After considering the platform, the next most important thing is commissions. High commissions eat into your profits, which you obviously don’t want. We break down both Tastyworks and Interactive Brokers’ commissions below.
Fees and Commissions Comparison
It’s worth mentioning again, the Tastyworks maximum option trades commissions. They set a $10 maximum fee per leg. It doesn’t matter how many options are in the trade. For example, if you trade 50 single-leg puts in a trade, you would only pay $10 in commission versus the $50 that it would be without the maximum in place.
Which Platform Has Better Features?
Knowing how a broker’s platform works is the key to success. You want a platform that performs with ease, offers the speed you need and gives you the features you desire. Finding a platform that is user friendly based on your knowledge while providing the platform you need (mobile, desktop, or online) is important.
Both Interactive Brokers and Tastyworks offer desktop, online, and mobile platforms. The desktop platform for both brokers offers the most features, but in the case of Interactive Brokers is the most complex (hardest to use).
Interactive Brokers’ TraderWorkstation (their desktop version) offers complex trading tools that include screeners and plenty of research. Its web and mobile platforms are easier to use and are good for beginners or slightly experienced traders.
Tastyworks’ platform is a bit simpler, but it has a feature no other platform offers – a social aspect. As a Tastyworks trader, you can follow specific traders and the trades they make. You can copy the trades or just get ideas from the traders’ strategies. They also offer an in-platform video feed that allows you to watch trades in real-time and hear conversations. You can use this information in your own trading strategies too.
Does Tastyworks Have Better Customer Service Than Interactive Brokers?
Interactive Brokers beats out Tastyworks when it comes to customer service only because they offer longer hours. Both Tastyworks and Interactive Brokers offer 24/7 email capabilities, but beyond that, Interactive Brokers offers 24/5 phone and live chat support. Tastyworks customer support is only available Monday through Friday from 9 AM to 5 PM.
Margin Trading – Is it Easier to get a Margin Account with Tastyworks?
Margin trading helps you make bigger trades with less money coming out of your own pocket. It’s a great way to leverage risk and both Tastyworks and Interactive Brokers offer this option; however Interactive Brokers stands out in this area as they offer the lowest margin rates available. Tastyworks, however, makes it simple to sign up for a margin account. You can get set up with an account online in minutes.
Education and Research
Research is crucial to good trades, especially for active traders. Tastyworks offers an incredible opportunity for research and education. They make it informative, yet fun and engaging. Tastyworks also has a sister site, called Tastytrade, that offers all educational material and all Tastyworks traders get to access. On this site, there are live videos and on-demand videos.
Interactive Brokers lacks in the research department. They offer basic educational material from Dow Jones and Thomson Reuters, but nothing spectacular. They do allow third-party integrations, though, which means you can integrate research from the bigger firms into your IB dashboard for easy access.
Which Broker Should you Choose?
No one can tell you which broker to choose – it’s a personal decision. You have to know what you want to trade, how often, what you want to pay, and what features you need.
Both Tastyworks and Interactive Brokers are great platforms. Interactive Brokers has a larger selection of investments, which if you need something beyond what Tastyworks offers, you may need. But Tastyworks offers lower commission rates and great support for options traders.
Interactive Brokers offers the lowest margin rates and a more complex platform, for experienced traders. In the end, it depends on what you need and what you’re willing to pay for the platform to get the features desired.
Read more about Tastyworks in our Tastyworks Review.