Tastyworks Account Opening Guide
tastyworks account opening (well known as dough or tastytrade) is a very simple method of opening an account to access both their brokerage services and platform. The setup contains five main sections: Account, Trader, Access, Security, Documents. This guide is written so that you may know what information, ahead of time, that you will need.
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Tastyworks Account:
Tastyworks has three main types of accounts you can open with them: Margin, cash, retirement. Retirement accounts can be either Traditional IRA or Roth IRA.
Unless you specifically want an account for retirement, one would strongly suggest to select a margin account. Customers with margin accounts have greater buying power for their account capital. Traders will be able to scale in and out of their options contracts with greater flexibility. Of course, it is advised to traders to first understand the risks associated with margin accounts. The first and foremost being that you can lose more funds than you deposit in your margin account.
Throughout 2017, more account types are planning to be released: Joint accounts (Tenants in common and with rights of survivorship), Custodial (UGMA/UTMA and Coverdell), Corporate, Trust, and International. Good news! Futures accounts also scheduled to be released to the public.
Tastyworks provides a PDF viewable document for your review of the risks of margin trading. The document can be read directly from their site here.
Tastyworks Trader:
The second section is your own personal information about you. First is your contact information such as name and address. Next is your personal information required to trade such as your social security number and date of birth. Third is your employment information. And fourth is affiliation information such as if you are associated with a publicly traded company.
Access:
The access section is the standard compliance information required to be collected based upon your experience as a trader. Though generally this is not verified, a diligent trader should select what types of contracts they wish to trade. The available options one can select are as follows:
Customers can easily select “the works” enabling everything. Enabling all trading styles does not require you to do so. It simply gives you access. Next in access is describing your knowledge of stocks, covered options and spreads, uncovered options, and futures. You may select limited, good, or extensive. And finally, your trading objective and current annual income, net worth, and liquid net worth. These numbers are generally gathered as a protection method so your account stays in good standing with little risk to the broker and trader. The choice is yours.
Tastyworks security
The fourth section of account opening is basic security. This section confirms your identify, allows you to have 2-factor authentication set up for account protection, and a security question.
Tastyworks Documents
The final section is the documents section. This section is where you review and confirm you agree with the many standard documents all brokerage firms tend to have and supply at account opening.
Tastyworks Account Approval
Once your account is approved, you will have access to their pricing structure:
*All opening and closing transactions incur the following clearing fees: Options: $0.10 per contract; Stock: $0.0008 per share; Futures: $0.30 per contract.
You also gain access to their technology for a desktop (or web browser-based) platform. The desktop version is quite slick and easy to read. The platform trades fluidly with very prompt ticker updates. In addition, the tastyworks desktop platform allows access to visualize trades via table or graph (with risk curves and percentage probability of success).
Traders gain the advantage of constant development. This is due to Tastyworks being a newer broker, long-term software developer. Tastyworks founder created the platform Thinkorswim. Development of new indicators and tools are underway.
Tastyworks Account Funding
How to fund your tastyworks account: The easiest way to fund is by ACH where you securely provide your bank account information (ie: account number and routing number) when logged into your account. This establishes an electronic relationship between your tastyworks account and your bank account, which enables you to easily deposit funds into your brokerage account. Strongly suggest transferring $2,000 (or more) as that is the minimum amount required to maintain full margin privileges. You will need to fund with $25,000 or more if you want a standard day trading account.
Other funding options are available such as by wire transfer or by check. In addition, you can fund your account from another brokerage firm utilizing ACAT account transfer forms.
You can begin the process of account opening at Tastyworks by clicking below:
Tastyworks does not charge fees to have an account. Open an account to explore the platform for yourself.