What is Tastyworks?
Tastyworks is a platform that focuses on options trading, but it also allows you to trade stocks, futures, ETFs, options on futures, and micro futures. When it comes to options on stock, they charge $1 per contract, and there are no commissions for closing trade. This is one of the features of this platform that stands out and attracts a lot of traders.
This platform was established in the year 2017. So, it is a relatively new platform that has surely managed to thrive. Tastytrade is the parent company of this one.
Tastytrade has been around since 2011, and it is an online financial news network that tries to teach investors about managing their money. Being backed up by a reputed parent company certainly increases my expectations from Tastyworks.
- Low Fees: Tastytrade has been around since 2011, and it is an online financial news network that tries to teach investors about managing their money. Being backed up by a reputed parent company certainly increases my expectations from Tastyworks.
- Decent Education:: The level of education is great. You won’t feel that they are holding back any information from you.
- Solid Support: Their support is rock solid.
- No Closing Fees: There are no closing fees allowing you to save even more money.
- Limited Functionality: The platform offers limited functionality when it comes to trading stocks, ETFs, and futures. They are working hard to overcome this, but it will take some time.
What does Tastyworks offer?
Here are the features of this platform.
Various Account Types: The platform offers several account types such as margin accounts, cash accounts, retirement accounts, corporate accounts, trust accounts, international accounts, and joint accounts. There are options in certain account types such as traditional IRA, Roth IRA, and SEP IRA in retirement accounts.
Technical Analysis: Their focus is on analyzing options. They give you the ability to follow the trades that their team members are placing, so this gives you a chance to follow experienced traders and benefit from their experience.
You can use the IV rank to analyze the implied volatility of an asset. You can choose to view the statistics related to standard deviation, P/L, the expected move, price, probability of profit, and more.
Obviously, the platform has charts with different indicators. They have extensive
customization options for charts to display whatever you want. You can display
Bollinger Bands, volume-weighted average price, and Relative Strength Index. This is not something special, as any good broker will have these indicators.
Currently, the analyzing options aren’t great for stock traders, ETF, or future traders, but they are adding features to help them as well. Maybe, this platform will be able to compete with some of the best platforms for stock, ETF or future
traders in the future.
Watchlists: They have 11 different watchlist presets that you can choose from. Some of the watchlist presets are liquidity, live on Tastytrade, high options volume, notable stocks, and upcoming earnings. You can filter the watchlists according to different indicators such as bid, volume, IV rank and more.
Education: They are good at educating people about active trading. You can watch live videos most of the time or access their video archives to learn. They also host live events, which are free to attend all over the US. The quality of the videos is great, and they are made in an easy-to-understand manner.
Support: Any good trading platform or brokerage is incomplete without support, and the support here is up to the mark. You can chat live with their support or email them. Their support is known for being quick and effective.
I have only mentioned some of the notable features of this platform. You will get to know about all of the features when you start using it.
How much do Tastyworks cost?
The following are the commissions charged by this platform.
Options on Stock: $1 per contract (commissions capped at $10 max per leg with a clearing fee of $0.10 per contract)
Stock: $2 (clearing fee of $0.0008 per share)
Options on Futures: $2.50 (clearing fee of $0.30 per contract + exchange fee + NFA Fee)
Futures: $1.25 for opening trade and $1.25 for closing trade (clearing fee of $0.30 per contract + exchange fee + NFA Fee)
Micro Futures: $0.85 to open a contract and $0.85 to close a contract trade (clearing fee of $0.30 per contract + exchange fee + NFA Fee)
There are no closing fees for options on stock, stock, and options on futures. You can learn about their margin rates (5% to 8%) and other fees by taking a look at their commissions and fees.
Who should try Tastyworks?
I think that the limitations of this platform make it easy to decide who it is for. First of all, it is great for those people who are interested in trading options. You
will save some money and be able to get good analytical information for trading
options.
This platform is for active traders who sort of know what they are doing. There are no fees charged to you until you start trading, so you can open an account
without any worries.
Who should stay away from Tastyworks?
This platform is not the best for stock, ETF, or future traders. So, if you are interested in trading a variety of financial assets, then you can try other platforms.
Final Thoughts
Tastyworks is the ideal platform for trading options, nothing more and nothing less. I wish that they were a little bit more beginner-friendly and had more
functionality for stock, ETF or future traders.
Their fees are certainly attractive, especially when you compare them to most of the other brokerages. They don’t even require a minimum deposit so that you can open an account without any worries.
I definitely recommend this platform to those people who want to trade options. You can honestly find better platforms for trading stocks, ETFs or futures.