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Is ZacksTrade a Scam or Fraud? Is ZacksTrade Safe and Legitimate Firm? ZacksTrade Complaints And BBB Rating.



Is ZacksTrade Legitimate?


ZacksTrade is a fairly recent entrant into the realm of brokerage houses. If you have any concerns about the safety and reliability of this firm, keep reading. We’re going to go through this company top to bottom and let you know all the details of whether ZacksTrade is a legitimate broker.


Is ZacksTrade a Scam?


ZacksTrade is definitely not a scam. It is owned by Zacks Investment Research, a trusted security analyst. Zacks has been in the investment research business since 1978. It was founded by Len Zacks, who developed the Zacks Ranking system, which is based on earnings estimates and revisions.


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Is ZacksTrade Safe?


ZacksTrade is a safe broker. Of course, if you invest your money in securities, there is always the risk that your principal can go down. So ZacksTrade is only as safe as all of the other brokerage firms out there.

Say, for example, you deposit $5,000 in your ZacksTrade account and then purchase $5,000 worth of Facebook stock. Because ZacksTrade is a trustworthy broker, you can be confident the brokerage has actually completed the purchase for you and hasn’t stolen your money. However, Facebook stock, like any other equity, could go down in price; and this would reduce your $5,000 investment. There are always risks in the stock market, and no brokerage firm can avoid these.


Does ZacksTrade Protect My Privacy?


In addition to the integrity of ZacksTrade, there are also technological safeguards that the broker has implemented. For example, the ZacksTrade gives all clients a security code device that creates a single-use number that has to be entered at every login. Some traders may consider this overkill and somewhat of a nuisance. If you happen to be one of them, ZacksTrade will let you use a mobile app that produces a unique, random number to serve the same purpose. In either case, you have to have this number in addition to your regular password and user ID.

There are other safety features available. For instance, the broker’s desktop platform, ZacksTrade Pro, is able to permit logins only from certain IP addresses. After a specific number of failed login attempts, ZacksTrade will lock an account. The broker uses 128-bit SSL encryption anytime you do login.

ZacksTrade has a fraud detection team that uses advanced software to monitor accounts and look for any suspicious activity.


Is Zacks Trade Safe?


Is ZacksTrade FDIC/SIPC Insured?


ZacksTrade is not a bank. Therefore, it does not offer any FDIC insurance. It is a broker-dealer, and it does offer SIPC coverage. This protects each account up to a maximum of $500,000, of which $250,000 can be applied to cash balances.

One great policy we really liked about ZacksTrade is that it offers supplemental insurance beyond SIPC protection. Not all brokerage houses do this. Zacks has partnered with Lloyd’s of London to provide an extra $30 million of coverage for each account, with a total brokerage limit of $150 million. This means that your own individual account would have an absolute maximum coverage of $30 million, but Lloyd’s wouldn’t cover more than $150 million across all ZacksTrade accounts.


ZacksTrade BBB Rating


The parents company of ZacksTrade, Zacks Investment Research, Inc. has a profile at the Better Business Bureau. It currently has a rating of A+, the company’s highest grade.

Zacks has been accredited since 2012. This means it meets certain criteria that BBB considers vital to a trustworthy business. These characteristics include honest advertising, technical ability to safeguard clients’ privacy, a history of trust with its clients, transparency, the ability to meet promises, responsiveness, and the ability to conduct business with integrity.

Despite Zacks’ accreditation, it does have some complaints listed on its BBB profile. One complaint alleges that Zacks Investment Research wasn’t helpful in cancelling an auto-renewing subscription. Another complaint alleges that Zacks was sending spam e-mails. A response from Zacks claims that the company didn’t find the e-mail address in question in any of its databases. Some of these complaints are marked as resolved, while others are classified as answered.

Zacks has two stars out of five on BBB for customer reviews. Some of the negative reviews are repeats of the same review; so the actual rating should be higher.


ZacksTrade Review


ZacksTrade rating

For more information about the broker's online trading accounts take a look at ZacksTrade Review.


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Open ZacksTrade Account