Buying mutual funds
If you’re a mutual fund investor, tastyworks isn’t the broker for you. The company is strictly focused on stocks, options, and futures, at least for the time being.
In addition to the trading commission structure discussed earlier, there are some other tastyworks fees users might face. While there’s an extensive fee schedule listed on the broker’s website, here are some of the most common:
- Outgoing wire transfers (domestic/foreign): $25/$45
- Returned check fee: $30
- Paper statements: $5 per statement
- Paper trade confirmations: $2 each
- IRA closing fee: $60
tastyworks was founded and is currently managed by an executive team that formerly held leadership roles at thinkorswim, which is now TD Ameritrade’s active trading platform. CEO Scott Sheridan co-founded thinkorswim. The rest of the tastyworks/tastytrade team all held executive roles when thinkorswim was still independent.
So, it should come as no surprise that the focus of tastyworks is its high-tech trading platform. The platform offers some very high-tech options trading tools. These aim to make complex options trading as user friendly as possible. tastyworks offers a desktop trading platform (the most powerful and full-featured choice), as well as trading in a web browser and the company’s mobile app.
We’re generally not fans of margin trading, but many investors are. And this is especially true for active traders, which is tastyworks’ core customer base. If you use margin (borrowed money), it’s important to be aware that doing so isn’t free — brokers charge interest, just like you’d expect on any other type of loan. So, a broker with relatively low margin rates can be attractive.
tastyworks’ margin rates are in the middle of the pack — they aren’t particularly cheap or expensive. Like most of its competitors, the rate you pay depends on how much you’ve borrowed:
View more information: https://www.fool.com/the-ascent/buying-stocks/tastyworks-review/