Introduction

Experienced traders often choose Interactive Brokers for its advanced software and wide range of services. Could tastytrade provide them with a better experience? Let’s have a look.

Comparison Table

Investment Lineups

tastytrade offers the following asset classes for trading inside of self-directed accounts:

• ETFs
• Closed-end funds
• Options
• Stocks
• Futures
• Options on futures
• Cryptocurrencies

Interactive Brokers offers everything on this list plus the following asset classes:

• Mutual funds
• Bonds and other fixed-income vehicles
• Precious metals
• Warrants
• Structured products
• Forex

Interactive Brokers, but not tastytrade, offers access to many foreign exchanges.

Managed portfolios are available through Interactive Advisors, an affiliate of Interactive Brokers. tastytrade does not offer managed accounts.

Margin Accounts

Both cash and margin accounts are available at both investment firms in this competition. At Interactive Brokers, it’s possible to upgrade an existing cash account to margin status. At tastytrade, customers must apply and be approved for margin privileges.

Both broker-dealers offer portfolio margin. tastytrade requires $125,000 to activate portfolio margin and $100,000 to keep it active, while Interactive Brokers requires $110,000.

Interactive Brokers displays margin requirements for entered ticker symbols. tastytrade’s software does not do this.

The cost of borrowing at Interactive Brokers is quite reasonable. Currently, IBKR Lite customers pay a flat 6.14%. tastytrade clients pay margin interest on a tiered schedule that starts at 10.25% and ends at 7.25%.

Websites

Interactive Brokers and tastytrade have decent websites with several account management tools. These include links to add beneficiaries, transfer funds, and to establish communication preferences.





For actual trading, tastytrade has a platform that launches from the website (look for the Trading Platform link at the top of the site). Features we especially like include:

- Trade ticket with multiple interfaces
- A Follow section that displays trades of tasty insiders
- tastylive, an educational platform with video commentary





The biggest downside of tastytrade’s web-based platform is rudimentary charting. This problem is solved at Interactive Brokers. IBKR’s Client Portal has advanced tools integrated into the site itself, and charts have many tools. These include indicators, drawing gadgets, and a full-screen mode. Very extensive equity research is icing on the cake.

Mobile Apps

The tastytrade mobile app does make some improvements over its website. For example, bracket orders are now integrated on the trade ticket. Charting can be accomplished in full-screen mode horizontally, and there are several integrated option spreads. tastylive makes another appearance, and there are many pre-installed watchlists.





The Interactive Brokers app has many of the same features, like watchlists, bracket orders, and option spreads. It also has a step-by-step strategy builder, simulated trading, very good charting tools, and an artificial intelligence tool named iBot.

Desktop Software

iBot makes another appearance on Trader Workstation, which is Interactive Brokers’ very sophisticated desktop software. It offers access to global exchanges across many asset classes, like warrants and futures. There are dedicated dealing boxes for currency trading, and we really like the platform’s order ticket. It has many advanced features, including adaptive and snap orders, a margin checker, and hot keys.





Option tools are very advanced on TWS as well. During our investigation, we found a probability lab, a strategy workspace, a volatility widget, and a strategy builder.

tastytrade’s desktop program doesn’t have a name but it does have good charting (it is the lone platform at tastytrade to have decent charting). Features include indicators, drawing tools, and a full-screen mode.





There is a multi-chart trade window that displays up to 4 graphs with order tickets below them. Other useful resources include watchlists, alerts, and news articles, but the software just doesn’t live up to the standard established by Trader Workstation.

Day Trading

Direct Access to Venues: Only available at Interactive Brokers on Trader Workstation.





Extended-hours Trading: Possible at either firm. Interactive Brokers offers extended-hours and overnight trading in many U.S.-listed stocks and ETFs, while tastytrade offers extended-hours trading and 24-hour equities trading in select stocks and ETFs.





Level 2 Quotes: Trader Workstation has them.

Shorting: It’s possible to take a short position at either firm. Only tastytrade has a discrete sell short button. Interactive Brokers has better short resources, including a list of stocks that are available for shorting.

Maker-Taker Fees: Interactive Brokers offers fees and rebates for some order types.

Extra Services

Fractional Shares: It’s possible to buy equities and ETFs in whole dollars at Interactive Brokers. tastytrade also offers fractional-share trading, although it charges a small clearing fee per fractional-share transaction. Cryptocurrencies trade in whole dollars at both firms.

IPO Access: Interactive Brokers offers IPO subscriptions for eligible clients and entities. tastytrade does not offer this service.

IRA Service: It’s possible to open an Individual Retirement Account at either firm. tastytrade does charge $60 to close an IRA.

Dividend Reinvestment Plan: Interactive Brokers clients can reinvest cash dividends from stocks as additional shares. tastytrade offers the service for both stocks and ETFs.

Cash Management: Eligible IBKR clients can use the Karta Visa Infinite Card linked to an IBKR account. This is not possible at tastytrade.

Periodic Mutual Fund Investing: Interactive Brokers offers recurring investments for eligible securities when fractional shares are enabled, but this is not the same as a broad automatic mutual fund investing program.

Promotions

tastytrade: Get $100 for signing up at Tastytrade with this referral link.

Interactive Brokers: Get up to $1,000 in IBKR stock with this referral link!

Interactive Brokers vs tastytrade Summary

Both brokers are great for active traders, but Interactive Brokers has the stronger overall platform, broader product lineup, and deeper global-market access. tastytrade remains a strong choice for options and futures-focused traders.

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