Securities Lawyers Blog
If you have lost money in your accounts at Tastytrade, Inc., you may be asking whether you can sue your financial advisor or your brokerage firm. The investment loss attorneys at Gana Weinstein LLP help investors answer that question every day. Brokerage firms are responsible for supervising their brokers, and when a firm fails to supervise, misrepresents an investment, or recommends unsuitable investments, the investor can file a FINRA arbitration claim to recover investment losses.
tastytrade is an online brokerage that offers self-directed trading in stocks, options, futures and related products, with a strong focus on options trading tools and investor education. Founded in Chicago in 2011 as part of the tastylive financial media network, the firm has been a subsidiary of United Kingdom-based IG Group since its 2021 acquisition for about one billion dollars.
Tastytrade, Inc. – By the Numbers:
- CRD #: 277027
- Regulatory Events: 2
- Broker Employees: 70
Tastytrade, Inc. – In the News:
FINRA v. Tastytrade, Inc. (Case #2017056224801) – From January 2020 to January 2023, tastytrade failed to conduct reasonable regular and rigorous reviews to ensure its customers’ equities orders obtained best execution. During this period, the firm routed all customer equity orders exclusively to five market makers that paid for order flow. However, the firm failed to compare the execution quality of its routing arrangements to the execution quality available from competing markets to which it did not route orders. Additionally, the firm failed to review all relevant execution quality factors, including price disimprovement, and failed to review orders on a type-of-order basis. As a result, tastytrade violated FINRA Rules 5310(a), 5310 Supplemental Material .09 (Rule 5310.09), and 2010. During this same period, tastytrade violated FINRA Rules 3110 and 2010 by failing to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with its best execution obligations.
FINRA v. Tastytrade, Inc. (Case #2020068991101) – From at least January 2020 through December 2023, tastytrade violated FINRA Rules 4530(d) and 2010 by failing to report to FINRA accurate statistical and summary information regarding written customer complaints. During this period, the firm received, but failed to report, at least 71 written customer complaints. Additionally, during this period, tastytrade violated FINRA Rules 3110 and 2010 by failing to establish, maintain, and enforce a supervisory system, including written procedures, reasonably designed to achieve compliance with FINRA Rule 4530(d). For these violations, tastytrade is censured and fined $200,000.
FINRA v. Tastytrade, Inc. (Case #2023077032101) – From July 2021 through July 2023, tastytrade failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to supervise the outside securities accounts disclosed to the firm by its associated persons. As a result, the firm violated FINRA Rules 3110 and 2010.
FINRA arbitration is faster and less formal than court, and most claims against brokerage firms such as Tastytrade, Inc. are resolved there. The securities arbitration attorneys at Gana Weinstein LLP can explain how to file a FINRA claim and what to expect. Our consultations are free and we welcome all inquiries.