Tastyworks

Tastyworks, rebranded as tastytrade, is an online brokerage firm established for the self-directed retail investor, with a strong focus on options and futures trading. The company was founded in 2017 by the same team that created thinkorswim, which includes Tom Sosnoff and Scott Sheridan. Their journey as business partners spans nearly four decades, starting as traders on the floor of the Chicago Board Options Exchange (CBOE). Before tastytrade, they founded thinkorswim in 1999, which was later acquired by TD Ameritrade for $750 million in 2009. Following the sale, Sosnoff launched the financial content network tastytrade (now tastylive), and Sheridan established the brokerage firm tastyworks to provide a platform for the network's followers.

The firm primarily serves active traders who are interested in derivatives like options and futures. Its business model centers on generating revenue through trading commissions. While stock and ETF trades are commission-free, the company charges fees for opening options and futures contracts, with a pricing structure that benefits high-volume traders. For instance, options trades cost $1 per contract to open and are free to close, with a $10 cap per leg. The company does not charge inactivity or monthly account fees and has no account minimums. In 2021, tastytrade, Inc., the parent company of tastyworks, was acquired by IG Group in a landmark $1 billion deal, though the management teams remained in place. As part of a rebranding effort in February 2023, the brokerage tastyworks adopted the name tastytrade, and its affiliated content network became tastylive.

The tastytrade platform is available as a desktop client, a web-based version, and a mobile application. It is engineered for speed and is particularly suited for advanced traders engaging in complex options strategies. Key features include curve analysis, quick roll functionality for options positions, and the ability to set percent-of-profit limit orders. The platform also integrates a live video feed from its educational arm, tastylive, providing traders with real-time market commentary and trade ideas. While the platform supports trading in stocks, ETFs, options, futures, and cryptocurrencies, it does not offer mutual funds, bonds, or forex trading. The platform is designed for active management and provides tools for analyzing portfolio statistics such as theta, delta, and buying power. The company is regulated by the U.S. Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA).

Keywords: online brokerage, options trading, futures trading, active traders, retail investors, Tom Sosnoff, Scott Sheridan, thinkorswim, tastytrade, IG Group, commission-free trading, trading platform, derivatives, CBOE, financial education, risk analysis, mobile trading, equity trading, crypto trading, trading tools