Opening a Tastytrade Account: A Guide for Users in the Czech Republic
The platform offers various funding options, but international customers can use only two funding methods. Both methods must be made in USD because tastytrade does not provide any currency conversion
In the digital age, the accessibility and variety of investment platforms have expanded significantly. As one of my investment objectives this year, I wanted to explore a new investing platform, and Tastytrade has caught my attention.
This article will guide you through opening a Tastytrade account and overcoming its challenges. I will share my experience as a user from the Czech Republic and provide a general overview for those outside the Czech Republic. The focus will be funding your Tastytrade account, as you may face challenges as a user of an international account. This article offers valuable tips for choosing your investment platform.
Discovering Tastytrade
I came across numerous platforms, but Tastytrade caught my attention. According to the overall star rating of online brokers in 2022, Tastytrade was in seventh place with a 3.8/5 star rating. It has a reputation for offering extensive educational resources, but a recommendation also played a role in choosing Tastytrade.
What is Tastytrade?
Tastytrade is a US platform for options, futures, and stock trading. Launched in 2017, the relatively new online broker is one of the fastest-growing online financial networks in the world.
Tastytrade’s motto is "We believe in do-it-yourself investing." That's why the company gives you technology, rates, and support to help you succeed independently.
Account opening process
Opening the Tastytrade account is user-friendly, fully digital, and requires no minimum deposit. To open a Tastytrade account, follow these essential steps:
Check the list of supported countries for international accounts. This list includes the Czech Republic and most other Central and Eastern European countries.
Fill out the application, which takes 15-20 minutes and is relatively straightforward.
Provide the following information: account type, personal information, employer information (name, address, phone number), financial knowledge, name of your primary bank, and digital copies of your ID and proof of address.
Account type selection
Tastytrade offers a range of various account types to suit different investment needs. When registering, you can select the account type that aligns with your investment goals. Whether you prefer an individual account, joint account, retirement account, or other options, Tastytrade caters to diverse investor preferences.
Proof Of Address
As part of the registration process, Tastytrade adheres to regulatory requirements and prompts users to submit scanned copies of proof of their current address. Utility bills or rent contracts can be used for this purpose.
The IP address of your computer should match the physical address you registered.
If, at the moment of opening an account, you are traveling in another country, you will need to explain this to customer support.
Customer Support
Tastytrade's customer support is excellent. They strive to respond promptly to inquiries and address concerns. You can reach them via email, phone, and live chat. The only downside is that they are available to contact only on weekdays from 7 am to 5 pm (GMT-6).
Customer support is well-organized. Although I was in contact with three different people, they were informed about the issue. They all gave fast and relevant answers when guiding me through the process.
Funding Your Account
After creating and verifying your account (this may take 3-5 business days), you can fund your Tastytrade account. The platform offers various funding options, but international customers can use only two funding methods. Both methods must be made in USD because Tastytrade does not provide any currency conversion services.
It is important to note that funding cannot come from third-party platforms like Paypal, Revolut, or Wise. These deposits will be rejected and returned, potentially incurring a $30 reversal fee issued by the clearing firm.
Currency Fair
The first option for international customers is to use CurrencyFair, an online peer-to-peer currency exchange marketplace headquartered in Ireland.
Opening a CurrencyFair account is easy and takes only 10 minutes. In addition to providing personal and contact information, you must submit two scanned copies as proof of address. Rent-contract, utility bills, or bank statements are acceptable forms of evidence.
You can deposit funds once your CurrencyFair account is set up and verified. CurrencyFair supports 17 currency conversions when sending money to your account: AED, EUR, PLN, AUD, GBP, SEK, CAD, HKD, SGD, CHF, HUF, USD, CZK, NOK, ZAR, DKK, NZD.
Tastytrade provides an example of what your Recipient Information will look like on CurrencyFair when sending money to your investment account. If you are unsure if you put the Recipient Information in the right place, you can refer to the explicit image provided by Tastytrade, which is very helpful and will prevent mistakes.
CurrencyFair transfers can take up to 3-5 business days.
The Importance of Your Location
CurrencyFair allows registration from many countries; the complete list is here. However, it is essential to note that you must be physically located in the country where you are registered. If you are currently in a different country, CurrencyFair will not allow you to complete any transfer, especially if that country is not on the list of supported countries.
This was the second challenge I faced. The CurrencyFair customer support team said: "Please get back to us once you are back in the Czech Republic, and we will be more than happy to complete your registration. Once we activate your CurrencyFair account, you can use it from all countries."
This is a significant downside of CurrencyFair; if you are abroad during the registration process, you must choose another funding option. You can complete the verification process once you return to your country of registration.
2. Bank wire
The second option for funding your Tastytrade account is through bank wire. Tastytrade will provide instructions, including their designated bank account details. It does not accept "third party" wire transfers, meaning the names on both accounts must be the same. Remember that the transfer must be made in USD, so your local bank may charge you a fee for international transfers.
When filling out the wire form with your bank, the essential information for Tastytrade to receive your wire is the ABA Routing Number, Recipient/Beneficiary Name, Recipient/Beneficiary Bank Account Number, and your Tastytrade account number. You can find all this information on this page, so follow the instructions carefully.
My personal experience was with a bank wire from Komerční banka, where I was charged a 10 USD fee, and it took three business days to post in my Tastytrade trading account.
Bank wire is a relatively fast and easy option for funding your Tastytrade account; however, for long-term use, I do not recommend this option due to the high fees. On average, you will lose 10 USD per transfer.
Tastytrade Fees
Tastytrade generally has low fees. It does not charge a general account, inactivity, custody, or deposit fees. Additionally, it does not charge any commission on stock and ETF trades.
Yet, Tastytrade does charge a high withdrawal fee for wire transfers. Specifically, non-US wire transfers cost $45 to withdraw, while wire transfers within the US cost $25. For a complete list of all fees, visit the list here.
Platform Navigation
Tastytrade offers desktop and mobile platforms, both of which are user-friendly. After setting up your account, you will access a well-designed dashboard to explore various sections such as account information, trade execution, educational resources, and more.
Tastytrade's mobile app is well-organized and similar to the web platform. Still, it can feel complicated and lacks price alerts. The platform's search functions could also be improved, as you cannot use filters for asset types.
Account protection
Tastytrade has implemented several measures to ensure the safety and security of their users' accounts. Any Tastytrade user has a guarantee of their investment funds up to $500,000 if there is some issue with the platform (insolvency of a brokerage firm). Users with less than $500K will receive 100% of their money back. This account protection also applies to non-US account holders. Note that it does not protect you against trading losses.
The account opening process of TastyTrade is characterized by a user-friendly interface and efficient customer support. This makes it an attractive choice for experienced traders but can be intimidating for newbies. However, its educational and research tools are excellent for learning.
The deposit and withdrawal processes could be better for international accounts. Tastytrade's customer support is excellent, but CurencyFair's customer support could be better, especially regarding funding your account.
There is no minimum deposit, inactivity fee, or monthly fee, and trading fees are low, with free stock and ETF trading fees. Based on analyzing 500+ criteria and testing via opening a live account, BrokerChooser gave Tastytrade a 4.7/5 rating.
As an international user from the Czech Republic but living in Mexico, I found the Tastytrade account opening quite challenging when funding the account. However, the Tastytrade customer support is excellent, and I was delighted with their help.
Investing always carries risks, and conducting thorough research and making informed decisions is essential. Don't guess your way through investing; instead, learn by following 24Hour Journal for more educational content.
