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Brokers / tastytrade
BROKER RIGOR REPORT · VERIFIED 11 OCT 2026

tastytrade: what the sources say

91
Evidence 100%

Key facts

The questions, with sources

QuestionWhat the sources saySource
Main entity
tastytrade, Inc. (formerly tastyworks, Inc.), Chicago; SEC- and FINRA-registered introducing broker-dealer, clearing via Apex Clearing Corporation, United States
Listed parent
yes: IG Group Holdings plc (LSE: IGG); acquisition announced 2021 per Finextra; FY25 results announcement reports tastytrade as the group's US division
Regulation
Major regulator. SEC / FINRA (broker-dealer), CRD 277027 (United States): FINRA-hosted Form CRS (BrokerCheck file for CRD 277027) states tastytrade, Inc. is registered with the SEC and FINRA as a broker-dealer (source 7). FINRA Rule 605 reporting page lists TASTYTRADE, INC. as broker-dealer, reporter ID TWTT (source 8). Footer: member FINRA | SIPC | NFA (source 9). The interactive BrokerCheck summary page itself was not opened.; NFA (futures) (United States): NFA membership stated in tastytrade footer (source 9); NFA BASIC register not opened.
Compensation scheme
Yes. SIPC tastytrade about-us page: 'As a member firm of the Securities Investor Protection Corporation (SIPC), accounts at tastytrade are backed by coverage of up to $500,000, including up to $250,000 for cash' in case of firm insolvency; futures, event contract and crypto accounts are not SIPC-protected (source 9). Clearing firm Apex Clearing states excess SIPC insurance with aggregate firmwide limit USD 150 million, per-customer sub-limits USD 37.5 million securities / USD 900,000 cash (Apex document dated 2024-10-09, source 11)
Client assets separated
Yes. IG Group help page (for tastytrade-cleared US options and futures accounts): Apex Clearing 'is required to hold client money and assets separately from its own funds' (source 10); tastytrade page: 'All customer futures and event contract accounts are segregated by Apex Clearing Corporation' (source 9). Securities-account segregation wording on tastytrade's own site not found
Public financials
Yes. Parent IG Group Holdings plc (LSE: IGG) published FY25 results (year ended 31 May 2025) via RNS on 24 July 2025: total revenue GBP 1,075.9m; US division (tastytrade) trading revenue GBP 166.1m, up 16%; annual report stated to be published on www.iggroup.com (source 12). Annual report itself not opened
Who can open an account
US residents; non-US clients can open international accounts only in select countries (list in help center, not read); no international entity accounts
Markets
US stocks, ETFs, options, futures; other exchanges not verified
ETFs / fractional shares
ETFs: yes. Fractional shares: yes.
US stock commission
Stocks and ETFs USD 0 open and close; fractional shares USD 0; applicable exchange, clearing and regulatory fees still apply (source 1)
Cost to buy 1,000 USD
0%. Commission USD 0 on official pricing page; regulatory pass-through fees not included
Currency conversion
Not stated on pages read; wires accepted in USD only
Inactivity / account / withdrawal
Not stated on pages read (full commissions and fees document not read); Not stated on pages read; ACH free; check USD 5 (US only); outgoing wire fee not listed; ACATS-in no fee, tastytrade reimburses up to USD 75 of outgoing fee for transfers of USD 2,000 or more

"Not verified" means we could not confirm it from a source we could read. Check the entity and rules for your own country. Education only, not investment advice.

Score

How the points add up

  • Regulation 20 of 20. Licensed by a major financial regulator (see the broker page for the register entry)
  • Client protection 20 of 20. Investor compensation scheme applies: SIPC; Client assets held separately from the broker's own (stated in its documents)
  • Transparency 10 of 10. Annual financial statements are public (listed parent or published report)
  • Security record 10 of 15. Worst incident in the last five years scored: 10 of 15
  • Compliance record 21 of 25. 2 regulator or court action(s) in the window; reports from press only are shown but not scored
  • Costs 10 of 10. Buying 1,000 USD of a US stock or ETF: 0% commission at the published base tier (FX and spread not included)

Points earned of points available. A criterion we could not verify is left out and lowers the evidence share. See how we score.

Record

Security incidents

  • 2025-08 Press (CBS Chicago, 2025-11-07): unauthorized login to two retirement accounts of a Chicago-area couple at tastytrade; dozens of unapproved trades produced losses of about USD 180,000; login traced by police to a New Jersey IP address; the customers had not enabled optional two-factor authentication Customer funds lost: yes. Outcome: Press: tastytrade confirmed an intrusion, said it was not at fault because optional two-factor authentication was not enabled, and agreed to reimburse half of the loss; customers said they were considering legal action; no regulator action reported source
Record

Regulator and court actions

  • 2026-07-21 FINRA: AWC (CRD 277027): censure and USD 850,000 fine for best-execution review failures January 2020 to January 2023 (orders routed to market makers paying for order flow) and inadequate supervisory system; FINRA Rules 5310(a), 5310.09, 3110 and 2010 Outcome: Neither admitted nor denied; AWC document shows dates 2026-06-26 (signature) and 2026-07-21 (acceptance). Press: https://www.financemagnates.com/forex/regulation/finra-fines-tastytrade-850000-over-payment-for-order-flow-review-failures/ source
  • 2024-11 FINRA: Censure and USD 30,000 fine: failure to establish, maintain and enforce a supervisory system for employees' outside securities accounts, July 2021 to July 2023 (FINRA Rules 3110 and 2010) Outcome: Press (Finance Magnates and FX News Group, 2024-11-28); neither admitted nor denied; FINRA AWC document not located in search results source

Actions reported by press only are shown and not scored.

Not scored

Other reports

  • California DFPI lists tasttytrade.com (typo-squat) as a fraudulent impostor platform imitating tastytrade.com; a California resident lost over USD 5,000; site no longer operational (page updated 2026-03-10) [source 15]. Not an incident at tastytrade itself.

Reports that are not security incidents or regulator actions against the broker, shown for completeness and not scored.

Summary

Key facts in five lines

  • Stock and ETF trades cost USD 0 to open and close, with exchange and regulatory fees still applying [source 1].
  • tastytrade, Inc. is registered with the SEC and FINRA as a broker-dealer (CRD 277027) and states SIPC coverage of up to USD 500,000 including USD 250,000 cash; futures and crypto accounts are not SIPC-protected [source 7][source 9].
  • Parent IG Group Holdings plc (LSE: IGG) reported FY25 US-division trading revenue of GBP 166.1 million [source 12].
  • FINRA imposed a USD 850,000 fine and censure in July 2026 for best-execution review failures (2020-2023) and, per press, a USD 30,000 fine in November 2024 for supervision of employees' outside accounts [source 5][source 13].
  • Press reported in November 2025 an account takeover costing two customers about USD 180,000, half of which tastytrade agreed to reimburse [source 14].
Questions

Questions about tastytrade

Is tastytrade safe?

We do not give a yes or no. We record its regulation (SEC / FINRA (broker-dealer), CRD 277027, NFA (futures)), whether an investor compensation scheme applies, and what we found about incidents and regulator actions. Read the sections above, and check which entity holds your account.

Does tastytrade charge commission on US stocks?

Stocks and ETFs USD 0 open and close; fractional shares USD 0; applicable exchange, clearing and regulatory fees still apply (source 1)

Sources

Where this comes from

Not verified: Three incident searches and three legal searches done (search_depth full). Still unverified: the FINRA AWC document for the November 2024 USD 30,000 fine (only press); the interactive BrokerCheck summary and NFA BASIC pages were not opened (FINRA-hosted Form CRS used instead); IG Group FY25 annual report itself not opened (RNS results announcement used); full tastytrade Commissions and Fees document (inactivity, wires) and the international country list not read; securities-account segregation wording on tastytrade's own site not found (IG help page used). No data breach of tastytrade systems found in searches; the only incident found is a single account-takeover case reported by press.

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