tastytrade Review 2023: Is Your Money Safe with This Broker?

tastytrade Inc. was established in 2017 to provide an online brokerage platform for active traders looking for options trading, futures trading, ETF trading, stocks trading, and more. It has also launched cryptocurrency trading services powered by Zero Hash LLC and Zero Hash Liquidity Services LLC. It is a sophisticated desktop trading platform that mainly aims to cater to experienced traders. The online brokers have kept their platform and pricing structure fair and transparent with competitive packages for serious traders. 

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If you are looking for online brokerages that offer stock trading, cryptocurrency trading, options trading, or micro-futures trading, we have evaluated tastytrade’s platform to make it easier to make an informed decision. 

In this tastytrade review, we will discuss the platform’s key features, pros and cons, market instruments, trading platforms, technologies, account opening process, and many more. 

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Why Choose tastytrade?

tastytrade is a social, comprehensive, and well-designed trading platform, especially for experienced traders. It stands out from many other brokers in various ways. Let’s check out some of the salient features of the tastytrade trading platform:-

• Get Fair Rates – tastytrade fees and costs are competitive and transparent. The commissions are kept at the lowest depending on the asset classes. Lower commissions offer additional freedom for advanced traders to place trades efficiently without worrying about high charges.

• Efficient Help Center – The tastytrade platform is run by one of the most skilled and knowledgeable customer support to tackle the toughest queries and get traders back to active trading at the earliest. There are no bots, no endless waiting times, or no upsell as the support agents, and they are readily available to resolve client issues.
• Trade on Multiple Platforms – To satisfy different types of tastytrade traders, the brokerage platform has developed different platforms to allow users to experience powerful trading capabilities via the tastytrade desktop platform, browser platform, and mobile app.

Is tastytrade Regulated?

tastytrade is a member of SIPC or the Securities Investor Protection Corporation that protects customers on tastytrade if the platform ever fails. This insurance policy safeguards traders from any wrongdoing from their brokers. In addition, tastytrade is a member of the NFA or National Futures Association, a self-regulatory body for options and futures trading in the United States. 

Furthermore, tastytrade is a registered broker-dealer under FINRA or the Financial Industry Regulatory Authority, an equivalent body for securities. The current membership ID of the tastytrade platform is 277027, and its SEC membership number is 69649. This makes tastytrade a safe, legitimate, and regulated platform for beginners and experienced traders.

tastytrade Review: Pros and Cons

Pros	Cons
Best suited for active traders with cash and margin accounts.	Not suitable for passive investors.
Multi-leg options trades, paper trading, futures trading, ETFs, and more.	Does not offer international trading, bonds, forex, and mutual fund trades.
Legal entity regulated by FINRA, SEC, and SIPC.	Too many country restrictions.
Desktop trading, Mobile App, and Web-based trading platforms.
Convenient maximum commission rates and fees.

tastytrade Market Instruments

Unlike other major brokerage platforms, tastytrade’s asset availability is worth mentioning as it focuses mainly on options and futures trading. Although traders can participate in ETF trading, stock trading, and cryptocurrency trading on tastytrade, those looking for a comprehensive brokerage firm with international trading, bonds, forex, and mutual funds trades must look somewhere else. We will now delve into the tastytrade Product Offering in the section below.

Options

One of tastytrade’s specialties is options trading as the platform offers cost-competitive and robust options trading. Options traders need to create an account to trade options on ETFs, stocks, and broad indices. Options trade on tastytrade comes with low commissions starting at $1 per contract to open and $0 to close. Additionally, commissions are capped at $10 per leg for ETF options and equity options. Options traders who deal with large contracts can find tastytrade’s pricing advantageous for cost-effective different option orders such as ETFs options orders.

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Futures

Futures traders can get exposure to interest rates, commodities, currencies, and indices in futures trading. Open futures contracts with as low as $0.25 and enjoy full freedom of making further capital increases. Futures, Micro Futures, and Small futures are available on tastytrade, with commissions starting as low as $0.25 for opening and closing contracts.

Options on Futures

Options and futures traders can use tastytrade options futures contracts that give them the right to buy and sell standard futures contracts at specified price levels by a specified date. Futures options allow traders to earn greater returns on their capital since futures options are leveraged. Options and futures traders who trade futures contracts can build options and futures based on expected and current price levels and implied volatility. 

Options and futures traders can explore a wide variety of options and futures markets across several asset classes and get increased potential returns on their capital with leverage and strategize to limit losses. With options futures strategies, options traders can experience flexibility and trade 23 hours a day, 5 days a week.

Stocks

Stock and ETF trading is also available on tastytrade, where ETF traders can buy or sell stocks with unlimited shares. Trade stocks and get unlimited exposure to stock and ETF trades at zero commission. Traders can also get access to stocks and ETFs with tight spreads and high-volume trading that often comes with favorable prices. Traders can select strategies that allow them to potentially gain through speculation on rising or falling prices of stocks and ETFs.

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ETFs

tastytrade traders can get access to market exposure by trading through ETF trades. Buy and sell any stock and ETFs trade commission-free and access international markets through various asset classes. Options traders can speculate on both rising and falling stocks and ETFs across Index ETFs, options ETFs, commodity ETFs, sector ETFs, and bond ETFs.

Commodities

tastytrade traders can diversify their portfolio with crude oil, corn, gold, soybeans, natural gas, silver, and more. A wide variety of commodities are available at tastytrade, such as energy commodities, metals, raw materials, and agricultural products. Traders can use these commodities for trading and size up or down depending on their account type or restaurants. They can also take advantage of popular trading pairs to balance out their portfolios, such as grain pairs or gold-silver ratios. 

Indices

Indices trading on tastytrade works well for traders with risk tolerance. Trade indices on tastytrade to reduce single stock will eternity by trading stocks and ETFs to lower risk profile. Short and long-term investors can enjoy market flexibility and get exposure to several asset classes with index futures, index options, and index ETFs. tastytrade also keeps traders up to date on index trading with more than 15 index watchlists and multiple components. The index options and futures on tastytrade now offer insights into global and local financial markets and provide an outlook for upcoming trading sessions

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tastytrade Trading Platforms 

tastytrade offers three trading platforms so that traders can trade however they want, whenever they want, and experience powerful trading capabilities on their choice of platforms. Let’s dive into the existing trading platforms offered by tastytrade:-

• Desktop – The tastytrade desktop platform is built for every user to think more about the trades and worry less about how to place them. Using a simple click-and-drag technique, traders can make easy navigation through different markets and place trades quickly. They can visualize currency price actions with special charting features, view multiple positions for stocks and ETFs charts simultaneously, and access several customizable chart indicators. 
• Browser – With the browser platform, traders can trade from any part of the world using the tastytrade web platform, fund, and manage different account types and profiles. 
• Mobile & iPad Devices – The tastytrade web-based platform also provides an excellent mobile experience by giving access to mobile and iPad platforms to place orders seamlessly on the go. Traders can also access fundamental data and news on stocks and other platforms or products.

Why Use tastytrade’s trading platforms?

• Trade With an Award-winning Broker – Trading on tastytrade allows a seamless trading experience on the award-winning trading platform that was named the Best Online Broker by IBD (Investor’s Business Daily) during its ninth annual survey. 
• Choose From a Wide Range of Assets – With tastytrade, traders get added exposure as they get to choose from multiple asset classes across a wide range of market sectors. 
• Build Watchlists – Traders can also organize their trading prospects on tastytrade and manage them by converting them into a watchlist and keeping tabs on the group assets. 
• View Portfolio on Multiple Interfaces – There are two different modes for traditional and visual trading experiences – table or curve mode. Traders can switch between these modes or take their trading experience on the go with the tastytrade Mobile app. 
• Use Adjustable Charting Tools – Analyzing chart data has become easier with adjustable charting tools on tastytrade, allowing traders to modify chart metrics and indicators according to their requirements. 
• Stay on Top of Market Activity – Traders on tastytrade can stay ahead of others with customizable alerts, video feeds, and follow feeds and boost their awareness surrounding the financial market.

tastytrade Technologies

Coming to tastytrade technologies, there are several ways traders can benefit by joining the trading platform and investing their time and money wisely. Short and long-term investors can enjoy market flexibility and get exposure to several assets with index futures, index options, and index ETFs. With tastytrade, different exclusive tools help traders get a better experience, such as Curve Analysis, Quick Roll, Quick Order Adjustments, Percentage Of Profit Limit Orders, Etf Futures Delta, In-App Trading Inspiration, and many more.

tastytrade Account Opening Process

To start the account opening process at tastytrade, follow the simple steps below:-

1. A new tastytrade account can be created by visiting the official website and navigating to the Open an Account tab on the right-hand top corner of the landing page. 
2. A registration field will appear on the screen that needs to be filled in with a few customer details, including email address, username, and a strong password. 
3. Enter Continue to submit the registration field. 
4. Traders can use their username and password to access all features, products, and tastytrade account types. 
5. A confirmation link sent to the registered email ID must be clicked and opened within 72 hours. This will lock the account for security purposes. Users need to answer some basic questions, such as the available account types they want to open, the security measures that need to be fulfilled, and the submission of relevant documents for identity verification.

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Types of tastytrade Accounts

tastytrade offers different account types, including margin accounts, cash accounts, individual, retirement accounts, individual accounts, and joint brokerage accounts. 

Standard Brokerage Accounts

• Individual Account

  Individual accounts have a single account owner and are available in margin or cash. A margin account provides greater flexibility and leverage in different trading and investment strategies and products. 

• Tenants in Common (TIC) Joint Account

  Tenants In Common or TIC is a joint account having two account owners with a specified percentage of the assets in the account specified by the owners. If one owner dies, all assets of the deceased owner get passed on to the other owner’s estate. Both margin and cash accounts are available for TIC joint accounts. 

• Joint With Rights of Survivorship Account

  Joint with Rights of Survivorship Account is used when two account owner holders have equal asset share. If one dies, the surviving holder gets full rights to the account and can choose whether to go for margin or cash while applying. 

Retirement Accounts

• Traditional IRA

  The traditional IRA retirement account is eligible for people with earned income or those who file joint returns with their spouses earning income. Typically, with $6,000 allowable contributions in tax-deferred income annually, earnings grow tax-deferred and are generally taxed at the ordinary rate at the time of withdrawal only when the age requirement is fulfilled. 

• Roth IRA

  Roth IRA is another individual retirement account that offers tax-free, penalty-free withdrawals on earnings. 

• Sep IRA

  Sep IRA is a retirement individual retirement account for small business employees or owners and self-employed individuals. 

• Beneficiary Traditional IRA

  This retirement account is opened only when the designated beneficiary inherits an IRA after the original owners have deceased. 

• Beneficiary Roth IRA

  This is again similar to the original Roth IRA and is usually tax-free. 

Entity Accounts

• Corporate

  Corporate accounts can be opened in place of a legally built US entity. When writing this review, tastytrade offers C Corp, S Corp, LLC (limited liability company), and partnership accounts.

• Trust

  Trust accounts are opened in place of a revocable or irrevocable trust. To create a trust account, a copy of the Certificate of Trust and Investment Powers is required

International Account

With international accounts, traders can upgrade from a basic cash account to trade on a margin account, trade options, futures, and more by applying for trading permissions.

tastytrade trading permissions

• Margin Trading – Other than increased purchasing power, traders can get other benefits, such as access to additional trading strategies and financial products, such as stocks and ETFs, covered and uncovered options, options futures, and more. 

• Options Trading – There are three levels to trade options: Limited, Basic, and The Works. 

• Futures Trading – To trade futures, traders must have The Works at tastytrade. 

• Portfolio Margin Trading – Portfolio margin trading has the highest leverage, allowing retail traders up to 6.7 times the purchasing power for the available products compared to twice that in the standard margin account. 

• Crypto Trading – Crypto trading is allowed only for individual accounts.

Why Open an account with tastytrade?

tastytrade has provided us with many reasons, encouraging us to open a margin or cash account with the trading platform. 

• Effortless Account Management – tastytrade offers easy access to account transfers, communications, security preferences, statements, and many more in a single management portal. 
• Secure platform with flexible interface – All the available trading platforms on tastytrade are reliable, with innovative and practical features that keep traders on top of the financial market conditions. 
• Transparent fees and commissions – Traders can take full advantage of low commission rates to open or close trades and increase their capital. 
• Wide variety of financial products – tastytrade trading platform gives access to ETFs, options, micro futures, small futures, crypto, penny stocks, ETFs Index, cryptocurrencies, and many more. 
• Award-winning platform – Traders can rest assured while starting the trading journey on tastytrade as it offers an award-winning trading platform. It has won the Best Online Broker For Options Trading by Investopedia in 2023, the Best Broker For Options by Forbes in 2023, and has achieved a 4 out of 5 rating by Ascent, A Motley Fool Service in 2023.

tastytrade Fees

Deposit and Withdrawal Options

tastytrade offers multiple deposit and withdrawal options, including ACH bank transfers, brokerage transfers, internal transfers, wire transfers, IRA contributions or distributions, or by cheque. Each transfer method has different charges, minimum and maximum commissions, and limits. Before joining the platform, traders must check out the official website to learn more about deposits, withdrawals, and transfers on tastytrade.

Trading Commissions and Fees

tastytrade’s financial network has commission-free options trading, futures trading, crypto trading, and more. Even if tastytrade charges opening and closing commissions, they are at low levels, allowing traders to place more trades efficiently. Compared to other top forex brokers, the commissions are capped at $10 per leg for all opening equity option trades and $10 for all opening and closing crypto trades. The commissions tastytrade offers have been mentioned in the table below:-

tastytrade does not charge any fees on deposits and withdrawals made on the platform. However, traders must be aware of other trade-related and banking fees before joining the brokerage platform.

tastytrade Bonus

Opening a brokerage account with tastytrade is rewarding as the platform offers bonuses to high rollers. Traders funding their account with the following minimum deposit amounts can claim bonuses:-

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Educational Resource Offered by tastytrade

According to our tastytrade review, Tastylive is one of the best features of tastytrade. Active traders and even beginners can check out Tastylive Network for one of the best educational resources, including trading shows, learning and educational materials, traders’ resources, news and insights, events, newsletters, and many more. 

Being a content network, Tastylive offers free learning materials that run in tandem with the platform. It gives actionable information well-rooted in real-world experience and research that helps readers grow their knowledge around trading and investment. There are free options content based on statistics that traders can heavily benefit from. 

There is also a wealth of how-to videos and articles discussing the different features of the platform, covering relevant topics like getting started, account opening and management, tech, platform, software support, deposits, withdrawals and transfers, Tech Centre, and many more. 

Tastylive supplements traders with tons of educational materials like blogs, investing glossary, videos, a daily email, and weekly research report that serves as additional educational resources for investing in education and market news.

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tastytrade Supported/Restricted Countries 

Traders from the following regions can open a brokerage account with tastytrade:-

Australia, Argentina, Andorra, Austria, Belgium, Bahrain, Bulgaria, Bolivia, Chile, Brazil, Czech Republic, Columbia, Dominican Republic, Denmark, Egypt, Ecuador, Estonia, France, Finland, French Polynesia, Greece, Germany, Iceland, Hungary, India, Ireland, Indonesia, Isle of Man,  Italy, Israel, Malaysia, Kuwait, Mexico, Monaco, Namibia, Netherlands, Norway, New Zealand, Poland, Peru, Romania, Portugal, San Marino, Singapore, Saudi Arabia, Slovakia, Switzerland, Sweden, Spain, Thailand, Taiwan, Udukuga, Uruguthe, and the United Kingdom. 

However, there are certain restrictions that tastytrade needs to follow and prohibit residents from creating an account with the platform:-

Afghanistan, Balkans, Croatia, Macedonia, Anjuoan, Angola, Albania, Barbados, Bosnia, Belarus, Botswana, Burundi, Cambodia, Cameron, Central African Republic, Cayman Islands, Chad, Cuba, Equatorial Guinea, Democratic Republic of the Congo, Ethiopia, Ghana, Kenya, Gibraltar, Iran, Iraq, Haiti, Jordan, Latvia, Lebanon, Libya, Liberia, Mauritius, Malta, Morocco, Mozambique, Myanmar, Nicaragua, Nigeria, North Korea, Pakistan, Palestinian, Philippines, Panama, Russia, Senegal, Somalia, Sierra Leone, South Sudan, South Africa, Sudan, Sri Lanka, Syria, Tanzania, Turkey, Uganda, Turkmenistan, United Arab Emirates, Ukraine, Vanuatu, Vietnam, Venezuela, Yemen, Western Sahara, Zimbabwe, and Zaire. 

tastytrade’s Security Measures

tastytrade provides a user-friendly and regulated platform and employs top-notch security measures to ensure traders never worry about cheating or losing their hard-earned money. We recommend tastytrade’s brokerage services as the platform handles the security of client information and accounts with utmost priority and considers client safety by designing and deploying one of the best defensive system configurations, real-time monitoring systems, and security devices to protect privacy and access surrounding the trading accounts.

tastytrade encrypts all interaction within the platform or the data collected from the traders using high-standard encryption protocols, including 256-bit SSL encryption protocols issued by trusted and well-known authorities. This ensures that the traders can trust tastytrade’s technology and features and trade seamlessly. 

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tastytrade users can also ensure that their access and identity are protected as the platform hashes their passwords and other security credentials, making it difficult for others to access raw information. In addition to this, tastytrade audits, assesses, fortifies, and reviews its code and systems regularly by engaging professional consultants to identify security vulnerabilities and proactively tests all defensive measures. Compared to other interactive brokers, although tastytrade employs top-notch security measures, it is still the sole responsibility of the traders to protect themselves by choosing a strong password and monitoring their account activities regularly.

tastytrade’s Customer Support

tastytrade’s customers can get instant help from the Help Center, which features popular articles and FAQs on common topics like account funding methods, account opening and management, deposits and withdrawals, two-factor authentication, and many more. Customers can also chat with the tastytrade team by entering their queries in the live chat box. 

Alternatively, tastytrade provides super-fast customer service via social media platforms, including LinkedIn, Twitter, Facebook, Instagram, and YouTube. The support phone line (Toll-Free Number – 888-247-1963), (Local and International – 312-724-7075), & (Fax – 312-724-7364) are available from 7 AM to 5 PM Monday through Friday. Lastly, tastytrade’s support service is also offered via email, and customers can send their queries and expect to get a response within 24 hours.

General Support: [email protected]

Accounts: [email protected]

Banking: Banking@tastytrade

Trade Desk: [email protected]

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Our Verdict on tastytrade

To conclude, this tastytrade review, the web-based and desktop platform, offers attractive and user-friendly trading designed for active investors and traders primarily interested in derivatives trading, such as stocks, ETFs, options, commodities, and crypto. tastytrade charges competitive fees and commissions, depending on the chosen trading strategy and instrument. tastytrade gives traders every edge possible with its support, rates, and technology that helps them succeed easily. 

Both desktop and website platforms have similar user experiences, supporting trading from charts and allowing traders to stream quotes on different platforms simultaneously. tastytrade’s trading and investments platform is best suited for active traders, especially those who trade futures or options contracts. However, those looking for a comprehensive brokerage firm with international trading, bonds, forex, complicated options trades, and mutual fund trades must look elsewhere. All in all, its options, pricing schedule, and trading technology are some of the best in the business.

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