tastyworks Review for Options Trading

NavigationTrading Learn tastyworks, Blog

Welcome to another lesson from navigationtrading.com. In this lesson, we want to discuss tastyworks, and give you a full review of their platform.

tastyworks Review Criteria

There are 7 different criteria that we think are most important when evaluating an online options broker:

  1. Commission costs
  2. Customer service
  3. Order entry platform
  4. Monitoring current positions
  5. Charts
  6. Special features
  7. Analysis capabilities

We do have a  “Preferred Brokers” page on our website. We have two different preferred brokers, TD Ameritrade's Thinkorswim and tastyworks. For today’s review, we will focus on Tastyworks.

Commissions

Tastyworks made a splash in the brokerage industry in January, 2017 with their unique commission structure. Below is the cost structure for their platform.

review of tastyworks pricing

The other unique aspect of Tastyworks' commission structure is that they cap their commission. So if you're someone who trades a lot of contracts, you can see there's a couple of examples.

Capped Commissions on tastyworks Order Entry

If you trade 20 single legs, you're capped at $10 opening commission, and of course zero to close. If you're trading verticals which are two legged spreads, $20 would be the cap. And, if you're trading four legged spreads, like an iron condor, you're capped at $40 per trade. So when it comes to trading commissions, Tastyworks is hard to beat!

Rating 5 out of 5 stars

Customer Service

We have been trading on the tastyworks platform since they very first opened, and their customer service is outstanding. You can call them directly, and anyone who answers the phone is going to have a very high level of knowledge when it comes to the different trading strategies that you can trade on the Tastyworks platform.

They are also very responsive by email. I would say the one negative that they have from a customer service standpoint is they don't have an actual chat ability directly from the platform.

Some platforms have a chat function, where you can submit questions or issues, and chat with a customer service representative. Unfortunately, Tastyworks doesn't have that feature. Hopefully at some point in the future, that is one of the features that they include.

Rating 4.5 out of 5 stars

Order Entry

tastyworks has done a great job with this functionality. There are a couple of different ways to enter your orders. You can simply just click on the bid to sell and click on the ask to buy.

The other way you can enter orders is by using the preset spreads available. So, for example, if you're going to trade an iron condor, you can populate the entire spread and then just click and drag the legs to the specific strikes you prefer.

Order Entry Presets

You can also adjust the spread using the buttons below the options chain.

Order Entry

To enter the order, simply click “Review and Send”, and send the order on its way. Very simple!

5 out of 5 Stars

Monitoring Current Positions

If you click on the positions tab, this is how you can monitor your current open positions. I really like the layout of what they've done here. They provide easy access to the price of the stock or symbol that you're trading, the profits that you currently have open, the profits that you've made during the day, the profit and loss percentage (your current percentage of max profit).
Utilizing the

Also displayed by default the Option Greeks Theta and Delta. The platform automatically beta weights your Delta to SPY, to give you an idea of how long or short your portfolio is.

You can expand each symbol to show exactly what trades you have on in each individual symbol, and how many days until that trade expires. So it's very clean and simple, giving you everything you need to monitor your positions.

Rating 5 out of 5 stars

Charts

The charting platform within Tastyworks is very basic. If you're the type of trader who needs a lot of custom indicators and crazy charting capabilities, Tastyworks is probably not for you. At Navigation Trading, we are not big technical analysis traders. We don't believe it actually gives you any type of edge when you're trading. The only thing that we use charting for is to see where the price of a specific symbol has been.

Charts

The charting package does include some indicators, but they are your basic “off-the-shelf” standard indicators. There is no capability to create custom indicators on their platform.

Rating 2 out of 5 stars

Special Features

One of the other cool features that you'll see inside tastyworks, that's not available inside any other platform, is the ability to watch Tastytrade Live. They provide live and archived streaming content from 7am to 3pm Central Time.

tastytrade Live

They also provide a Follow Page, if you want to follow some of the tastytraders and their strategies.

follow page

5 out of 5 stars

Analysis

The last criteria for our Tastyworks review is the Analysis Tab.

If you click the arrow in the upper right hand corder of your screen, you can analyze your current positions.

View Analysis
The trade that I am displaying is a double calendar spread in SPX. And as you can see here, the risk profile and the visual representation of the trade on their analysis tab is essentially worthless.
tastytrade Live

When Tastyworks came out with their analysis tab, I had high hopes because it was the same development group that created the analysis tab on the Thinkorswim platform, so I thought, "Oh, this is going to be great. It's going to be bigger, faster, greater than the Thinkorswim analysis tab." But, unfortunately, they have fallen extremely short.

If the risk profile graphs and the analysis tabs are important to you, then you may need to reconsider, as Tastyworks really falls short on that component. On certain strategies (like the calendar spread I showed you) it doesn't even give you the real representation of what the trade should look like. For certain strategies, it'll give you a decent representation of what the trade looks like but overall, not very good.

Also, if you trade options on futures, the analysis screen does not work.

0 out of 5 stars

Summary: Review of tastyworks Platform

That concludes our tastyworks review.

I hope you found this tastyworks review helpful. We have no affiliation with any broker. We're just giving our honest opinion as we trade on these platforms every day, both Thinkorswim from TD Ameritrade and Tastyworks.

Click the button below to learn more about signing up for your own tastyworks account!

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tastyworks is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts, and does not give financial, tax, or trading advice nor does it make investment recommendations. tastyworks customers are solely responsible for their investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks' systems, services or products.

tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with Navigation Financial, LLC (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Navigation Financial, LLC by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Navigation Financial, LLC or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Navigation Financial, LLC or this website. Navigation Financial, LLC is independent and is not an affiliate of tasty works.

Options are not suitable for all investors as the special risks inherent to options trading my expose investors to potentially rapid and substantial losses. Options trading in a tastyworks account is subject to tastyworks’ review and approval. Please read Characteristics and Risks of Standardized Options before investing in options