If you came over from TD Ameritrade when Schwab completed the merger, this question has probably been sitting in the back of your mind: should you stay, or is tastytrade actually better for active options traders? The honest answer depends on what kind of trader you are, and the commission math is less obvious than it looks.
- Schwab charges $0.65 per contract to open and to close; tastytrade charges $1.00 to open and $0.00 to close (capped at $10 per leg).
- For a trader closing 10 short options per week at 50% profit, tastytrade’s free-close policy saves roughly $338 per year in commissions.
- thinkorswim is the deeper research and customization platform; tastytrade is the cleaner execution environment for premium sellers.
- Schwab wins for traders who want banking, full-service research, or thinkorswim power features like thinkBack and thinkScript.
- tastytrade wins for options-focused premium sellers who roll positions frequently and want a purpose-built workflow.
How the Commissions Compare
The side-by-side commission structure looks like this (verified as of 2026-03-28):
| Feature | Charles Schwab | tastytrade |
|---|---|---|
| Options open | $0.65/contract | $1.00/contract |
| Options close | $0.65/contract | $0.00/contract |
| Per-leg cap | None | $10 per leg |
| Stock trades | $0 | $0 |
| Futures | Yes | Yes |
| Paper trading | Yes (thinkorswim) | Yes |
| Last verified | 2026-03-28 | 2026-03-28 |
At first glance, Schwab looks cheaper: $0.65/contract versus $1.00/contract. But that comparison only holds if you are looking at opening trades in isolation. Most options sellers close or roll positions before expiration, and that is where tastytrade’s free-close structure changes the math.
The Commission Math for Active Sellers
Consider a hypothetical trader who closes 10 short options per week at a 50% profit target. Over 52 weeks:
- Schwab: 10 contracts x $0.65 x 52 weeks = $338/year in close-side commissions
- tastytrade: $0.00 to close = $0 in close-side commissions
That is $338 per year saved on the close side alone, before accounting for any rollovers (which involve both a close and a re-open). For a trader who rolls positions frequently, the savings compound further. tastytrade’s $10-per-leg cap also limits the open-side cost on larger positions: opening 15 contracts at tastytrade costs $10 (capped), while Schwab charges $9.75 for the same trade.
The flip side: if you primarily buy options rather than sell them, and you hold to expiration, Schwab’s $0.65 open-only cost is more competitive. Buyers who never close early pay the open commission once and that is it.
Platform Comparison: thinkorswim vs tastytrade’s Native Interface
Both brokers offer capable options platforms, but they reflect different philosophies about what an options trader needs.
Where thinkorswim Wins
- thinkBack: Historical options chain data that lets you look up what any option was priced at on any date. Invaluable for backtesting strategies without third-party tools.
- thinkScript: A scripting language for custom studies, alerts, and strategy scans. Traders who have built custom setups here will find nothing comparable at tastytrade.
- IV chain customization: thinkorswim lets you configure exactly which Greeks and IV data appear in the options chain. tastytrade shows IV but with far less granular control.
- Broader charting library: More technical indicators and drawing tools, which matters for traders who also trade equities or ETFs actively.
Where tastytrade Wins
- One-click rolls: tastytrade’s roll function bundles the close and re-open into a single order, often at better net pricing than manually legging in. Schwab/thinkorswim requires more manual steps.
- Net liquidity display: tastytrade shows your net liquidation value prominently across positions, which is the number premium sellers actually care about day-to-day.
- Cleaner premium-seller workflow: The platform is designed around collecting premium: buying power reduction, P&L%, and days-to-expiration are front and center without hunting through menus.
- Faster order entry for defined-risk spreads: The spread order ticket at tastytrade surfaces the risk/reward visually in a way thinkorswim buries under extra clicks.
Who Should Stay on Schwab
Schwab makes the most sense if any of these apply to you:
- You rely on thinkorswim power features. If you have built thinkScript studies, use thinkBack for strategy research, or depend on thinkorswim’s paper trading to test setups, those tools do not exist at tastytrade.
- You want your brokerage and banking in one place. Schwab offers checking accounts, savings, mortgage products, and financial advisors. tastytrade is a trading-only platform.
- You trade more than just options. If your account holds stocks, bonds, mutual funds, or ETFs alongside options, Schwab’s broader platform handles the full picture more cleanly.
- You buy options more than you sell them. The free-close benefit only applies to sellers. If you are primarily buying calls or puts and holding them, Schwab’s $0.65 open cost is more attractive.
For a deeper look at what Schwab offers as a full platform, see the Schwab options trading review.
Who Should Consider Moving to tastytrade
tastytrade makes the most sense if:
- You primarily sell premium. Short strangles, iron condors, cash-secured puts, covered calls: these are the strategies tastytrade is designed around. The free-close structure directly rewards this style.
- You roll positions regularly. Rolling is a core part of managing short options positions. tastytrade’s one-click roll feature and zero close commission are built for this workflow.
- You want a purpose-built options interface. tastytrade does not try to be everything. If options are your primary vehicle, its focused design is faster and less cluttered than a general-purpose platform.
Open a tastytrade account at start.tastytrade.com. Schwab account information is at schwab.com. Check current terms on both before opening an account, as minimums and features can change.
What About Interactive Brokers?
Neither Schwab nor tastytrade is the automatic winner for every active trader. If you are managing a larger account and margin rates matter as much as commissions, Interactive Brokers is worth a separate evaluation. IBKR’s Pro tier offers some of the lowest per-contract rates available for high-volume traders, and their portfolio margin requirements are competitive at scale. See the tastytrade vs Interactive Brokers comparison for a direct breakdown.
The Migration Question
Moving from Schwab to tastytrade is not a weekend project. You will need to re-establish existing positions from scratch (transfers do not move open options contracts automatically), re-enter any conditional orders or good-till-cancel orders, and spend real time learning a new interface. Many traders who make the move report a two-to-four-week adjustment period before they feel as efficient as they were at thinkorswim.
That friction is worth weighing against the commission savings. For a casual trader running 5-10 contracts per month, the annual savings may not justify the disruption. For an active seller closing 100 or more contracts per month, the math shifts decisively in tastytrade’s favor.
Bottom Line
Schwab is the better choice for traders who want thinkorswim’s research depth, a full-service financial platform, or primarily buy options. tastytrade is the better choice for active premium sellers who roll frequently, want a cleaner dedicated interface, and benefit from free closes. The $338/year in hypothetical close-side savings is real for the right trader type.
Frequently Asked Questions
Q: Is tastytrade cheaper than Schwab for options trading?
A: It depends on your trading style. tastytrade charges $1.00/contract to open but $0.00 to close (capped at $10/leg), while Schwab charges $0.65 on both sides. For traders who close positions frequently, tastytrade is cheaper overall. For buyers who hold to expiration, Schwab’s $0.65 open cost is lower. Rates verified as of 2026-03-28; check current terms before opening an account.
Q: Can I keep using thinkorswim if I switch to tastytrade?
A: No. thinkorswim is Schwab’s proprietary platform and is only available to Schwab account holders. If you move to tastytrade, you will use tastytrade’s native web and desktop platform. There is no thinkorswim access from a tastytrade account.
Q: Does tastytrade offer banking services like Schwab?
A: No. tastytrade is a trading-only platform. Schwab offers checking accounts, savings, mortgage products, and financial advisory services. If you want brokerage and banking integrated, Schwab is the better fit.
Q: Which broker is better for rolling options positions?
A: tastytrade. The platform has a built-in one-click roll feature that closes the current position and opens the new one as a single order. Combined with the $0.00 close commission, rolling is meaningfully cheaper and faster at tastytrade than at Schwab.
Q: Do both brokers offer paper trading?
A: Yes. thinkorswim’s paper trading mode at Schwab is one of the most capable available, with full access to real-time data and thinkScript. tastytrade also offers a paper trading account for practice. Both are free.