feed linkedin-square facebook-square twitter-square

tastyworks fees explained

Dec 2018
Compare to best alternative broker

Overview of tastyworks fees and charges

tastyworks logo

It's safe to say that tastyworks's fees are low in general. They either don't charge a brokerage fee for things other brokers do charge for, or they only charge a small amount. This means that you can use tastyworks even in case you trade frequently like multiple times a week or daily.

Here's a high level overview of tastyworks's fees

tastyworks Fees snapshot
Assets Fee level Fee terms
US stock fee Low $5for opening and the closing is free
EURUSD fee - Not available
US tech fund fee - Not available
Inactivity fee Low No inactivity fee

tastyworks fees
tastyworks fees explained

Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely due to the fact that online brokerages' businesses can be much better scaled: From a purely technical standpoint it doesn't make that much of a difference for them if they have 100 or 5000 clients.

This is not to say however that they don't have any fees at all. They make money by charging you at various events for various rates. Usually you need to keep an eye on these 3 types of fees:

  • Trading fees - these are brokerage fees that you pay when you actually do a trade, i.e. buying an Apple stock or an ETF. What you pay is either a commission, a spread or financing rate. Some brokers apply all of these.
    • A commission is either based on the traded volume or it is fixed.
    • A spread is the difference between the buy price and the sell price
    • Financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
  • Non-trading fees. These occur related to some operations you make in your account, i.e. depositing money to your account, withdrawing money from it or not trading for an extended amount of time.

We compare tastyworks fees with its closest competitors, DEGIRO and Interactive Brokers.

tastyworks fees
tastyworks trading fees

tastyworks's trading fees are low which makes it suitable for you even if you trade often (i.e. multiple times a week).

Let's break down the trading fees into the different asset classes available at tastyworks.

Trading fees

tastyworks's trading fees are low.

Stock fees and ETF fees

tastyworks has low stock trading fees.

Stock fees of a $2,000 trade
tastyworks DEGIRO Interactive Brokers
USA $2.5 $0.6 $1.0
UK - $2.4 $8.7
Germany - $5.7 $4.6

Options fees

tastyworks's options fees are low.

Stock index options fees of 10 contracts
tastyworks DEGIRO Interactive Brokers
USA $5.0 $6.5 $7.0
UK - - $24.7
Germany - $10.3 $19.4

Futures fees

tastyworks's futures fees are low.

Stock index futures fee of 10 contracts
tastyworks DEGIRO Interactive Brokers
USA $12.5 $6.5 $8.5
UK - $30.2 $24.7
Germany - $10.3 $22.8

Financing rates

tastyworks financing rates are high.

If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.

tastyworks yearly financing rates
tastyworks DEGIRO Interactive Brokers
Apple financing rate 8.0% 4.3% 5.8%
Vodafone financing rate - 2.5% 3.9%
EURUSD financing rate - - 4.9%
EURGBP financing rate - - 3.3%

tastyworks fees
tastyworks non-trading fees

When it comes to looking at all the non-trading fees tastyworks is an average broker. This means that some of the non-trading fees are high, but the others are low or not charged at all.

Non-trading fees include various brokerage fees and charges at tastyworks that you pay not related to buying and selling assets. Among some others, typical non trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.

A high level overview of how tastyworks stacks up in non-trading fees
tastyworks DEGIRO Interactive Brokers
Withdrawal fee $45 $0 $0
Deposit fee 0 0 0
Inactivity fee No No Yes
Account fee No No No

tastyworks fees
tastyworks deposit fee

Deposit fees are applied when you send money to your trading account from your bank account. Usually brokers don't charge money for that and tastyworks is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods tastyworks offers.

tastyworks deposit methods
tastyworks DEGIRO Interactive Brokers
Bank transfer Yes Yes Yes
Credit/Debit card No No No
Electronic wallets No Yes No
Deposit fee 0 0 0

tastyworks fees
tastyworks withdrawal fee

Unfortunately, quite like the majority of the online brokers we have reviewed tastyworks does charge a withdrawal fee of $45 for the bank transfer. This means that you need to pay this amount of money when you transfer your money back to your bank account. It's up to you to decide whether this is a high amount or not as it's dependent mostly on the size of the transferred amount.

tastyworks withdrawal fees and options compared
tastyworks DEGIRO Interactive Brokers
Bank transfer Yes Yes Yes
Credit/Debit card No No No
Electronic wallets No Yes No
Withdrawal fee $45 $0 $0

tastyworks fees
tastyworks inactivity fee

tastyworks does not apply an inactivity fee which is great because your account will not be charged even if you do not trade for a longer time period (months or years).

AUTHOR

Gergely Korpos
Gergely Korpos
Co-founder, CPO
Gergely's aim is to bring more clarity into personal investing. He has 10 years of experience in financial markets with GE Money, KPMG and MOL. He concluded thousands of trades as a commodity trader and financial portfolio manager
Follow Brokerchooser on Twitter

Share

Comments