tastyworks vs Robinhood 2018

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The winner of the battle of tastyworks vs Robinhood is quite clear; tastyworks offers things that robinhood never will. Namely, futures, options on futures, advanced options strategies, and legitimate free closing trades without a monthly subscription.

In terms of the cost of trading for the two brokers, when you factor in the cost of a Robinhood Gold monthly membership (which is required for margin trading, and can cost $9 to several hundred per month), tastyworks is the clear winner. Moreover, Robinhood does not support any advanced options strategies, like uncovered options.

For trading technology, tastyworks blows robinhood out of the water. The advanced features of tastyworks’ downloadable Mac and PC platform put it on par with professional options trading software. Robinhood doesn’t even come close in this category.

When analyzing the Robinhood website, we found an alarming error. Robinhood states that “options do not trade during after-hours, on Robinhood or any other platform.” This is completely false.

Robinhood Gold Options Trading

There are a whole list of index options, ETF options, and ETN options that trade until 4:15pm EST every trading day. Even after the market closes, traders can buy and sell these options to take advantage of economic reports and news announcements that come after the market closes. Some of the most common options that trade after-hours include SPX, SPY, OIL, QQQ, and DIA.

The fact that Robinhood doesn’t even know basic facts about options trading, speaks volumes about the quality of the “options trading” service they offer clients. It’s a joke.

tastyworks vs Robinhood 2018

Company Ratings

tastyworks

Robinhood

Overall

Commissions & Fees

Customer Service

Trading Platforms

Mobile App

Overall Ease of Use

Promotion Value

N/A

Fees

 tastyworks

 Robinhood

Minimum Deposit

 $2,500

$0

Stock Trade Fee

 $5.00 (free closing trades)

 Free

Options Ticket Charge

 None

 Free

Options per Contract Fee

 $1.00 (free closing trades)

 Free

Mutual Fund Fee

N/A

 Free

Market Data Fee

 Free

 Free

Wire fee (outgoing)

 $25

 $25

Inactivity fee

 None

 None

Investments

tastyworks

 Robinhood

Stocks

Options

Futures

Forex

Bonds

OTC Stocks

Penny Stocks

Options on Futures

Crypto

Mutual Funds

0

0

International Trading

Advisor Services

Trading Platforms

tastyworks

Robinhood

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

Robinhood

In-person Branches

Customer Service hours

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

Email Only

Sum of Client Balances

Not listed

$100m+

Member FDIC

Savings Account

Checking Account

Free Online Banking

Margin Rates

tastyworks

Robinhood

Under $24,999

8.00% Base Rate + 1.00%

N/A

$25k-$49,999

7.50% Base Rate + 0.50%

N/A

$50k-$99,999

7.00% Base Rate

N/A

$100k-$249,999

6.50% Base Rate – 0.50%

N/A

$250k-$499,999

6.00% Base Rate – 1.00%

N/A

$500k-$1M

5.50% Base Rate – 1.50%

N/A

Above $1M

5.00%

N/A

Full Review

Read the review

Read the review

At the end of the day, comparing tastyworks to Robinhood is like comparing apples and oranges.

The simple fact of the matter is that Robinhood falls very short on offering clients advanced options trading privileges, and Robinhood charges clients a monthly subscription for services that tastyworks offers for free. Options only cost $0.50 at tastyworks after the free closing aspect is factored in and there are no maintenance or inactivity fees.

Robinhood doesn’t support any undefined risk options trades. This means all short calls, naked puts, short strangles, short straddles, and so forth are off the table at Robinhood.

Moreover, with tastyworks, even if you have the capital in your account to cover a short put position, you can still put that capital to use for other trades. tastyworks also offers futures trading and futures options trading, where the pattern day trading rules don’t apply. Robinhood does not offer futures or futures options trading.

Simply put, if you’re going to only trade a few options a month and want full options trading abilities (and the ability to short sell) tastyworks is the clear winner.

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