Overview of Tastyworks fees and charges
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
|Assets||Fee level||Fee terms|
|US stock fee||Low||Free stock and ETF|
|EURUSD fee||-||Not available|
|US tech fund fee||-||Not available|
|Inactivity fee||Low||No inactivity fee|
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 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.
Tastyworks's trading fees are low.
Stock fees and ETF fees
Tastyworks has low stock trading fees.
Tastyworks's options fees are average.
|US stock index options||$12.5||$5.0||$7.0|
|UK stock index options||-||-||$20.4|
|German stock index options||-||$9.9||$12.1|
Tastyworks's futures fees are low.
|US stock index futures||$12.5||$5.0||$8.5|
|UK stock index futures||-||$27.5||$20.4|
|German stock index futures||-||$8.3||$22.0|
Tastyworks financing rates are .
If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.
|Apple CFD financing rate||-||-||4.3%|
|Vodafone CFD financing rate||-||-||1.7%|
|EURUSD financing rate||-||-||3.7%|
|EURGBP financing rate||-||-||2.3%|
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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.
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 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.
|Withdrawal fee with bank transfer||$45||$0||$0|
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).