tastytrade Review
tastytrade (formerly tastyworks) represents a revolutionary approach to options trading, built from the ground up by options traders for options traders. Founded in 2017 by Tom Sosnoff and Scott Sheri...
Platform Overview
tastytrade (formerly tastyworks) represents a revolutionary approach to options trading, built from the ground up by options traders for options traders. Founded in 2017 by Tom Sosnoff and Scott Sheridan, the same team behind thinkorswim, tastytrade was designed to address the specific needs of active options traders who felt underserved by traditional brokers. The platform emphasizes high-probability options strategies, portfolio margin, and lightning-fast execution with a unique fee structure that rewards closing trades early. With its proprietary trading platform, extensive free education through tastytrade network, and a community-driven approach, tastytrade has attracted over 1 million accounts and become the go-to broker for serious options traders. The platform supports stocks, ETFs, options, and futures, but its real strength lies in options trading where it offers unmatched tools, analytics, and a fee structure designed to maximize profitability for active traders.
Key Features
Lightning-Fast Execution
Proprietary order routing technology optimized for options with sub-second fills
Unique Fee Structure
Pay to open, free to close options trades - incentivizing profit-taking and risk management
tastytrade Network
Free live trading shows, education, and market analysis from professional traders daily
Portfolio Margin
Access portfolio margin with lower requirements for sophisticated risk-based calculations
Curve Analysis
Visualize profit/loss curves, Greeks, and probability of profit for any options strategy
Trading Community
Connect with active traders, share strategies, and learn from a vibrant options community
Fees & Costs
| Stock & ETF Commissions | $0 for stocks and ETFs |
| Options Fees | $1.00 to open, $0 to close per contract (max $10 per leg) |
| Account Minimum | $0 |
| Margin Rates | 11.25% - 12.25% (competitive rates for active traders) |
Pros & Cons
Pros
- Free to close options trades encourages proper risk management
- Lightning-fast execution optimized specifically for options trading
- Extensive free education through tastytrade network with live shows
- Portfolio margin available with lower requirements than competitors
- Platform designed by options traders for options traders
Cons
- Not ideal for buy-and-hold stock investors or beginners
- Limited research tools compared to full-service brokers
- No mutual funds, bonds, or traditional retirement planning tools
- Platform learning curve for those new to active options trading
Who It's Best For
tastytrade is the ultimate platform for active options traders who trade frequently and want a broker that understands their needs. It is perfect for those who focus on high-probability options strategies, trade multiple contracts regularly, and value fast execution and low costs over traditional research and planning tools.
Active Options Traders
Trade options frequently and need fast execution with trader-friendly fees
Strategy-Focused Traders
Focus on high-probability options strategies like iron condors and credit spreads
Learning Traders
Want to learn from professional traders through free daily shows and education
Final Verdict
Our Verdict on tastytrade
tastytrade is unmatched for active options traders who want a platform built specifically for their needs. The unique fee structure, lightning-fast execution, and extensive free education make it the clear choice for anyone serious about options trading. While not suitable for casual investors or those seeking traditional brokerage services, tastytrade excels at what it does best: empowering active options traders to trade more efficiently and profitably.