tastyworks vs ETRADE

E*TRADE vs TastyTrade


2024: Compare TastyTrade/tastyworks versus E*TRADE: brokerage fees, options/futures accounts, & stock trading platforms. Which broker is better?


TastyTrade vs E*Trade Introduction


Choosing the right broker can be tricky with many well-known options available. If you’re considering TastyTrade and E*TRADE, each has its strengths depending on what you need from a broker. This comparison aims to highlight the differences to help you decide which one might suit you better.


Ease of Use


While ease of use might not be everyone’s top priority, we believe a user-friendly platform can lead to smarter trading decisions. Let's discuss this first.

Both TastyTrade and E*TRADE offer user-friendly experiences, but their platforms differ significantly.

TastyTrade features modern technology that allows traders to easily assemble complex options strategies. Trading stocks, ETFs, cryptocurrencies, and futures is straightforward as well.


Tastytrade vs Etrade


TastyTrade’s mobile app, account services, customer support, and ‘inspiration’ features for trade copying are all designed to be user-friendly.


TastyTrade or Etrade


E*TRADE uses a more traditional approach, evident in its mobile app, website trading tools, and trading platforms.


Etrade versus TastyTrade


While E*TRADE’s traditional style might seem easier to some users, TastyTrade offers superior tools for complex options trading.


Cost and Fees


TastyTrade and E*TRADE provide access to a variety of assets and securities, with several similarities in account services and types. Which broker offers more cost-effective solutions? Let's explore.


Trading Costs


Both TastyTrade and E*TRADE offer trading in stocks, ETFs, and complex options strategies, and they both cater to futures traders with approved accounts.


Options


At TastyTrade, options trading costs $1 per contract to open a position, with no charge to close it. Although this may seem pricey, the total cost is capped at $10, making it more affordable for traders dealing in multiple contracts.

At E*TRADE, the fee is $0.65 per contract, which decreases to $0.50 per contract for accounts with more than 30 transactions (not limited to options).

E*TRADE is cheaper until the cost reaches $10. Beyond that, TastyTrade’s cap makes it the more economical choice.


Stocks & ETFs


Both TastyTrade and E*TRADE offer commission-free trading for stocks and ETFs.

E*TRADE also offers trading in OTC stocks, charging $6.95 per trade, reduced to $4.95 for those making more than 30 trades per quarter.


Futures


For futures, TastyTrade’s lower rates make it the preferred choice for cost-conscious traders.

Here’s what TastyTrade charges for futures contracts:

- Minis: $1.25 per contract, per transaction.
- Micros: $0.85 per contract, per transaction.
- Smalls (TastyTrade’s own futures products): $0.25 per contract, per transaction.

E*TRADE’s rate is $1.50 per contract for both minis and micros.


Capped Commissions


Remember to consider TastyTrade’s capped commission schedule when evaluating trading costs.

Here’s the details:


TastyTrade commissions


Account Management Costs


Note the differences in account management costs:


Margin Rates


For margin trading, TastyTrade often offers lower rates than E*TRADE, making it a more budget-friendly option for traders using leverage.

Here are the margin rate comparisons:

Debit Balance Tastytrade Margin Rates
under $24,999.99 11%
$25,000 - $49,999.99 10.5%
$50,000 – $99,999.99 10%
$100,000 - $249,999.99 9.5%
$250,000 - $499,999.99 9%
$500,000 - $999,999.99 8.5%
$1,000,000 + 8%

Compared to E*TRADE’s rates:

Debit Balance E*TRADE Margin Rates
$250,000 - $499,999.99 12.2%
$100,000 - $249,999.99 12.7%
$50,000 - $99,999.99 13.2%
$25,000 - $49,999.99 13.7%
$10,000 - $24,999.99 13.95%
$0 - $9,999.99 14.2%


Account Management


Both brokers charge $75 for full outgoing ACATS transfers and $25 for outgoing wires. Deposits and withdrawals via ACH are free at both TastyTrade and E*TRADE.


Promotions


TastyTrade: Get $250 for each trader you refer with this referral link.

E*Trade: Get zero commission on stock and ETF trades.



Accounts and Money Management


Both TastyTrade and E*TRADE offer various account types, but the best choice depends on your specific needs. E*TRADE provides a broader array of account types and money management solutions.

TastyTrade offers different account formats:

  • Individual Cash/Margin
  • Joint
  • Retirement
  • Corporate
  • Trust
  • International

E*TRADE extends its offerings to include several brokerage and money management accounts:

  • Individual Cash/Margin
  • Custodial
  • Coverdell ESA
  • Retirement
  • Retirement for Minors
  • Small Business Retirement
  • Managed Portfolios
  • Morgan Stanley Bank Accounts (Checking/Saving)
  • Credit Line
  • Home Lending


Trading Platforms and Apps


TastyTrade provides three trading platforms: an online browser-based platform, a mobile app, and desktop software.

E*TRADE offers several trading options including their website, mobile app, Power E*TRADE, E*TRADE Pro, and the associated mobile app.

Trading is straightforward at both brokers, but TastyTrade offers a particularly unique experience, especially for complex options strategies.

TastyTrade’s platforms are designed to simplify trading, especially for complex options. They allow traders to visualize and manage these strategies easily.

However, TastyTrade’s innovative approach might have a learning curve for those accustomed to traditional trading.


tasty vs Etrade


E*TRADE offers a traditional trading experience. Its advanced platform, E*TRADE Pro, is accessible for accounts with at least $1000. This platform, while robust, does not introduce many innovative features and feels more familiar.


Etrade vs tasty


Asset Classes


There are notable differences in the asset classes available at TastyTrade and E*TRADE.

If your interest lies in options or cryptocurrencies, TastyTrade may suit you better, especially with its capped commissions benefitting larger trades.

If your focus is on trading OTC securities, IPOs, mutual funds, or bonds/CDs, E*TRADE offers these options.

TastyTrade allows trading in:

  • Stocks/ETFs
  • ADRs
  • Futures
  • Options (stocks, ETFs, futures)
  • Commodities
  • Cryptocurrencies

E*TRADE provides access to:

  • Stocks/ETFs
  • OTC Securities
  • IPOS
  • ADRs
  • Futures
  • Options (stocks, ETFs, futures)
  • Mutual Funds
  • Bonds
  • CDs


Promotions


Tastytrade: Get $250 for each trader you refer with this referral link.

E*Trade: Get zero commission on stock and ETF trades.



Which Broker is Right for You?


Choosing between TastyTrade and E*TRADE depends on several factors.

If cost-effectiveness is crucial, TastyTrade generally offers better rates. It’s also preferable for complex options trading due to its innovative platform. For cryptocurrency trading, TastyTrade is the go-to.

E*TRADE excels with its extensive range of account types, banking services, and a wider variety of securities to trade.


Updated on 5/27/2024.


Ben Wright
About the Author
Ben Wright is an investor, a trader, an educator, and something of an explorer. He spends his days in the markets when he is not teaching or spending time with his family. Ben writes about stockbrokers, markets, investment vehicles, promotional offers, and tools that help investors make the most of their time in the markets.