tastytrade (formerly Tastyworks) review: Deep discounts for active and options traders
Moneywise.com / Moneywise.com
Updated: March 28, 2025
3.5
3.5
Commissions and fees4.5
Customer service4
Ease-of-use3.8
Tools and resources2
Investment options2
Account options3
One of the biggest complaints we hear from active traders is the amount of money that it costs to place trades. After all, pesky brokerage fees can eat up a big chunk of your profits over time. If you’re an active investor or options trader looking for a way to save money on trades, you may want to check out discount broker Tastyworks, which rebranded itself as tastytrade. The online service has some of the lowest prices around, but is tastytrade a good platform to use?
Go to tastytrade siteWe took tastytrade for a spin, and here’s what we found.
tastytrade may sound like it should be an ice cream parlor or candy store, but in reality, it’s anything but.
This trading platform was developed by the online financial video channel, tastytrade, home of popular shows such as tastytrade Live, Splash Into Futures and Everyday Trader.
How does tastytrade work: a video walk through for tastytrade beginners
Our contributing finance writer, Eric Esposito, provides a step-by-step tour of tastytrade using a live online account, giving you a firsthand look at how the platform works. He walks through the dashboard, highlights key features, and demonstrates how to invest from start to finish. You'll also discover fun features like social investing and copy trading, making it easier to navigate tastytrade with confidence. Whether you're new to the platform or just looking for a better understanding, this walkthrough is a great place to start.
tastytrade features
What is tastytrade?
tastytrade is an online discount brokerage offering trades solely in the stock and options markets. It offers a unique fee structure on all trades that makes tastytrade's pricing lower than that of many of the large discount brokerages. It is designed for active traders, particularly those who are fans of the tastytrade online video service.
tastytrade offers only four types of trades:
- 1 Options on stock
- 2 Stock
- 3 Options on futures
- 4 Futures trading
If you want to trade mutual funds or bonds, you’ll need to go elsewhere. But as mutual funds and bonds are typically for longer-term investors, active traders shouldn’t be too turned off by the limited investment types.
tastytrade offers multiple account types, but the premier account is called “The Works.” This is an individual margin account with access to stock and options trades. You can make covered and uncovered trades for options and option spreads with this account, as well as stock and futures trades.
tastytrade also offers an individual cash account, traditional and Roth IRAs, corporate investment accounts, trusts and accounts for international customers. You can also get a "tenants in common" (TIC) joint account in which two owners divide the account's assets by a percentage. Finally, there is a joint account with rights of survivorship meaning two owners share the assets equally and when one passes away, the other has full rights to the assets.
How does tastytrade work?
tastytrade accounts are primarily online and work through a web browser, downloadable desktop application or mobile app. All of these interfaces offer similar access to pricing, trading and account information.
The desktop and browser versions are nearly identical. The dashboard should feel comfortable to any experienced trader who has used a live trading platform. The software also includes an integration to watch tastytrade live without leaving the site.
You can quickly view options and get quotes to enter trades on the platform, create watchlists and portfolios and follow tastytrade traders in real time as they enter trades on the platform. Users can access multiple accounts through the platform, which makes trading easier for those with more complex needs. Clicking through gives you charts and tables packed with the data you need to make a trade decision.
The web-based version runs through most any modern browser. The desktop version is available for Windows, Mac and Linux. The mobile app is available for iPhone 6 or later and modern Android phones.
Customer service is available by email, live chat or phone, with specific email addresses easily available for various specific needs.
| Highlights | TradeStation | FIRSTRADE | tastytrade |
|---|---|---|---|
| Rating | 3.25/5 | 4/5 | 3.5/5 |
| Min. investment | $0 | $0 | $0 |
| Stock trades | $0/trade | $0/trade | $5/trade |
| Options trades | $0.60 per contract | $0 | $1 |
| Crypto trades | ✅ | ❌ | ❌ |
| Mutual funds | ✅ | ✅ | ❌ |
| Virtual trading | ✅ | ❌ | ❌ |
| Reviews | TradeStation review | Firstrade review | tastytrade review |
tastytrade pricing
tastyworks has a unique pricing model that I have never seen anywhere else. For stock, options on stocks and options on futures, there is no closing fee for the second trade. You pay when you open or buy, but you don’t pay when you sell or close.
Stock and ETF trades are $0 and you can trade an unlimited amount of shares.
Options on stock are $1 per contract to open and $0 commission to close. All trades incur a $0.10 per contract clearing fee, and equity commissions are capped at $10 per leg. Options on futures are $2.50 per contract to open, $0 to close, and incur a clearing fee of $0.30 per contract plus exchange fees.
Futures are $1.25 to open and close, and all trades incur a $0.30 per contract clearing fee plus exchange fees.
For margin accounts, rates start at 8% for up to $24,999 and go down to 5% for $1 million and higher.
tastytrade charges various bank fees and trade-related fees for certain activity as well.
Open a tastytrade accountSummary
For active stock, options and futures traders, tastytrade offers a discount brokerage that is certainly worth considering. For fans of tastytrade who want an integrated experience, tastytrade definitely delivers. But for the average investor, the low fees don’t make up for limited account and investment options. tastytrade is great for some, but it isn’t perfect for everyone. (If you're not an active trader but are curious, you may want to read up on our take.)
Is tastytrade good for beginners? - Eric Esposito’s perspective
Honestly, I was a bit intimidated about setting up a tastytrade account. I’ve only heard great things about this platform in the context of ultra-advanced derivatives strategies that, frankly, make my head spin. Also, all of the promotional pics of this platform look way too complicated for anything a beginner would want.
After going through the setup process and buying fractional shares on tastytrade, I can confirm my initial trepidations are justified. I’m even more convinced this site isn’t a good idea for beginners.
But don’t get me wrong; there’s nothing “bad” with tastytrade. In fact, I think this is a fantastic brokerage for active and experienced traders. However, compared with many competitors, it isn’t a walk in the park to use tastytrade. You’re going to have to put in some extra time to research how to navigate tastytrade, especially if you’re starting from scratch.
Unless you’re ready for a steep learning curve, you’re heading for a headache when setting up a tastytrade account. Again, this isn’t to diss on tastytrade — it’s a legit platform with a lot to offer advanced traders. However, beginners should look into more user-friendly brokerages and study options before considering a tastytrade account.
tastytrade investing for beginners: How to get started with $10
It only took me about five minutes to complete the entire tastytrade setup process. Like other brokerages, you’ll have to enter know-your-customer (KYC) details like your phone number, Social Security Number and home address to verify your identity. There are also a few brief sections on your trading methods, knowledge and the primary reason for opening an account.
Based on the answers to these sections, tastytrade will decide whether to give you access to the full gamut of its riskier products or keep you on a tight leash with a limited account.
Since I was setting this account up as a total beginner, I only got access to the most basic services on tastytrade, including stocks, buying calls or puts and using either covered calls or cash-secured puts. However, if you want to advance your trading game, you could apply for higher margin settings and see if tastytrade approves your request.
I had no issues answering all of these questions and entering this information, and I got a verification email straight away. I’m not sure if I got approved so quickly because I had a limited account (tastytrade initially suggested it could take a few days), so your mileage may vary if you’re applying for a broader range of services.
While signing up for tastytrade was a breeze, getting acclimated to this platform was a bear. Don’t expect hand-holding pop-ups to show you the ropes once you’ve got a tastytrade account. I believe this site assumes you have prior experience with trading and want to focus on derivatives, since the first stocks I searched defaulted to options rather than buying shares.
Also, each stock or ETF you research is in a candlestick chart and comes with charting tools you could toggle on the top. While this is excellent news for anyone who loves technical analysis, it can appear cluttered to people who don’t have eyes acclimated to trading.
As for sending money to tastytrade, that wasn’t terribly difficult. This broker offers ACH, wire transfers, checks and one-time deposits in the “Manage” tab, and all bank connections are securely made with Plaid.
I got my bank account hooked up quickly, and the funds arrived safe and sound, and I could put this money to use immediately since tastytrade offers fractional shares. Just keep in mind that tastytrade can only process same-day ACH requests if you put your order through by 2PM CT.
So while it’s possible to use tastytrade to invest, I wouldn’t recommend it to complete beginners. This is the kind of brokerage site you have to “graduate” to after gaining first-hand investing experience.
I’d only recommend getting onto tastytrade if you’re serious about day or swing trading and have a firm understanding of concepts like margin, hedging and strike prices. If all of those terms are still foreign to you, stick with a more beginner-friendly broker before tackling tastytrade.
Eric Rosenberg is a finance, travel and technology writer in Ventura, California. He is a former bank manager and corporate finance and accounting professional who left his day job in 2016 to take his online side hustle full time.
Eric Esposito is a freelance contributor on MoneyWise with an interest in financial markets, investing, and trading. In addition to MoneyWise, Eric’s work can be found on financial publications such as WallStreetZen and CoinDesk. When not researching the latest stock market trends, Eric enjoys biking, walking his dog, and spending time with family in Central Florida. Eric holds a BA in English from Quinnipiac University.
Latest Articles
Disclaimer
The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.
†Terms and Conditions apply.