Types of Account Available on tastyworks Trading Platform

tastyworks believes in enabling its customers to make investments on their own. tastyworks believe that if the users control their own money, they can avail more rewards. It is better to have control over your own money than relying on money managers and financial advisors who have been putting up portfolios on autopilot.We get to know from Tastyworks brokerage review that it believes in providing its customers with the best possible technology and services and assists them in being successful on their own. Not just that, tastyworks also provide a wide range of accounts that suit clients’ various requirements.

It is very important to choose what type of account we are planning to open. Each type of account has its own specific features and requirements. Many online brokers offer a variety of accounts based on their identity, experience, referral program and nature of trade.

tastyworks Account Package

Types of Accounts On tastyworks Trading Platform

Individual Account

This is the standard trading account available for an individual trader. There are mainly two types of accounts:

  • Margin and Cash

    A Margin account is one of the brokerage accounts, in which the broker will let the customer use some cash to make the purchase of stocks or any other financial derivative. The loans in the accounts are backed by purchased security and the cash, which comes with providing interest to the customers at a regular interest rate. There can few risks associated with margin trading for further details regarding the same you can visit; https://assets.tastyworks.com/production/documents/margin_disclosure.pdf?_sp=de4a1fe5-2986-4b0f-a2b2-e1c72946cfc1.1592388244134

    On the contrary, the cash account does not comprise the benefits of the margin account. This means that the customer has to cover the purchase of the trade with the money that is already present in their accounts.

Joint Account The standard trading account that is made for two people can be either margin or cash account. The user must select the account based on their financial goals & get more info about it from the brokerage comparison. There are two major types of Joint Accounts:
  1. Tenants in Common (TIC)

    This type of account is for two people who share a particular portion of this account’s assets. If anyone of the account owners dies, the assets that are saved in the account are further passed on to the estates of the deceased.

  1. With Rights of Survivorship (WROS)

    This is a type of account in which the owners have shared assets equally. When any one of the owners dies, the other surviving owner will avail full rights on the complete account.

Retirement Account

This is the type of account that fits perfectly for the after retirement plans of making savings. There are basically three types of IRA accounts:

  1. Traditional IRA A retirement account is for a person’s hard-earned income or for the ones who file a joint return along with their spouses who earn income. The contributors to this account can deposit around $6000 annually as per the broker comparison 2020.
  1. Roth IRA
    This account is known as an Individual retirement account for the people with earned income. This is for saving the money after paying for taxes. The customers can withdraw money without any penalty fee charges.
  1. SEP IRA
    This is the account made for the self-employed individuals and small business employees. The earnings from this account are tax-deferred and taxed at the ordinary tax rate.
Corporate Account

Corporate accounts are opened by the US entities that are legally established. Presently tastyworks is offering C Corp, S Corp, LLC, and Partnership accounts.

Trust Accounts

A trust account is made on behalf of a reversible trust or an irreversible trust. Once the account is open, the account owner is provided a copy of the trust certificate as well.

International Account
Along with all these accounts, tastyworks also provides portfolio margin and cash accounts for their international customers. They are still forming the list of countries that will be provided with tastyworks services. Due to certain drawbacks and restrictions, According to the brokerage comparison, tastyworks is unable to provide services in Canada. The account selection also depends on the availability of currencies and features, including investment advice.