TradeZero is an online brokerage firm that offers commission-free trading for stocks, options, and ETFs. With advanced trading technology and a user-friendly platform, TradeZero makes it easy for traders of all levels to access the financial markets and execute trades with confidence.
As a new trader, one of the issues that are going to bother you is how you are going to find the best broker for the job. Note that selecting a broker should not be a random process and should depend on several factors.
These include your portfolio size, your trading style, and level of activity.
There are many online brokerage services, so it is vital that you find one that suits all your needs.
In this article, we are going to do a TradeZero review. This is a brokerage service that’s quite popular out there.
But just how good is it? Let’s delve deeper.
A Brief Overview of TradeZero
TradeZero is a brokerage firm based in the Bahamas and is regulated by the Securities Commission of the Bahamas. It is known for its no pattern day-trading (PDT) rules, advanced software, and low-cost trading.
As you can see, the offers make the service quite appealing to most day traders.
One important thing to note about TradeZero is that it was initially only limited to Bahamian and non-US citizens. But by 2019, the firm realized that there were many Americans who wanted to join the service. And so, TradeZero America Inc. was launched to cater to the needs of the American-based traders.
Key Features: Trading Tools and Platforms
As an active trader, there are four trading platforms on TradeZero for you to choose from. They are:
- ZeroPro which is a desktop platform
- ZeroWeb is a web-trading platform
- ZeroFree which is a free web-trading platform
- ZeroMobile is a mobile platform
As you can probably tell, ZeroPro and ZeroWeb will cost you some money.
Let’s check out these platforms in brief.
The ZeroPro platform is a program that offers dynamic streaming quotes, level II trading information as well as charting features. This platform is highly advanced and customizable, including the windows whereby you can save multiple layouts.
In ZeroPro, you will get as many as six windows of level II information and ten chart windows complete with indicators.
This tier provides you with lots of freedom so you can customize your trading experience. So, no matter your style of trading, you’re likely to find this platform quite accommodative.
Other useful features that you get in this platform include real-time news, options trading, a stock screener, and alerts.
However, to access these features, you will have to part with $59 monthly.
This is a web-based platform that has similarities to the ZeroPro platform. The major distinction is that it is limited to 6 chart windows and level II trading information.
Another thing is that there is no stock screener, nor will you have the ability to set alerts or to trade options.
However, accessing the platform should not be complicated, provided you have access to an internet connection and a browser.
When you pay the $59 a month for ZeroPro, you will also get access to ZeroWeb.
The main advantage of ZeroMobile is that it allows you to monitor your trade positions while on the road. On top of that, you can follow the real-time level I quotes and real-time news too.
There may be charting indicators, but you have only one window on a small display to deal with. After all, you are dealing with an alternative to your computer.
So, we can conclude that ZeroMobile allows you to proceed with your trading activities without being stuck on the desk.
Besides the trading platforms, there are other notable aspects of TradeZero that we ought to discuss, and we have done so below.
Just as the name suggests, you will get this platform for free. However, there is a catch; if you want free level II windows, you will have to pay $25 a month.
Another thing is that although you get two charts with indicators, as well as real-time news, you cannot trade options unless you pay $25 per month. The platform also lacks custom layouts.
When you do the math, you will realize that paying for these extra features would get you close to what you spend on ZeroPro. So, if you are a serious day trader, this platform is not what you are looking for.
5. The Customer Support
The TradeZero customer support is available on the phone from 8 am to 5 pm EST. Note that these are the standard hours of operation.
Outside these hours, you can get email support as well as the chat service, which is available 24/7.
As you can see, if you experience technical issues overnight, you are going to be at a loss. TradeZero has a reputation of not responding correctly to problems that occur outside of business hours once the next trading day commences.
Another thing is that the customer support mostly deals with execution since this is not a fully-fledged brokerage service.
6. Executions and Routes
As a brokerage firm, TradeZero offers you direct access to the markets. So, an order would be sent directly to the specific exchange that you are dealing with.
The usual markets include ARCA, NSDQ, BATS, and EDGX. If you are dealing with commission-free trades, EDGX is the better choice.
7. Shorting Stocks
This platform uses Convergex and Vision firms to provide stocks that are easy to borrow. Keep in mind that hard-to-borrow stocks usually come at a fee, and we are always looking for ways of driving costs downwards.
If what this company assures us is right, you can expect to get over 14,000 equities from this service that can be shorted.
8. Education and Research
A common factor among brokerage firms is that there is little or no education and research. For instance, TradeZero stops at execution of trades and is for those who know their way around the venture.
The service tries to be unique and speaks of its partnerships with other firms that may provide the information that you are looking for.
And the internet has so many sources from which you can find all the education and research for free, so this should not discourage you from opening an account with TradeZero.
You could also go for the subscription services that offer analysts’ opinions and input.
There is a lot to talk about concerning the pricing of TradeZero’s services. We have broken it down so that you can understand what you are paying for.
All the stocks, warrants, and ETFs that trade on the NYSE, AMEX, and Nasdaq exchange markets incur a cost of 0.005¢ per share with a minimum of 99¢.
On top of that, you will get free limit orders provided the price exceeds $1. Also, the order is for 200 shares, and beyond plus, there should not be an immediate match.
The charge for derivatives is 79¢ per contract on a 99¢ base charge. As for assignments and exercises, the cost is $35.
Software and Data Fees
We have already talked about the TradeZero platforms, Zeropro and ZeroWeb, which cost $59 per month. You should know that if you trade a minimum of 80,000 shares a month, this monthly fee will be waived.
On top of that, the desktop software, which is $79 per month, will be waived if you trade at least 100,000 shares.
Account Opening Requirements
All you need is a deposit of $500 to open an account. Since there is no SEC regulation, day traders are free from the requirement of a $25,000 deposit.
Besides that, there is no annual account fee or an inactivity fee.
With TradeZero, the intraday leverage lies between 1:1 to 6:1. All this depends on the balance that the account has. The broker would need $2,500 for a 6:1 leverage while the overnight positions get leverage of 2:1.
Who is TradeZero Best Suited For?
This service is for any day trader who does not have a lot of deposit to start with. Many upcoming traders are normally deterred by the $25,000 deposit requirement, which in honest, is quite steep.
You may find the broker’s schedule to be very appealing if you are comfortable with 200 shares per trade with the use of limit orders.
One notion that our TradeZero review has dispelled is that you do not need to be deep-pocketed to be a successful day trader.
The service has its flaws, but it still has several useful tools and resources that any day trader would appreciate. Most of all, even if you’re starting from scratch, this program makes it quite easy for you to join in and learn the ropes.
And above all, the platform accommodates American-based traders. That’s a major plus if you’re based anywhere in the USA.
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