Tastyworks Review for 2021

Tastyworks is a relatively new and low-cost stock broker. It was designed with functionality and precision to cater to both beginners and professional traders.

Although TastyWorks does not offer a demo account, it provides incredibly cheap commission pricing.

Check out below our in-depth analysis of Tastywork. We explore its trading platforms, what tradable assets and accounts its offers, fees it charges and many more. By the end of this review, you’ll be able to determine if it suits all of your trading needs.

What is Tastyworks?

Established in 2017, Tastyworks is a new entrant in the online trading industry. It is a subsidiary of Tastytrade, which is considered to be one of the fastest growing online financial networks in the world.

Even though it offers stocks and futures, its main focus is on options. Its unique fee structure has made it popular within the short time it has been in existence. Compared to other large discount brokerages, Tastyworks’ pricing is lower.

Since Tastyworks is designed for active traders, it only offers options, stocks and futures.

This stock broker offers numerous trading accounts to cater to the needs of its broad customer base. These accounts include the works account, individual account, joint account, trust account, corporate account, international account and retirement account. Soon, the platform is planning to add a custodial account. The margin account is the most coveted because it offers access to stocks and options trading. Also, it allows you to make covered and uncovered trades for options and option spreads as well as stock and futures trades. However, you need at least $2,000 to open this account.

Pros and Cons of using Tastyworks

How Does Tastyworks Work?

Tastyworks mainly offers its services online either through a web browser, mobile app or downloadable desktop application. All of these interfaces are identical in nearly all aspects.

The web browser version has a user-friendly interface with a lot of features. One feature that stands out from the rest is the liquidity rating. Also, the left side column has several icons with various functionalities. For instance, there is a trade button that produces the trading window for stocks, options and futures. The right side vertical column offers helpful and brief information that can improve your trading experience.

On the other hand, the desktop version is visually appealing. It features a watchlist on the left side where you can change from liquidity to notable stocks or any other pre-defined list. There is also a detailed graph, and you will be amazed by the tools it offers. Currently, it features over a hundred technical indicators, drawing tools and chart styles. Another key feature is the profit and loss calculator that shows maximum gains and losses estimates for either stock or options.

The mobile app is only compatible with iPhone 6 or higher and all modern Android devices. The technology used on the app is highly advanced. For instance, it is designed to minimize the amount of data entry you need to perform. All you have to do is use the drag and drop controls. Most of the features on the web browser and desktop application are available on the mobile app. Everything on the app is arranged so it’s extremely easy to navigate. In fact, using the mobile app is easier than the web-based and desktop platforms.

Tastyworks has utilized the latest technology to protect all of its clients. The company uses numerous defensive system configuration, sentinel and real-time monitoring systems as well as security devices to ensure the security and privacy of your trading account. Most of the interactions between you and the broker are encrypted using SSL certificate technology. There is also a two-factor authentication where you will receive a code on your mobile phone every time you try to log into your account.

Getting Started on Tastyworks

Even though the specific procedure of opening an account at Tastyworks may differ slightly, it mainly involves the following steps.

First, you need to choose an account type. Before you submit any personal information, make sure you have selected the right account that can meet your trading needs. There are various account types available on Tastyworks so it’s highly recommended that you compare them first.

After selecting your preferred account type, the next step is to answer the basic information questionnaire. Some of the information you need to provide include your full name, date of birth, nationality, address and employment among others. On top of this, you will be asked to answer some security questions to rate your trading experience and ensure you are legally allowed to trade.

If you are a non-US resident, you will be asked to provide additional documentation to verify your account information and primary address. Some of the required documents include a copy of your passport and utility bill. They should be in JPG, PNG or GIF formats when you upload them. It only takes Tastyworks around 24 hours to check the documents and verify your identity.

Tradable Assets on Tastyworks

Types of Accounts on Tastyworks

The Works Account
This is the most flexible account package for active trades. It offers access to trade all available products such as stocks, futures and options. The process of opening The Works account only takes 3-5 minutes to complete.

Individual Account
This is the standard account for an individual wherein you can choose to have either a margin or a cash account.

The margin account is a type of account where you are given a loan to purchase stocks or other financial products. In the cash account, you are required to cover the cost of your trade’s full purchase price.

Joint Account
This trading account is designed for two people and can either be a margin or cash account.

Choose the type of account that that fits your financial goals. Tenants in common (TIC) is a type of a joint account where each owner has a specific proportion of the account’s assets. With the rights of survivorship (WROS) is a type of joint account where both owners have an equal share of assets.

Retirement Account
Tastyworks offers three types of retirement accounts to cater to various retirement goals. They include traditional IRA, ROTH IRA, SEP IRA, and SEP IRA.

Corporate Account
Corporate accounts are designed for established US entities.

Trust Account
This account can be opened on behalf of a revocable or irrevocable trust. However, you must submit a copy of the Trust Certificate.

International Account
International customers can access cash, margin and portfolio margin. Tastyworks is continuously adding more countries to its list of supported countries. Unfortunately, due to certain restrictions, the platform is not available in Canada.

Custodial Account
Tastyworks is planning to launch a custodial account where an adult will act as a custodian on behalf of a minor.

Features of Tastyworks

Quick Account Opening

Tastywork’s account opening process is one of the fastest in the industry. It takes only one day to open and verify an account.

Fast Desktop Trading Software

Tastyworks’s desktop trading software is a great choice for traditional traders who prefer little or no distractions when trading. The desktop trading software promises a lightning-fast experience when executing trades. The software comes with a seamless intuitive dashboard workflow and layout.

It also promises a great trading experience and advanced account support. The software is built to run on all Windows, Linux and OSX operating systems.

Web and Mobile Platforms

Tastyworks grants you the opportunity to trade with a web browser or a mobile app. These options offer extended flexibility and advanced tools to enhance your trading experience.

The web platform is a great choice for traders who multi-task and enjoy having control over their trading experience and the mobile platform is accessible on either the Android or the Apple operating system.

Follow Feed Feature

Sometimes, you can be overwhelmed due to the enormous pressure that comes with trading as the brain is built to process a limited amount of information at the same time. This is where the Follow Feed feature comes in, eliminating the ‘trader’s block’ that many traders experience.

With this feature, you can keep track of the trades other traders of interest are initiating and you also know why they are initiating the trades. This provides you with the opportunity to mirror successful trades to maximize your financial gains and ensure minimum losses.

In-Platform Video Feed

The market is dynamic, and because of this, you will always need ideas from others. Having uninterrupted access to market concepts, research, movements and ideas of other traders can be extremely beneficial.

With the In-Platform Video Feed feature available, you will be able to place and change orders according to new information. The good thing about this feature is you won’t have to leave your trading dashboard. It is built-in and can be accessed for free on Tastyworks’ platform.

Regulated by Top-Tier Financial Authorities

Tastyworks is regulated by top-tier regulators in the industry such as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

As a brokerage firm that offers futures trading, it is regulated by the National Futures Association (NFA).

Charting Tools

With the help of charting tools, you can understand the probability of making a profit from a particular trade.

There is also an analysis page that informs you of your current open positions. With the help of this analysis page, you can measure your multiple positions and access risks.

By using both the charting tools and analysis tools, you can easily see how to position adjustments that can improve the outcome of your trades.

Tastyworks Fees

Tastyworks is a low-fee brokerage firm that was founded in 2017, although its parent company Tastytrade was founded in 2011. When you trade any of the markets offered by this stock broker, you get to pay minimum fees.

To open a contract for options on stocks, Tastyworks charges $1. It costs $2.50 to open a contract for options on futures. When you want to close any of these contracts, Tastyworks charges $0 in commissions.

All stock trades are free to open and close, while futures trades incur a $1.25 fee to open or close a contract. Opening or closing a contract for micro futures costs $0.85. It is important to note that clearing, exchange and NFA fees apply to all trades.

Tastyworks does not have account, inactivity or deposit fees.

Deposits, Withdrawals and Supported Payment Methods

There are four different deposit methods you can choose from and USD is the only currency that is accepted for funding accounts.

Research and Education

Tastytrade, the parent company of Tastyworks, has an archive of videos. The archive is a culmination of the firm’s live videos. The videos are very educational and entertaining at the same time due to the obvious chemistry among its hosts.

Additionally, through a digital publication called ‘Luckbox’, which was launched in 2019, the Tastyworks team makes available, insightful newsletters for its traders. These publications inform traders on probabilities, ideas and market movements that can help them form the best trading decisions.

How Safe is Tastyworks?

When it comes to the security of your account, Tastyworks ensures that your assets and private data don’t get in the hands of the wrong people. To protect your assets and data, security devices, sentinels defensive system configurations and real-time monitoring systems are some of the security systems deployed by Tastyworks.

Data flow between your system and that of Tastyworks is encrypted with TLS v1.2 256-bit. This aims to protect every data being exchanged on its platform. Connections are also signed with SSL certificates from trustworthy issuers.

As a brokerage firm regulated by top-tier regulators like the SEC, FINRA and NFA, Tastyworks is a member of the Security Investor Protection Corporation (SIPC). This provides $500,000 worth of assets protection for account owners and up to $250,000 protection for cash.

Customer Support

Tastyworks Review – The Verdict

Tastyworks is a reputable stock broker that has built interesting products and services. The team behind Tastyworks also built Thinkorswim, which is now operated by TD Ameritrade. This is a testament of its ability to build great trading products.

It offers low trading fees. Traders on Tastyworks are also provided with sophisticated tools and content to facilitate their trading and learning experience.

With zero charges for deposits, inactivity, account opening and great trading platform features, we conclude that Tastyworks is one of the best stock brokers you should check out today.

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