So Which Broker is for you? Tastyworks or Robinhood. Please remember that these two brokers are dynamic and constantly update their offerings and platforms with the most advanced technology available. Sometimes there are changes from the time of the review to the time you are reading the review. Always check with the broker’s website for the up to the minute’s features.
Every investor has preferences when it comes to choosing a platform. If you were to claim that all you were doing was trading options, the clear winner would be tastyworks. Their concentration on options gives them an advantage over most brokers.
When trading numerous assets, you’ll need to balance the features to discover which best meets your needs.
- Do you value education and research the most?
- How about a margin account?
- Do you want to minimize your fees?
Both Robinhood and tastyworks are excellent options. On the other hand, first-time investors may benefit more from Robinhood’s simple features and user-friendly interface, while tastyworks could better serve more experienced investors.
A Bit About Robinhood
The free trading site, Robinhood, is not regarded as one of the best options trading platforms (there are some other platforms that you may find targeting more advanced traders). The first stock trading platform to offer commission-free trading, this essential stock mobile trading software quickly rose to prominence. Many novice and intermediate traders are drawn to the site because of the “free” cost approach and the limited functionality it provides, such as risk management tools.
Instead of maintaining an options portfolio, the Robinhood platform is perfect for you if you choose to “gamble” with your trades. Retail and individual traders ready to use Greek risk management to examine their holdings and make trading choices will find better platforms. Due to a lack of risk management measures, free trading may cost you more than you expect. As a platform for buying put and call options, Robinhood is worth looking into.
But this does not imply that Robinhood is good or evil. What works for one person may not work for someone else. If you don’t want to deal with the complexity of powerful brokerage applications but still want to trade stocks and options.
A Bit About tastyworks
tastyworks is an up-and-coming US options trading firm that specializes in options. They are approved by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Australian Securities and Investments Commission (ASIC) for Australian clients, who are all involved in the oversight of the company.
There are several options trading platforms, but tastyworks has one of the finest. Futures trading is also available—discount brokerage founded by ThinkorSwim platform creators and developers and acquired by TD Ameritrade. A specialized trading platform seeks options trading specialists.
Based on implied volatility, the possibility of profit, managing Greeks, etc., the platform is designed to help options traders analyze risk and make decisions. The tastyworks platform is designed with the convenience of use in mind to make quick decisions and act.
Using tastyworks, you can have your job done quickly and affordably. Opening orders for options on stocks and futures are subject to a $10 per leg commission cap. It doesn’t include closing commissions. This was the industry’s first move, along with Tastytrade, which is helping to destabilize the banking industry.
tastyworks is best suited for active options traders looking for advanced tools. tastyworks, the company that created the platform, has contributed some instructional materials to it. Experienced traders are the primary users of this tool.
The tastyworks platform may be accessed in three ways: via the internet, a mobile app, or a desktop application. Features, services, and platforms will be discussed in more detail later in this comparison.
Robinhood Excluded Countries
Brazil, Korea, Iran, Iraq, Syrian Arab Republic, Japan, and the United States of America.
tastyworks Excluded Countries
Brazil, Korea, Iran, Iraq, Syrian Arab Republic, Japan, and the United States of America.
The Goal of Our tastyworks vs. Robinhood Review
Our tastyworks vs. Robinhood comparison includes the latest up-to-date information so you can compare the two apps.
You’ll find much information confusing if you’re new to trading and brokers. Getting into the trading field necessitates skilled assessing abilities and thorough comprehension. As you continue to trade, you’ll better understand all brokerage ideas. First, you must select the correct broker who will always be upfront with you.
You’ll need help to make the best judgments in this fast-paced world of financial markets and trading. An adequately managed direct investment plan has the potential to yield substantial profits. Robinhood and tastyworks are two examples of trading systems that will help you and your money reach new heights. It’s crucial to understand the benefits and disadvantages of Robinhood vs. tastyworks before entrusting your funds to them.
Our Robinhood vs. tastyworks comparison will help you decide if you can trust Robinhood and tastyworks side by side based on their efficacy, pricing, the convenience of use, and customer service.
Our comprehensive Robinhood vs. tastyworks comparison will teach you all you need to know about trading with Robinhood or tastyworks. A qualified agent will be able to increase your initial investments while also providing you with attractive earnings. If you want to make money, you must trade with a broker who understands your investing goals.
There is no sure-fire way to guarantee earnings; therefore, you must thoroughly evaluate your broker before choosing them. It’s a common assumption that all brokers are the same, but this isn’t the case. Initial errors in judgment might jeopardize your money.
Robinhood and tastyworks are two brokers that have made a name for themselves in the broker sector. We’ve brought together a few of the most significant components of Robinhood and tastyworks. We have attempted to break down all the features and prices for your convenience.
Feature chart
| Broker Review | Cost | Investment Products | Tading Tools | Customer Service | Research | Overall Rating |
|---|---|---|---|---|---|---|
| Tastyworks | Excellent | Best | Outstanding | Excellent | Excellent | Excellent |
| Robinhood | Excellent | Better | Better | Better | Better | Best |
Robinhood vs. tastyworks Features & Services Compared
The minimum deposit for Robinhood is $0, whereas the minimum for tastyworks is $250.
Robinhood and tastyworks minimum deposits
The primary reason is that you should only put down the money you can afford. The broker with the lowest deposit option will appeal to you more if you have a limited budget. When speculating on riskier but perhaps more profitable financial products, you should only employ a small percentage of your trading assets. Don’t be frightened off by a more significant minimum deposit; instead, consider the full trading capabilities provided by the trading platform. A higher minimum deposit often means more options for financial assets and research functions on trading platforms.
On Robinhood’s platform, you can trade approximately 5000 financial instruments, whereas, on tastyworks’ platform, you can trade around 5000 financial instruments.
The better the number of financial products available for trading on the Robinhood and tastyworks platforms. Maintaining a diversified portfolio is beneficial because users’ selections will continually change. Trade is all about seizing possible possibilities, and you should never pass up a trading opportunity because of Robinhood or tastyworks’ limits.
Robinhood vs. tastyworks – Business Details
- Robinhood started in 2013 and is based in the United States.
- tastyworks was established in 2014 and is headquartered in Belize.
What is the minimum deposit for tastyworks or Robinhood?
- Robinhood requires a minimum deposit of $0.
- For tastyworks, a $250 deposit is required.
A lesser minimum deposit may be advantageous depending on your needs. Both Robinhood and tastyworks are exceptional options if you are skilled with forex trading but want a change.
Robinhood vs. tastyworks – Regulation And Licensing
- Robinhood is regulated by the FCA and Financial Supervision Commission (FSC).
- tastyworks is regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), and Dubai Financial Services Authority (DFSA).
Both Robinhood and tastyworks have robust regulations to ensure honest trading on their respective platforms. They provide industry-standard secure socket layers for information encryption (SSL).
According to their privacy rules, customer information is never shared with other organizations or persons.
What Languages Do Robinhood And tastyworks Support?
Comparing online brokers to locate the ideal trading partner requires being able to speak entirely with your trading broker. This is a critical component of forex trading success, not just for help but also to ensure that you understand everything on their website and within their program.
Is tastyworks Customer Service Better Than Robinhood?
Customer service at Robinhood is a tad lackluster. You are asked a series of questions online to see whether they can answer your query using their knowledge base. If you can’t get your query addressed, you can write an email, but they don’t offer phone assistance.
Tastyworks has a phone number you may call during regular business hours, which are Monday through Friday from 9 a.m. to 5 p.m. You may also submit an email with your inquiries 24 hours a day, 7 days a week.
Compare Robinhood vs. tastyworks Commission And Fees
Online broker platforms like Robinhood and tastyworks exist, and many online brokerages charge cheaper costs than traditional ones. The reason for this is that internet trading platform firms are more scalable. In other words, the quantity of customers an online broker has little bearing on their performance.
However, this does not imply that online brokers do not charge any costs. To make money, they charge varying amounts for various services. For this goal, there are primarily three sorts of penalties.
Trading fees are the first type of payment to be aware of. When you conduct a legitimate trade, such as buying a stock or an ETF, trading costs are imposed. In such instances, you are paying a spread, a financing rate, or a commission. The types of trading fees and pricing differ from one broker to another.
Commissions might be fixed or based on the volume of trades. On the other hand, a spread is a difference in price between purchasing and selling. You’ll be charged funding or overnight fees when you keep a leveraged position open for more than a day.
Compared to other online brokers, neither Robinhood nor tastyworks impose hefty fees. Other agents either do not charge a broker fee or a reduced cost for procedures they charge for. This is advantageous for people who frequently trade monthly or daily.
Non-trading costs charged by Robinhood and tastyworks, on the other hand, are rather hefty. As a result, non-trading actions in your trading account, such as withdrawals and deposits, will cost you extra. These have nothing to do with the buying and sale of resources.
Commission chart
| COMMISSIONS | TASTYWORKS | ROBINHOOD |
|---|---|---|
| Stock & ETF and others | $0 | $0 |
| Options | $1/contract (opening only) | $0 |
| Crypto | 1% | $0 |
| Mutual Fund | N/A | N/A |
| Transfer Fee | $75 | $75 |
| Maintenance Fee | $0 | $0 |
Education and Research
Any investor requires access to thorough research and knowledge to trade assets, especially options. If you’re a frequent trader, you’ll need quick access to data to make informed decisions. In terms of research, Tastyworks comes out on top. Unless you have a Robinhood Gold margin account, in which case you gain access to Morningstar Research and Nasdaq Reports, Robinhood’s education is restricted.
tastyworks, on the other hand, is a very different tale. It broadcasts live on its video network during market hours, tastytrade. Futures and options trading are frequent topics of conversation. Articles on the same themes may also be found on tastytrade.
tastyworks vs. Robinhood: Account types available
tastyworks is the clear victor among these two regarding account kinds. Standard, taxable, individual brokerage accounts are the only account types supported by Robinhood. You’ll have to search elsewhere if you want to register a joint account with someone else or save for your retirement.
Individual and combined taxable brokerage accounts are available via tastyworks. Traditional, Roth, and SEP IRAs, as well as business accounts, are all available. While UGMA/UTMA custodial accounts are not currently supported, the platform does offer trusts for people who want to invest on behalf of a child.
Both allow for margin trading but in distinct ways. Robinhood only permits Gold customers ($5 per month) to trade on margin, but it provides the lowest margin interest rate among major brokerages at 2.5 percent. To utilize margin with Tastyworks, on the other hand, you don’t have to pay a membership fee, but charges run from 5% to 8% depending on your balance, so that it may be substantially more expensive.
The Important Stuff – Platforms and Mobile Apps & Trading
Which Platform Has Better Features?
Understanding the characteristics of a platform is critical to your success. For example, active traders want quickness and efficiency. The difference between a prosperous trade and a loss might be as little as three seconds in price. Consider what you want from a platform: speed, user-friendliness, research, or a desktop application.
Robinhood supports mobile and internet platforms. In contrast, Tastyworks offers a desktop version in addition to internet and mobile platforms. Even for beginners, both have excellent user-friendly features.
Robinhood’s interface offers alert customization, comprehensive charting, and a continuous news feed to assist you in making rapid trading decisions.
tastyworks’ platform is designed for options traders, but investors may also use it in any asset class.
Mobile Platforms
You can still trade at Robinhood and tastyworks if you’ve switched from your home computer to a mobile device. Both applications are easy to use and don’t have any sophisticated features. In both applications, charting is a complete nightmare. Furthermore, neither app supports mobile check deposits. tastytrade, a sibling firm of tastyworks, does supply videos.
Robinhood’s trade ticket is the same one that appears on its computing platform. This means it has multiple order types. Security profiles are also the same.
Bracket orders, available on tasty’s PC platform, are unavailable on the app. Stop and limit orders, among others, are available; other valuable features are a watchlist, notifications, and a summary of recent transactions by tastyworks clients. However, there is no charting, and there are no news items.
Options Trading
Options trading has been a long-term goal for Robinhood. It has finally succeeded. In addition to calls and puts, we discovered three multi-leg strategies (straddles, strangles, and iron condors) while testing its software. Although we didn’t find Robinhood’s system challenging to use, its mobile app and browser system included standard option chains.
More multi-leg strategies (approximately 9) are available from tastyworks and may be traded on any of the company’s platforms. A graphical manner of derivative searching is one of the features that tastyworks provides in this area.
Other Investment Vehicles?
Robinhood is a low-cost broker, so it doesn’t provide a wide range of investing options. Bonds, mutual funds, and futures are not available. tastyworks does not provide bonds or mutual funds but offers futures trading. Cryptocurrencies are now available through both brokers.
Margin & Leverage Trading
Buying on margin is a terrific strategy to increase the size of your trades. The monthly fee for a borrowing account with Robinhood is $10, and there are no interest costs. Although interest is charged on debit balances, tastyworks does not impose a monthly fee.
tastyworks provides 4:1 leverage on long stock investments for maintenance. The amount of maintenance required varies for each stock at Robinhood. Initial is 2:1 at both brokers.
To Sum It Up
These brokers are significantly different; in most cases, only one will meet your demands, with larger accounts favoring Tastyworks over Robinhood in the long term. These brokerages are terrific choices, but they cater to different sorts of active investors.
Robinhood is perfect for investors seeking a simple way to purchase, sell, and hold stocks and cryptocurrencies. Tastyworks, on the other hand, has many features that appeal to more experienced investors and traders, so it might not be the most excellent option for beginner investors.
Suppose you are interested in options trading, futures trading, or other more advanced investing styles. In that case, Robinhood may not be a better fit for you, as they have a much better mobile interface than tastyworks and the same commission-free stock trading, deposits, and withdrawals.
Finally, we favor tastyworks since they provide commission-free stock trades similar to Robinhood and the ability to utilize leverage, trade naked (uncovered) options and futures, and trade several items that Robinhood does not yet enable you to trade.
FAQs
What are the available funding methods?
At tastyworks and Robinhood, you can fund your account in four ways: ACH, Wire, Check, and ACAT. It would be best if you waited for your account to be open before funding your account.
How do I contact customer support?
You can contact the support team from the app or website anytime. Both can help you by phone or email 24 hours a day, 7 days a week.
Why are there so many security measures at login?
To help ensure the safety of your account, both brokers added additional security measures when attempting to sign in to your account from a new device.