TradeZero U.S. Review

Item: TradeZero
Rating: 3
Author: Chad Morris

Review of TradeZero U.S.

Day traders and other experienced traders in the United States who want advanced software, strong trading tools, and very low commissions should seriously consider TradeZero. Although the broker is not yet a household name, it has features that could help it get there.

TradeZero U.S. Pricing and Minimum Deposit

Investments	Commissions
Stocks and ETFs listed on NYSE, AMEX, or Nasdaq and priced at $1 or more	$0
Stocks and ETFs under $1, OTC/Pink Sheets, and equities traded between 4:00 AM ET and 7:00 AM ET	$0.005 per share, $0.99 minimum, $7.95 maximum
Options	$0.59 per contract
Mutual funds	not offered
Treasury Bills, Notes, Municipal and Agency Bonds, Zeros & Strips	not offered

Investments	stocks, ETFs, options
Minimum deposit to open an account	$2,500 initial funding requirement

Investment Choices

TradeZero provides self-directed brokerage accounts only. There are no managed portfolios or financial-planning services. Inside a self-directed account, clients can trade the following products:

Equities (including the OTC marketplace, but there are no foreign stocks)
Options
ETFs

There are no other asset classes right now, which is somewhat disappointing because some active traders would probably want access to futures and forex.

TradeZero has plans for a cryptocurrency launch and is currently accepting e-mail addresses for its waitlist. The broker-dealer promises a discrete crypto trading platform. No word yet when this exciting service will be released.

Day Trading

TradeZero focuses heavily on day trading, so this topic deserves an immediate look.

Shorting. Securities can be sold short inside a TradeZero account. The broker has a short locate tool that shows the cost to short a security along with the number of shares currently available.

Level II quotes. Level II data is available on multiple TradeZero platforms.

Direct-access routing. Also available. TradeZero’s Select Routes are now available to all accounts.

Routing fees and rebates. TradeZero America is still one of the few brokerage firms that offers maker-taker pricing. Although this setup does not apply to OTC or pre-market trades, it can create a chance to earn rebates while trading.

Although U.S.-based accounts still need to maintain at least $25,000 in equity to day trade regularly under PDT rules, TradeZero does have a sister company in the Bahamas that can be used to get around this requirement.

TradeZero America Review

TradeZero Margin Rate

Margin trading is, of course, available at TradeZero. The broker has moved away from the usual tiered interest-rate schedule and instead uses a flat rate. It’s currently 9.25%, which is a decent setup, especially for smaller margin balances.

Securities priced below $3 are not marginable at TradeZero, and stocks below $2.50 have a $2.50 per share margin requirement on short positions.

TradeZero has a margin-check tool on its website that displays the initial overnight requirement for an entered ticker symbol for both long and short positions.

TradeZero USA Review

ZeroPro

TradeZero has three computer-based platforms and one mobile app. ZeroPro is the most advanced of the four. It delivers a lot of trading power. Here are some of the key features:

Full-screen charting with over 70 technical studies
Ability to show multiple charts at once using multiple windows in the workspace
Color-coded Level II quotes
Trade ticket with separate sell-short and buy-to-cover buttons
Several order types (including conditional orders) and duration choices
News articles from multiple sources
Time & sales data
Short locate widget with color-coded accept and cancel buttons
Customizable alerts
Real-time watchlist
Most active stocks

The biggest drawback to ZeroPro is the monthly cost mentioned in the pricing section below.

TradeZero Platform Review

TZ1

ZeroPro is the downloadable desktop platform. Traders who prefer a browser-based system can now use TZ1 instead. This is TradeZero’s newer web platform, and it comes with a lot of useful tools, including TradingView charts, custom hotkeys, ready-made workspaces, drag-and-drop widgets, a real-time scanner, and built-in short-selling tools.

Like ZeroPro, TZ1 is built for active traders who want speed and flexibility. The platform also has an options chain for single-leg options and works in a browser on any operating system.

TradeZero Trading Review

ZeroFree

Going down one more level, we have ZeroFree. This is a more basic platform that runs inside a web browser. Even with its simpler design, it still has customizable hotkeys, Level II data, a short locate tool, time & sales, and streaming quotes. Some tool layouts look different on Free, but many of the same core functions are still built in.

The same order-entry system shows up on ZeroFree, and this means there are dedicated buttons for short trading. Here, the ticket appears across the top in a horizontal layout.

The watchlist on Free has a symbol field at the top for quickly adding a security. A red x can be used to remove an entry. Other windows, such as the Level II box, the chart window, and the short locate tool, use similar layouts.

ZeroMobile

TradeZero has a mobile app that works on both phones and tablets. It includes some tools that are not always found on other brokers’ apps. For example, the TradeZero app has a short locate tool that can scan for securities available to short. Some other day-trading brokers do not offer this on mobile.

Other tools on ZeroMobile include charting with OHLC data, news articles, earnings histories, a watchlist, current position details, time & sales, Level II data, and an options section that shows available calls and puts by strike and expiration.

TradeZero App Review

Other Software

TradeZero does not have a smartwatch app. It does have a website that can be used for general account-management tasks like ACH transfers and day-trade tracking. There is also TradingView integration for linked TradeZero accounts.

TradeZero Fees and Minimums

U.S.-based accounts at TradeZero pay no commissions on market and limit orders for stocks listed on the NYSE, AMEX, and NASDAQ, as long as the stock is priced at $1 or more.

Options trades have no base commission, but there is a per-contract fee of $0.42. There can also be OCC and ORF charges, and cash-settled index options carry an additional fee. Automatic exercises and assignments are free, while manual exercises cost $35.

Penny stocks (anything below $1) and over-the-counter stocks have a commission of 0.5¢ per share. There is a minimum commission of $0.99 and a maximum of $7.95.

Stock trades on all exchanges that are placed between 4:00 am and 7:00 am have a charge of 0.5¢ per share.

New TradeZero accounts must be opened with an initial funding amount of at least $2,500. After that, at least $250 in account equity is needed to maintain access to a trading platform, while $2,500 is required to regain platform access if it is lost.

Speaking of software, ZeroPro costs $59 per month. TZ1, ZeroFree, and ZeroMobile are free. Although Level II quotes on the main exchanges are included depending on the platform, OTC quotes cost extra. The current charge is $8 per month for OTC Level I and $20 per month for OTC Level II.

ZeroFree and ZeroMobile are free to use, although a new U.S. account still requires the initial $2,500 funding deposit.

Customer Support

The TradeZero website has a chat widget that operates 24 hours a day, 7 days a week. During the market day, there are live agents. At other times, the system functions as robo chat. In our testing of this support channel, we have consistently received competent answers. A document-upload tool on the website is another nice touch.

Phone support is also available. Staffed hours are 7:00 am to 5:00 pm, EST, on weekdays. And then there’s e-mail: support@tradezero.us.

TradeZero has no branch locations, so the communication methods above are the available choices.

Miscellaneous Services

Initial Public Offerings: TradeZero does not offer access to IPOs.

Extended Hours Trading: Pre-market and after-hours trading are both available at TradeZero.

DRIP Availability: TradeZero specializes in day trading, so it comes as no surprise that it doesn’t offer a DRIP service.

Fractional Shares: Not available.

Cash Management Features: TradeZero does not offer debit cards or checkwriting. Its website does have wire and ACH transfer tools.

Individual Retirement Accounts: One of the biggest disappointments in this review is that TradeZero doesn’t offer IRAs, which means all day trades must be executed inside taxable accounts. That could mean a lengthy 1099-B during tax season.

Recommendations

Active ETF and Stock Trading: TradeZero with ZeroPro or TZ1 would be a decent choice.

Individual Retirement Accounts: Without IRAs or other retirement accounts, TradeZero just won’t work here. We can recommend Charles Schwab, who has IRAs, self-employed 401k plans, custodial accounts, a 529 account, financial-planning services, a robo account, annuities, life insurance, long-term care insurance, charitable giving, retirement calculators, and so much more.

Beginners: TradeZero is built for advanced short-term traders. Beginners will probably feel lost here. Instead, they should head over to . The company’s software is user-friendly and designed for newcomers.

Mutual Funds: Although TradeZero doesn’t have any mutual funds, Charles Schwab does. The brokerage house charges no transaction fees on any fund trades, and we found thousands of funds using its screener.

Small Accounts: Because TradeZero requires $2,500 to open a new U.S. account, we can’t recommend it here. would be a better pick. It has fractional-share trading, no minimums, and a desktop platform with bracket orders. The platform displays margin requirements on individual securities.