tastyworks vs TD Ameritrade: Brokerage Compare Review

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The anti-Wall Street group that developed thinkorswim in 1999 also founded tastytrade and tastyworks. In 2009, TDA paid $750 million to purchase thinkorswim. To that end, tastytrade has become the most rapidly expanding online financial network. It’s packed with information, with 50 episodes covering topics from investing basics to sophisticated strategies.

Among their many ventures is the internet brokerage firm tastyworks. Launched in January 2017, its primary goals are to encourage more significant investment activity among the general public and to meet the content and technological needs of the next generation of self-directed investors.

With two decades of combined experience, the management, technology, and content teams behind tastytrade and tastyworks have unmatched knowledge in retail trading to provide the self-directed investor an edge.

tastyworks Overview

As a result of the trading industry’s shortage of engaging media, tastytrade was conceived. From the very beginning, tastytrade set out to revolutionize how people learn about and engage with finance by providing a platform where they could do it in a fun and accessible way. They provide a free, 24-hour service with eight hours of live TV and thousands of hours of on-demand content.

They realized they needed a visual trading platform to back up their on-air content delivery after rapidly expanding to become one of the top online training tools for traders. They provide their clients a comprehensive service that includes both information and affordable rates.

tastyworks

At the end of 2021, IG Group Holdings plc and tastytrade announced the conclusion of a $1 billion cooperation. tastyworks is a division of tastytrade that provides a web-based trading platform for stocks, options, and futures.

tastyworks is a leading online discount broker for trading stocks, futures, and options. In contrast to substantial discount brokerages, it charges a single, low fee for every trade you make. Traders at the highest level can make use of its many advanced features.

Using cutting-edge technology at a minimal cost, tastyworks primarily serves online options traders. Few investors will likely find this platform lacking economic diversity, given that stock, options, and futures trading may still take place there.

Visit tastyworks

There are several ways to access and create an account: via the web browser, mobile apps, or desktop apps. These interfaces give all users the same access to trading, pricing, and account details.

There isn’t much difference between the browser and desktop versions. You will find the trading dashboard quite familiar and straightforward using the live trading option. This software is equipped with a built-in live broadcast of Tastytrade. The trader can keep an eye on everything without leaving the tastyworks interface.

The software provides convenient access to trading options and pricing. The investor may also track the real-time trading activity of other tastyworks users, create portfolios and watchlists, and more.

The trading platform’s support for multiple accounts is an excellent tool for experienced traders. The trader can use the data shown in charts and tables to guide their trading selections.

Both a web-based and a desktop version of tastyworks are accessible to users, with the latter being accessible from any browser. The software works with both the iPhone 6 and Android phones and tablets. In addition to the standard channels, traders may get in touch with tastyworks via several email addresses and a built-in chat system. 

TD Ameritrade Overview

Charles Schwab, a broker that competed with TD Ameritrade, has acquired them. So, they are in the business of providing diverse investment options, albeit ones that aren’t nearly as specialized as those provided by tastyworks.

In addition to stocks, options, ETFs, bonds, mutual funds, futures, FX, and cryptocurrencies, TD Ameritrade provides access to practically every other type of investment instrument imaginable.

As always, TD Ameritrade and Schwab will go above and beyond to ensure that each customer reaches their financial objectives. Together, they provide more than a century’s experience in the financial markets and a history of innovation that helps everyone, from professional traders and advisors to everyday investors. TD Ameritrade is a significant player in the field of online brokerages. They’ve been in business for about half a century. It oversees over 11 million client accounts totaling over $1 trillion in assets. This company was acquired by Charles Schwab in the year 2020. Consider this if you’re attempting to determine where to keep your money and are also considering creating a Schwab account: they’re likely to combine into a single business by 2024.

tdameritrade

A TD Ameritrade account, with all its features and flexibility, is included at no extra cost. The standard online trading platform provides various information, allowing you to comfortably invest regardless of whether you use a desktop computer, tablet, or smartphone. TD Ameritrade also offers its own trading tool, thinkorswim, which may be accessed via your computer or online. This system has extra capabilities that aren’t available on the typical system and downloadable and customizable software.

TD Ameritrade

 

tastyworks vs. TD Ameritrade Service & Feature Comparison

 

Costs

tastyworks is a broker that focuses on serving high-volume traders, particularly those dealing in futures and options. However, investors in stocks and exchange-traded funds (ETFs) will also be pleased to learn that the broker charges no fee, which is standard in the market today.

However, tastyworks’ commissions on other items are significantly lower than TD Ameritrade’s. Take choices, for example. Unlike other brokers, tastyworks only charges a flat amount when you buy and not when you sell. While the market average is about $0.65, tastyworks’ $1 per contract on the buy translates to only $0.50 each round-trip. Other commission-free brokers, such as TD Ameritrade and ThinkorSwim, are omitted here.

tastyworks also allows you to purchase and sell cryptocurrencies for a flat rate of 1%. Nonetheless, it limits this fee to a maximum of $10. If the total amount of your deal is over $1,000, no further fee will be charged. Trading $10,000 at a time results in an effective commission of about 0.1%, on par with the lowest fees charged by the finest cryptocurrency brokers. The commission structure becomes more favorable if you trade many shares at once.

The stock and ETF trading services offered by tastyworks and thinkorswim are both free of charge. Also, all account types can benefit from both platforms’ absence of maintenance and inactivity fees. The two brokers have comparable price lists, but their commission rates vary slightly.

Account Types

tastyworks and TD Ameritrade have all the commonly used account types, including:

  • Individual and joint taxable
  • Traditional individual retirement account (IRA)
  • Roth IRA
  • A simplified employee pension (SEP) IRA
  • Inherited IRA
  • Corporate
  • Trust

Education and Research

tastyworks is geared toward professional traders and focuses less on education and extensive investigation. That’s how it is at tastyworks, and if you’re not a member of the target demographic, you shouldn’t be too bothered.

 

tastyworks’ instructional and planning pieces fall short compared to industry heavyweights like Schwab and Ameritrade. Not only is the stock research not as comprehensive as the big boys, but it also doesn’t offer any other services. However, it does provide a Follow Feed that you can use to keep tabs on other traders and conduct some basic research. Clients may also watch live-streamed films covering a variety of issues that are of interest to professional traders. This allows you to keep up with the latest market trends and participate in them.

If you want to improve your trading skills, TD Ameritrade is where to do it. Suppose you’re interested in becoming a more active investor. In that case, TD Ameritrade is a great way to get your feet wet, learn a ton, and minimize your risk while you get accustomed to the market.

Range of Investments

tastyworks targets widely-traded stocks and employs day trading and other short-term methods. tastyworks provides the following investments:

  • Stocks
  • ETFs
  • Options
  • Futures
  • Futures options
  • Cryptocurrency

Some of these instruments, like stocks and ETFs, are better suited to long-term investments, while others are more akin to short-term trading.

Options contracts can be traded through both TD Ameritrade and tastyworks. When trading options, it is essential to have access to top-notch resources for data analysis, forecasting, testing, backtesting, and experimenting with various outcomes. Check out the following comparison of the features available on the various options trading platforms.

Suppose you’re looking for investment-focused stocks and bonds. In that case, you could do better with a more traditional broker like Ameritrade or Charles Schwab. When it comes to trading and investing, TD Ameritrade can handle it all. Its defining characteristics are the dynamic trading tools and the ability to trade virtually anything. All stocks, ETFs, bonds, mutual funds, futures, FX, and cryptocurrencies are included in this category. Cash management and annuities are also available.

TD Ameritrade

Trading Technology & Mobile Apps

Some engineers at tastyworks formerly worked at TD Ameritrade, where they created the trading platform. Thinkorswim is TD Ameritrade’s online trading program. You may use TD Ameritrade’s options trading tools, such as their basic calculators, to do statistical and ratio analyses, which can aid you in making educated trading selections.

Ameritrade is geared at seasoned traders whether you use it from a desktop computer or a mobile device. The platform prioritizes individualization and self-study above pre-made portfolios.

The desktop version might have a more streamlined design, which may be preferable. You may still keep an eye on your investments with the help of the app, which offers the same statistics and market update features as the desktop version.

TD Ameritrade is considered one of the largest brokerage firms in the industry, giving it the means to maintain a well-developed client support system. Customer assistance for thinkorswim is available via chat, email, and phone.

tastyworks’ services are accessible via mobile apps, desktop software, and web browsers. Curve roll and the trader feed are two examples of features that have been ported over to the app without any loss in functionality. Although, much like thinkorswim, the program is complicated and offers no explanation or assistance. It’s designed for a particular sort of investor, which makes it inconvenient for those who don’t fit that profile.

Visit tastyworks

Customer Service

When compared to large organizations, the customer service provided by smaller businesses is often superior. Neither tastyworks nor Ameritrade offers customer service that you could possibly complain about.

The only difference, in my opinion, is that the staff at tastyworks is a little more knowledgeable. Personal customer service regarding options and futures, as that’s what they specialize in, and all their customer support replies come from the tastyworks team.

Ameritrade is more “professional” in customer service and less personable, which I’m sure some individuals appreciate. Still, I enjoy the more personable, casual nature of tastyworks personnel. They answer your questions more clearly and honestly and will try their best to help you and provide advice. In contrast, TD’s customer service is limited to providing technical assistance and directing you to “professionals” for guidance on any other issues or queries you may have. They haven’t become huge and can afford that family/friend-like service.

 

Other Features

Fractional-Share Trading

Neither tastyworks nor TD Ameritrade allows customers to trade equities or ETFs in fractional shares. tastyworks supports fractional-coin trading with a minimum trade size of $1.

Banking Tools

Only TD Ameritrade provides checks and a Visa debit card with ATM charge reimbursements, no less.

Recurring Purchases of Mutual Funds

With a TD Ameritrade account.

Individual Retirement Accounts

Both firms have IRAs. TD Ameritrade has numerous IRA kinds. The IRA closure charge is also waived. The cost of tastyworks is $60.

DRIP Service

Both investment firms offer this service at no charge.

Initial Public Offerings

Ameritrade is the only broker that provides information on impending stock releases.

TD Ameritrade

My Preference: TD Ameritrade

TD Ameritrade’s interface, accessed through desktop or mobile, is tailored to seasoned traders. The focus of the site is on individualization and self-improvement rather than on pre-packaged portfolios.

Maybe the desktop version has a more streamlined design for your preferences. To keep tabs on your assets, however, you may use the same analytics and market update capabilities on the go with the mobile app.

As one of the largest financial firms in the country, TD Ameritrade has the means to maintain a solid customer service infrastructure. Customers with questions can contact the broker via live chat, email, or telephone.

tastyworks’ offerings may be accessed via mobile apps, desktop software, and web browsers. Features like “curve roll” and “trader feed” are also present on the mobile app, so you won’t miss out on anything. However, like thinkorswim, the service is complicated and offers few instructions. It’s tough to use if you’re not a specific sort of investor because it’s designed for them specifically.

TD Ameritrade is a one-stop shop for all your trading and investment requirements. Its defining characteristics are its active trading tools and capacity to trade almost anything. That covers not just traditional financial instruments but also cryptocurrencies, futures, FX, and exchange-traded funds. There are annuities and other cash-management options available.

TD Ameritrade’s rise to the top of the list of trading tools supplied by major brokerages may be directly attributed to the acquisition of thinkorswim, the industry’s leading active trading platform. Let’s say you’re an experienced trader who’s looking for a conventional brokerage firm that can meet all of your requirements. If so, you should look at TD Ameritrade.

Visit tastyworks

If you want to learn more about trading or improve your skills, TD Ameritrade is a great place to do it. Let’s say you’re interested in expanding your understanding of active stock trading. If so, TD Ameritrade is a great way to learn the ropes, gain experience and minimize your losses as you grow used to an active investment strategy.

tastyworks vs. TD Ameritrade: The Bottom Line

Despite the release of a revamped platform, tastyworks still has a way to go before it can compete with industry giants. However, it allows you to track the trades of professionals and has excellent options and features. Since there is no cost to start an account at either company or no commission to pay, it makes sense.

FAQ

Which one is preferable, tastyworks or TD Ameritrade?

Last but not least, there is no universal solution. Maybe that's why tastyworks is the best choice for those who want to trade futures, options, margins, and stocks. Despite the drawbacks in terms of technical analysis tools and resources, TD Ameritrade is the ideal choice for an investor who wants to put money into stocks and has the opportunity to trade all the other significant assets. Both are excellent businesses, but they serve the different clientele.

Can you trust tastyworks as an investment company?

For highly active traders in derivatives, tastyworks is a great tool. Therefore, its foundation is suitable for fast, high-volume options trading. Newer investors may be enticed by the reduced prices compared to competing providers. However, the service's intricate design is not simple to navigate. There is minimal guidance for mastering its use. In addition, individual aspects aren't highlighted to the same degree.

Do you know if tastyworks is IRA-friendly?

If you are focused on general IRA accounts, mutual funds, or long-term assets, you are better off looking elsewhere.

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