Is Tastyworks Scam? | Tastyworks Safety and Reliability

Pros

Cons

  • Regulated by FINRA and NFA
  • Member of SIPC
  • Client protection amounts
  • No negative balance protection
  • Not listed on the stock exchange market

Introduction

Tastyworks is a new broker in the market. It was founded in 2017 in Chicago. Although Tastyworks is fresh, it’s regulated by top-tier financial authorities including FINRA and NFA, and it’s also a member of SIPC. Tastyworks is not a Forex or CFD broker, but its main products are stocks, options, and futures. The good thing about it is that it has very competitive commissions among similar brokers.

Is Tastyworks Regulated?

The Tastyworks broker is regulated by many financial authorities like:

  • FINRA: The Financial Industry Regulatory Authority
  • NFA: the National Futures Association

 

Tastyworks is also a member of the Securities Investor Protection Corporation (SIPC)

Is Tastyworks a Scam?

Although Tastyworks is a new broker, it’s regulated by top-tier financial authorities. It also passed through the coronavirus pandemic up till now. On the other hand, Tastyworks is not listed on any market stock exchange and does not publish its financial statements regularly.

Client Protection

Tastyworks has a client protection amount under the supervision of FINRA in case anything goes wrong.

Tastyworks Legal Entities Table

Country

Protection amount

Regulator

Broker’s Legal Entity

All Countries

(except Australia)

$500,000 ($250,000 cash limit)

FINRA

tastyworks, Inc.

Negative Balance Protection

Unfortunately, Tastyworks does not provide negative balance protection.

Two-step Verification

Luckily, Tastyworks has a two-step verification method while logging in.

Tastyworks Awards

Since its foundation in 2017, Tastyworks was awarded like:

  • 2020:
  • Best Online Broker for Options Trading by Forbes
  • Best Full Issue in the Eddie and Ozzie Awards
  • 2017:
  • CEC Momentum Award

FAQs

  1. How long does it take to verify my account?
  • It takes about 1 to 3 business days to verify your Tastyworks account.
  1. Can I open more than one trading account?
  • At Tastyworks, you can only open one account, and any other account opened under the same person will be rejected by the support team.
  1. What are the two-factor authentication methods available?
  • The available methods are via an authenticator app or SMS.
  1. Does Tastyworks allow bot trading?
  • Yes, through Robo-advisory.
  1. When trading forex, will you lose more than your initial deposit?
  • Yes, as the Tastyworks broker doesn’t have any negative balance protection. In other words, your account can have a negative balance.
  1. Can I log in to more than one account from the same computer?
  • Yes, you can.
  1. Does Tastyworks accept payments from third parties?
  • No, payments should be from a bank account that holds the same name as yours.


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