Tradezero rating

TradeZero Review


TradeZero Pricing and Minimum Deposit


InvestmentsCommissions
Stocks and ETFs $0
Options $0
Mutual funds not offered
Treasury Bills, Notes, Municipal and Agency Bonds, Zeros & Strips not offered

Investments stocks, options, ETFs
Minimum deposit to open account $2,500 for cash account, $2,500 for margin account
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Review of TradeZero Brokerage


TradeZero America is a U.S. brokerage firm with headquarters in Brooklyn, NY. It is a FINRA and SIPC member.


Investment Vehicles


TradeZero Platform Rating

TradeZero America customers can buy and sell option contracts, exchange-traded funds, and stocks. The last category includes OTC and Pink Sheet investments that trade above 10¢.

Unfortunately, the broker-dealer does not offer forex, digital currencies, futures, contracts for difference, global stocks, or mutual funds.


Day-Trading and Extended-Hours Services


TradeZero Platform Rating

TradeZero America offers a suite of services that day and swing traders will want to be aware of. The broker offers a short locate feature. Hard-to-borrow shares can be located as well. There are fees for these services. They vary by security.

TradeZero America enforces the pattern-day-trading rule for customers who place more than 3 day trades in a rolling 5-business-day period inside a margin account with under $25,000 balance.

In addition to day trading, TradeZero America clients can also trade outside of the regular session. The broker’s pre-market period starts at 4:00 am, EST. The night session runs until 8:00 pm. TradeZero America clients can start locating securities to short starting at 6;50, EST.

Other services at TradeZero America that day and swing traders may want to take advantage of include direct-access routing, alerts, advanced orders, charting with tools, hotkeys, custom layouts, up-to-the-minute news articles, and Level II data.


Margin


TradeZero Platform Rating

The maximum day trading leverage at TradeZero America is 4:1, and this figure assumes an account balance above $25,000. If account equity dips below that level, leverage drops to 2:1.

Equities under $3 may not be purchased on margin in a US account. For short positions priced at $2.50 or less, TradeZero margin requirement is 100% of $2.50.

A margin rate at TradeZero America is hard-to-beat 5% across all balance levels.


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Mobile App


TradeZero Platform Rating

TradeZero America clients can buy and sell securities with the broker’s mobile app. It functions on Apple and Android tablets and phones.

Although it’s a mobile platform, it still manages to deliver a lot of features day traders would want. These include HTB locates, charting, and real-time quotes. News articles from Benzinga can be accessed as well.

At the bottom of the screen there is a row of icons. A watchlist icon is here. Tapping on this produces a list that can easily be modified. Each entry has a trade button.


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Computer Platforms


TradeZero Platform Rating

TradeZero America offers three computer platforms, ranging from simple and free to complex and pricey. Here they are, in ascending order:


ZeroFree


This is the entry-level platform, and it is rather basic, using HTML5. There are no alerts, custom layouts, stock screener, or market movers. Real-time news and a HTB locate feature do make an appearance, however. There is also a watchlist that’s a standard feature, and several can be created and saved.

Charting on ZeroFree is rather basic. There’s no full-screen mode, and there’s only 4 technical studies. Price history goes back 5 years, and extended-hours price action can be added to a chart.

Despite the software’ simplicity, it does have the same trade ticket as the next two platforms.


Zerofree platform


ZeroWeb


Going up a level we get ZeroWeb, which is a browser platform. The first advantage that it offers over the free platform is the ability to display 4 Level II quote boxes at a time. The free platform can only show 1 at a time.

Up to 6 charts can be displayed simultaneously on ZeroWeb. This, too, is an advantage over ZeroFree, which can only show 2 at a time.

With ZeroWeb, we also get custom layouts, a useful feature not found on ZeroFree. Advanced hotkeys and Level II quotes are no extra charge, another advantage.

ZeroWeb’s charting system is the same as ZeroFree’s.


Zeroproweb platform


ZeroPro


The final and best trading program is ZeroPro. During our investigation, we found many advanced features, including sophisticated charting, customization options, time & sales data, and window linking.

A Level II window on ZeroPro can be configured to display prices in one of three color schemes: shades of blue, multiple colors, or a gray/turquoise combination. It’s possible to have one color format for one window, and another for a different window.


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During our probing, we only found one watchlist on ZeroPro. Nevertheless, prices do update in real-time, and visual and audio alerts can be established for a variety of events.

A short window displays shares of stocks that are available for shorting. It’s also possible to request hard-to-borrow shares.

The platform’s order ticket offers multiple routes, time-in-force choices, and order types. Charting offers lots of technical studies and a beneficial full-screen mode (without right-click trading).


Tradezero Charting


Fees and Commissions


TradeZero Platform Rating

ZeroFree is free (as you would expect); but it takes $59 a month to gain access to ZeroPro and ZeroWeb. They are both included in a single package. There is no charge for the broker’s mobile app.

Although ZeroFree is free, options trading is an extra $25 per month. Level II data and hotkeys are also an extra $25.

Limit and market orders on the big exchanges are free, assuming the stock price is $1 or higher. Other trades, including OTC transactions, cost 0.2¢ per share. For some reason, trades between 4:00 am and 7:00 am on the big exchanges cost 0.2¢ per share.

Option trades have no base charge and no per-contract commissions, a great deal to be sure. Exercises and assignments, however, cost $35.

A margin loan at TradeZero America currently costs 5% across all balance levels.

Incoming ACH transfers are free, but an outgoing ACH is $5.

Directly routing orders entails fees for adding and removing liquidity. The exact amounts vary by exchange. In all cases, an account balance of at least $30,000 is required.


Financial Education and Security Analysis


TradeZero Platform Rating

During our exploration, we found updated news articles on all four trading platforms. Benzinga was the only source, however.

ZeroPro has an equity screener (the only platform with the screener). A separate tool shows the market day’s most active investments based on several criteria, such as AMEX net change down.

Other resources are completely missing at TradeZero. There are no third-party equity reports. We didn’t find any general investment education, such as an overview of options or how to invest in stocks.


Options Trading


TradeZero Platform Rating

ZeroPro is the only platform that offers options trading as a standard feature. As already mentioned, it can be added to ZeroFree for $25 per month.

On ZeroPro, a dedicated options-trading window is not part of the standard layout. It can easily be added, though, by clicking on an option chain icon in the top menu. Calls and puts are displayed, and it’s easy to shuffle among expiration dates. There are no spreads.

ZeroFree has the same interface and order ticket for options trading as ZeroPro.

There are no other derivative tools at TradeZero.


Tradezero Options


Customer Service


TradeZero Customer Rating

TradeZero America has associates available via phone and online chat from 8:00 am until 5:30 pm, EST, Monday through Friday. The online chat system switches to an e-mail system during other times. The company has no branch locations.


Other Services


TradeZero Services Rating

TradeZero America has no DRIP service, and it doesn’t offer Individual Retirement Accounts.


Recommendations


Active ETF and Stock Trading: TradeZero definitely has some good software with excellent commissions. However, its software fees makes it less competitive than Tradestation.

Individual Retirement Accounts: Although we can’t recommend TradeZero, we can suggest TD Ameritrade.

Beginners: With few educational resources, TradeZero is definitely not the broker of choice for newbies. Ally Invest would be a better pick.

Retirement Savers and Long-Term Investors: Without target-date mutual funds, IRA’s, or solo 401(k)’s, we cannot go with TradeZero here. E*Trade has all of the above.

Small Accounts: With software fees, TradeZero would not be a good broker for small investors. Webull would be a good choice, though.


TradeZero Review Summary


TradeZero America has some good resources and tools, especially for day traders but at lacks in many areas.


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