Name: Tastytrade
Brand: Tastytrade

Tastytrade might be for you if: You're an active trader, especially if you trade options or futures contracts. Its trading technology and options pricing schedule are among the best in the business. Additionally, Tastytrade offers stock trading capabilities and a mobile app. In this Tastytrade review, we'll explore the features, pros, and cons to help you decide if it might be the right stock broker for you.

Ratings Methodology

Tastytrade

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Our Rating:

Rating image, 4.0 out of 5 stars.

4.0/5

Bottom Line

A solid pick for options and futures investors wanting both a high-quality trading platform and cheap commissions. What's more, Tastytrade's mobile app simplifies on-the-go options trading.

Fees:

$0 for stocks, $1 per option contract (opening trades only), $0 per crypto purchase and sale

Account Minimum:

$0

Learn More for Tastytrade

On Tastytrade's Secure Website.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.

Broker	Best For	Commissions	Learn More
Rating image, 4.0 out of 5 stars. 4.0/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Easy fractional investing in stocks and bonds.	$0 commissions, 1%-2% crypto markups	Learn More for Public On Public's Secure Website.
Rating image, 4.0 out of 5 stars. 4.0/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Low mutual fund fees.	$0 per trade	Learn More for J.P. Morgan Self-Directed Investing On J.P. Morgan Self-Directed Investing's Secure Website.
Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Long-Term Investors, Stocks and Options Traders	Commission-free; other fees apply	Learn More for ETRADE On ETRADE's Secure Website.

Full Tastytrade review

An options-first broker for trading affordably, Tastytrade combines a unique and affordable fee structure with a powerful interface. Tastytrade's narrow focus on options and futures-trading makes it one of the best places to trade both. Additionally, you can trade stocks and ETFs commission-free on the platform.

How tempted am I to switch brokers to Tastytrade?

"I don't trade options, so Tastytrade doesn't tempt me. Though it does offer free stock trading, which I care about, the platform caters to options traders first and foremost."

- Cole Tretheway, Motley Fool Money writer with financial expertise in brokerages

Investment offerings

Tastytrade is aimed at active options and futures traders, and this is reflected in the available investments and account types. For example, unlike many top online stock brokers, it does not offer mutual funds. Nor does it offer SIMPLE IRAs or Solo 401(k)s. To trade futures, you'll need to qualify for The Works -- Tastytrade's highest level of trading account.

Investments

Cryptocurrency
ETFs
Futures
Options
Options on futures
Stocks

Brokerage accounts

Corporate account
Individual brokerage
IRA
Joint brokerage
Margin account
Roth IRA
SEP IRA
Trust

TIP

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Commissions and fees

Tastytrade's pricing is one of its more unique features, especially for options trading. At first glance, Tastytrade's $1 per contract options commission might sound high. However, bear in mind that:

Tastytrade only charges commissions on opening trades. All closing options trades (when you exit a position) are free, This effectively cuts the commission in half.
Tastytrade caps its commissions at $10 per leg. In other words, if you buy 100 contracts of a certain call option, your commission will only be $10.

Here's a breakdown of other common commissions and fees:

Reason	Cost
Stocks and ETFs	$0
Options	$1.00 per contract (opening trades only) (Max $10 per leg)
Crypto	$0 to open and $0 to close
Futures	$1.25 per contract to open and close
Mutual Funds	Not available
ACH Deposits & Withdrawals	Free
Outgoing wire transfers (domestic/foreign)	$25/$45
Returned check fee	$30
Paper statements	$5 per statement
Paper trade confirmations	$2 each
IRA closing fee	$60

Data source: Tastytrade.

Margin rates

If you use margin (borrowed money), you'll pay interest, just as you would on any other type of loan. Tastytrade's margin rates are in the middle of the pack -- they aren't particularly cheap or expensive. Like most of its competitors, the rate depends on how much you've borrowed:

Margin Balance	Interest Rate
Under $25,000	11.00%
$25,000-$49,999	10.50%
$50,000-$99,999	10.00%
$100,000-$249,999	9.50%
$250,000-$499,999	9.00%
$500,000-$999,999	8.50%
$1 million or more	8.00%

Data source: Tastytrade as of June 2024.

Research and education

Tastytrade is primarily designed as a trading platform (as opposed to a long-term buy-and-hold investment platform). Therefore, you won't find much of the traditional stock research that many other brokers offer. It does provide fundamental data such as balance sheets and cash flows, but you won't be able to access in-depth research reports.

On the plus side, Tastytrade features a big library of in-platform video content. This includes beginner courses on options and futures trading, as well as advanced courses on trading strategies. The Tastylive stream also lets you watch professional options traders in real time. Investors can even copy their investment strategies with a click of a button.

Interface

Tastytrade's desktop trading platform is its most powerful and full-featured choice. You can also trade via a web browser and the company's mobile app. Tastytrade's trading platform was developed by the team that pioneered retail options trading. That deep knowledge shows through in its highly intuitive interface.

Put simply, it's tough to find a better place to actively trade options. The platform's high-tech options trading tools make complex options trading as user-friendly as possible. Tastytrade has some of the best technology for experienced traders. That said, the breadth of features on offer can feel overwhelming at first. Indeed, the learning curve may be a bit much for new investors or someone who only plans to buy stocks and ETFs to hold for the long term.

READ MORE: Best Options Trading Platforms

App

Use Tastytrade on your mobile device to manage your investments, access advanced charting tools, stock fundamentals, and more. It's an excellent way to place orders on the go. Personal watchlists on both the app and desktop make it easy to track specific stocks. You can open and close positions, set price alerts, view charts, read recent news, and more.

READ MORE: Best Free Stock Trading Apps

The app has fewer features than the desktop. But it still benefits from the same user-first principles that drive the whole brokerage. Tastytrade's mobile app is highly rated for both Android and Apple devices. Be aware that some users complain of glitches, especially after updates.

Customer service

Tastytrade generally gets good reviews on Trustpilot. Users are full of praise for the knowledgeable support team who go the extra mile.

Contact its customer service team in office hours in the following ways:

Toll-free phone line open 7 a.m. to 5 p.m. CST (Monday to Thursday) and 7 a.m. to 4 p.m. CST (Friday)
Live chat
Email
Fax

Security

Tastytrade's security measures are in line with many other top brokerages. It uses data encryption, real-time monitoring, and strong internal protocols to protect your account. Two-factor authentication is available at a user level. Accounts are covered by the SIPC against brokerage failure.

About

The executive team behind Tastytrade, formerly Tastyworks, are both seasoned traders and tech heavyweights. CEO Scott Sheridan co-founded thinkorswim, now TD Ameritrade's active trading platform. The rest of the Tastytrade team all held executive roles when thinkorswim was still independent. Tastytrade's high-tech trading platform is born from staff experience and desire to give active retail options traders the tools they need.

Learn more about Tastytrade

Keep reading about Tastytrade on these pages:

Review sources

Our brokerage rating methodology

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology

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Tastytrade Review: Options-Focused Broker With Some Unique Features