Is tastytrade Safe?
If you have ever used tastytrade (also known as tastyworks), you probably noticed that this broker works a little differently compared to others. From its unique referral rewards to its playful options chain and website design, it offers a style you won't find anywhere else in the business.
While being different is interesting, you may wonder if you can trust the broker.
Is tastytrade a scam? Can you see positive reviews from customers at the BBB? Let's explore.
tastytrade Origins
tastytrade is a highly-regarded broker that provides many types of investing products and services.
The company has a long track record in the retail investing world.
tastytrade's owners (founded by Tom Sosnoff)
are recognized for creating many modern products. The Smalls Futures Exchange is one of the latest, and
Charles Schwab’s ‘thinkorswim’ trading platform also started with them.
Is tastytrade a Scam?
Let's get straight to the question at hand: Is tastytrade a scam?
The short answer is no. tastytrade is not a scam.
There are several ways to check if tastytrade is real or fake.
The first clue is that the broker is a member of SIPC. This insurance helps protect customers if a broker does something wrong.
tastytrade is also part of the National Futures Association, the group in charge of regulating
futures in the United States. Moreover, tastytrade belongs to FINRA, which oversees securities. The company's membership ID is 277027, and its SEC ID is 69649. These memberships show that tastytrade is a trustworthy and valid operation.
It is worth noting that tastytrade works with a clearing firm (Apex Clearing) for its transactions.
Apex Clearing is regulated and would not work with tastytrade if there were any suspicious activities.
Is tastytrade Secure?
To keep its licenses and agreements with regulators, a broker must protect its customers. It's also important to secure customer money and personal information.
To do this, tastytrade uses the following measures:
tastytrade uses a thorough security plan to protect customers. They watch accounts and money movement in real-time, using both software and hardware controls.
Also, all personal and trading data is encrypted with TLS v1.2 256-bit protocols while moving across the internet. Customer passwords are also hashed. This setup provides a very secure platform for trading and protects your funds.
tastytrade Referral Code
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tastytrade BBB Rating
A good way to check if a broker follows proper business practices is to look at the Better Business Bureau, known as the BBB.
The BBB grades businesses based on various factors, like customer complaints (filed with the BBB), how long the business has been around, its licenses, and its business methods.
tastytrade's current rating is A-, and the BBB has not accredited the broker at this time.
tastytrade BBB Reviews
We have gathered a few BBB reviews to help you see what others say about tastytrade. Although there are some positive reviews, the negative ones don't claim the broker is cheating people.
In fact, it looks like the complaints come from traders who misunderstood their customer agreements, not from any dishonest behavior by the broker.
This is a good moment to remind newer traders to read all paperwork before investing. Understanding how brokers work can be time-consuming, but it's important.
You can see more on the BBB website.
Is tastytrade FDIC/SIPC Insured?
Only banks get FDIC insurance. Since tastytrade is not a bank, it does not have FDIC coverage. However, as a brokerage firm, it does qualify for SIPC protection and is a member of SIPC. So, each account at the broker is covered up to $500,000, and half of that can be used for uninvested cash.
Open tastytrade Account
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tastytrade Review: Tradable Products
At tastytrade, you can trade the following products:
• Cryptocurrencies
• Option contracts
• Equities
• Closed End Funds
• Exchange Traded Funds (ETFs)
• Futures
• Treasury securities
tastytrade does not allow trading of OTC stocks or foreign shares. The options group includes equity, index, and futures options. The futures group has both standard and micro contracts. Bonds and mutual funds are not offered.
All accounts at tastytrade are self-directed. There are no managed accounts, financial advice, or planning options.
The company offers individual, joint, trust, retirement, and business accounts. tastytrade also accepts applications from many international residents.
Cash Features
tastytrade only has brokerage accounts and does not have separate cash accounts. It does not offer debit cards or checkwriting. However, ACH transfers are supported.
Website Trading
The tastytrade website is the main place to trade. It has three tabs: Trading, Dashboard, and Manage. Clicking on "Trading" launches the web platform.
The platform has an order ticket with four order types: market, limit, stop, and stop limit. It also offers bracket orders and the ability to short sell. A graphic interface shows possible profit or loss on options trades through "Curve" mode.
You can find charts in the left menu. They have 46 drawing tools, 100 technical studies, and several plot styles like histogram and scatter.
Other helpful tools are tastylive, a live video news feed, and a backtesting feature.
Mobile App
The tastytrade mobile app is very similar to the website. Watchlists sync across devices, and you can set alerts on stock profiles. Charts rotate horizontally, but there are no charting tools.
Option chains are present, allowing multi-leg trades like iron condors, butterflies, and jade lizards. But you can't trade Treasuries or use mobile check deposit.
Desktop Program
The desktop platform has over 300 technical studies. It doesn't have a right-click menu, but there are buy and sell buttons at the top of each chart for quick trades.
It provides two order tickets: a normal one and a pairs ticket, which can send two orders at once (one is short). The pairs ticket works with stocks or futures.
Fees and Minimums
tastytrade does not require a minimum deposit and charges no ongoing fees.
Commissions:
Equity options: $1 per leg on opening, capped at $10 per leg. No closing fees (beyond regulatory and exchange fees).
Futures options: $2.50 per contract.
Futures: $1.25 per contract, per side. Micro futures have a $0.40 discount.
Cryptocurrencies: 0.35% per trade.
Stocks and ETFs: No commissions for whole share trades.
Margin
tastytrade offers cash or margin accounts, but after you pick one, you cannot switch.
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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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11%
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$25,000 - $49,999.99
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10.5%
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$50,000 – $99,999.99
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10%
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$100,000 - $249,999.99
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9.5%
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$250,000 - $499,999.99
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9%
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$500,000 - $999,999.99
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8.5%
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$1,000,000 +
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8%
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Additional Services
Dividend Reinvestment (DRIP): Offered.
IPOs: Not offered.
Securities Lending: Provided.
IRAs: Offered, though a $60 exit fee applies.
Fractional Shares: Offered, but you must use a market order, and each trade has a 10¢ clearing fee.
Extended Hours: Pre-market and after-hours sessions are provided.
tastytrade Review Judgment
tastytrade has solid tools for trading stocks, options, crypto, and futures, but it is missing some services that other brokers offer.
Free tastytrade Account
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Updated on 2/27/2025.
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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