Tradezero Review

TradeZero.- Zeropro Trading platform

TradeZero.co is an online stock broker that is domiciled outside of the United States. The stock brokerage company offers online stock trading for traders looking for cheaper commissions.

As the company is located in Nassau, Bahamas, the brokerage does not have to comply with the U.S. stock trading regulations and is therefore outside the purview of the U.S. regulator, the Securities and Exchange Commission or the SEC.

The company, TradeZero Inc. is regulated by the Securities Commission of the Bahamas. The company first got its license in 2015 and the company has been successfully operating to this day.

But the fact that the brokerage company is registered outside the U.S. jurisdiction does of course has some distinct advantages and disadvantages which will be covered in the review about Tradezero.

As more and more traders prefer to use the online stock brokerage, the competition has increased. Demand for cheaper fees while bringing more value to the services is something every stock trader dream of.

Under the circumstances, TradeZero.co starts off with the fact that you can basically get free trades, but of course conditions apply. Still, this is a widely used marketing tactic to lure new traders to the TradeZero trading platform.

Again, this is something which we will cover in more detail later in the TradeZero review. The trading platforms are quite sophisticated and allows you to trade from the desktop or web and mobile based applications.

The company is quite transparent especially when it comes to the fees, which will be covered in detail in this review of TradeZero.

While TradeZero is not insured by the SIPC, it is insured by the Bahamas First General and Llyods of London. The company enjoys an A- rating meaning that the company is well funded.

What is TradeZero?

As mentioned earlier, TradeZero is an online stock broker that is not registered in the United States.

As a result, the stock brokerage is able to circumvent the rules and regulations that are often considered obstacles by many traders based in the United States.

Before we go any further, it is important to point out that U.S. citizens are prohibited from opening an account at TradeZero.co.

This is done to ensure that the discount stock brokerage company does not in any way fall under the rules and requirements of U.S. stock regulators.

This is something that traders need to be cautious about, especially due to the lack of direct supervision from the market regulator where the stocks are being traded.

Being registered in the Bahamas, Tradezero is of course regulated by the local supervising authority.

However, considering that Bahamas is not a major trading hub and is often known for off shore haven, traders should apply their own due diligence about this brokerage before opening their account.

Citizens from the United Sates and the Bahamas are not allowed to open an account and trade with TradeZero.

Does the Pattern Day Trading Rule apply for TradeZero?

The good news is that the Pattern Day Trading Rule, or the PDT for short is not applicable when you day trade stocks via the TradeZero brokerage company.

This is made possible due to the place where the stock brokerage is regulated. This means that stock day traders can trade on leverage and they can trade more than four trades during a five-day trading period.

However, it is important to note that day trading stocks can be risky. Sometimes, market volatility can come out of nowhere and can potentially put you close to a margin call.

Therefore, it is recommended that the traders have certain amount of experience with stock day trading before opening an account with TradeZero.

TradeZero – Leverage

The stock brokerage company offers different levels of leverage based on the account valuation.

The account valuation basically means that it does not depend on how much you deposit but on how much balance is available in your trading account.

For example, if you deposited $1,000 to trade, and you opened a position in a stock trading at $5 with 100 shares, then your account value will initially fall to $500.

However, depending on how the stock is performing, your balance might drop or increase. Based on this concept, the different leverage levels are available as follows:

  • 6:1 leverage on accounts with a valuation of $2,500 or more
  • 4:1 leverage on accounts with a valuation of between $501 and up to $2,500
  • 1:1 leverage on accounts with a valuation of $500 or less

From the above, we can see that in order to maintain a 6:1 leverage, you should always have a minimum of $2,500 or more in order to capitalize on this leverage.

The moment your account value falls below the $2,500 threshold, the leverage that you make on any trade will be lower, to 4:1.

TradeZero stock brokerage also has a rule that a leverage of 2:1 is applied to all overnight trades. This means that if you want to swing trade stocks over night, regardless of your account value, the leverage is brought down to 2:1.

This means that you need to be adequately capitalized to avoid being margin called.

While the above leverage amounts might seem less, the fact is that these are very high levels of leverage when you are trading U.S. stocks. As such, traders do not have much complaints for using such leverage levels.

The fact that the account threshold is kept to the bare minimum, a trade with a deposit of $5,000 or more can easily trade comfortably, both day trades and swing trades with ease.

What are the trading fees at TradeZero?

Trading fee is something that is a bit of a concern among many stock traders. One of the reasons behind this is the fact that trading costs can quickly eat up into your costs.

Therefore, you will notice that a lot of day traders often look to stock brokers that offer cheaper fees. But in reality, trading stocks is a bit expensive compared to other markets.

You have to pay exchange fees, trading software fees and of course pay fees on the trades that you make. These amounts, small as they might seem can easily eat up into your profits.

This can be magnified if you are stock day trader and have larger volumes of trades.

Below is a summary of the trading fees from TradeZero.

TradeZero

Commissions/Fees

Stocks

$0.005 per share

Stocks < 200 shares

$0.99 flat fee

Options base fee

$0.99

Options per contract

$0.79

Option Exercise/Assignment

$35

Broker assisted trade

$15.00

 

As you can see from the above table, the fees are relatively small. It basically depends on whether you are a large volume trade or not. For example, if you consistently trade below 100 shares, then you will be paying $0.99 per trade.

This fee remains the same whether you are trading just 1 share or 99 shares. On the other side, the options exercise fee and the broker assisted trade fee is a bit moderate on the fee scale.

But what makes TradeZero interesting is that it is a stock broker that offers you free trades when you place limit orders. This is a great way for traders to save money on their trading.

With TradeZero, you simply do not pay any fees if you are placing limit orders. This is applicable for traders who have a good trading strategy that consistently uses pending orders rather than entering at market.

But considering the fact that many day traders tend to enter at market, the fees come to play. Still, this should not be much of a downside with TradeZero.

Again, there is a catch for the limit orders too. The free price is applicable only if the limit trades go unmatched for more than one second. But of course, the minimum number of shares that you need to trade is 200.

In a way, the concept of free trade does make for an attractive proposition. But as someone wise said that the devil is in the details, there are of course certain conditions to adhere to.

And bear in mind that you are also trading on leverage which can change depending on your account valuation. These are some of the things to consider if you are selecting TradeZero only on the basis of the fees.

The trades that fall under the category of free trades are applicable only for the major stock exchanges such as the NYSE, NASDAQ and the AMEX. This will leave many traders out if they are trading ETF’s for examples.

The exchange traded funds are primarily traded on NYSE ARCA. Therefore, the free trades limit traders to only the major stock exchanges and not all of the U.S. exchanges.

Besides the above, there are some general trading fees associated as well. Below is a quick summary of these. If you are just a beginner to trading, you can ignore the below.

The below fees are for more advanced traders and the annual costs. One of the good thing about the fees list below is that you get to see everything that you pay for.

 Locates

At cost

Hard to Borrow Overnight Shorts

7x market rate cost for 1st night, additional days charged at 1x market rate

Hard to Borrow Overnight Short Positions

Odd lot positions will be rounded up to the nearest hundred

Margin Debit Interest

8% annually (only applies to stocks held overnight with values exceeding equity)

TAF Fee 

$0.000119 per share, sell side only

SEC Fee

.00002210 x dollar amount, sell side only

NSCC Fee

0.00003 per share, $0.18 maximum and $0.033 minimum

FOCUS Fee

0.0000007 per share

SIPC Fee

0.000015 per share

 

Many online stock brokerage firms tend to hide the above fees in the terms and conditions or other lengthy pages which traders don’t really take time to read.

With TradeZero, the fee is shown to you right on the website and this allows you to make an informed trading decision even before you open your trading account with TradeZero.

Are there any platform or software fees for TradeZero?

Unfortunately, yes! There are platform or software fees that will be charged by TradeZero. But the cost of these fee depends on what trading platform you use.

There are of course conditions upon which you can get a waiver of the software fees.

TraderZero offer three types of trading platforms. The free among them all is the ZeroMobile, which is a mobile trading platform. But this feature comes only if you have access to the web level 2 or the pro account.

For the desktop and web based trading platform, there are monthly fees to be paid.

But you can avoid these if your volumes are above a certain threshold.

Below is a quick comparison of the fees that come with using the TradeZero trading platform.

Platform

Fees

Min. volume

ZeroWeb Level2

$59/month

80,000 shares/month

ZeroPro

$79/month

100,000 shares/month

ZeroMobile

Free

Requires an active Web/Pro account.

ZeroFree

Free

Free

From the above table, you can see that there is a cost for accessing and trading via the platform.

If we take into account the basic fee for trading which is $0.005 per share, then with 80,000 shares per month, your TradeZero fee comes to $400. This gives you the option to access the ZeroWeb Level2 account for free.

Or, with 100,000 shares in volume per month, you would be paying $500 in trading fees for the transactions. This gives you access to the ZeroPro account.

The volumes, as you can image are a bit on the higher side. Such volumes can be reached only if you are a professional stocks day trader. You will be required to trade lot of volumes within the 20-working day period.

Unless you are very familiar with day trading stocks, this can get risky. Therefore, this is something that traders need to bear in mind. It is quite likely that you will be paying the software fees at least for the first month or two until you are fully familiar with the TradeZero trading platform.

The ZeroFree account is ideal if you want to take a break from trading. You can simply opt to downgrade your status from the WebZero or Zeropro account. This way, you do not have to pay any fees while you are away.

This feature is something that is very unique. Generally, many online stock brokerage firms charge you a fee regardless of whether you trade or not. This is not the case with TradeZero.

What are the trading platforms available with TradeZero?

With TradeZero, you can choose from different trading platforms. Primarily, the TradeZero trading platform is available in a desktop, web based interface and mobile trading app modules.

The main trading platform at TradeZero is the ZeroPro. This is the most advanced of all as it allows you Direct Market Access. You also have the web based trading platform which is the Zero Pro. This Zero Pro trading platform allows you to trade from any web browser and thus is not linked to your computer.

The ZeroPro of course, is the flagship trading platform from TradeZero. There are many features include things like hotkey customizations for easier trading execution.

While the WebZero and the Zero Mobile apps are compatible across all operating systems, the ZeroPro trading platform works only on windows computers.

Users with a Mac will have to make use of the Windows emulator such as Wine in order to use the desktop based trading platform. But given the fact that the Windows emulator doesn’t really give the full experience, traders can expect to see the platform operate a bit slowly compared to the native Windows version.

Still, the ZeroWeb trading platform is something that traders can use if they are on a Mac.

ZeroPro Trading Platform

The ZeroPro trading platform is what you would be starting off with in most cases. This trading platform is a bit less expensive but comes with lot of features that you can use.

Day traders, who are used to trading higher volumes should start with this trading platform because as soon as you reach your 100,000 shares per month this platform is free of cost.

The ZeroPro trading platform gives you six level 2 windows and allows you to manage 10 charting windows within the platform. It can get a bit cluttered at times, but with the option to use 10 different windows, traders can easily organize their charts.

TradeZero.- Zeropro Trading platform

The main feature of the ZeroPro trading account is that you can set up conditional orders, which includes one cancels the other, good for the day, good till cancelled and so on.

You can also set up various filters for your stocks using the High/low ticker. With the ZeroPro trading account you get access to free real time news as it happens.

The portfolio window option shows you the window with all your open positions. This allows you to see your PnL in real time as it happens. You also get to access your trading history and past orders, both that were executed and those that were not filled.

ZeroPro – Portfolio window with a snapshot of your trading activity

Using the portfolio window option, you can also manage your risk. For example, you can set up a daily loss limit within your TradeZero trading platform. When your trading activity for the day hits the daily loss limit, you cannot place any more trades during the rest of the day.

This is a feature that can be used if you are disciplined trader and set up daily loss limits for your trading.

The ZeroPro account gives you access to the Level 2 data which offers greater depth of the markets.

The ZeroPro charting window gives you access to use various technical studies in your trading. There are a good number of charting features and studies that you can use. Most of these are very customizable.

There are over 70+ technical studies that you can apply to the charts and a number of drawing tools to help you with drawing trend lines and other technical analysis studies.

ZeroPro Charting interface with 70+ technical indicators and drawing tools

Level 2 window, gives you access to the market participants on the NYSE, AMEX, NASDAQ and even the OTCBB stocks. You get to see the bid and the offers on either sides and you can trade directly based off the level 2 data.

Level2 Window from Zeropro

A very cool feature is the ability to preload your positions by clicking on the position button. This will automatically pre load the positions at the click of a button.

At any given point, you can have up to six level 2 windows open. There is also a good time and sales window that shows you the list of transactions under a stock of your choice.

The news feature allows you to see the headlines quickly. If you are interested in some news story, you can then click the link which opens in a new window where you can read the entire story in full.

ZeroPro News window with search options

The news window allows you to filter news based on the stock ticker name of your choice. You can also select the news to display stories based on the keywords that you want to use.

In terms of filters, TradeZero does not have that many inbuilt filters. But there is a basic scanner that shows you the top 10 list of stocks that are most active, biggest change and the percentage change for the day.

ZeroPro Stock Scanner

These scanners allow you to see the filtered stocks from the NYSE, AMEX, NASDAQ and the OTCBB exchanges.

Custom watchlists is another feature from the ZeroPro trading platform. This allows you to easily customize your hot list of stocks so you don’t have to keep looking for them or load the charts all the time.

The custom watchlist gives you a ready access to the stocks of your choice with information such as the day’s change, 52 week high and low and other such details that are important for day traders.

ZeroPro Watchlist

Shorting stocks is another functionality which many day traders use. With the shorting stocks options, you can see the list of stocks that you can borrow from your broker in order to short sell them.

The shorting stocks feature shows you the stocks that you can borrow tomorrow (the next day) in real time. You can also of course request for a specific stock that you want to borrow if it is not already featured in this list.

On a daily basis, TradeZero allows you over 14,000 stock tickers that you can borrow to short sell.

This sounds like a day trader’s paradise as you not only get access to a massive list of stocks, but you will also not fall under any regulations that are laid out by the U.S. regulators.

Options trading is another feature that you can trade directly from the TradeZero trading platform. The options window allows you to trade either a single leg, or choose from covered call, put, multi leg strategies and many more that are commonly used in trading options.

Zeropro Options window

The options window is neatly laid out with the bid and ask for the options and the expiry times.

Here too, you can place pending or market orders with relative ease. As you can see, the ZeroPro account gives you a lot of features that is applicable for a day trader.

The ability to use the same platform to book option contracts is also something that many will to be convenient. Therefore, using the same platform you can easily hedge your bets.

But remember, that there are fees associated for trading options too, which is something that you should keep in mind.

Overall, the ZeroPro trading platform packs a punch. Even if you don’t meet the minimum volumes per month to get the free month, the price for the platform usage justifies the various features that are available for trading.

It is not often that you can find an offshore discount broker offering so many features within a trading platform. As a result, this makes TradeZero’s ZeroPro trading account very useful for day traders.

ZeroWeb Trading Platform

The ZeroWeb trading platform is built for traders who are on the move. With the web based trading platform you can access your trading account from anywhere.

The web based platform llows you access to more or less the same functions that you see in the ZeroPro trading platform. But we should note that the functionality is a bit limited. This is but expected as there are limitations to how much a web based trading platform can do.

Still, you have access to the hotlist which is where you are most likely to plan your trading strategy. You can combine stocks into groups. For example, if you are momentum trader, you could combine stocks such as Netflix, Facebook, Amazon, Google and so on into one group.

The group customization makes it easy for you to jump between multiple stocks. Some might also find the need for group to select their favorite stocks and group them into sectors such as Energy, Utilities, Financials and so on.

The ZeroWeb trading platform boasts of a fairly decent charting interface. Note that this is a web based trading platform and there are limitations. Despite this, you can get access to the inbuilt trading tools such as drawing and various technical indicators that are a requirement for day traders.

The Zeroweb trading platform allows you to directly trade from the charts. You can enable or disable the buy/sell buttons which are overlaid directly on the charts.

It is recommended that you have a big monitor as using the web based trading platform on a laptop with small screen can really clutter the charts and this could make it difficult for you to navigate.

The ZeroWeb platform also gives you access to the level 2 window. The level 2 window is available from the NASDAQ, NYSE, AMEX and the OTCBB exchanges.

In a way, the web based trading platform is almost the same as the desktop version of the ZeroPro trading platform. Except that you are not tied up to your computer or the laptop.

You can get the best use of the WebZero trading platform if you want to manage your existing positions but do not have access to your computer or laptop. In this aspect, the WebZero platform is very handy.

As with the desktop based trading platform, WebZero also allows you to see the list of stocks that you can short sell as well as the ability to use the options window contract which can be done if you want to trade the stock options.

The WebZero platform allows you to easily organize the window. To be honest, the first time that you login to ZeroWeb platform, the interface can be a bit challenging. It is recommended that you first organize the workspace before you start to trade.

Over a period of time you can then stick to just the functionality and the features that you use the most.

The hotkeys are something that can be very useful for traders. This is applicable for both the ZeroPro desktop based trading platform as well as the WebZero web based trading software.

Using the hotkey function you can assign keyboard shortcuts for your trading platform. This reduces the need to use the mouse all the time. But of course, you need to maintain or write down the hotkey combinations that you create so it is easier to navigate.

As you read from the above, the TradeZero’s web based and desktop based trading platform is built for speed and for day trading of stocks effortlessly.

In terms of the look and the feel, the WebZero online trading platform looks exactly the same as the desktop based version, the ZeroPro trading platform.

TradeZero – Trading groups

The Trading groups feature is something that is unique. Say for example you are a private money manager based outside the U.S. If you have a few other traders working for you, you can then create a trading group.

The trading group feature allows you certain options including a white label service. This way, you can fully customize the branding and other features and use it within your firm.

Given that TradeZero already brings you the access to the markets directly (DMA access) and that there are no trading restrictions, the white label feature is something worth considering if you are a small business hedge fund or a money manager.

You can also negotiate the fees with TradeZero especially if you expect your trading volumes to be on average higher than the requirements quoted by TradeZero.

The trading group option is something that you will not find from many other online discount stock brokerages. Thus, this is something that you can take full advantage of and even show off to your clients when you white label the trading platform to your needs and requirements.

How to fund your account at TradeZero?

Currently, TradeZero allows only for Bank wire transfers. Therefore you cannot use other options such as Debit card or credit card funding and neither are there options to use online e-wallet system such as Paypal or Skrill.

The fact that accounts can be funded only via Bank wire can be discouraging for few. Furthermore, you cannot use the option to fund a third part account. In other words, only you can fund your account.

Needless to say there are some verification procedures to be done before you fund your account in order to avoid delays in loading your TradeZero wallet.

Withdrawals are also processed via wire transfers only. So, expect to see delays of a day or two (both for deposits and withdrawals). And then there are the standard wire transfer fees that are charged both ways.

Readers should also note that TradeZero does not pay dividends if you are long on the stock on the ex-dividend date. However, if you are short on the stock during the ex-dividend date, your account will be charged the dividend fee.

How good is the customer service at TradeZero?

Readers are of course concerned about customer service. This can be due to the fact that one automatically tends to expect bad customer service because the discount broker is based offshore.

But this is not correct, at least with TradeZero.

There are phone lines that you can dial in to or you can contact TradeZero via the live chat which works 24/7. You can also contact the TradeZero customer support via email.

The general business hours during which the customer service operates is from Monday through Friday, 9AM – 5PM Eastern Standard Time. This is the same time during which the markets operate.

It would have been nice if the customer support opened an hour earlier as that is when many day traders start to prepare for the trading day ahead and this is when any issues can be resolve before the opening hours of the market.

Still, the ability to give them a quick call or use the live chat feature is something that many will find it to be handy.

TradeZero Stock broker review – conclusion

In conclusion, TradeZero is an online discount stock broker. Due to the fact that they are domiciled outside the jurisdiction of the United States allows traders more freedom and flexibility to trade.

The brokerage is registeredin Nassau, Bahamas and therefore restrictions such as Pattern day trader rules doesn’t apply. You can trade on leverage of course, with the highest being 6:1.

There are no minimum account deposit requirements, but the margin that you are allows to use does depend on your account balance. The minimum account balance to maintain to get a 6:1 leverage is $2,500.

This is a fairly lower entry point for stock day traders. With $5,000 or even $10,000 you can fully take advantage of the leverage.

The transactions fees are quite cheap when you compare to other discount brokerages. Of course, the larger the volumes that you trade, better the chances of your transaction fees getting lesser.

The TradeZero trading platform is also power packed with tons of features. There are software fees that are applicable on top of the transaction fees. But if your monthly volumes are 80,000 and 100,000 shares, then you can get a waiver of the platform fees.

Even if your volumes are less, the fact that you pay at most $79 per month for using the ZeroPro trading platform is something that is quite cheap. The trading platform from ZeroPro is very advanced and professional.

You can get to choose from any of the major U.S stock exchanges including access to trading penny stocks via the OTCBB exchange too.

The inbuilt feature to trade options allows stock day traders to hedge their bets using the same platform and makes for an easy navigation within the trading platform.

There is a bit of a learning curve involved when you first start to use the TradeZero trading platform. But over time you can easily get accustomed to trading with this platform.

In conclusion, the TradeZero stock brokerage is something unique. Despite being registered as an offshore U.S. stock broker, the services offered are superior.

The company is regulated in the local jurisdiction and it is also insured, thus giving a certain level of security and transparency to the business.

TradeZero is a stock broker that you should consider if you want to really take your trading to the next level. But traders in the U.S. and Bahamas and U.S.and Bahama citizens are not allows to open a TradeZero trading account.

But for the rest of the world, this shouldn’t be a problem at all.

While this can be the downside for U.S. citizens who have no way to get out from the PDT restrictions and other rules, for many traders across the world who want to get their hands on the U.S. equity market actions, TradeZero is a stock brokerage company that you should consider open an account with.

About Me

I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

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