Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

When will tastyworks Canada be available?

Find out when tastyworks will make its way to Canada and learn about some alternatives for trading derivatives while you wait. 

Updated

tastyworks

tastyworks is a popular US-based trading app that focuses mainly on trading options and futures. It offers low commissions and a strong set of educational tools for seasoned derivatives traders, causing many Canadians to wonder when it will make its way across the border.

Luckily, tastyworks seems to be brewing up a plan to move its services to Canada in the near future. In the meantime, there are several suitable substitutes that you can use to trade options and futures while you wait for tastyworks to make the transition.

What is tastyworks?

tastyworks is a US-based trading app that lets US residents trade stocks, ETFs, options and futures. This platform is somewhat complicated to learn as it’s primarily designed for trading options and futures, which are derivatives of stocks. This means that they derive their value from the movement of stocks, and you won’t actually get ownership of any shares in a company.

The concept of derivatives and how best to trade them can be a difficult thing to wrap your head around. This makes for a steep learning curve, which is why this platform isn’t the best fit for beginners. That said, one of the features tastyworks is best known for is its wealth of research options and educational materials specifically related to options and futures trading. It also offers commission-free trades, which sets it apart from its competitors.

Is tastyworks available in Canada?

Unfortunately, tastyworks is not currently available in Canada. That said, it seems the company has plans to cross over the border in the near future. Its success in making this much-anticipated move will largely depend on whether it can jump through the necessary regulatory hoops in Canada.

The promise of movement but the lack of a set-in-stone arrival date is likely only semi-heartening news for investors who are ready to scale up into low-cost options and futures trading. That said, there are some suitable alternatives that you can consider until this platform arrives in the Great White North.

When will tastyworks come to Canada?

It’s anticipated that tastyworks Canada will exist at some point in 2020. At this time, the company seems to be waiting for final approval from Canadian financial authorities before it can make the big move official. This means that Canadian investors could have access to lower commissions for trading options and futures in the very near future.

Why is tastyworks so popular?

tastyworks is popular in the US because it offers low commissions for trading options and futures. It’s aimed towards active investors and provides rigorous educational resources and research tools to help investors make informed decisions about what options to trade and when.

The mobile app that tastyworks offers is well-reviewed and has key analytics built into its interface so that you can see how much profit you’re likely to make as you adjust different variables (such as the strike, size or expiry date of your trade).

The downside of this platform is that it doesn’t put a major focus on other types of trades like stocks or ETFs. It also doesn’t offer the choice to trade in bonds, GICs or precious metals. The app can also be difficult to master if you’re new to trading options or futures.

Compare alternatives to tastyworks Canada

Name Product Available asset types Stock Fee Option Fee Account Fee ETF Transaction Cost
Wealthsimple Trade
Stocks, ETFs
$0
N/A
$0
Free
Get a $25 bonus when you open a Wealthsimple Trade account and deposit and trade at least $100.
Questrade
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, IPOs, Precious Metals
$4.95-$9.95
$9.95 + $1 per contract
$0
Free
Opt for self-directed investing and save on fees or get a pre-built portfolio and take some of the guesswork out.
Interactive Brokers
Stocks, Bonds, Options, Mutual Funds, ETFs, Currencies, Futures, Precious Metals
Min. $1.00, Max. 0.5% of trade value
$1.50 min. per order
$0 (if monthly commissions are greater than or equal to US$10.00)
Min. $1.00, Max. 0.5% of trade value
Access market data 24 hours a day, six days a week and invest in global stocks, options, futures, currencies, bonds and funds from one single account.
loading

Compare up to 4 providers

Name Product Minimum deposit to invest Funding methods Management fee Available asset types
Wealthsimple Invest
$1
Direct deposit, Bank transfer
0.40% - 0.50%
Stocks, Bonds, ETFs, Commodities
Get a $50 bonus when you open and fund your first Wealthsimple Invest account with a minimum initial deposit of at least $500. Trade and Cash accounts are not eligible.
CI Direct Investing (formerly WealthBar)
$1,000
Direct deposit, Bank transfer
0.35% - 0.60%
Mutual Funds, ETFs
CI Direct Investing offers access to an exclusive and personalized investment portfolio. Get up to $10,000 managed free for a year when you sign up for your first CI Direct Investing account and fund your account.
Justwealth
$5,000
Direct deposit, Bank transfer, Automatic bank withdrawals
0.50%
ETFs
Receive a cash bonus of $50.00-$225.00 when you open a new Justwealth account. RESP accounts require no minimum deposit to begin investing.
Moka
$0
Automatic bank withdrawals
$3/month
ETFs
The Moka app rounds up every purchase you make to the nearest dollar and invests the spare change into low-cost exchange-traded funds (ETFs).
loading

Compare up to 4 providers

Name Product Minimum Opening Deposit Commission Available Markets Platforms
Forex.com
US$100
Minimum US$25
Forex
Metals
Commodities
Indices
Shares
Forex.com Desktop, Forex.com Web Trading, Forex.com Mobile Trading, MetaTrader 4
CFDs are leveraged products which involves greater risk than using cash resources only. You could lose all or more of your initial investment. Trade 80+ currency pairs and 220+ CFDs in equities, commodities and indices on Forex.com.
loading

Compare up to 4 providers

What are some other alternatives to tastyworks Canada?

There are a number of alternatives to tastyworks in Canada, particularly if you’re only interested in trading options or futures.

Interactive Brokers

Interactive Brokers (IBKR) offers a number of different investment types, with a couple of platforms dedicated to options and futures trading. The main platform is called OptionTrader, and offers a wealth of research tools and market data to guide your trades. You can also use the IBKR Lite and IBKR Pro platforms for options trading if you want to dabble in other types of investments as well.

The pricing for options trading is structured around a tiered commission model. The amount you’ll pay will depend on the volume of trades you make each month. For the lowest trade volume, you’ll pay $1.25 per contract with an order minimum of $1.50 For the highest volume, you’ll pay $1 per contract with an order minimum of $1.50

ProsCons
  • No base commission for options trading
  • Many platforms to choose from
  • Tiered commission model per contract
  • No account minimums
  • Steep learning curve
  • Complicated fee structure
  • Inactivity fees

CIBC Investor’s Edge

CIBC Investor’s Edge is a bank-owned platform that offers options trading for fairly reasonable prices. This platform also has an extensive array of educational resources for investors that want to get more familiar with options and futures trading. These include webinars and specialized research tools built into the trading platform.

Due to the inherent risk involved in options trading, CIBC requires you to request option trading privileges before they’re added to your CIBC Investor’s Edge trading account. For a general account, you'll pay $6.95 per trade (+$1.25 per contract) Active traders get a $2 discount on the base commission for every trade, and students can also qualify for special discounts.

ProsCons
  • Lowest commissions for bank-owned platform
  • Wealth of research options and educational tools
  • Accessible customer service
  • Special discounts for active traders and students
  • Annual account management fee of $100
  • Less competitive commissions than some privately-owned brokerages
  • Platform isn’t geared towards options trading

Questrade

Questrade offers low commissions for options trading provided that you qualify as an active trader. This means you execute over 150 trades per month on its platform and are well-versed in trading options. If you don’t fit these criteria, Questrade probably won’t be the best fit for you since the commissions it charges for its standard account are higher than the industry average.

As an active trader, you’ll pay a fixed or variable rate for options trading with Questrade. Fixed-rate pricing will cost you $4.95 per trade plus $0.75 per contract. You’ll pay a little bit more for variable-rate pricing, with base commissions starting from $6.95 per trade plus $0.75 per contract. With a standard account, you’ll pay a flat rate of $9.95 per trade plus $1 per contract.

ProsCons
  • Low commissions for active traders
  • Low account management fees
  • Minimum $1,000 account balance
  • Poorly-reviewed mobile app

Virtual Brokers

Virtual Brokers offers relatively low commissions for options and futures trading, especially if you’re an active trader. You can use its free VB WebTrader platform to execute trades and speculate on assets. Other platforms suitable for trading options could cost you upwards of $75 per year but may offer more rigorous research and charting tools.

The pricing for options trading with Virtual Brokers varies depending on whether you have a standard or active trader account. Standard accounts charge a base commission of $7.99 (+$1.25 per contract) Active trader accounts are reserved for clients who place over 150 trades in the previous quarter. These accounts charge a $3.99 fee per trade plus $1.25 per contract.

ProsCons
  • Special pricing for active traders
  • Several trading platforms to choose from
  • Wealth of research tools
  • Quarterly account fees
  • Platform fees for some platforms
  • Poorly-reviewed customer service from some users

How do I sign up with one of these services?

If you want to sign up for an account with any of the investment platforms listed above, you’ll just need to follow the steps below:

  1. Use the online application to provide personal information like your name, email address, proof of ID and relevant documents.
  2. Review and submit your application.
  3. Get verified and load funds into your account to start trading.

Bottom line

tastyworks is a popular US-based app that will hopefully make its way to Canada at some point in 2020. In the meantime, there are several reputable trading apps you can use to trade options and futures. The commissions for these platforms are typically higher than the pricing tastyworks offers, but they’re still affordable alternatives that you can use while you wait for this service to arrive in Canada.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

More guides on Finder

Go to site