TastyWorks brokerage hidden fees. Trading inactivity and monthly fee and TastyWorks margin interest rates. Cost of the the broker's IRA account.

Overview of Hidden Fees at TastyWorks

TastyWorks is a broker that is brought to us by the Tasty Family, the same group behind the popular Tasty Trade options broadcast. Therefore, TastyWorks really caters to the active options trader, which shows when you look at their commission schedule. This article will cover all of the fees you might expect to encounter with your TastyWorks account, from commissions to wire charges to regulatory fees.

TastyWorks Commissions on Stocks, ETFs, and Stock Options

Stocks and ETFs at TastyWorks will cost you a flat $0 per purchase or sell (regardless of the number of shares). Trading stock options will cost you $1 per contract (a maximum of $10 per leg) to open the position, and closing your options positions is commission-free. This is the real beauty of TastyWorks’ commission schedule and why it’s a great deal for active traders who are constantly trading in and out of positions.

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Commissions on Futures and Options on Futures

Trading futures with TastyWorks will cost you $2.50 per contract for a roundtrip – they charge you $1.25 per contract both to open and close a position. If you want to trade options on futures, TastyWorks charges $2.50 per contract to open the position but they don’t charge anything upon closing it. TastyWorks doesn’t support trading in mutual funds or fixed income securities. Next, we’ll cover all of the other relevant fees outside of trading commissions.

TastyWorks Margin Rates

Debit Balance	Margin Interest Rates
under $24,999.99	8.00%
$25,000 - $49,999.99	7.50%
$50,000 – $99,999.99	7.00%
$100,000 - $249,999.99	6.50%
$250,000 - $499,999.99	6.00%
$500,000 - $999,999.99	5.50%
$1,000,000 +	5.00%

For active traders, margin accounts are often an important feature of any broker as they allow you to borrow money at a moment’s notice to take on an attractive position when your settled cash balance may not be sufficient. TastyWorks’ margin rates are in line with the industry average and depend on the amount you borrow. The highest rate currently starts at 8% for those borrowing $25,000 or less, and decreases down to 5% as the amount borrowed increases.

ACH and Wire Transfer Fees

Transferring money to and from your TastyWorks account is free if you use a standard ACH/electronic transfer. Wire transfers are faster than ACH transfers, and these will incur a flat fee at TastyWorks (as they do with most brokers). Outgoing domestic and foreign wire transfers will cost you $25 and $45 respectively. There is no TastyWorks charge for inbound wires; however the initiating bank will likely charge you a fee.

Physical Check Fees

If you choose to receive funds via physical check, TastyWorks charges a flat fee between $5 and $10. This also applies to any dividend payments that you choose to receive via check. Generally speaking, people don’t choose physical checks anymore because of these processing fees and because ACH transfers are easier for all involved.

Account Transfer Fees

If you choose to move all or part of your TastyWorks portfolio to another broker there is a $75 fee, which is fairly standard across the industry. There is no charge for incoming transfers (i.e. transferring another brokerage account to TastyWorks). Similarly, if you close an IRA with TastyWorks, you will incur a $60 closing fee.

Regulatory and Clearing Fees

Between clearing and regulatory fees, TastyWorks will pass all of these through to you as they are incurred, which is pretty standard with most brokers. The good news is that these fees are pretty small (generally a few pennies per trade). Options regulatory fees are currently 3.8¢ per contract, and the fees FINRA charges for options and stock sales are even less. Clearing fees are a bit higher for options and futures at $0.10 and $0.30 per contract respectively, but are less than a penny per share for equities.

ADR Fees

If you trade ADRs you could incur a fee from the custodian bank that holds shares for it. While these fees differ for each ADR, they are typically charged by the custodian on an annual basis and are fairly small (about $0.01 per share). TastyWorks, and any other broker, will pass these fees on to you.

Voluntary Corporate Actions and Options Exercise Fees

Any voluntary corporate action that occurs in your account (i.e. tender offers) will cost you a flat $50 fee. If you choose to exercise an options position, this will cost you a flat $5.

Paper Statement Fees

Paper statement fees are generally irrelevant these days as most traders are fine with receiving online statements and trade confirmations, as it creates less clutter and less paper is better for the environment. However, if you’re not quite ready to go green you can still choose to get your monthly TastyWorks statements and tax forms mailed to you for a $5 fee. Mailed trade confirmations are $2 and receiving a printed prospectus in the mail will incur a $2.50 fee.

TastyWorks Fees Summary

This article covered all of the basic commissions and fees a typical trader would expect to encounter in their TastyWorks account and even some fees that most traders will never have to deal with. That said, there are still some other fees that are very rarely applicable to the modern trader, such as physical stock certificate fees, that we have intentionally left out of this discussion because of their irrelevance. If you are curious about the fees for these very unique circumstances we recommend reading the fine print on TastyWorks’ full fee disclosure.

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