We selected tastytrade because of its competitive pricing on options trades, award-winning options trading platform, excellent customer support, and excellent options-centered educational resources.
tastytrade was founded by two industry veterans, Scott Sheridan and Tom Sosnoff, former Cboe traders, best known for building another award-winning options platform, thinkorswim, which they sold to TD Ameritrade (now owned by Charles Schwab). The two then used their deep knowledge of options trading to create tastytrade in 2017. It offers stocks, futures, exchange-traded funds (ETFs), and cryptocurrencies. Forex trading is now available for customers with tastytrade accounts.
tastytrade has integrated user feedback into its platform to create a highly functional user interface. Its liquidity rating indicator lets traders scour options markets for the best prices. tastytrade has also created analytical tools that go beyond basic options chains and allow users to compare various trades and strategies. The platform even offers backtesting, allowing users to test out their strategies on historical data. Strikes can now be selected based on criteria including delta, percentage OTM, underlying price offset and premium.
tastytrade offers competitive pricing, especially for options trading. They charge $1.00 to open an options contract and $0.00 to close it, with per-trade fees capped at $10, potentially offering significant savings for higher-volume traders. The pricing also compares favorably with most other brokers, who generally charge $0.65 per contract per each side of an options trade, meaning $0.65 to open and then $0.65 to close.
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