Tastytrade versus E*TRADE: compare IRA, commissions, investing fees, trading tools, account differences, pros and cons. Which online broker is better?

E*Trade vs. tastytrade Introduction

Two modern brokerage firms with fresh takes on trading and investing are tastytrade and E*Trade. To determine which company delivers the better overall financial experience, consider our research.

Comparison Table

First Category: Investment Systems

tastytrade customers get to buy and sell a decent range of products. The smorgasbord includes stocks, options, futures, funds (exchange-traded and closed-end), and cryptocurrencies. E*Trade doesn’t offer any cryptocurrencies, which is obviously a weakness, but it does have mutual funds and fixed-income securities.

And these asset classes are just for self-directed accounts. Through a sister company, E*Trade offers robo accounts that trade low-cost ETFs. Through its parent company Morgan Stanley, full-service managed accounts are also available.

Winner: E*Trade

Second Category: Margin

Besides cash accounts, both brokerage houses also offer margin accounts. These provide the ability to buy more assets using borrowed money. Borrowed money always comes at a cost, and in an environment of high interest rates, it’s rather expensive at both firms.

E*Trade customers currently pay between 13.2% and 11.2%, depending on the margin balance. tastytrade’s stepped system ranges from 11% to 8%.

Portfolio margin, which offers even greater leverage, is available at both firms. E*Trade requires $100k in account value to qualify. tasty’s minimum is $175k.

Only E*Trade has a margin calculator that is able to show specific margin requirements for a ticker symbol.

Winner: tastytrade

Third Category: Websites

Each brokerage firm in this investigation has a website with account management tools and trading resources. The primary difference is that tasty has a browser platform where trading takes place, whereas E*Trade delivers both a platform and website trading. tasty’s website proper is used only for account management.





tastytrade’s web-based platform has an order ticket with the following trade types:

- Limit
- Market
- Stop
- Stop limit

The order form has three modes (stock, curve, and table). Each has its own strengths and weaknesses. The curve system has a graphical interface where option contracts can be dragged along a horizontal line to adjust strike prices. The downside of tasty’s platform is the lack of any decent charting.

E*Trade’s website has full-screen charting with the following tools:

- Company events
- Multiple plot styles
- Lower comparisons
- Upper comparisons
- Technical studies
- Scale (logarithmic and linear)





An even better charting system will be found on Power, E*Trade’s web-based platform. This trading environment has a strategy-builder tool that can place a trade with up to 4 legs. A standard order can choose from among 11 trade types. These include trailing and OTOCO (one triggers OCO).

Winner: E*Trade

Fourth Category: Mobile Apps

E*Trade has two mobile apps: a Power app modeled after the browser platform and a main app. Combined, the two platforms deliver a lot of trading brawn. During our exploration, we found integrated option spreads, conditional orders, news articles, social sentiment scores, time & sales data, horizontal charting with tools, and much more.





tasty also two apps: one for trading and another for education (called tastylive due to live video broadcasting). The trading app has an order ticket with integrated option spreads and the same four order types from the website. Charts have no tools.





Winner: E*Trade

Fifth Category: Desktop Software

E*Trade clients can use Pro, the company’s advanced desktop program. It does have a $1,000 account minimum to use (real-time quotes also need to be enabled on the account). Once the account is ready to go, Pro will present a lot of useful features, including live streaming of Bloomberg Business News, an options screener with many search criteria, a margin calculator, an economic calendar, and so much more.





There is no account minimum to use tastytrade’s desktop platform, although it doesn’t quite reach the same level as Pro. For example, the software only has 4 order types, whereas Pro delivers 8. Pro also has better profit-loss diagrams, which are integrated on the order ticket (look for the “Total Trade Ticket” tab).





Winner: E*Trade

Sixth Category: Day and Swing Trading

Direct-Access Routing: E*Trade Pro has it.

Extended Hours: E*Trade clients can buy and sell securities from 7 o’clock in the morning until 8 o’clock in the evening, Eastern Standard Time. A small group of ETF’s is available around the clock, 5 days a week. tasty offers securities trading from 8:30 am until 5:00 pm and crypto trading nearly 24/7.

Level II Quotes: Available at E*Trade.

Shorting: Bearish positions are permissible at both firms. Neither broker-dealer has a short locate widget.

Routing Fees and Rebates: Not available at either firm.

Winner: E*Trade

Seventh Category: Extra Services

Cash Management Tools: E*Trade offers more than just trading. Through its parent company Morgan Stanley, it has a bank with FDIC insurance, deposit accounts, check writing, debit cards, and more. tastytrade has none of these resources.

IPO Access: E*Trade offers it.

IRA Service: Both investment firms have Individual Retirement Accounts. E*Trade has more IRA versions and doesn’t charge an IRA termination fee.

Dividend Reinvestment Plan: Available at both firms.

Fractional Shares: Neither E*Trade nor tastytrade offers fractional-share trading in stocks or ETF’s. Cryptocurrencies at tasty do trade in whole dollars.

Periodic Mutual Fund Investing: E*Trade has it for thousands of funds.

Winner: E*Trade

Promotions

Tastytrade: Get $250 for each person you refer with this referral link.

E*Trade: No commissions on stocks and ETFs.

Recommendations

Beginners: A robo account with E*Trade would be a great way to start investing.

Mutual Fund Trading: We choose E*Trade not just because it’s the only brokerage firm in this survey to offer trading in mutual funds, but because E*Trade’s website has some really good mutual fund resources, including a list of All-Star funds that are handpicked by E*Trade’s investment professionals.

Small Accounts: There are no fees or minimums at tasty or E*Trade for taxable self-directed accounts. E*Trade’s automated program requires $500 to get going.

Stock & ETF Trading: E*Trade has better stock and ETF research tools. Plus, we like its software a little better.

Long-Term Investors & Retirement Savers: E*Trade has more retirement resources on its website, including a rollover tool, an IRA selector, and a retirement calculator.

E*Trade vs Tastytrade Summary

Clearly, E*Trade delivers the better overall financial experience—by far.

Open Tastytrade Account

Open Tastytrade Account

Open E*Trade Account

Open Etrade Account

Continue Reading

• Tastytrade vs Charles Schwab
• Open a Tastytrade Account
• Etrade vs Vanguard
• Is Etrade Available in Canada?
• Etrade Pro vs Thinkorswim