Our Broker Misconduct Lawyers Are Investigating

Following FINRA fines against Tastytrade for unreported customer complaints and best-execution violations, broker misconduct lawyers at Shepherd Smith Edwards and Kantas are investigating investor losses tied to the platform. The firm is helping affected clients evaluate legal options, including potential FINRA arbitration claims over supervisory failures and unauthorized third-party account breaches.

If you are retail investor who suffered significant losses on tastytrade, Shepherd Smith Edwards and Kantas (investorlawyers.com) wants to talk to you. This online brokerage platform is for self-directed investors and has a focus on futures trading and options. It recently came under scrutiny by the Financial Industry Regulatory Authority (FINRA) and our own securities fraud law firm.

Why Was FINRA Investigating Tastytrade?

• In May 2026, the self-regulatory organization fined the online broker-dealer $200,000 after finding that it did not report at least 71 written customer complaints and lacked the necessary supervisory procedures to deal with complaint escalations. Tastytrade settled the FINRA case without denying or admitting to the findings.
• In July 2026, FINRA ordered the broker-dealer to pay a $850,000 fine for not properly checking to make sure that its customers were receiving the best available prices on stock trades. Instead, it contends, the brokerage firm sent over 8.8 million equity orders  involving more than 1.7 billion shares to five market makers that paid tastytrade for the order flows. This type of arrangement is not illegal. However, US broker-dealers have an obligation to conduct the necessary due diligence to make sure it is getting customers the best prices. The SRO alleges that tastytrade neglected to look at what prices its customers could have secured through other market sources. The firm settled but did not deny or agree to the findings.

Are There Other Broker Negligence Allegations Against Tastytrade?

• The online broker-dealer has come under scrutiny over possible unauthorized third-party breaches in customer accounts that allegedly led to investor losses.  This includes  $180K in losses suffered by one Chicago couple whose retirement fund at tastytrade was hacked. They started receiving alerts about unauthorized activities on their account while on vacation. Tastytrade contends that the “intrusion” wasn’t its fault and claims the couple did not put into place two-factor authentication protection.
• Shepherd Smith Edwards and Kantas started investigating tastytrade in the wake of the hack allegations. The brokerage firm’s trading activities are processed and settled by Apex Clearing. This is the same company used by Webull Financial, whose customers suffered losses in an alleged pump and dump scam involving penny stocks perpetuated by hackers. (Last year, our securities lawyers filed FINRA lawsuits against Webull for investors.)

Brokerage firms, including their online broker platforms, are supposed to implement the proper security measures to prevent third parties from accessing customers’ accounts. When supervisory failures, lax security measures, and other financial advisor negligence places in investors’ portfolios in financial harm, this can be grounds for a broker misconduct lawsuit in FINRA arbitration.

Explore Your Legal Options Over Your Tastytrade Losses

Contact our securities law firm today and we can help you assess whether you have grounds for an investment loss recovery claim against tastytrade over your portfolio losses. We are seasoned broker fraud attorneys that have helped many thousands of investors to get their money back from negligent brokerage firms. Call (800) 259-9010 or reach out to us online.