Customers learn how to dial their risk up or down and increase their probability of success, depending on whether they want to invest with a 70/30, an 80/20, etc. probability, rather than simply buying stock which is considered a passive 50/50 investment. The logical, mechanical approach that tastytrade teaches enables customers to have better control over their investments and increase their probability of success.
Active vs. passive investment management
The tastytrade team believes that most passive investors end up in a buy-and-hold strategy with the hopes of a 50/50 chance the investment will rise long term. Historically, active investors were referred to in the industry as day traders, professionals, or even high-frequency traders. tastytrade is changing the culture of investing by redefining what it means to be an active investor. “New active” is simply the individual self-directed retail investor that is empowered with the know-how, tools, and appropriate fees to make smarter investment decisions with a higher probability of success than a 50/50 shot. Active means more engaged in their own investments without taking up the whole day trading or watching the markets. No need. Being an active investor could take less than five minutes per day.
Communication and feedback: Cornerstones of success
One of the keys to success for any business is ensuring that customers have access to company representatives and executive team members. Besides tastytrade’s deep expertise and extensive knowledge in the trading industry, customer feedback is the number-one driver for new products and features. It starts with accessibility and a two-way conversation with customers.
The future of FinTech and what impact tastyworks will make
The wealth-management industry has been turned upside down in the last decade with the rise of robo-advisors and the increase in accessibility to financial products and services at everyone’s fingertips. If they haven’t realized it yet, most people will eventually come to the conclusion that a hybrid approach is the best choice—combining people and technology. By using human advisors, customers derive more value from being engaged and listened to when discussing their portfolios, even if they don’t want to be a self-directed investor. Customers should understand how the markets work and accept the fact that even the best advisors don’t know what the market will do, putting themselves in a position to ask the right questions and empowering them to make better decisions about their investments.
WealthTech Club takeaways
tastytrade and tastyworks are run by incredibly creative and bright individuals. The amount of free content is one thing, but the quality of the content, considering tasty’s co-CEO, Tom Sosnoff, is a regular contributor, shows that the platform can truly help anyone figure out the intricacies of the market and even help them make a buck. tastyworks supports investors who want to actively manage their own money with a powerful platform, embedded, engaging content, and a unique $1 commission structure with zero commissions to close, as well as capped commissions. What more can you ask for?