tastytrade
- Best for: Active stock and ETF options traders who open multi-contract positions, and futures traders
- What Sets It Apart: $10 commission cap per stock or ETF option leg; $0 to close stock and ETF options; risk analysis and backtesting tools
- Cost: $0 stocks and ETFs; stock and ETF options $1 per contract to open, $10 max per leg, $0 to close, plus $0.10 per contract clearing each way; futures $1 per contract each way; crypto 1% of the order each way (0.75% for Bitcoin and Ether), with a $1 minimum commission that drops to 3% on orders under $33.33
- Features: Stocks, ETFs, options, futures, crypto, and Treasuries; traditional, Roth, and SEP IRAs; options backtesting; no account minimum
- Pros: Low cost on big stock and ETF option orders; strong analysis tools; commission-free T-bills
- Cons: No mutual funds; no commission cap on index options; $75 transfer-out fee
Open tastytrade if you trade stock and ETF options actively and in size, since its $10-per-leg cap and $0 closing commission make large orders far cheaper than at brokers that charge $0.65 a contract both ways. If you mostly buy and hold funds, a full-service broker with mutual funds and bonds will serve you better.
tastytrade is an online broker built for options and futures traders, with a commission cap that makes big stock and ETF option orders cheap and analysis tools for testing a trade before you place it. Buy-and-hold investors get $0 stock and ETF trades here too, but no mutual funds.
Key Features
- $0 stock and ETF trades, fractional shares included
- Stock and ETF options at $1 per contract to open, capped at $10 per leg, and $0 to close, plus a $0.10 clearing fee per contract each way
- Futures at $1 per contract each way, micro futures at $0.75, and options on futures at $1.25
- Crypto at 1% of the order each way, or 0.75% for Bitcoin and Ether, with a $1 minimum commission that drops to 3% on orders under $33.33
- No account minimum, with margin privileges from a $2,000 balance
Pros
- The cap means a 50-contract leg pays the same $10 commission as a 10-contract leg
- Opening and closing 50 contracts of one stock or ETF option costs about $20 in commissions and clearing fees, versus $65 at Schwab‘s $0.65 a contract each way (our math)
- An analysis tab that shows what a trade could gain or lose at different prices, volatility levels, and dates before you place it
- Options backtesting on more than 10 years of market data at no extra cost
- Commission-free Treasury bills online, plus traditional, Roth, and SEP IRAs
Cons
- No mutual funds, and no bonds beyond Treasuries
- No commission cap on index options such as SPX, which pay $1 per contract to open plus a $0.60 exchange fee per contract each way
- $75 to transfer your account out and $5 per option exercise or assignment
- No custodial accounts for kids
tastytrade is worth opening if you trade stock and ETF options actively and in size, or trade futures, where its pricing and analysis tools pay off on every order. Beginners and buy-and-hold investors will get more from a full-service broker with mutual funds and a wider bond menu.
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