Launched in 2017, Tastyworks is a relative newcomer in the fintech scene. The online broker has already reached high rankings in Investor’s Business Daily’s Best Online Stock Brokers Lists. Tastyworks beat Interactive Brokers and TD Ameritrade in the overall customer experience category for 2020. As a result, investors are curious about the new platform. Is Tastyworks safe? What fees are involved? Keep reading to learn more about the company and its offerings.
What is Tastyworks?
According to Tastyworks, it's a “new kind of brokerage” designed for the active trader by the people behind the online financial network Tastytrade.
“We believe in do-it-yourself investing. We think controlling your own money can be more rewarding than relying on money managers or robo-advisors who put your portfolio on autopilot,” the company says on its website.
“That’s why tastyworks gives you every edge possible with the technology, rates, and support that help you succeed more easily on your own. We’re as serious about your money as you are, and we work for you who are brave enough to take your finances into your own hands.”
Is Tastyworks a safe broker?
That SIPC membership means “funds are available to meet customer claims up to $500,000, which includes a maximum of $250,000 for cash claims,” Tastyworks says. In addition, the company’s clearing firm, Apex Clearing, provides supplemental coverage “providing protection for securities and cash up to an aggregate of $150 million, subject to maximum limits of $37.5 million for any one customer’s securities and $900,000 for any one customer’s cash.”
Regarding security, Tastyworks employs “industry recognized and adopted high standards in encryption protocols” to protect data. The company designs and deploys “Defensive System Configurations, Security Devices, Sentinels and Real-time Monitoring systems” to protect account privacy.
What fees does Tastyworks charge?
Tastyworks charges per-contract opening commissions — $1 for options on stock and ETFs, $2.50 for options on futures and micro futures, $1.25 for futures, $0.85 for micro futures, and $0.25 for small futures. The company also charges per-contract closing commissions — $1.25 for futures, $0.85 for micro futures, and $0.25 for small futures.
Tastyworks doesn't charge opening or closing commissions for stocks and ETFs. The company doesn't charge closing commissions for options on stocks and ETFs or options on futures and micro futures. Tastyworks said that it's capping the maximum commission customers pay on opening equity option trades to $10 per leg for listed options.