Tastyworks vs Robinhood


2022: Robinhood versus Tastyworks. Compare brokerage fees, options/futures accounts, & stock trading platforms. Which broker is better?


Robinhood vs. tastyworks Introduction


tastyworks has lowered its equity commission to $0 to match Robinhood’s trading fee. Does that mean the two broker-dealers are about even? There’s only one way to find out.


Cost


Broker Fees Stock/ETF
Commission
Mutual Fund
Commission
Options
Commission
Maintenance
Fee
Annual IRA
Fee
Tastyworks $0 na $0.50 per contract $0 $0
Robinhood $0 na $0 per contract $0 na


Services


Broker Review Cost Investment Products Trading Tools Customer Service Research Overall Rating
Tastyworks
Robinhood


Promotions


tastyworks: $0 commissions + $75 for each friend referred with this referral code.

Robinhood: Get a FREE stock when you open an account with this referral.



First, Let’s Look at Available Investments


Robinhood clients can trade stocks, ETFs, ADRs, option contracts, and cryptocurrencies. tastyworks has the same list but adds futures, options on futures, and closed-end funds.

In the crypto space, Robinhood currently has 12 coins available for trading, while tastyworks offers 25. But Robinhood counters with zero commissions on crypto trades, while tasty charges 1% of trade value. Robinhood also offers wallet transfers, a great feature that tasty doesn’t have.


Robinhood or tasyworks


tastyworks customers can trade assets in a variety of account types, including trusts, custodial accounts, foreign accounts, business accounts, joint accounts, and retirement accounts (cryptocurrencies cannot be traded in retirement accounts). Robinhood only offers individual taxable accounts.

Winner: tastyworks


Second, We Need to Inspect Margin Services


Robinhood customers can trade on margin through a program called Robinhood Gold. This does come with a $5 monthly fee, and Robinhood charges the fee whether an account trades on margin during the month or not. Nevertheless, it may be worth it because Gold comes with some other perks like Morningstar research.

The first $1,000 in margin balances is included in the monthly fee. Balances above that level cost 5% annually.

tastyworks has a traditional margin service. As such, margin accounts pay nothing unless they actually borrow money. tasty’s tiered schedule starts at 8% and reaches a low at 5%.

A cash account at Robinhood can easily upgrade to a margin account on the broker’s website. tasty, unfortunately, doesn’t offer this convenient service. It’s also not possible to upgrade an account any other way, so customers simply have to open a new account if they want margin but have a cash account.

Winner: Tie


Third, It’s Website Trading


Robinhood’s website is super easy to use. The equity trade ticket sits in the upper-right corner of an asset’s profile. It delivers 6 trade types. These include stop, trailing, and recurring. Cryptocurrencies have 3 order types (market, limit, and recurring).


Robinhood or tastyworks


While recurring is certainly a unique order type, Robinhood falters in the charting arena. There are only two plot styles (line and candlestick) and four technical indicators.

On the tastyworks site, users have to click on a button at the top to launch the trading platform. It’s easy enough to do, although it’s an extra step compared to Robinhood.


Crypto-currencies trading on tastyworks


Once the platform is launched, the trade button sits in the upper-left corner. The order form has four trade types (market, limit, stop, and stop limit). The trade ticket has tabs for “curve” and “table.” These sections provide more tools to help search and analyze securities, especially option contracts. Contracts can be manipulated graphically, which is a really unique way of trading them that Robinhood’s site doesn’t offer.

The problem we discovered in our testing is that tasty’s web-based platform has terrible charting. It’s actually worse than Robinhood’s site because tasty’s charts cannot be displayed the width of the computer monitor, and there are no technical indicators.

Winner: Pretty close overall


Fourth, We Will Investigate Desktop Software


Not being content with its web-based trading system, tastyworks has rolled out a desktop program. It has a similar interface as its browser cousin, and in fact, it has a lot of the same tools. It is compatible not only with Windows, but also with Mac and Linux. One really nice feature is that the program auto updates, so there’s no need to ever update it manually in the future.


tastyworks vs Robinhood


This time around, tastyworks has managed to deliver decent charting. Graphs have lots of drawing tools, technical indicators, and plot styles. Clicking on a bid or ask number at the top of the graph populates a trade ticket.

Speaking of the trade ticket, it has profit-loss diagrams for stocks this time, although we found just 4 order types, the same number on the web-based system.

Robinhood does not have a desktop platform, but it should!

Winner: tastyworks


Fifth, We Need to Explore Mobile Apps


Robinhood’s mobile app has a menu in the bottom that makes it fairly easy to navigate. The order ticket has the same trade types available on the website. But charting is on a lower level with no tools of any kind and no horizontal capability.


Robinhood vs tastyworks


Although news articles appear on asset profiles, the Robinhood app does not have any streaming video news or on-demand videos.

The tastyworks app is on a different level entirely. In the bottom menu, there is a tastytrade icon that generates a page with streaming videos of tasty’s in-house television network. This section of the app also displays recent trades of tasty employees and customers.


tastyworks vs Robinhood


A chart on the tasty app can be shown horizontally, which is another advantage over Robinhood’s app. But there are no graphing tools at all. The same 4 order types we saw on tasty’s other trading platforms make another appearance here.

Winner: tastyworks


Sixth, Let’s Consider Day Trading


It’s possible to reset a tasty brokerage account that has pattern-day trading status on it. This can be done once every rolling 90 days. To find the necessary online tool to do this, click on My Accounts at the top of the site and select Trading Preferences from the drop-down menu.

Robinhood has a tool to prevent an account from placing trades that would make it a PDT account. It can be located by clicking through these links on the website: Account -> Settings -> Investing.

Shorting: One of Robinhood’s major flaws is that it doesn’t permit short positions. But tastyworks does.

Routing Fees and Rebates: Maker-taker fees are unavailable at both brokerage firms.

Extended Hours: Robinhood and tastyworks provide pre-market and after-hours trading. Robinhood has longer sessions.

Level II Quotes: Available at Robinhood with a $5 monthly Gold subscription. tastyworks does not offer Level II quotes at any price.

Direct-access Routing: Unavailable at both firms.

Winner: Robinhood


Seventh on Our List Is Miscellaneous Services


DRIP Service: Auto dividend reinvesting is available at no charge at both broker-dealers in this competition.

Fractional-Share Trading: Robinhood customers can buy and sell fractions of equities. Traders at tastyworks cannot.

Banking Tools: The Robinhood Cash Card is able to round up purchases and use the spare change to buy fractions of stocks and coins. tastyworks has no such card.

Individual Retirement Accounts: tastyworks has several IRA types, including Beneficiary and SEP accounts.

Initial Public Offerings: Robinhood traders, but not tastyworks clients, can sign up for upcoming equity launches.

Winner: Robinhood


Promotions


tastyworks: $0 commissions + $75 for each friend referred with this referral code.

Robinhood: Get a FREE stock when you open an account with this referral.



Finally, Our Recommendations


Small Accounts: With Robinhood’s fractional-share trading service, we have to endorse it.

Beginners: Robinhood is a little easier to use, although tastytrade would be a useful resource for newbies.

Stock & ETF Trading: tastyworks has closed-end funds and a desktop platform, while Robinhood has fractional-share trading. Take your pick.

Long-Term Investors & Retirement Savers: Because tastyworks is the only one in this survey with IRAs, it gets our recommendation.

Mutual Fund Trading: Although neither brokerage house here has mutual funds, Firstrade has thousands of them.


Robinhood vs tastyworks Verdict


Overall, tastyworks and Robinhood are pretty evenly matched. Although tastyworks does have a $0 equity commission, there are commissions on pretty much everything else, which is definitely not the case at Robinhood.


Updated on 7/2/2022.


About the Author
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.