing.html
Education and Research
TastyWorks has a channel called TastyTrade that offers plenty of education and research in a manner that is very much like a cable channel. It's a lead by professionals who know what they're talking about and have been in the game for quite some time.
While some research is available in a written form, the reality is that a huge push has been done through the television programming that they have put together.
What's even better is that you have experts talking about the markets as they move, giving you an idea on how a professional trader will be thinking about what is going on.
If you are interested in learning more about TastyTrade, you can find plenty of their videos on YouTube that are posted after the fact, giving you an idea as what kind of content you can find. Simply search for "TastyTrade" on YouTube, and there will be hundreds of examples that you can see.
In my opinion, the education channels are too funny. Some of the videos give the impression of a TV fun commercial. But trading is not fun. Trading is a business, and there is no room for any fun when trading with the aim to make profits.
There is a massive FAQ section that you can access on the website that will answer most questions that you have. Beyond that, there is also email and telephone support available for customers to have their questions answered.
There are both toll-free and local numbers, and specific email addresses for specific sections of the company that you may need to contact. Based in Chicago, you will find most of the available support during Central Standard Time, which of course does favor Americans.
That being the case, you should keep that in mind if you are an international trader. However, this is something that many of you will have experience with if you have used an American brokerage before.
TastyWorks Review Summary
TastyWorks is without a doubt a very retail centric broker. With the ability to offer such cheap trading commissions, a lot of retail traders will flow to this broker. Beyond that, they have an excellent trading channel that you can learn from experts on, so therefore it makes for an excellent retail broker on that in this well.
With the US centric products, if you are not looking to trade US stocks or futures, or if perhaps you are looking for a brokerage that can offer international stocks, then this may not be the place for you.
However, if you do find yourself looking to trade American financial products, with the added benefit of having professionals explain options, futures, and various strategies in a real-time video environment, you will find that this is an excellent place to put your money.
The platform is excellent, as it was developed by the same people who brought you Thinkorswim, the platform that is used by TD Ameritrade. Ultimately, with a free platform that operate so smoothly, the ability to trade with such low commissions, and if nothing else the entertainment while you trade in a financial channel, you'll find this a great place to be.
- TastyWorks is an excellent choice for options traders. Their trading technology is modern and feature-rich. It is one of the fastest trading platforms world-wide, and the commissions are fair for all types of traders.