Tastyworks Review: How It Works, Fees And Bottom Line

Making trades with professional tools was once reserved for elite investors, but as you’ll see in this Tastyworks review, that’s no longer true. And, in this Tastyworks review, answer the following questions:

  • What is Tastyworks?
  • Who is behind Tastyworks?
  • Who is Tastyworks for?
  • How does Tastyworks work?
  • How much does Tastyworks cost?

What Is Tastyworks?

The Tastyworks platform comes from Tom Sosnoff. And the team behind the financial content network Tastytrade and trading platform Thinkorswim (which was sold to TD Ameritrade in 2009). Tastyworks was built to empower do-it-yourself investors.

How? With the technology and rates that were often only available to the professionals. The platform allows you to trade stocks, options, futures, and futures options. Put your retirement on auto-pilot: see this Betterment review.

In short, giving you the flexibility to put your money where you think it’s best, rather than setting your portfolio to autopilot. Also, there are three ways you can use the platform:

  1. Through the mobile app (iOS and Android)
  2. A browser version
  3. Through the desktop platform

All have the same features and make it easy for self-directed traders to monitor their trades.

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Who Should Use Tastyworks?

The platform is designed for active traders who want to have a detailed level of control over his or her investments. If you have a new interest in ETFs or want to up your game, this trading platform is worth it.

Related: all you need to know about micro-investing.

Whether you’re using an iron condor strategy or just want a bit more insight, you can customize the dashboard to suit you.

However, the majority of the trades made through the platform are derivatives so the tools available are particularly relevant to futures and options traders.

How Does Tastyworks Work?

The focus of Tastyworks is on speed.

Everything has been built from the ground up to provide lightning-quick quotes, analysis, and real-time reporting for options trading and more.

Regardless, whether you log in via the desktop platform, a web browser, or your mobile phone, you’ll be met with a wealth of data. 

The view you see is completely customizable but here’s a rough rundown of what you’ll be able to see.

  • You watchlists
  • Options chains and analysis
  • Charting
  • Building Strategies
  • Your trade ticket

Alongside all this, the platform allows you to see recommendations from the Tastytrades team, view your trade history, visualize your trades, and review your portfolio statistics, such as delta, theta, liquidity, and buying power–plus keep an eye on your option chain.

Tastyworks Accounts Types

When you set up an account, you have the choice of two individual Tastyworks account types: 

Margin account or Cash account.

  • Margin accounts are the most flexible as it allows you to borrow money directly from the broker. This gives you money to trade with even when you might not have the cash available. This account type will give you access to all trading strategies available on the platform.
  • Cash accounts are for those with the money to put into a trade from day one and don’t need the margin options.

Additionally, on top of these two individual account types, you also have the choice of:

  • Retirement account (Traditional IRA, Roth IRA, or SEP-IRA)
  • Corporate
  • Trust
  • International
  • Joint

How Much Does Tastyworks Cost?

A range of fees come with using Tastyworks.

First off, the apps are all free to download and you can create an account for free. In essence, you receive a charge on opening a trade but to close, it’s usually free.

Tastyworks has capped its commissions at $10, making understanding the fees involved in your trades much more straightforward. Most closing trades are free. For your convenience, here’s a simplified breakdown of the Tastyworks charges:

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In short, compared to other platforms these are low-cost rates but bear in mind that the usual regulatory fee, clearing fee, and exchange fees still apply.

Another thing to note is that Tastyworks has a rather high withdrawal fee of $25 for wire transfers within the USA and $45 for international wire transfers.

Tastyworks Review Wrap-Up

TastyWorks is a fast, high-tech option for DIY traders who want complete control over their investments. It might seem overwhelming to more casual traders (maybe even to seasoned ones too!)

But the wealth of information it puts at your fingertips makes it easy to analyze your risk and look closely at the profitability of a particular trade. In short, the added bonuses of mobile trading and low commissions make it an attractive trading platform.

Finally, it’s designed for the dedicated trader who has a tendency to check their positions regularly and wants the kind of insight and control that usually only a professional brokerage firm would have access to.

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