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What is TradeZero?
As it was mentioned in the title, TradeZero is an online discount broker. It’s located in Nassau, Bahamas. They are signed with the Securities Commission of the Bahamas. Since their location is out of the reach of the US jurisdiction and the US Exchange Commission, there is no PDT rule that applies to their customers. So, their customers do not have a $25,000 requirement. The minimum amount is $500.
That being said, they do not allow accounts that come from the United States.
TradeZero does offer free trading. However, they cater to their active traders, too.
This free trading refers to limit orders for stocks on AMEX, NYSE or NASDAQ exchanges of $1 or more only. Also, it only applies to a minimum of 200 shares. Market and limit orders that take liquidity, as well. Liquidity means that there is buying on the offer and selling on the bid. Such orders are charged $0.005 per share, plus pass-thru fees.
The base is $0.99, $0.79 per contract and pass-thru fees, of course. These fees are $0.04 per contract through OCC (Options Clearing Corporation). Through a contract with ORF, the fee is $0.05. Options exercises are $35.
Except for the previously mentioned qualified free trades, all stocks and options trades are charged a minimum of $1.99.
TradeZero has three platforms: Web, Pro and mobile. The Web platform is monthly $59. It has level 2 quotes and has more than 80,000 shares a month. The Pro one is $79 a month. It also has level 2 quotes, but the monthly volume is over 100,000. Additionally, OTC data is $5 for level 1 non-professionals and $15 for level 2. The Mobile platform is free for active traders with TradeZero Web or Pro.
The TradeZero leverage is one of its biggest advantages. Leverage can sometimes be truly tricky, so keep that in mind. They apply leverage based on the size of the accounts. Accounts under $1,000 have no leverage. Those up to $4,999 have a 4 to 1 leverage and those over $5,000 have a 6 to 1 leverage. So, a $6,000 account could trade $24,000 of equities. Lastly, interest is 8% per year.
Borrows and locates
Usually, offshore brokers like TradeZero have better borrows and locates. Borrowing shorts is normally $0.023 to $0.03 daily. Also, TradeZero has short-seller access to approximately 14,000 symbols, which is amazing. Overnight shores are 7x per cost of the share on the first night, then 1x every following night.
TradeZero Platform Features
As it was mentioned earlier, there are two main platforms and a mobile app. Although this is an offshore service, their software is completely stable and works smoothly.
ZeroWeb is a dynamic platform for your browser. It offers features such as customizable layouts, sales screens with point-and-click routing, watchlists, hotkeys… Also, it offers charts from any device with an internet connection. The data stream is fast and stable.
Unlike ZeroWeb, ZeroPro is a program for itself, and it enables even more control. It has advanced charting, direct order routing, conditional orders, newsfeed and many more.
Another feature that TradeZero has is their mobile-friendly app. So, traders can place trades and monitor them even while away from their desktops. Much like previously mentioned platforms, this one works smoothly as well.
TradeZero is a platform for technical traders. There are ‘Top’ and ‘Hot’ lists to help you find good intra-day stocks. This advanced charting shows you the basic prices and momentum indicators. You can also set alarms for watchlists, so you don’t miss out on anything.
Customer service is available all the time, 24/7 via chat. Besides that, there is email service that is also quite fast. If you are a newcomer, you can ask for a free demo of both of their platforms, which could help you get started.
Routing on free trades is placed via EDGX. There’s also direct routing to ARCA, ISDL and many other ECNs. The fills are strong and fast.
Customizable Hot Keys
Experienced traders know very well how big of an advantage you can get with a one second difference. Having said that, imagine how much it means to be able to cancel all orders or place a static order with a single key. This is probably TradeZero’s most useful and prominent feature. Everyone should be able to do this. This way you can focus on other tasks rather than such a simple one.
Who Is TradeZero Most Suitable For?
Again, TradeZero doesn’t accept US accounts. There is always a risk with offshore brokers when it comes to money trading. So, TradeZero is best for medium to highly experienced traders outside of the United States that have risk capital to place offshore. Short-sellers will particularly like the short locates through the Pro platform.