been using both for 18 months.
time for honest comparison.
python automation perspective.
my setup #
tastyworks:
options trading (premium selling).
$180k allocated.
~40% of total capital.
interactive brokers:
everything else (futures, stocks, international).
$220k allocated.
~48% of total capital.
remaining: $56k crypto exchanges (coinbase/kraken/binance).
API comparison - python automation #
interactive brokers (ib_insync):
pros:
- clean python library (ib_insync).
- real-time streaming data.
- global markets access.
- futures + options + stocks + forex.
cons:
- TWS gateway required (resource hog).
- occasional disconnects need handling.
- API throttling on some endpoints.
tastyworks (unofficial API):
pros:
- RESTful API (easier to work with).
- options-focused (greeks, chains, spreads).
- lower latency for options quotes.
- no gateway required.
cons:
- unofficial API (could break anytime).
- US markets only.
- limited futures support.
- no forex.
verdict:
IB for serious multi-asset algo trading.
tastyworks for options-only automation.
i use both because specialized > generalist for options.
commissions comparison #
interactive brokers:
options: $0.65/contract.
futures: $0.85/contract (ES/NQ).
stocks: $0.005/share ($1 minimum).
data feeds: $15/month (real-time).
tastyworks:
options: $1.00 to open, $0 to close.
futures: $1.25/contract.
stocks: $0 commissions.
data feeds: free real-time.
annual costs (my volume ~300 trades/year):
IB: ~$1,950 commissions + $180 data = $2,130/year.
tastyworks: ~$1,800 commissions + $0 data = $1,800/year.
difference: tastyworks saves $330/year.
not huge but adds up.
execution quality - slippage comparison #
measured over 3 months (dec-feb):
interactive brokers:
avg slippage: 1.8 ticks (options).
avg slippage: 0.9 ticks (futures).
fill rate: 94%.
tastyworks:
avg slippage: 2.1 ticks (options).
fill rate: 91%.
IB wins on execution quality.
tastyworks slightly worse fills but not dealbreaker.
both acceptable for my strategies.
platform stability #
interactive brokers:
TWS gateway crashes: 2x in 18 months.
API disconnects: ~6x in 18 months (reconnect logic required).
data feed issues: 1x (lasted 4 hours, switched to polygon backup).
uptime: 99.4%
tastyworks:
platform outages: 1x in 18 months (lasted 90 minutes).
API issues: 3x in 18 months (unofficial API risk).
data feed issues: 0x.
uptime: 99.7%
tastyworks more stable (surprising given unofficial API).
margin rates #
interactive brokers:
tiered rates based on balance.
$100k-$1M: 5.83% (current).
excellent for portfolio margin.
tastyworks:
flat rate: 9.25% (current).
no portfolio margin (reg-t only).
IB wins massively on margin.
if you trade on margin frequently, IB saves thousands.
i don’t use margin much so less important.
python code examples #
interactive brokers (ib_insync):
from ib_insync import *
# connect to TWS gateway
ib = IB()
ib.connect('127.0.0.1', 7497, clientId=1)
# get SPX options chain
spx = Index('SPX', 'CBOE')
chains = ib.reqSecDefOptParams(spx.symbol, '', spx.secType, spx.conId)
# filter to weekly expiration
weekly = [c for c in chains if 'W' in c.tradingClass]
# place iron condor (example)
def place_iron_condor(underlying, expiry, strikes):
"""
Place 4-leg iron condor on SPX
"""
contracts = [
Option(underlying, expiry, strikes['put_buy'], 'P', 'SMART'),
Option(underlying, expiry, strikes['put_sell'], 'P', 'SMART'),
Option(underlying, expiry, strikes['call_sell'], 'C', 'SMART'),
Option(underlying, expiry, strikes['call_buy'], 'C', 'SMART')
]
# qualify contracts
qualified = [ib.qualifyContracts(c)[0] for c in contracts]
# create combo order
combo = ComboOrder()
combo.legs = [
ComboLeg(qualified[0].conId, 1, 'BUY', 'SMART'),
ComboLeg(qualified[1].conId, 1, 'SELL', 'SMART'),
ComboLeg(qualified[2].conId, 1, 'SELL', 'SMART'),
ComboLeg(qualified[3].conId, 1, 'BUY', 'SMART')
]
# place order
order = LimitOrder('BUY', 1, limit_price=2.50)
trade = ib.placeOrder(combo, order)
return trade
# real-time greeks streaming
def stream_greeks(contract):
"""
Stream real-time greeks for options
"""
ticker = ib.reqMktData(contract, '106', False, False)
ib.sleep(2) # wait for data
return {
'delta': ticker.modelGreeks.delta,
'gamma': ticker.modelGreeks.gamma,
'theta': ticker.modelGreeks.theta,
'vega': ticker.modelGreeks.vega,
'iv': ticker.modelGreeks.impliedVol
}
# disconnect
ib.disconnect()
tastyworks (unofficial API via requests):
import requests
import json
from datetime import datetime, timedelta
class TastytradePythonAPI:
def __init__(self, username, password):
self.base_url = 'https://api.tastyworks.com'
self.session = requests.Session()
self.auth_token = None
self.account_id = None
# authenticate
self._login(username, password)
def _login(self, username, password):
"""
Authenticate with tastyworks API
"""
url = f'{self.base_url}/sessions'
data = {
'login': username,
'password': password,
'remember-me': True
}
response = self.session.post(url, json=data)
response.raise_for_status()
result = response.json()
self.auth_token = result['data']['session-token']
self.session.headers.update({
'Authorization': self.auth_token
})
# get account info
self._get_accounts()
def _get_accounts(self):
"""
Get account details
"""
url = f'{self.base_url}/customers/me/accounts'
response = self.session.get(url)
response.raise_for_status()
accounts = response.json()['data']['items']
self.account_id = accounts[0]['account']['account-number']
def get_option_chain(self, symbol, expiration_date=None):
"""
Get options chain for symbol
"""
url = f'{self.base_url}/option-chains/{symbol}/nested'
params = {}
if expiration_date:
params['expiration-date'] = expiration_date
response = self.session.get(url, params=params)
response.raise_for_status()
return response.json()['data']['items']
def place_iron_condor(self, symbol, expiry, strikes, price_limit):
"""
Place iron condor order
"""
legs = [
{
'instrument-type': 'Equity Option',
'symbol': symbol,
'quantity': 1,
'action': 'Buy to Open',
'option-type': 'P',
'strike-price': str(strikes['put_buy']),
'expiration-date': expiry
},
{
'instrument-type': 'Equity Option',
'symbol': symbol,
'quantity': 1,
'action': 'Sell to Open',
'option-type': 'P',
'strike-price': str(strikes['put_sell']),
'expiration-date': expiry
},
{
'instrument-type': 'Equity Option',
'symbol': symbol,
'quantity': 1,
'action': 'Sell to Open',
'option-type': 'C',
'strike-price': str(strikes['call_sell']),
'expiration-date': expiry
},
{
'instrument-type': 'Equity Option',
'symbol': symbol,
'quantity': 1,
'action': 'Buy to Open',
'option-type': 'C',
'strike-price': str(strikes['call_buy']),
'expiration-date': expiry
}
]
order_data = {
'account-number': self.account_id,
'time-in-force': 'Day',
'order-type': 'Limit',
'price': str(price_limit),
'legs': legs
}
url = f'{self.base_url}/accounts/{self.account_id}/orders'
response = self.session.post(url, json=order_data)
response.raise_for_status()
return response.json()
def get_positions(self):
"""
Get current positions
"""
url = f'{self.base_url}/accounts/{self.account_id}/positions'
response = self.session.get(url)
response.raise_for_status()
return response.json()['data']['items']
# usage
api = TastytradePythonAPI('username', 'password')
# get SPX options
chain = api.get_option_chain('SPX')
# place iron condor
strikes = {
'put_buy': 4850,
'put_sell': 4900,
'call_sell': 5100,
'call_buy': 5150
}
order = api.place_iron_condor('SPX', '2025-03-21', strikes, 2.50)
verdict:
IB: more mature library (ib_insync well-maintained).
tastyworks: unofficial API requires more maintenance but simpler REST interface.
both work fine for python automation.
what nexusfi traders say #
been discussing broker comparisons on nexusfi for 2 years.
lots of experienced algo traders there.
consensus matches my experience:
- IB for multi-asset automation.
- tastyworks for options-only focus.
- both APIs work well for python.
detailed broker discussions in the trading reviews section.
final verdict #
use interactive brokers if:
- trading multiple asset classes (futures/stocks/options/forex).
- need global markets access.
- care about execution quality (lower slippage).
- use margin frequently (better rates).
use tastyworks if:
- options-only trading.
- prefer simpler API (REST vs gateway).
- want lower commissions on options.
- US markets sufficient.
me: i use both.
tastyworks for premium selling strategies (40% capital).
IB for everything else (48% capital).
specialization > trying to force one broker for everything.
tonight (march 12, 2:35am) #
18 months using both brokers.
IB: better execution, more assets, lower margin rates.
tastyworks: simpler API, lower options commissions, more stable.
python automation works great on both (ib_insync vs REST).
$330/year savings on tastyworks but IB wins on slippage.
use both, specialize by asset class.
nexusfi traders agree: multi-broker approach makes sense for algo trading.
2:35am thursday. broker comparison complete. 18 months experience both. IB: $220k allocated (futures/stocks/international), 1.8 tick avg slippage options, TWS gateway required, $2,130 annual costs. tastyworks: $180k allocated (options premium selling), 2.1 tick avg slippage, REST API, $1,800 annual costs. python: ib_insync vs unofficial tastyworks API (both work). verdict: use both, specialize by asset class. IB better execution/margin, tastyworks simpler API/lower commissions. nexusfi consensus matches.
-AK