Discussion in 'Online Brokers' started by HowardS, Dec 1, 2016.

  1. HowardS

    HowardS Active Member

    I am sure most are aware that Tom Sosnoff (founder of Thinkorswim) has announced a new brokerage firm "TastyWorks."

    I wonder what people think. Personally I think it is great news. So many of the small options brokers have been taken over in the past few years that competition is way down. Secondly, Sosnoff always brings something great to the table. My bet, Tastyworks turns out to be something special. Thinkorswim (under sosnoff) was certainly a paradigm shift, I wonder if he can do it again.
    I think TastyWorks is kicking off Jan 3, 2017.

    I'd love to ehar what Jim and Tom N think!

    Howard S
    Jose Perez likes this.
  2. Bax

    Bax New Member

    Sure did - super exciting news! I had an email on that last night and watched Tom's announcement today on tastytrade. I really love their show, which drew me into income investing in general, and loving TOS too. I actually like their dough platform in a lot of ways, it just doesn't have nearly enough of the analytics I wanted.

    They made clear they will be releasing a new trading platform in January. At first it will likely be some kind of love child of TOS and Dough, and get a lot more development effort and new features over time. The announcement made clear that the platform functionality will first and foremost support the types of things they cover in the show. In my mind, something with the speed and flexibility of TOS, ability to use thinkorswim scripts, the user friendliness of Dough, the pricing of IB, and the best features of OptionVue, would be killer :) That's a pipe dream, but I can hope!

    One feature they hinted at, and I hope they do well, is the ability to do some serious back-testing on options strategies, to give retail investors the ability to do the kind of research they routinely do for their show. That won't necessarily help the kind of trades popular here which have non-mechanical subjective adjustments, but it would still be a great capability I don't see elsewhere. Others thoughts on tastytrade / tastyworks?
  3. tom

    tom Administrator Staff Member

    More choice is always a good thing for everyone. Is there any more information or demos available?
  4. Bax

    Bax New Member

  5. Kevin Lee

    Kevin Lee Well-Known Member

    More competition is always good. It all boils down to what commission rate they charge. I rather have the cheapest rate with reasonable execution. Would be willing to sacrifice sophisticated tools - b'cos most of them isn't good enough to begin with. 50 cents per contract no ticket charge would be great. Like what TradeMonster used to offer. Let's wait and see....
    Chuck likes this.
  6. Andrew C

    Andrew C Well-Known Member

    Has anyone tried to sign up for the launch at the website? I have tried several times, but keep getting a message to try again five minutes later.
  7. Boomer34

    Boomer34 Well-Known Member

    I was able to sign up with my email for updates...
  8. garyw

    garyw Well-Known Member

    I signed up yesterday. Curious what the Commission schedule will look like. 10cents, no ticket would be nice! :rolleyes:
  9. status1

    status1 Well-Known Member

    From what I heard on the video it will be something like Dough with a web and software version supposedly built on the High frequency backbone or a platform that the high frequency traders use
    I am not sure what that means for the average regular trader
    Does that mean we have to get faster pc's
    He also said that the fee structure will be the same for everyone so I guess no special discount for volume traders
    Basically the same as Dough but they will be in control of everything
    I guess we will wait and see how it looks
  10. HowardS

    HowardS Active Member

    I heard the comments about commissions too. But "same for everyone" can mean a bunch of different things. Does it mean that everyone gets the same discount based on volume? Does it mean everyone gets the same discount based on size of their account. Maybe a combination of the two, or as suggested does it mean everyone regardless of volume or account size gets the commission. I doubt that there will not be some sort of incentive to trade with them. Its entirely possible that the commissions schedule will be more transparent than other brokers. Tom SOs is pretty sharp, I highly doubt that they are building a model that does not encourage high volume traders to come their way. Either way, I am interested to see what they come up with.
  11. mdb

    mdb Member

    Although I absolute agree with what was said about commissions and more choice, I am not so optimistic about their analytics. For example, not everyone prefers cheaper IB over TOS for exactly this reason. I would not expect to see scripting, Analyze graph or skew there any time soon, because it is not in Tom's style. I can't see a person trading in M3/RoadTrip style benefiting much from Dough's tool-set.
  12. Harry

    Harry Well-Known Member

    I like the TOS mobile platform and as of now I make all my trades are over the mobile app. thinkorswim app is pretty clunky in my opinion. I use a Mac and have not been able to get optionVue etc. in a virtual environment as I use almost all my RAM for work related apps. However, over the years, tradingview has emerged as the go to place for looking up stock charts (and also live prices). If a similar alternative was available for options (web based, nice UI), I will jump in a heartbeat. My phone may still be my primary trading place, but a bigger screen provides so much more information and so many more capabilities that if done well would ease lot of the work. Not saying that tasty is doing it but if they would be primarily web based, I will definitely check them out.
  13. HowardS

    HowardS Active Member

    Tastyworks posted there new commissions schedule this morning. And, it is killer!

    Option opening trades are a buck a contract plus 10 cents exchange fees. No charge to close. No ticket charges, and no commissions on closing trades, ever. Tastyworks is going to put a lot of pressure on the other brokers.
  14. uwe

    uwe Well-Known Member

    I guess this will not be valid for SPX, exchange fees alone are $0,40 (and more).
  15. Kevin Lee

    Kevin Lee Well-Known Member

    I believe so too. If they charge $0.1 rut and spx fees then it'll be really fantastic. But if they charge $0.5 fees then it's not that attractive.
  16. MajorTom

    MajorTom Member

    TastyWorks fee schedule link as sent by Aron this morning:


    SPX = $0.65 per contract ... so if I read this correctly:
    Open SPX contract = $1.00 + .10 +.65 = $1.75
    Close SPX contract = .10 + .65 = $0.75
    Total Round Trip = $1.75 + $0.75 = $2.50

    I currently have $1.25 per contract with no ticket charge at TOS. It looks like a wash to me at my current fee structure.
  17. Kevin Lee

    Kevin Lee Well-Known Member

    I just double checked with tastyworks. Your calculation is accurate. So SPX isn't a good deal compared to TOS. But RUT is not bad. Same calculation shows $1.56 round trip or $0.78 per contract per trip.

    Hmm... no motivation for me to move then
  18. status1

    status1 Well-Known Member

    So the lot size would make no difference ?
    1 option would be the same as 10 options ?
    So let.s say a 5/10/5 butterfly trade in SPX would cost $7.50 round trip ?
    I would say that's pretty good for most small time traders who don't have any discounts for volume or other special deals
    I am paying about 4 times as much just to get in so that would be good for me if that is true
  19. Harry

    Harry Well-Known Member

    What makes you say that, status1? Both these fees (trade fee, exchange fee) are per contract. So a 5/10/5 butterfly will cost you 2.50 round trip X 20 contracts = 50 bucks
  20. status1

    status1 Well-Known Member

    Sorry I guess misunderstood the meaning of contract That's why I had to ask to make sure I understand the fees
    I thought 1 contract meaning one trade so 3 contracts meaning 3 trades would be 2.50 x 3 = 7.50 I guess that was too good to be true
    I probably got confused with the other brokerage that have a trade fee and than a smaller fee per options
    So you are saying 1 contract is for 1 lot so that one butterfly would be $10 so a 5 lot would be $50 ?
    Considering that this is a round trip fee than it's a little bit better than the discount brokers (about $10 maybe) it's probably still worth it now it just depends on what else the have to offer

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