Tastyworks is a brokerage firm and trading platform built by tastytrade—an online financial news and education network.
So, getting a tastyworks brokerage account will give you access to sell stocks, options, futures, and other equities.
There are a lot of stock trading platforms out there. Before you make a decision on where to invest your money, let’s take a closer look at tastyworks and examine the platform and fees and see if it’s a good fit for your investments.
And if you’re looking for a great spot to keep and exchange the funds you’ve withdrawn from tastyworks, try Wise. With a Wise Multi-currency Account, you can manage your funds in over 50+ currencies and exchange your money at the real exchange rate.
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Tastyworks’ platform offers a lot of advanced tools for trading derivatives like stock options and futures, so it’s great for people classified as active traders—meaning you’re looking to make money in the short term on small fluctuations in the market.
As there is a steep learning curve with using the platform—beginners might need to take a look at the company’s resources and videos to be able to take advantage of the platform’s advanced features.
Even tastyworks’ unique pricing model is tailored towards derivatives—options and futures—traders. You’ll have a tough time finding a better fee and commission structure if this is your specialty. However, let’s examine their pricing model as a whole.
Starting a tastyworks account is easy and there’s no minimum account deposit. Also, there are no annual or monthly account fees, and there’s no fee for inactivity on your account. Your money can sit free-of-charge.
|Monthly account fee||$0¹|
|Monthly Inactivity fee||$0²|
|Minimum account deposit||$0³|
Stock and ETF trades are commission-free with tastyworks regardless of volume, which is great if you’re dealing directly in stocks. However, the trade commissions on options trading is where tastyworks really shines, as it’s one of the lowest rates you’ll find.
Options are only $1 to open a position, and there is no charge when you close. Also, there are no closing commissions on options on futures trades, but futures and micro futures do incur a minimal commission on each contract.
Remember that when you sell any equity, there will be regulatory fees regardless of the commission charge.
|Stocks||$0 to open, $0 to close¹|
|ETFs||$0 to open, $0 to close¹|
|Options Contracts||$1 per contract to open, $0 per contract to close¹|
|Futures Contracts||$1.25 per contract to open, $1.25 per contract to close¹|
|Options on Futures||$2.50 per contract to open, $0 per contract to close¹|
|Micro Futures||$0.85 per contract to open, $0.85 per contract to close¹|
Tastyworks doesn’t offer a debit or credit card to withdraw money from your account, but you can withdraw and deposit via ACH—automated clearing house—for free. However, outgoing wire transfers incur a $25 fee for domestic transfers and $45 for international. Withdrawal checks are $5 for domestic addresses and $10 international.
|ACH Deposit & Withdrawal||$0¹|
|Outgoing Wire Transfer||$25 (domestic), $45 (international)¹|
|Check||$5 (domestic), $10 (international)¹|
|The best way to keep and exchange the funds you’ve withdrawn from tastyworks is with Wise. You can withdraw money via ACH and then transfer money overseas at a cheaper rate and at the real exchange rate. It takes just a few minutes to open an account for free.|
Tastyworks offers three software platforms that have overall similar interfaces with some key differences for you to examine. Regardless which platform you use, there is a learning curve. It was developed with active traders in mind—let’s see what's to know about tastyworks' platforms.
Once you log in to tastyworks site, you’ll have access to the online browser platform. But if you want to go beyond basic account management, you’ll need to log in again to access the actual trading platform screen.
Their ‘follow tab’ allows you to see what the team at tastyworks is trading, so there’s some added benefits with access to expert portfolios. Also, you have the ability to quickly copy any trade that’s posted on the platform, and you can add securities to a watchlist if you want to keep an eye on things.
One of the best resources on the browser platform is the live stream that provides trading comments and on-demand videos featuring a variety of market topics—most of the videos deal with derivatives. The platform offers a journal function so you can keep notes and tag items within the notes for reference.
If you’re ready to trade, there are three modes: stock, table and curve. They allow you to trade stocks with no charts or graphs, with a graph, or to put the graph into a table format.
If you don’t have access to your computer, tastyworks offers a mobile device that works with Apple and Android phones and tables. The graphs and tables on the platform are a little small and cannot be rotated and there are no charting tools available within the graphs.
However, you can trade using the same strategies as the other two platforms, and the live-stream and tastyworks team trades are still available. Also, the mobile platform has a good color scheme that makes it easy to read.
Most active traders will like the desktop platform the best as it offers better charting. For launch, simply download and install the software, and from there, you can log in and begin your research, tracking, and trading.
The graphing interface on the desktop platform is more comprehensive as it offers drawing tools, four different graph styles, and more price history options. It also allows you to expand to full-screen or put multiple charts within one window for comparison.
You won’t be able to automatically click and trade, but if you click on the price or bid above a graph, an order ticket appears. Though it offers expanded duration choices on trades, it has the same advanced trade limitations as the browser platform.
Tastyworks offers support on their site by clicking the ‘get help’ link at the bottom of any page. You can try to work through their chatbot, but it will direct you towards support articles. If you need to directly contact tastyworks, you can do so by the following means:
|19 N Sangamon St., Chicago, IL 60607|
|Phone||855.GO.TASTY (1.855.468.2789 or 312.274.1072 (local line)|
Note: Their phone support is down due to COVID-19, which practically means that e-mail is your only direct support option at the moment.
With a breakdown of their model, fees, commissions, and platforms, let’s look at the positive and negatives of tastyworks, so you can make an informed decision on your investment platform.
One of the best factors when it comes to working with an investment platform is simplicity at sign up. Tastyworks is known for having an easy sign-up process, and as long as the information you provide is solid, your account should be open within 1-3 business days for domestic accounts and 5-7 days for international accounts.⁴
As we mentioned, there are no monthly account fees, monthly inactivity fees and no minimum deposits, which is definitely a positive when compared to many other investment platforms.
Last, tastyworks offers free ACH withdrawals when withdrawing your money.
On the negative side, there are limitations when it comes to withdrawing your funds.
At $25 domestic and $45 international, tastyworks’ bank wire rates are high and must be submitted by 1 PM Central Standard Time.⁵ And there is no credit or debit card available for clients to withdraw money. Unless you go with an ACH withdrawal, you’re going to have to pay to get money back into your bank account.
Also, as a beginner, there’s a steep learning curve due to the complexity of their platforms, but the company offers a lot of resources and videos to help you get started.
Whether tastyworks is good or bad is completely up to how you intend to use the platform and your proficiency in trading.
If you’re a beginner who just started trading to invest in secure, long-term equities, then you’ll probably need some time to adjust to tastyworks’ platforms—but their resources and videos are a great help to get started.
If you’re an experienced trader looking to profit on derivatives like options and futures in the short term, then tastyworks is already a great option for you.
Remember that tastyworks has no monthly account or inactivity fees and no minimum deposits, and they offer free ACH withdrawals. On the flip side, they have high wire fees and offer no debit or credit card to withdraw your funds. Also, their platform leans towards knowledgeable, active traders.
Yes. tastyworks is licensed and registered with the SEC as a broker and investment adviser in all U.S. states and territories. They’re also self-regulated by FINRA—Financial Industry Regulatory Agency.⁶
It all depends on your investment strategy, experience, and how you intend to use their platforms.
Both tastyworks and Robinhood have pros and cons. Robinhood differs from tastyworks in that it has an easy-to-use platform that’s tailored for beginner traders. However, there’s no phone support at Robinhood which can be a dealbreaker for many investors.
Aside from catering to beginner investors, it’s free to withdraw money from Robinhood through international or domestic wire or via ACH.⁵ But if you wire the money internationally, you might be hit with some high exchange rate fees on the currency transfer.
If you want to save money on fees when sending money abroad, give Wise a try. You can send money much faster than with traditional banks and avoid high exchange rate fees and other additional transfer fees. Also, with a multi-currency account, Wise offers you a debit card, so you can withdraw your money at any ATM when travelling—and it takes just a couple of minutes to open a free account.
- Tastyworks - Commission and Fees
- Tastyworks - Support - Does tastyworks charge any inactivity or maintenance fees?
- Tastyworks - Support - What is the minimum to open an account?
- Tastyworks - Support - How long does it take to approve and open an account after applying?
- Robinhood - Financial Fee Schedule
- FINRA - BrokerCheck Tastyworks
All sources checked on 31 March 2021
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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