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

Interactive Brokers vs. tastytrade Introduction

Experienced traders often pick Interactive Brokers for its advanced software and many services. But can tastytrade give them a better experience? Let’s see.

Comparison Table

Investment Lineups

tastytrade lets you trade these types of investments in self-directed accounts:

• ETF’s
• Closed-end funds
• Options
• Stocks
• Futures
• Options on futures
• Cryptocurrencies

Interactive Brokers lets you trade all of those, plus:

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

Only Interactive Brokers offers access to many international exchanges.

You can open a robo account at Interactive Advisors (part of Interactive Brokers) to trade low-cost ETFs. tastytrade does not offer managed accounts.

Margin Accounts

Both firms let you open cash and margin accounts. At Interactive Brokers, you can upgrade a cash account to margin. At tastytrade, you need to open a new account if you want margin.

Both offer portfolio margin. tastytrade needs $175,000 for this, while Interactive Brokers needs $110,000.

Interactive Brokers shows margin requirements for any symbol you enter. tastytrade does not do this.

Borrowing costs at Interactive Brokers are low. IBKR Lite customers pay a flat 6.62%. tastytrade charges tiered rates starting at 10.5% and dropping to 7.5% for higher balances.

Websites

Both Interactive Brokers and tastytrade have useful websites for managing your account. You can add beneficiaries, move money, and set up communication choices.





For trading, tastytrade has a platform that opens from the website. Some useful features are:

* Trade ticket with several views
* A Follow section that shows trades made by tasty insiders
* tastylive, an education platform with video commentary





The biggest weakness of tasty’s web platform is simple charting. Interactive Brokers solves this problem. Its website has many chart tools, indicators, drawing tools, and a full-screen mode. It also has detailed equity research.

Mobile Apps

tastytrade’s mobile app improves on the website. Now you can use bracket orders on trades. You can chart in full-screen landscape mode, and use several option spreads. tastylive is also in the app, and there are many watchlists.





Interactive Brokers’ app offers most of the same features: watchlists, bracket orders, and option spreads. IB’s app has a strategy builder, paper trading, and strong charting tools. It also has iBot, an AI assistant.

Desktop Software

iBot is also available in Trader Workstation, which is Interactive Brokers’ desktop software. This program gives you access to global exchanges in many asset classes. There are special boxes for trading currency, and the order ticket has advanced features like adaptive and snap orders, a margin checker, and hot keys.





Trader Workstation also has strong option tools, like a probability lab, a strategy workspace, a volatility widget, and a strategy builder.

tastytrade’s desktop platform (it has no name) has good charting. There are indicators, drawing tools, and full-screen mode.





You can open a multi-chart trade window with up to four charts and order tickets. You also get watchlists, alerts, and news, but this platform does not match Trader Workstation.

Day Trading

PDT Reset: Pattern day-trading accounts can be reset at both brokers. Only Interactive Brokers shows how many day trades you have left before hitting the pattern day trading limit.

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





Extended-hours Trading: Both firms offer pre-market and after-hours trading. Interactive Brokers gives you more hours.





Level 2 Quotes: Trader Workstation offers them.

Shorting: You can take short positions at both firms. tastytrade has a simple sell short button. Interactive Brokers has better short-selling resources, including a list of stocks that are available to short.

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

Extra Services

Fractional Shares: You can buy stocks and ETFs in dollar amounts at Interactive Brokers. Both firms allow crypto trades in whole dollars.

IPO Access: Neither broker offers initial public offerings.

IRA Service: You can open an IRA at either firm. tastytrade charges $60 to close an IRA.

Dividend Reinvestment Plan: Interactive Brokers lets you reinvest dividends from stocks as more shares. tastytrade offers this for both stocks and ETFs.

Cash Management: You can get a Mastercard debit card from Interactive Brokers. tastytrade does not offer this.

Periodic Mutual Fund Investing: Neither firm has this service.

Promotions

Tastytrade: Get $250 for each person you refer 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 good for active traders, but Interactive Brokers offers more tools and features.

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