Posted by William Charles on December 15, 2019
Deals

Published on December 15th, 2019 | by William Charles

221

[Expired] Tastyworks Brokerage Bonus: Transfer $5,000+ & Earn $250 Bonus

Deal has now ended, view more brokerage bonuses by clicking here

The Offer

Direct link to offer

  • Tastyworks is offering a bonus of $250 bonus when you transfer a new non-IRA tastyworks account with $5,000 USD or more to Tastyworks. They will also pay transfer fees up to $100

The Fine Print

  • Offer valid on new tastyworks non-retirement brokerage accounts opened by 12/31/2019 (“Qualifying Receiving Account”) and funded via Automated Customer Account Transfer (“ACAT”) within ninety (90) days from the account open date with a Net Liquidating Value of $5,000.00 USD or more at the time of ACAT settlement. Sponsor’s system records are the official determination of the Qualifying Receiving Account’s open date. Once the ACAT has settled with a minimum Net Liquidating Value of $5,000, a cash deposit of $250.00 USD will be posted to the Qualifying Receiving Account within thirty (30) business days. Offer is not valid for internal transfers.
  • Qualifying Receiving Accounts can receive a cash rebate up to $100.00 USD for ACAT fees charged by the delivering broker within 90 days of account opening date.

Our Verdict

Haven’t really heard of tastyworks before, but as far as brokerage bonuses goes this looks looks to be an easy one to complete. The bonus itself isn’t huge but the requirement of $5,000+ makes it much more achievable than some other brokerage deals.

Hat tip to reader Fred



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Nate
Nate

Does this work just like ach funding, or do you specifically need to transfer from another brokerage like charles schwab?

Beefer

You need to transfer positions so if you don’t own $5k+ in stock, this is not for you.

HiddlestonN
HiddlestonN

If I just have 5k in my Charles Schwab brokerage account in cash and transfer it through “positions only”. Is it going to work?

beat2def
beat2def

I might open a Schwab account if this works.

Chunk
Chunk

Did this work?

SamL
SamL

@Beefer How do you know this? You can ACAT cash.

AD
AD

Where does it say you need to transfer positions? I don’t see that anywhere, just that the “net liquidating amount” must be at least $5,000 USD.

Chunk
Chunk

I’m curious about this too. Do I actually need to buy positions? Because I just ACH’d $5,100 to Vanguard.. and then planning to transfer to TW next week.

Steve

It just says you need to fund via ACAT. ACAT transfers can include cash (the tastyworks help page “How do I fill out the ACATS Form? (Instructions)” even has an example that has “Cash” as an entry in the Partial Transfer table). So I’m guessing that transferring cash would work.

Mike
Mike

This is a good deal. I have an account with Schwab that I may transfer over. Thanks for posting.

leapfrogger
leapfrogger

What a weird name. Doesn’t sound professional.

slowbrake
slowbrake

I don’t know how the platform is, but the company is professional.

The main guy, Tom Sosnoff, was a power player in the Chicago board options exchange in the 80s/90s. He than founded think or swim. Sold those tools and brand to TDameritrade for 1/2 a billion dollars and than founded tastytrade almost a decade ago.

They run a decent streaming/internet/app channel with a few of different trading personalities (and had their track records out in the open) – kinda like a daily trading/options radio station. The platform has been around a while too but I’ve never used it because robinhood has been cheaper for the past 5 years.

Chunk
Chunk

nice try, Tom

Fred F
Fred F

Karen the Supertrader biggest Fraud ever….lol. People actually believe options strategies like dead eagle split legs are a way to fame n fortune.

Fred F
Fred F

They have two babe traders. One who claims she trades her parents retirement acct in stuff like fat 🐆 right brain red straggles…..lol.

A M
A M

When I clicked through, I found “SHUFFLE” preentered as the “referral code.” So would be a good idea to double check that that’s there when applying from, say, another link

wilsonhammer
wilsonhammer

I would only do this if they allow partial ACAT transfers. Also, I’ll need to learn what ACAT fees both tastyworks and vanguard charge before pulling the trigger on this one.

Edit: vanguard has a $0 ACAT fee for partial or full transfers. TW has a $75 ACAT fee. Do this bonus just went from $250 to $175.

Sander
Sander

They provide rebate for up to $100 for ACAT fee.

“Qualifying Receiving Accounts can receive a cash rebate up to $100.00 USD for ACAT fees charged by the delivering broker within 90 days of account opening date.”

HiddlestonN
HiddlestonN

It’s going to reimburse you up to $100 for the transfer fee. So I think you still get $250 bonus.

wilsonhammer
wilsonhammer

Yeah, but when you’re ready to pull it out, that’s a $75 fee. Unless you liquidate and ACH out.

Steve

But there’s a high likelihood that the brokerage you transfer to from TW will reimburse that fee.

Samosa
Samosa

Steve My man! I was a bit hesitant after finding out the $75 transfer-out fee but you, Sir, just pointed out the solution. I have a Vanguard account with very little invested, will probably invest ~$5.1K in an ETF and will then transfer those to TW and grab $250 bonus. I hope partial transfer triggers the bonus.

Steve

A possible complication is that the next brokerage you send to might not reimburse the transfer fee if you’re only depositing a small amount like $5k. Someone else posted that Ally requires $10k. Though, you could transfer a larger amount to TW to begin with. Or, maybe you could transfer $5k from TW plus more from somewhere else.

TJ
TJ

Just keep the $5k there. Nobody is going to incentivize you to move $5k.

Chunk
Chunk

market is gonna crash soon anyways, so it makes sense to cash out asap.

Samosa
Samosa

I have been hearing this for the last 2 years.

Chunk
Chunk

yes it’s been building up to go over the cliff

Samosa
Samosa

And it may keep building up for another 2 years, or may collapse within the next few hours. The thing is no one knows for sure when this will happen, and nobody in the world has the ability to predict it Consistently correctly!

A M
A M

Talk like this kept me on the sidelines, while the market kept (and keeps) going up. Invest consistently in a broad low fee index fund, and you’ll do great long term

Avi
Avi

For those interested in index funds, market timing, etc., check out The Simple Path to Wealth, by JL Collins.

Geemo
Geemo

Dollar cost averging does work.

Superman
Superman

How does dollar-cost averaging work?

A study by Vanguard found that lump-sum strategy has historically outperformed dollar-cost averaging 64%, 68% and 92% of the time in U.S. markets over 6-month, 12-month and 36-month rolling periods.

The lump-sum strategy beat dollar-cost averaging by an average margin of 2.4%, 2% and 1.5% in U.S., U.K., and Australian markets.

Lump-sum strategy works to give savvy investors better returns.

Dollar-cost averaging works to give emotional investors better feelings.

https://www.fool.com/investing/dollar-cost-averaging-what-investors-need-to-know.aspx

Avi
Avi

Those numbers don’t lie, but it sure is tough to expose a big chunk of change to the stock market after the 10+ years we’ve had because SURELY there must be a better opportunity around the corner. Of course, one would say the same if the stock market were in a 10 year free fall. SURELY it’ll fall some more, so why invest now?

DingDingDang
DingDingDang

How does a 25 year old lump sum $100 K . All he got is a New great job n a Buck fifty To his name

Samosa
Samosa

$50 is THE lump sum for that 25 year old. There isn’t a threshold above which money becomes lump sum.

el_pistolero
el_pistolero

Does anyone know if a partial transfer of account >5k will work?

:)
:)

I use Robinhood and Stash. Wondering if I could transfer from them.

Rob
Rob

Does opening brokerage accounts incur an EWS/ChexSystems inquiry? Any downsides to having too many brokerage accounts?

Marty
Marty

I’ve opened multiple brokerage accounts and never had an EWS or Chex inquiry with any of them. The only way I could see there being a need for an EWS or Chex inquiry with opening a brokerage account would be if there was some sort of check writing feature associated with the account.

Betelgeuse ㊙️

When I opened my Merril edge account the broker who helped on the phone said there is no credit check but there a bank check. Not sure what that means

Yaro
Yaro

I dont see Mutual Fund mentioned in the pricing page. So, only stocks/efs can be transferred from other brokerages to this brokerage ?!

Chao Xu

Tastyworks does not manage mutual funds as you can see in this article. https://www.barrons.com/articles/mutual-funds-arent-an-option-at-tastyworks-an-online-broker-1483163581
I have no idea what will happen if you do an ACAT transaction on those mutual funds.

Justin
Justin

If you want to trade mutual funds you’ll have to call them. So should be able to transfer them.

Chao Xu

I did a transfer. In the email they said “Please note that tastyworks does not accept bonds, mutual funds, OTC securities, expiring options three weeks or less, or foreign securities.” and “It is important to keep in mind that you will incur all of the fees associated with transferring, liquidating, or maintaining any positions in the aforementioned securities. ” so likely they will sell your mutual funds and turn it into cash. (note all I have are vanguard ETFs, so that was not a problem for me)

John
John

Brainstorming here: Can’t I buy $5000 worth of a money market ETF, transfer it to Tastyworks, liquidate it there, and ACH out, making this a minimal risk bonus?

Betelgeuse ㊙️

Yeah sounds like it should work

JW
JW

I’m thinking the same. ACAT into TastyWorks then ACH out to bank and then just tell TW to close the account (No need to risk the TW ACAT out fee)

SamL
SamL

Is “money market ETF” a misnomer?

Marty
Marty

I think you are right. The closest thing to a “money market ETF” is an ultra short duration bond fund.

SamL
SamL

Right, it seems so-called “money market ETFs” are really ultra short bond funds. Pretty safe, but still can have price dips.

A M
A M

Would it make sense to open now and start ACAT transfer process in new year, so that the tax forms can be cleaner? Also, to transfer TO this one, I would just use the Tastywork ACAT form, right? And this is taxable on 1099? First time I’ve done a brokerage bonus

wilsonhammer
wilsonhammer

If you transfer in-kind, it’s not a taxable event.

Steve

Maybe they mean paying tax on the $250 bonus. I haven’t seen any data points for this brokerage yet, but possibly they’ll send a 1099-INT or 1099-MISC.

Chimpo Chee
Chimpo Chee

If they don’t send tax formS it’s FRAUD.

Marty
Marty

A transfer in-kind can be a partially taxable event. If you have fractional shares in stock or ETFs, those fractional shares can’t be transferred and they are liquidated and the proceeds are transferred instead, which results in capital gains or losses on the sale of those fractional shares. At least, that’s what happened to me when I transferred my Vanguard account to a Chase You Invest account as part of a bonus offer. However, fractional shares in mutual funds can be transferred with no problem.

joanne
joanne

It is for that reason I still left a couple whole shares in my Fidelity account on the security I transfered to Chase. This way I keep the dividend reinvestment in both places. Only drawback is you are holding the shares in two accounts.

Brian C 🐕

I can confirm they will transfer your partial shares and keep them intact.

You won’t see them in the platform, because they cant be displayed, but they can be transferred and held, which is what I did.

Chimpo Chee
Chimpo Chee

You need to make sure basis is transferred correct.

ChubbySnorlax
ChubbySnorlax

Will you be able to get the $250 bonus if you transfer $3000 worth of stocks along with at least $2000 of cash from the brokerage account?

Sarah D
Sarah D

$75 fee to transfer out without liquidating. I’m going to invest 5k of new money with a fresh fidelity brokerage account so I can liquidate on the way out without incurring a significant taxable event. Fine print doesn’t seem to imply you need to park the money for the duration, but I suppose it’s probably better just to be safe.

A M
A M

You just gave me the idea of transferring 5K ish of holdings I’ve had for a while now (1 year +) in my Fidelity account to a new one just for the purpose of transferring for this brokerage. Then can liquidate what I intended to sell anyway and be hit with less taxes. Thanks!

tribesman55
tribesman55

Why do they keep saying liquidate in the offer? To me that sounds like they are going to auto liquidate whatever stocks you transfer in into cash.

Steve

I just see them say “Net Liquidating Value” as a way to measure how much you transferred; it doesn’t say they will liquidate anything. https://wiki.stockfuse.com/glossary/net_liquidation_value/

tribesman55
tribesman55

Ok thanks for the clarification!

Bob
Bob

They want u trading options Not holding stocks for 20 years.

john m
john m

You need to send them a statement from your current brokerage firm for them to approve an ACAT. Do some account setting up-external accounts. Can happen in 2 weeks? Cutting it close with any waiting time.

Steve

The terms say the account needs to be opened by 12/31, but you have 90 days from the account opening date to do the funding.

The part about sending them a statement from your current brokerage, which I indeed see that their ACATS form asks for, makes me a little worried that they would only allow a full transfer, not partial transfer. But, the form has a box you can check for Partial Transfer (and then fill in the details of which assets to transfer), so I guess partial transfer would work.

roger
roger

Is there any penalty for closing the acct after getting bonus? You can always transfer this acct out to Merrill or Tdameritrade & get them to pay the transfer fee out !

Chao Xu

You have to be careful. Transfer fee are not always covered, especially if you only transfer in a small amount of money. Ally requires at least $10k. I do not know about Merrill and TD, they say they will reimburse me when I told them about transferring $50k and $25k, respectively.
So if you are only here to earn that bonus and only transferred in $5k, transferring out could be a problem.

Fred
Fred

I think as long as you open the Tastyworks account by 12/31, you have 90 days to complete the transfer:

“Offer valid on new tastyworks non-retirement brokerage accounts opened by 12/31/2019 (“Qualifying Receiving Account”) and funded via Automated Customer Account Transfer (“ACAT”) within ninety (90) days from the account open date…”

SamL
SamL

What’s the minimum holding period? Zero? I don’t see any.

The “CONDITIONS OF ENTRY: ..” are pretty heavy, like AmEx on steroids.

Vague conditions combined with draconian discretionary language, makes this bad.

A M
A M

I would assume holding period once transferred would be until you’re credited the $250 within 30 days of transfer.

Conditions of entry are weird, sure. But the promotion details are actually pretty clear compared to some bank account bonuses

Joe
Joe

I have $20K stock in ally.
Whether a partial $5K stock transfer will qualify for this offer?
I do not want to transfer the whole $20K stock to an unknown broker.

Thank you very much!

Bob
Bob

Your $5,000 will whittle down to $5 after trying to outtrade Goldman Sachs n Newman Marcus……😂 😂 😂.

A M
A M

What?

Fred F
Fred F

This is an options trading operation. They don’t want ATT buyers.

Samosa
Samosa

Buying $5K worth of Vanguard total market ETFs and transferring them to TW is one way of not trying to “outtrade GS or NM”.

Chunk
Chunk

I was thinking to do that.. is Vanguard one of the ones that doesn’t have any fees for transferring out?

Fred F
Fred F

Certainly Tastyworks will fee you to death. Tasty specializes in OPTION transacting.

Fred F
Fred F

They promote gambling your 401 k in options……
Lol. Accts r littered with dead eagles, chickens n 2cows.

bax
bax

Confirmed with Support that partial transfer would qualify.

jz
jz

I don’t see the fee to close the account or transfer the account out to another brokerage. I plan to transfer my account from vangard to Tastyworks. Once i receive the bonus, i’ll probably roll it back to Vanguard.

Chunk
Chunk

I have a question for people following this thread.

I read through the comments. I currently just have an IRA at Vanguard.

I was thinking I can open a brokerage account with Vanguard. In fact, I just did it a few minutes ago, it only took a few minutes to open.

Can I just buy $5,000 of Vanguard total market ETFs? Would it be possible to then transfer the account to TastyWorks before 31 Dec.? Vanguard doesn’t have any time limit before you’re ‘allowed’ to transfer do they? I don’t really do brokerage, so I don’t have any experience with this. But reading through the comments, it sounds like this could be an easy way to make $250.

SamL
SamL

You have 90 days from the account open date, to transfer.

Also, don’t let the bonus tail wag the investment dog.

Fred F
Fred F

Don’t cross Tom Sosnoff.

Chunk
Chunk

Nastyworks

SamL
SamL

@Fred F “Don’t cross Tom Sosnoff.”

Why do you say this? What happens to people who simply follow the bonus terms, which is not profitable to the brokerage? Are you suggesting retaliation? In what form?

A M
A M

SamL I wouldn’t read too much into it lol. Just being facetious I bet. Even if not, I don’t mind it myself. Bring it, Sosnoff, whoever that is

Fred F
Fred F

I’m just anti people who say to trade your retirement account in optioNs.

SamL
SamL

I appreciate your insight into what this platform is all about. (I’d never heard of it, so didn’t know.) I’m a Vanguard type investor, so this platform is “not for me”, but nevertheless this is an attractive bonus, pretty easy to fulfill if taken at face value, so I want to know if I’m missing anything in thinking I should just go for it.

Geemo
Geemo

Go for it.

Fred F
Fred F

Dave Ramsey has stated he doesn’t know anyone whoS main source of wealth was chasing Bonii….lol.

SamL
SamL

So they have a pdf form for ACATS transfer, instead of doing it all online? What other forms do they have, that you have to do? Could be a hassle to deal with.

Steve

Good point. Their help page “How do I transfer my account from another brokerage (ACATS)?” says “the ACATS Form does require a wet signature (non-digital).” But later on that page it says “attach both documents to an email and send it to accounts@tastyworks.com … You may also submit your ACATS Form and statement by faxing it to 312-724-7364.”

So it doesn’t seem that bad, though, I’d prefer if they had a secure message feature (not sure if they do) instead of regular email or fax.

Steve

I asked them if they have a secure way to upload documents such as the ACAT form. They said yes, you can contact them and ask them to open a secure upload portal for you, and then your profile will show a link where you can upload.

Rio
Rio

My only concern would be the account closing fees which can be up to $100 if you take the bonus and then close out the account.

Avi
Avi

Where do you see that fee listed?

Celia
Celia

There’s a list of commission and fees on their site. One is outgoing ACAT for $75.

Avi
Avi

Yes, but I don’t see any kind of account closure fee. From what I can tell, you can ACH out cash and close the account without any fees.

Andrew D
Andrew D

Does anyone know if you can transfer in a Vanguard index fund via ACAT? Something like VTSAX.

Fred
Fred

I wouldn’t do it with a mutual fund.

I don’t have an account with Tastyworks yet, but I was told (by a customer) that mutual fund trades have to be placed by phone (and I noted they don’t list mutual fund trading on their fees and commissions page). You might have trouble transferring mutual funds in (although if they accept anything, they probably accept Vanguard), and you would probably pay fees if you wanted to do anything with it.

An index-based ETF shouldn’t be a problem at all, however.

tavert
tavert

I tried to ACAT in about $9k worth of a mutual fund and they replied with this:

> I must note that we do not currently accommodate trading on mutual funds. Apex charges $20 a symbol to liquidate after the transfer is complete.

So I might buy $5k of some ETF instead.

Fred
Fred

You could ACAT cash (rather than purchasing an ETF you perhaps don’t want to hold). I did confirm that with them before, but I ended up transferring in ETFs.

tavert
tavert

Thanks for the heads up! I was thinking of doing something bond-ish like HYG or PFF since liquidating would be the plan, either right after the bonus posts or 1 year from purchase to make the capital gains long-term. But any reinvested dividends in the interim wouldn’t count as long term. I have a taxable Schwab account with some post-vesting corporate RSUs where I should be able to get the ACAT fee reimbursed by Tastyworks, so I’m trying that instead.

J

Tastyworks is owned by tastytrade. They’re both very reputable companies. Both of them are very much so geared towards options trading, not regular stocks. You’re meant to be an active trader. You get quite a bit of information with both of them, both for free. Just as an example, Schwab charges 65 cents *per leg, per trade*, or 1.30 for a full option open/close. Tastyworks charges 1 dollar for an open, and 0 for a close. Saving 30 cents. If you’re into options trading, they’re 100% the cheapest (unless you can convince IB/ToS to lower your fees which is possible) and imo one of the easiest to use. ToS is probably the best platform for trading in general, though.

Note: Part of a “group” sponsored by tastyworks.

Dheeraj
Dheeraj

I agree though. Tastyworks is a good options brokerage.

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