Tastytrade review 2024: Pro-grade options trading

Tastytrade at a glance

Feature	Rating	Details
Investment options	★★★★★	Stocks Options ETFs Crypto Bonds Futures
Trading costs	★★★★★	Zero commission stock, option and ETF trades, with average margin rates and $1 or less in total stock and ETF option contract fees.
Account fees	★★★★★	No annual fee, no inactivity fee and a $75 outgoing ACATS fee.
Account types and minimums	★★★★★	Individual and joint brokerage accounts Traditional, Roth, rollover and SEP IRAs No minimim deposit requirements
Trading platforms and technology	★★★★★	Mobile, web and desktop trading platforms Offers screeners, watchlists, advanced charting and analysis features and analyst ratings and price targets, but no analyst reports
Features and amenities	★★★★★	Fractional share trading Instant buying power Extended hours trading Educational articles and videos, live webinars, market commentary
Customer support	★★★★★	Contact Tastytrade by phone or live chat but only during regular market hours.
Mobile app	★★★★★	Google Play app reviews: 4.8/5 stars based on over 2,510 reviews Apple App Store app reviews: 4.8/5 stars based on over 12,280 reviews
Cash sweep rates	★★★★★	Doesn’t offer a cash sweep program.

To learn how our star ratings are calculated, read our methodology.

Tastytrade is best for options and futures traders

With platform tools and features specifically aimed at derivatives trading to help evaluate volatility, risk and profit, the platform is best suited for:

• Options traders. Leverage a competitive fee structure and a myriad of trading tools, including curve analysis and quick roll features.
• Futures traders. Standard, mini and micro futures are available alongside tools designed to help assess your delta exposure.

What we like about Tastytrade

Built primarily for options and futures trading, Tastytrade has some of the best pricing on options and futures contracts in the industry. Its fee for stock and ETF options is $1 to open and $0 to close. Most brokers charge $0.65 to open and $0.65 to close, for a total of $1.30.

Tastytrade’s desktop platform offers so much data and so many tools that it’s easy to get lost in the beginning. But we found the Tastytrade tutorial collection and Tastytrade programming to be incredibly helpful for familiarizing ourselves with the platform.

Importantly, the platform is highly customizable. We also didn’t notice much lag when toggling through the different tabs and sections. It feels like what you’d expect a professional-grade options and futures trading platform to be.

Here are some of the tools you can use to trade with on Tastytrade:

• Watchlists
• Advanced charts
• Curve analysis
• Quick roll feature
• Quick order feature
• In-app video programming
• Follow feed

The web and mobile platforms are slightly powered-down, and perhaps a little more user-friendly, compared to the desktop app.

Where Tastytrade falls short

It is possible to buy stocks and exchange-traded funds (ETFs) on Tastytrade, but it’s an options trading platform first and foremost. Everyday investors looking for a user-friendly platform with simple click-to-invest options will likely be better off looking elsewhere. Options and futures traders, maybe not.

A couple other shortcomings for beginners are Tastytrade’s lack of a robo-advisor and a cash sweep program for customers to earn interest on uninvested cash.

Tastytrade’s fees

Type of fee	Fee details
Account minimum	$0
Stock and ETF trade fees	$0
Option on stocks and ETFs trade fees ($10 max per leg)	per contract to open, $1 to close
Options on futures trade fees	per contract to open, $1.50 to close
Options on micro futures trade fees	$1.50 per contract to open, $0 to close
Future trade fees	$1.25/contract to open, $1.25 to close
Micro futures trade fees	$0.85 per contract to open, $0.85 to close
Smalls futures trade fees	$0.85 per contract to open, $0.85 to close
Cryptocurrency trade fees	1% of total crypto purchase and sale up to $10 max
ACH deposits and withdrawals	$0
Account transfer fee	$75

Is Tastytrade legit?

Yes, Tastytrade is a legitimate brokerage. The company is registered with the US Securities and Exchange Commission (SEC) and was approved as a broker-dealer by the Financial Industry Regulatory Authority (FINRA) in 2016.

Before Tastytrade, CEOs Scott Sheridan and Tom Sosnoff cofounded the popular trading platform Thinkorswim. Tastytrade launched to the general public in 2017.

The Tastytrade platform is considered safe and secure. It uses Transport Layer Security (TLS) v1.2, with Advanced Encryption Standard (AES) 256 data encryption to encrypt data. Tastytrade also uses real-time monitoring systems to protect customer data and regularly assesses, audits and fortifies its systems and code. Two-factor authentication is available for additional account security.

Customer experience

Tastytrade garners a generally positive customer sentiment across Trustpilot, the Better Business Bureau (BBB) and Reddit, although there are areas for improvement.

On Trustpilot, reviews are mostly favorable, with customers particularly appreciating the platform’s educational content and easy-to-use interface tailored for active traders, especially those interested in options trading. However, there are occasional criticisms related to technical glitches and customer service response times. Tastytrade earns a 4.4 out of five stars based on over 440 reviews on Trustpilot, as of May 2024.

The BBB reflects a different trend with Tastytrade. Though it holds an “A+” rating, indicating a high level of trustworthiness and responsiveness to complaints, Tastytrade isn’t BBB accredited. Some users have lodged complaints relating to account management and transactional issues, but these appear to be less frequent. Tastytrade holds a 2.4 out of five stars based on only five reviews, as of May 2024.

Reddit discussions generally echo these sentiments, with many users praising the platform’s robust educational materials and trade execution capabilities. Nevertheless, some posts highlight frustrations with mobile app performance and sporadic customer support issues. Overall, Tastytrade enjoys a strong reputation for its educational resources and user-friendly platform, though it faces occasional criticisms regarding technical and customer service aspects.

Compare Tastytrade to other platforms

Frequently asked questions

Tastytrade vs. Robinhood: Which is better?

This really comes down to the type of trading experience you want. Tastytrade offers more research and technical analysis tools, albeit at a higher cost, while Robinhood offers a simpler options trading experience with zero commission.

Is my money safe with Tastytrade?

Yes. Your money is considered safe with Tastytrade as it employs a range of security measures to protect account holders. And as an SIPC member, customers’ money is protected up to $500,000, which includes up to $250,000 for cash, should Tastytrade run into financial trouble.

How much does it cost to open a Tastytrade account?

There’s no cost to open an account with Tastytrade. However, you can’t trade until you deposit funds and there’s a $2,000 account balance minimum to open a margin account.

Does Tastytrade allow day trading?

Tastytrade keeps track of your day trades and displays a counter at the top of its platform. Customers with margin accounts will be flagged as pattern day traders if they perform more than three-day trades in a rolling five business-day period.

How long does it take to withdraw money from Tastytrade?

This depends on the withdrawal method you choose. Withdrawals to connected bank accounts by ACH take between one to three business days to clear, while wire transfers can land in your account the next business day depending on when you submitted the request. Withdrawals by check can take upwards of five to 10 business days to receive.