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 new approaches to trading and investing are tastytrade and E*Trade. To figure out which company gives a better overall experience, see our research below.

Comparison Table

First Category: Investment Systems

tastytrade customers can buy and sell a good range of products. These include stocks, options, futures, funds (exchange-traded and closed-end), and cryptocurrencies. E*Trade doesn’t have cryptocurrencies, which is a downside, but it does offer mutual funds and fixed-income securities.

These investment types are just for self-directed accounts. E*Trade, through a partner, also offers robo accounts that trade low-cost ETFs. Through its parent, Morgan Stanley, there are managed accounts available.

Winner: E*Trade

Second Category: Margin

Both brokerages have cash and margin accounts. Margin accounts let you buy more using borrowed money. Borrowing money costs extra, and with high interest rates, it’s pricey at both places.

E*Trade clients pay between 12.7% and 10.7%, based on the margin amount. tastytrade’s rates go from 10.5% to 7.5%.

Portfolio margin, which gives even more buying power, is at both firms. E*Trade needs $100,000 in account value to qualify. tastytrade requires $175,000.

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

Winner: tastytrade

Third Category: Websites

Each broker in this review has a website for account management and trading resources. The main difference is that tastytrade has a browser platform for trading, while E*Trade offers both a trading platform and trading on the website. tastytrade’s website is only for managing the account.





tastytrade’s browser platform has an order ticket with these types:

- Limit
- Market
- Stop
- Stop limit

The order form has three modes (stock, curve, and table). Each has some benefits and some drawbacks. The curve mode lets you use a visual tool where you can drag option contracts to change strike prices. tastytrade’s platform does not have good charting.

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

- Company events
- Different chart styles
- Lower comparisons
- Upper comparisons
- Technical studies
- Logarithmic and linear scale





Even better charting is on Power, E*Trade’s web platform. This platform has a strategy builder that can create trades with up to four legs. Regular orders can pick from 11 trade types, including trailing and OTOCO (one triggers OCO).

Winner: E*Trade

Fourth Category: Mobile Apps

E*Trade has two mobile apps: a Power app based on the web platform, and a main app. Together, they offer a lot of features. You’ll find integrated option spreads, conditional orders, news, social sentiment scores, time & sales, charting with tools, and more.





tastytrade also has two apps: one for trading and one for education (tastylive, with live video). The trading app includes option spreads and the same four order types as the website. The charts have no tools.





Winner: E*Trade

Fifth Category: Desktop Software

E*Trade clients can use Pro, the advanced desktop program. It requires a $1,000 account minimum (and real-time quotes must be enabled). Once set up, Pro gives you live streaming Bloomberg news, an options screener, a margin calculator, an economic calendar, and more.





There is no account minimum for tastytrade’s desktop app, but it is not as advanced as Pro. For example, tastytrade only has 4 order types, while Pro offers 8. Pro has better profit-loss diagrams, which you can see right in 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 this.

Extended Hours: E*Trade clients can trade securities from 7 AM to 8 PM Eastern Time. A small set of ETFs is available 24 hours a day, 5 days a week. tastytrade offers securities trading from 8:30 AM to 5:00 PM and crypto trading almost 24/7.

Level II Quotes: These are available at E*Trade.

Shorting: You can take bearish positions at both. Neither has a short locate tool.

Routing Fees and Rebates: Not available at either.

Winner: E*Trade

Seventh Category: Extra Services

Cash Management Tools: E*Trade, through Morgan Stanley, has a bank with FDIC insurance, deposit accounts, checks, debit cards, and more. tastytrade does not have these.

IPO Access: E*Trade offers this.

IRA Service: Both offer Individual Retirement Accounts. E*Trade has more IRA choices and no IRA closing fee.

Dividend Reinvestment Plan: Available at both.

Fractional Shares: Neither E*Trade nor tastytrade lets you buy fractional shares of stocks or ETFs. tastytrade does allow fractional trading for crypto, using whole dollars.

Periodic Mutual Fund Investing: E*Trade offers this 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 is a good way to start investing.

Mutual Fund Trading: We pick E*Trade, not just because it is the only firm here with mutual funds, but also because its website has good fund resources, including a list of All-Star funds picked by E*Trade’s investment experts.

Small Accounts: There are no fees or minimums at either tastytrade or E*Trade for self-directed accounts. E*Trade’s automated investing requires $500 to start.

Stock & ETF Trading: E*Trade has better research tools for stocks and ETFs, and we also like its software more.

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

E*Trade vs Tastytrade Summary

It’s clear that E*Trade gives a better overall financial experience—by far.

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