#TastyWorks: Low Cost Options and Stock Trading Platform

I applied for options and stocks trading platform platform; Robinhood, several months ago. I currently use eTrade; and while I love the platform for investing, it is unbearable for swing trading because of the high fees. This is where Robinhood comes in. It is touted as a zero commission stock and options trading platform. Unfortunately, after dozens of emails and countless calls to their customer support I have not been able to get and account approved and working on their app.

Luckily I stumbled onto Tastyworks a low cost options and trading platform that has been around for over a year. The trades are not free but it only costs $1.00 per contract + clearing fee: $0.10/contract + orf fee: $0.0378/contract to open but $zero  + clearing fee: $0.10/contract + orf fee: $0.0378/contract to close. This is immensely cheaper than eTrade $6.95 + $0.75/contract to open and close and options trade.

For example, Buying 5 call options at $1.00 per option would cost:

a. Tastyworks – Open Commission = 5 * ($1.00+$0.10+$0.0378) = $5.689, Close Commission = $0.00

Total: $5.689

b. eTrade – Open Commission = $6.95 + (5 * $0.75) = $10.70, Closing Commission = $6.95 + (5 * $0.75) = $10.70

Total: $21.40

What a difference in cost! Tastyworks does not have as many tools as eTrade but I use the eTrade tools for analysis and Tastyworks to execute the trade. You cannot beat 70% savings in fees.

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