It doesn’t matter if you are just learning how to trade stock options or are already using advanced stock options strategies, I strongly recommend that you open an account at tastyworks brokerage. Even if you are just buying stocks for a self directed IRA, account, tastyworks is the best online broker for new or experienced stock traders for many reasons.
Brokerage fees can eat up your profits faster than a lot of traders and investors realize. When I first started, I understood that I had to pay a fee, but I was astonished at how much they added up to after 1 year. I had to pay a fee to open a position, and then pay the same fee again to close it. Its bad enough to pay when are closing a winning trade, but paying money to close a trade that lost you money really stings.
Tastyworks has the lowest fees I’ve ever seen. Let my just start by saying that it costs ZERO TO CLOSE A POSITION! Yep $0.00 dollars. That is really going to help you save money.
You can see above that you will pay only $5.00 to buy stocks and zero in fees when you sell them. You can buy 1 stock or 1,000 (or even more) and you will still only pay $5. I’ve had other brokers require me to buy 100 at a time, or pay a higher fee for an odd lot, but not tastyworks. And in the past I’ve had to pay the same fee again when you close.
I options strategies exclusively, since that is the best way to minimize risk and maximize profit.
To open a position on stock options, it will cost you $1 per contract, but no more than $10 if you are buying multiple contracts. So if you are buying 1 contract, you will pay $1, if you are buying 9 contracts, you will pay $9. If you are going to buy 10 or even 100 contracts, you will only pay $10 for that opening transaction. THEN ZERO TO CLOSE.
If you are trading spreads, then each leg would be considered separate, so the most you would pay would be $20, and the same goes for iron condors, which will have a max commission of $40. And you can still close them for zero commissions, even if you only close one leg at a time or all at once.
Take a look below to see how much tastyworks will save you on commissions, compared to other online brokers. Here is the cost of opening and closing a single put or call, a vertical, and an iron condor with tastyworks, E*TRADE, Fidelity, Interactive Brokers, Schwab, and TD Ameritrade. You can see that tastyworks has the lowest commissions.
Tastyworks vs TD Ameritrade? Winner = tastyworks. Tastyworks vs Interactive Brokers? Winner = tastyworks. When it comes to keeping your money where it belongs, tastyworks brokerage beats the competition.
As you put more and more trades on, the savings becomes even more of an issue. Look at what the cost of 100 trades would be.
And as your account grows, you will put on more trades, and will save even more money on commissions by using tastytrade brokerage. Tastyworks is the best online broker for saving money on commissions when trading stock options.
Tastyworks offers a full line of trading and retirement accounts. You can trade to provide short term income, or maybe you are investing for your future. Either way, tastyworks has you covered.
Individual Margin Account
This is the type of account I have. It is the most flexible trading account available. With a margin account you will be able to utilize option trading strategies that I discuss in this blog.
- Covered and uncovered calls and puts
- Covered and uncovered option spreads
Currently, the minimum required to open a margin account at tastyworks is $2,000.
Individual Cash Account
A cash account does not have the same benefits that a margin account does. In order to make a trade in a cash account, you must have the account funded with enough cash to cover the full trade.
There is no minimum deposit required to open an individual cash account at tastyworks.
Retirement Account – Traditional IRA
This is an account allows contributions of $5,500 per year to earn tax deferred income. Your earnings will grow tax deferred until you withdraw. At that time you will be taxed at your tax rate then.
This is retirement account is for anybody with earned income. You contributions are made with after tax dollars, and withdrawals can be made at anytime, without penalty. Your earnings from this account may be made tax-free and penalty free for certain instances.
Retirement Account – SEP IRA
This is another type of individual retirement account. This account is for self employed and small business owners / employees. In this account your earnings grow tax deferred, and they are taxed at your rate when withdrawal.
Legally established US entities operating under C Corp, S Corp, LLC, and Partnerships can open a Corporate Account at tastyworks.
Available on behalf of revocable or irrevocable trusts. In order to open this account, you must provide a copy of the Trust Certificate when you open the account.
If you live outside of the US, you may still be able to join the tastywork community. Margin and cash accounts are available to some international customers.
Joint – Tenants in Common
This type of trading account has two owners who each own s portion of the accounts value. When one of the account holders passes, their portion is passed on to their estate.
Joint – With Rights of Survivorship (WROS)
This type account has two owners who have equal ownership to the accounts assets. When one owner passes away, the surviving owner has full ownership of the account.
Learn How to Trade Stock Options
Tastyworks was build for people who trade, buy people who trade for a living. You will have the tools necessary to make trades just like the big guys. Besides having the lowest commission rates that I’ve ever seen, there is also no minimum to open a tastyworks trading account. You can open an account with zero money, and fund it a little, or a lot.