For a beginner, the main difficulty lies in finding a reliable broker. We don’t want you to invest your hard earned money in any wrong platform. That’s why we try to provide you with the basics of brokers whom you can trust. Hence, here we are providing you a TastyWorks review. In this review, we have detailed about the platform, its pros and cons, products and services offered, and more.
What is TastyWorks?
TastyWorks is a newbie in the trading world. It is an online trading platform founded in 2017, and was founded under its parent company Tastytrade, Inc, which was established in 2011. TastyWorks is a U.S based broker, focusing on options trading. It provides access to trade in options, stocks, and futures.
The platform is regulated by the top-tier institute FINRA and Securities and Exchange Commission (SEC). However, it is quite difficult to use by new traders. Its headquarters are located in Chicago.
Products Offered :
TastyWorks permits you to trade in US stocks, ETFs, options, and futures. Besides this, it does not offer any other type of assets. TastyWorks is not a platform for traders who are looking to make diversified portfolios. It does not provide trade-in mutual funds, bonds, and crypto. It covers only the US market. Although, tasty works have a product range narrower as compared to other brokers in the market.
TastyWorks offers social trading services. Here you can copy the trade ideas of TastyWorks team members. This makes trade easy for traders who are short of ideas. It offers 217+ instruments to trade-in.
Trading platform :
TastyWorks is a great platform for experienced users. It is user-friendly but still requires time to understand the functioning and customizability. The platform is available in English only.
The platform is available in 3 formats: Web-based trading, mobile application, and desktop-based trading. It provides two-step authentication for secured login and transaction.
The mobile trading platform offers the same amount of reliability. It is available in both iOs and Android. You can set price alerts and notifications here.
The drawback application has is that you can not open an account through the app. You have to switch to a website if you want to open an account. Then only you can log in to your account through the app. The mobile application provides the remaining facilities as a website only.
The desktop trading platform also has the same functionality as the web, the only extra feature here is that it has good customizability. It is also not handy for beginners likewise web and mobile platforms.
How to open a TastyWorks account?
Opening an account in Tastyworks is simple, user-friendly, and fully digital. It requires no minimum cost.
TastyWorks offers two types of accounts: cash and margin accounts. Using a margin account means you can use leverage, which inferred that you can borrow money from brokers to trade.
Retirement accounts are accessible to US residents only. The trader can select between a traditional, self-employed (SEP), a Roth IRA or a beneficiary inherited IRA.
You can open different types of accounts based on your ownership. Those are; Joint account, Individual account, corporate and trust account. Furthermore corporate and trust accounts are offered to legally establish US organizations.
You can open your TastyWorks in few simple steps:
- Account Type
- Personal information
- Financial expertise
- Name of your primary bank
- Digital copies of your govt. Id proofs
It will take one day to verify your account.
Deposit fees: TastyWorks requires a min of $0 deposit for a cash account. But for margin accounts, traders need to deposit a minimum of $2000 as per the industry norms. Only bank transfer can be used to deposit money, no other options are available.
Withdrawal fees: WIthdrawal fees at TastyWorks is $45 for non-US customers and $25 for US customers. WIthdrawal is also done in the same way as a deposition. US customers can also use ACH and cheque for withdrawal.
Trading fees: TastyWorks charges $1 per contract for stock options and $2.50 per contract for options on futures. For regular future contracts, it charges $1.25 per contract. Small Futures fees are $0.25 per contract. And it charges no commission on stock trading.
Non-trading fees: It has average non trading fees. It doesn’t charge you a general account fee, inactivity fee, and transfer and withdrawal fee. On the other hand, it charges high wire transfer fees of $25 for US residents and $45 for non-US residents. ACH withdrawal is free of cost.
News and Research :
TastyWorks provides good quality research tools. That includes desktop charts, trading ideas, and a high-quality news feed. It is mainly focused on options trading and provides limited fundamental data.
The majority of research tools focus on analyzing options methodologies. Trades can keep the Tastytrade news feed window open during trading to get an idea about real-time market conditions.
TastyWorks’ news feed provides you access to a wide range of futures and trading content.
Customer Support :
TastyWorks customer support is average. It provides services only on weekdays from 7 am to 5 pm. The email service is available 24/7.
Tastyworks supports a wide scope of languages.
|Good research tools||No demo account|
|Low trading fees||Limited product selection|
|Excellent platform||Limited customizability|
|Low stock ETFs and options Fees||No 24/7 support|
|Clear fee reports||Not for beginners|
Is TastyWorks Safe?
Yes,it is safe. As it is regulated by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the National Futures Association.
All customers are protected under investor protection via SIPC.
The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. A non-US citizen is equally treated as a US citizen under SIPC protection. However, not all investments are covered under SIPC.
The Verdict :
Tastyworks is a brilliant trading broker when it comes to advanced levels. As mentioned earlier it is not beginner-friendly. It charges low trading fees with free stocks and ETF trading fees. It has an easy deposit and withdrawal facility. However, it does not provide debit/credit card support.
As it has no opening fee, inactivity fee, and the account opening process is seamlessly easy, you should give it a try. Plus a demo account provided will help you a lot in understanding the functioning of the platform.
HOW DO I ADD OR REMOVE COLUMNS?
To add a column to be displayed, click the item you want from the Not Displayed column on the right. Once clicked, it will appear on the Displayed column on the left. The columns displayed from top to bottom will appear left to right. You may rearrange the columns by clicking and holding the item and moving it up or down. To remove a column, click the column you want to remove, and it will return to the Not Displayed column.
HOW DO I CHANGE MY PLATFORM SOUND SETTINGS?
You can change the platform’s Market Open, Market Close, Order Fill, or Quote Alert sound by going to the Settings menu of the desktop platform or web browser platform. However, if you do not want any sounds, then you may disable platform sounds by unchecking the Enable sounds box in the Sounds section in either platforms Settings menu.
WHAT IS A GOOD FAITH VIOLATION (GFV)?
A good faith violation (GFV) occurs when a cash account buys a stock or option with unsettled funds and liquidates the position before the settlement date of the sale that generated the proceeds. Stocks and ETFs settle trade date plus two business days, or more commonly known as T+2, and options settle the next business day (T+1). A cash account is not limited to a number of day trades. However, you can only day trade with settled funds.