Is tastytrade Safe?
If you’ve used tastytrade (also called tastyworks), you probably noticed it stands out from other brokers. The referral program, options chain, and even the website look and feel different from most of the industry.
While being different can be interesting, you might wonder if the broker is safe.
Is tastytrade a scam? Are there good reviews at the BBB? Let’s take a look.
tastytrade Origins
tastytrade is a popular broker offering a variety of investments and services.
The company has been around a long time in retail investing.
tastytrade’s founders, including Tom Sosnoff,
are known for creating several new products. The Smalls Futures Exchange is one of their latest ideas, and
Charles Schwab’s ‘thinkorswim’ trading platform was their original invention.
Is tastytrade a Scam?
Now, let’s answer the main question. Is tastytrade a scam?
The answer is no. tastytrade is not a scam.
There are several ways to check if tastytrade is legitimate.
First, you’ll see that tastytrade is a member of SIPC. This insurance helps protect investors if a broker does something wrong.
tastytrade is also a member of the National Futures Association, which oversees the futures industry in the U.S. tastytrade is also part of FINRA, which regulates securities brokers. The company’s FINRA ID is 277027. Its SEC number is 69649. With all these memberships, it’s clear that tastytrade is a safe and legitimate business.
tastytrade also works with Apex Clearing to handle trades.
Apex Clearing is also regulated and would not do business with tastytrade if anything was suspicious.
Is tastytrade Secure?
To keep its licenses and work with regulators, brokers must keep customers safe. It’s also important that customers’ money and personal information are secure.
To meet these goals, tastytrade does several things:
tastytrade uses a strong security system for its customers. Both software and hardware, along with real-time monitoring, are used to keep track of accounts and money.
Also, all customer data (both personal and transaction info) is protected with TLS v1.2 256-bit encryption while it moves online. Customer passwords are also hashed. All of this creates a safe platform for trading and keeping your money protected.
tastytrade Referral Code
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tastytrade BBB Rating
A good way to see if a broker has good business practices is the Better Business Bureau (BBB).
The BBB scores companies based on many things. These include complaints filed with the BBB, how long the business has operated, the company’s licenses, business practices, and more.
Right now, tastytrade has an A- rating from the BBB, but is not accredited by the BBB.
tastytrade BBB Reviews
We’ve gathered some reviews from the Better Business Bureau so you can see what people are saying about tastytrade. There are some positive reviews, and while there are also negative reviews, none claim the broker is a scam.
Most complaints seem to come from traders misunderstanding their customer agreements, not from tastytrade doing anything dishonest.
It’s a good idea for new traders to read all the documents before starting to trade. Learning how brokers work can take some time, but it’s important.
See more on the BBB website.
Is tastytrade FDIC/SIPC Insured?
Only banks have FDIC insurance. tastytrade is not a bank, so it does not offer FDIC coverage. But as a brokerage, tastytrade is a member of the SIPC. This means each investment account is covered up to $500,000. Up to half of this amount can be used for uninvested cash in the account.
Open tastytrade Account
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tastytrade Review: Tradable Products
At tastytrade, investors can trade these assets:
• Cryptocurrencies
• Option contracts
• Equities
• Closed End Funds
• Exchange Traded Funds (ETFs)
• Futures
• Treasury securities
tastytrade does not offer OTC stocks or international shares. For options, you can trade equity, index, and futures options. For futures, both standard and micro futures are available. Bonds and mutual funds are not offered.
All tastytrade accounts are self-managed. There are no managed accounts, financial advice, or financial planning services.
Account types available include individual, joint, trust, retirement, and business accounts. tastytrade also lets people in many foreign countries open accounts.
Cash Features
tastytrade only has brokerage accounts and does not offer separate cash accounts. There are no debit cards or checkwriting options. You can transfer funds using ACH.
Website Trading
tastytrade's website is the main way to trade. It has three main tabs: Trading, Dashboard, and Manage. Clicking "Trading" opens the online platform.
The trading platform has an order ticket with four types of trades: market, limit, stop, and stop limit. You can also use bracket orders and short selling. There's a visual interface to see possible gains and losses on options trades, called "Curve" mode.
You can access charts from the left menu, which offer 46 drawing tools, 100 technical studies, and different plot styles like histogram and scatter.
Other features include tastylive, a live video news service, and a backtesting tool.
Mobile App
tastytrade's mobile app is very similar to the website. Watchlists sync across devices, and you can set alerts from stock profiles. You can rotate charts horizontally, but there are no charting tools.
Option chains are available, and you can place multi-leg trades like iron condors, butterflies, and jade lizards. You cannot trade Treasuries, and the app does not allow mobile check deposits.
Desktop Program
The desktop platform has over 300 technical studies. There is no right-click menu, but you can quickly buy or sell from the top of the charts.
There are two order tickets: a regular ticket and a pairs ticket that lets you send two orders at once, with one being a short order. You can use the pairs ticket for stocks or futures.
Fees and Minimums
tastytrade accounts have no minimum deposit and no ongoing fees.
Commissions:
Equity options: $1 per leg when opening, with a $10 max per leg. No closing fees (except for regulatory and exchange fees).
Futures options: $2.50 per contract.
Futures: $1.25 per contract, per side. Micro futures are $0.40 less.
Cryptocurrencies: 0.35% per trade.
Stocks and ETFs: No commission for whole shares.
Margin
tastytrade allows both cash and margin accounts, but you cannot switch types after opening the account.
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Debit Balance
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Tastytrade Margin Rates
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under $24,999.99
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10.5%
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$25,000 - $49,999.99
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10%
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$50,000 – $99,999.99
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9.5%
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$100,000 - $249,999.99
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9%
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$250,000 - $499,999.99
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8.5%
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$500,000 - $999,999.99
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8%
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$1,000,000 +
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7.5%
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Additional Services
Dividend Reinvestment Plan (DRIP): Available.
Initial Public Offerings (IPOs): Not offered.
Securities Lending Program: Available.
IRAs: Available, but there is a $60 closing fee.
Fractional Shares: Available, but must use a market order and there is a 10¢ clearing fee per trade.
Extended-Hours Trading: Pre-market and after-hours trading are available.
tastytrade Review Judgment
tastytrade has strong features for trading stocks, options, crypto, and futures, but lacks some financial services that other brokers offer.
Free tastytrade Account
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Updated on 6/20/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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