Why TastyWorks Brokerage?
The TastyWorks trading platform was created to enable investors use options to improve their cost basis as well as guide them better comprehend reward-to-risk ratios when trading. Tom Sosnoff, who co-founded thinkorswim® which was later sold to TD Ameritrade created TastyWorks, with the goal to empower investors to better manage their nest-eggs. To help investors realize that goal, Tastyworks provides powerful tools, screeners, and extensive education at low costs.
Prior to that, thinkorswim® was the benchmark platform amongst options traders simply because of its lower expenses, effective tools, highly customizable screeners and analytics, and knowledgeable staff. With TastyWorks, it’s obvious that TastyWorks is going to takeover thinkorswim® as the industry standard trading platform serving self-directed, fee-conscious, active traders.
TastyWorks Customer Profile
TastyWorks targets both the beginner and experienced trader/investor by providing a simple and yet powerful user interface. The account minimums are the smallest in the industry, though a $2000 deposit is required for option trading as required by the regulatory bodies. The pricing is low and there is no ticket charge on the option trades that many retail brokers charge with the exception of day trading platforms that require higher account balances with Platform/data fees.
The mantra of tasty works is trade small and trade often which aims to keep risks small and improve predictability by using larger number of occurrences. They have an online education segment where Tom Sosnoff and the team provide content and entertainment every trading day. TastyWorks preaches self-directed investing and not get opinionated by news/press releases and general chatter. They are not fans of robo investing and want the customer to be engaged in the markets and actively manage portfolios. They encourage customers to reduce their cost basis by using short option strategies
TastyWorks is best for:
- Experienced traders and Beginner traders
- Options traders
- Futures traders
- Stock traders
- Self-directed investors
- Investors that like to think out off the box
- No Commission Closing for options
TastyWorks – Trading Costs and Fees
|Stock Trading Cost||$5.00|
|Options Trading Cost||$1 per contract to open
$0 commissions to close
|Option Exercise Fee||$5.00|
|Futures Trading Cost||$1.25 per contract|
|Options on Futures Cost||$2.50 per contract|
|IRA Annual Fee||$0.00|
|IRA Closure Fee||$60.00|
|Account minimums||No minimums, though $2000 is required for margin accounts|
|Margin rate range||5.00% – 8.00%|
TastyWorks Pros and Cons
TastyWorks is an interesting entry that made its entry in the trading world recently. They believe in disruption like they did with the ThinkOrSwim trading platform over a decade ago which was ahead of its time by providing a Direct Access brokerage without platform/data fees and reasonable commission. The creators Tom Sosnoff now plans to revolutionize trading again by using the same playbook this time again. They have redesigned their platform to a modern web application that can be easily accessible anywhere while providing a powerful interface that focuses on creating strategies with one click, with powerful tools like customizable screeners along with extensive back-testing capabilities.
TastyWorks also provides native mobile apps for iOS and an android version is on the way, however their responsive web platform works well on android at this moment. The customer service is top-notch and you get responses from the support usually in a few minutes and the founders too.
Finally, last but not the least Tom Sosnoff is an definitely an entertaining personality who is likable and will speak out on things openly especially when mass media does not address those.
|TastyWorks Pros||TastyWorks Cons|
|Cost: There are no hidden costs like ticket fees that many option traders levy upon customers and also there are no platform/data fees that some futures brokers charge. The trading costs for stocks/options and futures are in the lower quadrant of brokerage costs.|
|Modern Trading Platform: TastyWorks provides a powerful yet simple web based platform that can be accessed from any computer. They are providing native apps for both iOS and Android||Modern Trading Platform: Features an interface that is different than the competitors as it is light on Analyst research and technical indicators|
|Research: Tastyworks provides more quantitative research and no Analyst research. The style of trading they preach is oriented toward volatility based analysis over any guru recommending the stock||Research: TastyWorks does not provide Analyst based research it also is light on extensive charting and technical studies. They lean more on Implied Volatility based trading and reserach|
|Customer Support: TastyWorks provides unparalleled support and your typical responses are in minutes for emails and the founders do respond to general questions/concerns. As expected they provide a 24/7 phone support with trained knowledgeable staff who make sure your concerns are taken care off.||No physical branches|
|Advanced Order Capability: TastyWorks provides the standard option strategies that most brokerages provide including|
• Calls & Naked calls
• Puts & Naked Puts
• Covered calls
• Married Puts
• Collar trades
• Bear call credit spreads
• Bull put credit spreads
• Bull call debit spreads
• Bear put debit spreads
• Jade Lizard
• Iron butterflies
• Iron condors
• Ratio backspreads
|Screeners and Backtesting: Screeners, and backtesting tools are provided in the TastyWorks platform to allow for highly customizable screens and extensive back-testing|
TastyWorks is a great brokerage with a passionate founder who believes in using quantitative analysis with Implied Volatility strategies. The platform is friendly, new and comes with lots of trader education.