Update 10/1/2020: I have since closed my TastWorks account. They were eating me up on fees slow fills with bad prints through APEX. The brokerage is good for people just learning how to trade options, but it is not good for serious traders that put on a lot of trades with big money.

I left Interactive Brokers in February 2020 and moved the money I had in that account to Tastyworks. Fast forward 5 months to July 2020.

So far TastyWorks is just meh. I will give them credit that they are a very responsive broker. I had an issue with the install of the software. It was a technical issue with java and they responded quickly with a fix.

The platform itself is very user friendly for options trading. It is a fairly new software so it lacks the features of their parent software Think or Swim. The creator of Tastyworks was the creator of Think or Swim. They are worlds apart. I am assuming this is by design as it ties into their teaching platform.

It is obvious TastyWorks is the brainchild of Tom Sossnoff. If you watch their show, you can tell he is the boss and comes off as a control freak. He gets all giddy when a new feature is added to the platform. I can respect that. It also seems like the software is made for the way he trades. I neither love it nor hate it, I just think it’s meh. Compared to Think or Swim, it is like Tastyworks is made for kindergartners and Think or Swim was made for College Students. In other words, A Barbie Pink Glam Vehicle versus a Tesla.

The MAJOR problem I have with TastyWorks is that they go through APEX clearing and also skim money from your trades to pay themselves. This is in their terms of service so I cannot fault them for skimming money. What I do fault them for is using APEX. If you are going to day trade or trade serious money then APEX is not the clearinghouse you want. They are SLOWWWWWW with their fills. This is a known issue and a quick internet search will relate to this.

I tested this by putting on the exact same liquid trades on both TastyWorks and my Etrade accounts. Etrade filled immediately and Tastyworks sat for a good 10 minutes before the trades filled. This is not acceptable for day trading or when you need to get out of a trade that is moving quickly against you.

I have also had an issue that when you set stops at market, their fill is not the “Best Fill” available as regulated by the CBOE. Again, this is not TastyWorks, but an Apex issue. I probably should have made a complaint, but I was being lazy and only lost a couple of hundred dollars. There is chatter in private internet groups about this.

So with that, I keep my serious trades within my Etrade account. For now, I view Tastyworks as a boutique broker which is only good, at this time, for making trades that are not time-critical.

Maybe one-day Tastyworks will self-clear. Maybe also they will make their platform even more powerful like Think or Swim, which that team created. I will not hold my breath on it, because it appears that Sossnoff is happy with what he has as long as you “Trade Small and Trade Often”. Kaching, more money in his pocket. I do have a bit of an issue with this as I feel like it is a conflict of interest for them to teach you this mantra then steer you to their platform.

Even though I am not a fan of their clunky app, Robinhood is now a self-clearing broker. That is a good thing because if there is a glitch in your trades that causes you to lose a large chunk of money, the broker will typically take care of this instead of it getting escalated to the CBOE (for options) or the SEC.

Categories: Featured PostRamble