tastytrade

This is where tastytrade earns its reputation. The headline numbers:

• Stocks & ETFs: $0 commission to open and close
• Fractional shares: $0 commission
• Stock & ETF options: $1 per contract to open, $0 to close — capped at $10 per leg
• Broad-based index options (SPX, NDX, etc.): $1 per contract to open, $0 to close
• Futures: $1 per contract each way ($2 round-trip)
• Micro futures: $0.75 per contract each way ($1.50 round-trip)
• Options on futures: $1.25 per contract each way
• Options on micro futures: $0.75 per contract each way
• Cryptocurrency: $0 commission (but a 0.50–0.75% spread markup through Zero Hash)
• Forex: $0 commission (spread-based, via affiliate tastyfx)

That $10 per leg cap on equity options is the killer feature. If you're trading 20- or 50-lot spreads, you're paying a flat $10 instead of $20 or $50. For high-volume options traders, this adds up to massive savings compared to Schwab ($0.65/contract, no cap) or Fidelity ($0.65/contract, no cap).

Closing options trades are free — every time. That's unusual and genuinely valuable.

The hidden costs to budget for:

• Clearing fee of ~$0.10 per contract on options (pass-through)
• FINRA TAF: $0.000195 per share on stock sales (capped at $9.79)
• Futures clearing: $0.30 per contract plus NFA and exchange fees
• Exercise/assignment fee: $5 per leg
• Warrants: $20 per transaction
• SPX exchange fee: $0.65 per contract; NDX: $0.18 per contract

Account fees: None. No maintenance fees, no inactivity fees, no platform fees, no data fees. Zero.

Account minimums: None for cash accounts. Margin privileges require $2,000. Portfolio margin requires $175,000 to activate ($150,000 to maintain).

Margin rates (as of January 2026):

• $0–$24,999: 11.00%
• $25,000–$49,999: 10.50%
• $50,000–$99,999: 10.00%
• $100,000–$249,999: 9.50%
• $250,000–$499,999: 9.00%
• $500,000–$999,999: 8.50%
• $1,000,000+: 8.00%

These margin rates are high compared to Interactive Brokers (which starts around 6.83%), so if you're a heavy margin borrower, IBKR is the better deal.

Cash interest: Essentially 0%. tastytrade pays virtually nothing on uninvested cash. This is a real drawback if you keep significant cash balances between trades.

tastytrade covers the essentials:

• Individual accounts (cash, margin, or portfolio margin)
• Traditional IRA
• Roth IRA
• SEP-IRA (for self-employed / small business owners)
• Rollover IRA
• Joint accounts (cash, margin, or portfolio margin)
• Entity/Trust accounts (US residents only, cash, margin, or portfolio margin)

All IRAs are provisioned as limited margin accounts by default, which means eligible investors can trade defined-risk options spreads and futures inside their retirement accounts. That's a big deal — many brokers restrict IRA options trading far more aggressively.

As for what you can actually trade:

• Stocks & ETFs (including fractional shares)
• Options on stocks, ETFs, and broad-based indexes
• Futures & micro futures
• Options on futures
• Cryptocurrency (20+ assets including BTC, ETH, XRP via Zero Hash)
• Forex (via affiliate tastyfx)

Margin accounts come in three tiers — "The Works" (full access including uncovered options and futures), "Basic" (no uncovered calls or futures), and "Limited" (defined-risk only). Portfolio margin is available for accounts meeting the $175K threshold.

One nice touch: you can fund your account with stablecoins (USDC, USDT, PYUSD, RLUSD). Not many brokers offer that.

The good stuff:

• Options pricing is genuinely cheap — the $10/leg cap and free closing trades make tastytrade one of the cheapest options brokers for active traders, full stop
• Platform is purpose-built for derivatives — the desktop app, web platform, and mobile app all focus on options chain analysis, probability tools, and multi-leg trade construction
• Award-winning — ranked #1 in options trading by multiple outlets in 2025 and 2026, including Investopedia, NerdWallet, and Barron's
• Open API — full read/write API access for algorithmic traders and custom integrations, which is uncommon outside Interactive Brokers
• Education is exceptional — free courses from beginner to advanced, built by the tastylive media team who genuinely know how to teach
• No platform or data fees — everything is included
• Crypto alongside traditional assets — you own actual coins, not just price exposure, with competitive 0.50–0.75% spreads

The not-so-good:

• Zero interest on cash — in a world where Fidelity pays 4%+ on idle cash and Schwab offers competitive money market sweeps, tastytrade paying essentially nothing is painful
• Margin rates are high — 8–11% when IBKR charges under 7%. If you borrow heavily on margin, you'll pay for it
• No banking features — no checking, no debit card, no bill pay. This is a trading platform, not a financial hub
• No robo-advisor or managed accounts — you're on your own. Great if you want control, not great if you want guidance
• No mutual funds or bonds — the product shelf is focused on derivatives, stocks, ETFs, crypto, and forex. Traditional fixed-income investors should look elsewhere
• No 529 plans — families saving for college need a different broker
• Research tools are decent but not Fidelity/Schwab-level — you won't find the same depth of fundamental analysis or third-party research reports

tastytrade is perfect for:

• Active options traders who want the cheapest per-contract pricing, especially on high-volume legs. The $10 cap is unbeatable.
• Futures traders looking for low commissions and a platform that treats futures as first-class citizens
• Self-directed traders who don't need hand-holding and want a fast, focused platform
• Traders who want options in their IRA — the limited margin provision in retirement accounts is more permissive than many competitors
• API-driven traders building custom tools or bots

tastytrade is NOT for:

• Buy-and-hold investors who want interest on idle cash, mutual funds, bonds, and a full-service ecosystem. Fidelity or Schwab will serve you far better.
• Margin-heavy stock traders — those rates are rough compared to IBKR
• Beginners who want guidance — there's no robo-advisor, no managed portfolios, no financial planning tools
• Families needing 529 plans or custodial accounts
• Income investors focused on bonds, CDs, or money market funds — the product range simply doesn't cover it

The obvious comparisons:

vs. Interactive Brokers: IBKR is the other serious derivatives broker. IBKR wins on margin rates (6.83% vs. 11%), international markets, and product breadth. But tastytrade wins on options pricing (that $10 cap and free closes) and platform usability. IBKR's platform has a steeper learning curve. If you're purely an options trader in the US, tastytrade is probably cheaper. If you need global access or cheap margin, go IBKR.

vs. Schwab/thinkorswim: Schwab charges $0.65/contract with no cap and no free closes. For a 20-lot spread, that's $26 at Schwab vs. $10 at tastytrade. thinkorswim is a fantastic platform, but tastytrade's pricing wins for high-volume options traders. Schwab also offers banking, mutual funds, research, and 4%+ on idle cash — the full-service package tastytrade lacks.

vs. Robinhood: Robinhood is free on options too, but the execution quality and platform depth aren't in the same league. tastytrade is for serious traders; Robinhood is for casual ones. Robinhood does pay better interest on cash (with Gold).

vs. Fidelity: Fidelity charges $0.65/contract, offers world-class research, banking, excellent cash rates, and mutual funds. It's the better all-around broker. But for a dedicated options trading account? tastytrade is cheaper and more focused.

The bottom line: tastytrade doesn't try to compete on breadth. It competes on depth — specifically, depth in derivatives trading at the lowest possible cost.