tastyworks vs Interactive Brokers 2018

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tastyworks vs Interactive Brokers is an interesting match-up. Both brokers cater to active traders, since both tastyworks and IB offer deeply discounted commissions and advanced, downloadable trading software.

However, Interactive brokers charges high fees for market data, order cancellations, and inactivity; tastyworks doesn’t charge any of these fees, and when you factor in free closing trades, tastyworks is the cheaper broker.

Ultimately, tastyworks’ lack of maintenance fees, low margin requirements for options strategies, free trading data, and low commission pricing structure make it the better broker when compared to Interactive Brokers.

tastyworks vs Interactive Brokers 2018

Company Ratings

tastyworks

Interactive Brokers

Overall

Commissions & Fees

Customer Service

Trading Platforms

Mobile App

Overall Ease of Use

Promotion Value

Fees

 tastyworks

 Interactive Brokers

Minimum Deposit

 $2,500

$10,000

Stock Trade Fee

 $5.00 (free closing trades)

 $0.005 / share ($1 min)

Options Ticket Charge

 None

 None

Options per Contract Fee

 $1.00 (free closing trades)

 $0.70

Mutual Fund Fee

N/A

 $14.95

Market Data Fee

 Free

 $10+ / month (more for futures & options)

Wire fee (outgoing)

 $25

 $10.00

Inactivity fee

 None

 $10 – $20 per month

Investments

tastyworks

Interactive Brokers

Stocks

Options

Futures

Forex

Bonds

OTC Stocks

Penny Stocks

Options on Futures

Crypto

Mutual Funds

0

10,051

International Trading

Advisor Services

Trading Platforms

tastyworks

Interactive Brokers

Web-based

Mobile App

Downloadable (Mac)

Downloadable (PC)

Real-time Level II data

Real-time Charting

Historical Option Data

Options Analysis

iPad App

Company Info

tastyworks

Interactive Brokers

In-person Branches

Customer Service hours

9-5 CT, M-F, phone + live chat

24/6 email + phone

Sum of Client Balances

Not listed

$129.2 million

Member FDIC

Savings Account

Checking Account

Free Online Banking

Margin Rates

tastyworks

Interactive Brokers

Under $24,999

8.00% Base Rate + 1.00%

3.19%

$25k-$49,999

7.50% Base Rate + 0.50%

2.69%

$50k-$99,999

7.00% Base Rate

2.69%

$100k-$249,999

6.50% Base Rate – 0.50%

2.69%

$250k-$499,999

6.00% Base Rate – 1.00%

2.69%

$500k-$1M

5.50% Base Rate – 1.50%

2.69%

Above $1M

5.00%

2.19%

Check out the full review of tastyworks here. Check out the main reasons why Interactive Brokers is deeply flawed here.

Overall, tastyworks beats Interactive Brokers in almost every category, especially customer service. Many Interactive Broker’s customer service representatives are based internationally and have thick accents that often presented us with language barrier issues. Of course, this is assuming you’ll actually get to speak with a representative. Phone wait times for IB are absurd.

We strongly believe that the fees Interactive Brokers charges are almost unfair. If you don’t trade, you’ll be charged $10 per month. And in order to trade, IB charges a minimum of $10 per month for the basic market data package.

Want access to level II futures data? That will cost you extra. Want level II stock and options data? Guess what? That will also cost extra.

Essentially, IB’s fees look cheap on the surface, but in reality, they nickel and dime clients.

Worse, if your account balance falls below $2,000, IB will charge you $20 per month.

But if IB’s hidden fees don’t get you, their auto-liquidation algorithm probably will. We lost $120,000 due to a few futures positions that moved against us that IB’s risk algorithm promptly liquidated. tastyworks doesn’t have an auto-liquidation policy and is often gracious with margin call deadlines to transfer additional funds or liquidate the position.

Bottom line, after you factor in tastyworks’ free closing trades, tastyworks is actually cheaper than Interactive Brokers, and tastyworks is clearly the superior broker.

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