Zacks Trade Review
Zacks Trade is a top choice for those who need advanced trading tools and professional software. Check out this detailed review before you decide to open an account.
Accounts and Tradable Assets
Zacks Trade offers a variety of investment options including stocks, options, cryptocurrencies, mutual funds, ETFs, closed-end funds, and bonds. Besides major American markets, it also provides access to international markets like the London Stock Exchange, once your account is set up for it.
All accounts at Zacks Trade are self-managed. There are no advisory services. Accounts can be individual, joint, custodial, trust, or retirement, with additional options for professional traders such as proprietary trading groups and hedge funds.
Securities in Zacks Trade accounts are protected up to $500,000 by the Securities Investor Protection Corporation (SIPC).
Pricing
Zacks Trade targets day traders. This means it's not commission-free: there’s a $15 monthly fee for
accounts under $25,000. A customer can bypass this inactivity fee if they generate $15 in trading
commissions per month. A $250 minimum deposit is required.
Stock and ETF trades cost $0.01 per share, with a $1 minimum. For stocks under $1.00, the fee is 1% of the trade value.
Options are $1 for the first contract and $0.75 for additional ones in the same transaction. There are no fees for exercising options or assignments. Broker-assisted trades are free of additional charges.
Cryptocurrency trades start at $1.75, going up to 1% of the trade value. Mutual fund transactions cost $27.50 each.
Despite these fees, Zacks Trade does not charge for its trading software, although there are fees for various data packages.
Margin
Zacks Trade is ideal for aggressive trading strategies, offering low margin rates.
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Debit Balance
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Zackstrade Margin Rate
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$0 - $100,000
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8.83%
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$100,001 - $1,000,000
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8.33%
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$1,000,001 - $3,000,000
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8.08%
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$3,000,001+
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7.83%
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The Zacks Trade desktop platform includes a tool for calculating margin requirements before and after trades.
Portfolio margin accounts are also available for those who qualify.
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Banking Tools
Zacks Trade does not offer traditional banking tools like debit cards or FDIC-insured cash sweep programs.
Website
The Zacks Trade website is mainly promotional, with a login for account management, money transfers, and basic trading. You can download statements and tax documents and use a portfolio analysis tool that creates detailed reports.
The trading section of the website includes comprehensive charts, a variety of trade types, and options for setting the duration of orders.
Mobile App
Zacks Trade uses a mobile app developed by Interactive Brokers. It works on both smartphones and tablets, though tablets offer a better view for charting. The app includes advanced charting options, technical studies, and direct trading tools.
The app features a trade ticket with customizable order presets, such as order size and duration, accessible via a settings menu.
Zacks Trade also has an app for the Apple Watch, enhancing trading mobility and convenience.
Desktop Program
Zacks Trade Pro, the desktop platform, is where you’ll find the most comprehensive trading tools. It's compatible with both Mac and Linux and offers customizable layouts and a wealth of educational resources.
The platform features multiple layouts, extensive order types, and sophisticated charting capabilities, including a variety of technical studies and drawing tools.
Option traders will appreciate the strategy builder and volatility lab, which provide detailed insights into market behavior and allow for complex trade setups.
We recommend using the simulated trading mode to get accustomed to the platform’s many features without financial risk.
Zacks Rank Trading Tool
For the last 36 years, Zacks Investment Research, Inc. has maintained hypothetical model portfolios holding Zacks Rank #1 stocks. A hypothetical portfolio of Zacks Rank #1 stocks has beaten the market in 29 of the last 36 years with an average annual return of +24.15% a year; more than double that of the S&P 500’s +11.11%. These returns cover a period from 1988 to 06/03/2024.
The Zacks Rank Trading Tool gives traders the opportunity to search for Zacks Rank #1 stocks by theme, sector, and industry, and to buy and sell stocks from the tool right from within their Zacks Trade Brokerage account.
An account minimum of $250 (account balance or initial account deposit) is needed in order to access the Zacks Rank Trading Tool.
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Day Trading
Zacks Trade is clearly focused on day traders, offering features like high leverage, extended trading hours, and direct-market access.
Leverage: Up to 4:1 for day traders, with 6:1 available under portfolio margin.
Extended Hours: Trading is available before and after market hours, and cryptocurrencies are available 24/7.
Level II quotes: Available for both domestic and international markets.
Direct-access routing: Directly send orders to specific exchanges.
Shorting: Short selling is supported, with current shortable stocks clearly indicated.
Bracket orders: Advanced order types allow for automatic setting of profit targets and stop losses.
Customer Service
Customer service options are limited to email and phone. The former live chat feature has been removed, and the phone support is available only during business hours from 9:00 am to 6:00 pm EST.
Additional Services
Initial Public Offerings: Not offered.
DRIP Service: Available for a fee.
Fractional-share Trading: Not available for stocks, though you can trade cryptocurrency in any dollar amount.
IRA Service: Available in several types, including Traditional, Roth, and SEP.
Fully-Paid Stock Lending: Not available.
ZacksTrade Review Final Verdict
For high-octane global trading, Zacks Trade is definitely a strong contender.
Open ZacksTrade Account
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Updated on 7/19/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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