TastyTrade, Inc, CRD number 277027, Chicago, Illinois, was censured and fined $850,000 by FINRA, according to an AWC dated July 21, 2026. The firm consented to the sanctions and to the entry of findings without admitting or denying them. FINRA Case #2017056224801 covers the matter.
Best Execution Findings Against TastyTrade
According to the AWC, TastyTrade failed to conduct reasonable regular and rigorous reviews to ensure its customers' equities orders obtained best execution. The findings stated that the firm relied on a smart order router to direct all customer equity orders exclusively to five market makers, all of which paid the firm for the order flow. Between 2020 and 2022, the firm routed over 8.8 million equity orders totaling over 1.7 billion executed shares.
The findings state that the firm's best execution committee met on a quarterly basis to review the firm's order routing practices and the execution quality of customer orders. The committee only reviewed the execution quality received from the five market makers to which the firm routed customer orders. The firm did not review data on the execution quality available at competing market centers to which it did not already route its order flow.
TastyTrade Supervisory System Findings
FINRA found that the firm failed to establish and maintain a supervisory system, including WSPs, reasonably designed to comply with its best execution obligations. The firm relied upon the reviews of its best execution committee as its supervisory system for compliance with its best execution obligations. Those reviews failed to consider whether the firm could have obtained better execution quality from competing markets and failed to reasonably consider all relevant aspects of the execution quality provided by the firm's existing routing arrangements.
Per the report, the firm's WSPs lacked procedures for comparing the execution quality available at competing markets and reviewing orders on a type-of-order basis. The findings state that the firm ultimately improved its supervisory systems, including its WSPs.
Prior Regulatory Matters On TastyTrade's BrokerCheck Report
BrokerCheck shows an earlier matter dated November 6, 2024, under case number 2023077032101. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish, maintain, and enforce a supervisory system, including WSPs, reasonably designed to supervise the outside securities accounts disclosed to the firm by its associated persons.
Sanctions Imposed On TastyTrade
FINRA censured TastyTrade and fined the firm $850,000 in connection with the AWC dated July 21, 2026.
Questions About An Account Handled By TastyTrade?
If you have questions about an account handled by TastyTrade, you can contact Soreide Law Group at (888) 760-6552 or online to speak with a securities attorney. Our securities lawyers handle FINRA arbitration claims on a contingency fee basis. Learn how FINRA arbitration works.
Sources
This post summarizes public records published by FINRA, including BrokerCheck, as of September 26, 2026. Findings in a FINRA Letter of Acceptance, Waiver and Consent are made in a settlement in which the respondent neither admits nor denies them. The records may be updated or corrected after this date.
