tastyworks vs Tradestation Introduction
If you’re an active trader of stocks, options, futures or cryptocurrencies, you definitely have to
check out tastyworks and TradeStation. These two brokers attract a lot of frequent traders of such
assets who need advanced software. If you want to know which one you should choose, keep reading.
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
|
|
Tradestation
|
$0
|
$14.95
|
$0.50 per contract
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Tastyworks
|
|
|
|
|
|
|
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Tradestation
|
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Promotions
tastyworks: $0 commissions on stocks/ETFs + $75 for each friend referred.
Tradestation:
Get $0 stock/ETF commissions + best trading tools.
Tradable Products
tastyworks clients can buy and sell these investment vehicles:
- Stocks
- Options
- Futures
- Options on futures
- Closed-end and exchange-traded funds
TradeStation offers every product tastyworks does plus these assets:
- Over-the-counter and foreign stocks (tasty customers can only trade on the major US exchanges)
- Fixed-income assets
- Cryptocurrencies
- Mutual funds
Winner: TradeStation
Computer Platforms
tastyworks customers can trade on either the broker’s browser platform or desktop software. Both programs are free to use, and in fact, they are quite similar. The web-based system doesn’t offer very good charting, but the desktop software delivers nearly full-screen charts with technical indicators.
Both programs have similar order tickets. Available order types include limit, market, and stop. The desktop program also has bracket orders.
One really nice feature on both programs is a curve trading mode. In this mode, the trade ticket shows contracts or stock shares in graphical format. These can be dragged along a bell curve of standard deviations for more insight.
TradeStation also has both desktop and browser platforms. Unlike tastyworks, the web-based platform at TradeStation has very good charting. Plus, the software has an order ticket with lots of professional-level orders, such as trailing, OCO, bracket, and OSO. A simulated trading mode makes practicing these orders simple.
The desktop program is even more advanced than its web-based cousin, with very sophisticated charting and many advanced order types. Just in case you don’t find what you’re looking for, an app store sells additional widgets for the platform. Traders who sign up on the TS SELECT commission plan can use the desktop software without paying any commissions.
Winner: TradeStation
Mobile Software
Just like its PC platforms, TradeStation has added simulated trading to its mobile app. This is a great way to practice the software’s many features. They include:
- Horizontal charting with many tools
- Trading matrix, which is similar to Level II quotes
- Hot lists with many categories
- Forex quotes (although trading is not possible)
- Cryptocurrency trading
- Watchlist
tastyworks’s app has a watchlist. In fact, it offers several (so does TradeStation’s). But tastyworks doesn’t provide a practice mode, so you’ll have to learn the software in live mode.
Compared to TradeStation’s app, tasty’s app does not have good charting at all. There is no full-screen mode, for example.
Winner: TradeStation
Day Trading and Swing Trading
Shorting. If you want to short equities, you’ll find a short locate tool at TradeStation. tastyworks doesn’t have one.
Extended Hours. TradeStation has a longer after-hours trading session.
Level 2 Quotes. Only TradeStation customers can see bid and ask numbers at specific market makers.
Direct-access Routing. Same story.
Routing Fees and Rebates. Ditto.
Margin. tastyworks charges 8.00% to 5.00% for margin loans. TradeStation has a wider spread, from 9.50% to 3.50%.
Winner: TradeStation
Option Tools
tastyworks is known for its options tools. All three of its platforms (mobile, browser, and desktop) provide trading in derivatives. There are nine option spreads integrated, and if you’re looking to trade something else, you can create your own multi-leg trade.
TradeStation customers can trade options on all of the broker’s platforms as well. We counted 15 integrated spreads plus a custom mode where it’s possible to create your own trade, up to 4 legs.
The desktop platform offers an independent app for options trading. Called OptionStation Pro, the software is free to use and provides a lot of advanced features, including 3D charts, direct-access routing, and Greek values.
Winner: TradeStation
Other Services
Dividend Reinvestment Program: tastyworks, but not TradeStation, offers a free DRIP plan.
IRAs: Available at both brokerage firms.
Fractional-share Trading: Neither brokerage firm offers whole-dollar investing.
Investment Advice: Same story here.
Winner: tastyworks
Recommendations
Small Accounts: For IRAs, we recommend tastyworks (TradeStation charges an annual fee). For taxable accounts, we suggest either tastyworks or TradeStation on the TS GO commission schedule.
Mutual Fund Investors: TradeStation is it.
Beginners: While we do like tastytrade, the educational branch of tastyworks, TradeStation offers a larger amount of learning materials that are geared towards new investors. For example, TradeStation customers have access to live training sessions and online courses.
Long-Term Investors and Retirement Savers: Toss up. tastyworks doesn’t have an annual IRA fee, but TradeStation has mutual funds.
Stock/ETF Trading: We propose TradeStation on the TS SELECT plan.
Promotions
tastyworks: $0 commissions on stocks/ETFs + $75 for each friend referred.
Tradestation:
Get $0 stock/ETF commissions + best trading tools.
Tradestation vs tastyworks Verdict
Other than IRAs and DRIP service, tastyworks significantly underperforms its rival. This includes
options trading, which tasty is known for. While its software is nicely designed, it just doesn’t
have the sophistication that TradeStation manages to deliver.
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