tastytrade review
tastytrade is a Chicago-based US brokerage founded in 2011, originally operating as tastyworks before rebranding to tastytrade in 2023. UK-listed IG Group acquired the company in January 2021 for roughly $1 billion. As a US-regulated broker-dealer (tastytrade, Inc., a FINRA and SIPC member), it does not and cannot offer retail CFDs, which are prohibited for US retail clients under US securities law. Its actual product set is options, futures and micro-futures, stocks/ETFs, and, more recently, prediction-market event contracts, alongside a smaller crypto offering run through a third-party custodian and a spot-forex product run through a separate, CFTC-regulated introducing-broker relationship. Pricing is built around simple per-contract options fees rather than spreads. It is positioned squarely at active derivatives traders rather than passive investors.
tastytrade key facts
- Website: www.tastytrade.com
- Category: US options/futures/stock brokerage
- Founded: 2011 (as tastyworks; rebranded tastytrade in 2023)
- Headquarters: Chicago, Illinois, US
- Regulation: FINRA member broker-dealer, SIPC member (tastytrade, Inc.); NFA member for futures
- Ownership: Owned by IG Group (LSE-listed) since Jan 2021 acquisition, ~$1B
- Platforms: Desktop, web, mobile (iOS/Android), API
- Core products: Options, futures/micro-futures, stocks/ETFs, prediction markets; no CFDs
- Account minimum: $0
- FYI Score: 91.9/100 (ranked #18 of the 136 CFD brokers we track)
Regulation & licences
- tastytrade, Inc. is the broker-dealer, a FINRA member and SIPC member (protection up to $500,000 per account) for stock, ETF and options accounts.
- Futures and prediction-market event-contract accounts are cleared and segregated through Apex Clearing Corporation and are explicitly not protected by SIPC, a distinction the firm discloses directly.
- Crypto trading is custodied and executed through a third party, Zero Hash LLC, rather than by tastytrade itself.
- Spot forex is offered through tastyfx, LLC, a separate, CFTC-registered retail foreign exchange dealer and NFA member; tastytrade acts only as an introducing broker, and tastyfx is compensated via a hedging arrangement with IG US Holdings, Inc. rather than commissions. As a US retail broker-dealer, tastytrade does not and cannot offer retail CFDs, which are barred for US retail clients under US securities law.
Spreads & fees
- Stocks, ETFs and fractional shares trade commission-free.
- Options: $1 per contract to open (capped at $10 per leg), $0 to close, for both equity/ETF and broad-based index options.
- Futures: $1 per contract; micro futures: $0.75 per contract (both open and close). Options on futures: $1.25 per contract; options on micro futures: $0.75 per contract.
- Crypto trades carry no explicit commission but include a 50-75bps markup/markdown built into the price, of which tastytrade keeps roughly 65%. No account minimum or inactivity/annual fee applies, though a $75 outgoing transfer (ACAT) fee and a $60 IRA termination fee are charged, and interest paid on uninvested cash is very low.
Platforms & tools
- Desktop (Windows/Mac), web and mobile (iOS/Android) platforms, plus API access for programmatic trading.
- A strategy builder with 10+ preset options strategies and a visual risk-analysis view.
- An options backtesting tool covering over 10 years of historical data.
- Tight integration with tastylive, the company's affiliated market-commentary and education network.
Markets & instruments
- Stocks, ETFs and fractional shares; equity, index, futures and micro-futures options; futures and micro futures contracts.
- Prediction markets: yes/no event contracts across five categories (commodities, crypto, US economics, international economics, financials), offered through Apex and settling at $1.00 or $0 per contract.
- 17 cryptocurrencies, executed and custodied via Zero Hash rather than tastytrade directly.
- Spot forex via the separate tastyfx introducing-broker relationship. Does not offer CFDs, mutual funds, or robo-advisory products.
Account types
- Standard individual and joint brokerage accounts with a $0 minimum.
- IRA retirement accounts are supported (a $60 IRA termination fee applies on closure).
- Futures and event-contract sub-accounts are cleared separately through Apex Clearing and are not SIPC-protected.
- No custodial or minor accounts (no 529 plans, no UTMA/UGMA), a gap relative to full-service US brokers.
Markets
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Platforms
tastytrade desktop, tastytrade web, tastytrade mobile
Who tastytrade is for
Suits US-based active options and futures traders who want transparent per-contract pricing and dedicated derivatives tools (strategy builder, backtester). Not a fit for buy-and-hold investors wanting mutual funds or robo-advice, for anyone wanting custodial/minor accounts, or for non-US residents, since it is a domestic US brokerage rather than an internationally licensed multi-asset broker.
Pros
- Cleanly US-regulated with no offshore entities in its structure: a FINRA/SIPC broker-dealer for securities, with clearly disclosed, separate regulated entities (Apex, Zero Hash, tastyfx/NFA) for futures, crypto and forex rather than blending them under one umbrella.
- Simple, transparent per-contract options pricing, including free closing trades and a $10-per-leg cap, frequently cited by reviewers as trader-friendly.
- $0 account minimum and no inactivity fee.
- Backed by IG Group (LSE-listed) since 2021, giving it larger-company financial backing than a standalone brokerage, plus tight integration with the tastylive education/commentary network.
Cons
- No retail CFDs, and a narrower non-derivatives product set than international multi-asset brokers: no mutual funds, no robo-advisory, and forex/crypto are run through separate third-party entities rather than tastytrade itself.
- No custodial or minor accounts (529, UTMA/UGMA), a common use case at full-service US brokers that tastytrade doesn't serve.
- Interest paid on uninvested cash is very low, a real drag for traders holding balances between trades.
- US-domestic only: as a FINRA/SEC-regulated broker-dealer, its core brokerage service is not available to non-US retail clients in the way an internationally licensed CFD broker would be.
tastytrade FAQ
Is tastytrade the same company as tastyworks?
Yes. The brokerage operated as tastyworks from its 2011 founding until a 2023 rebrand to tastytrade, following IG Group's acquisition of the company in January 2021 for roughly $1 billion.
Does tastytrade offer CFDs?
No. As a US FINRA/SEC-regulated broker-dealer, tastytrade cannot offer retail CFDs, which are not available to US retail clients under US securities law. Its core products are options, futures, stocks/ETFs and, more recently, prediction-market event contracts.
Is tastytrade regulated?
tastytrade, Inc. is a FINRA member broker-dealer and SIPC member (protection up to $500,000 per account) for securities. Futures and event-contract accounts are cleared through Apex Clearing and are not SIPC-protected. Its crypto product runs through Zero Hash, and its spot forex product runs through a separate CFTC-registered, NFA-member entity, tastyfx, LLC.
Who owns tastytrade?
IG Group, the UK-listed (London Stock Exchange, FTSE 100) trading and investing group, acquired tastytrade (then tastyworks) in January 2021 for approximately $1 billion.
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