Home » Trade Zero Broker Review (2022): What You Need to Know

Trade Zero Broker Review (2022): What You Need to Know

by Andrew Jonathan

Welcome to the updated Trade Zero review. Let’s cover everything you need to know about this broker so you can make an informed decision about whether it’s a good fit for you and give some ideas on how to work around some of the potential drawdowns.

Trade Zero is an online brokerage firm for US and international traders. They offer a competitive, no-fee (commission-free) trading structure with no PDT (Pattern Day Trader Rule) restrictions for international clients and leverage up to 6:1.

What services do they offer?

Trade Zero offers stock, ETF and options trading with its platform. They are currently working on adding cryptocurrencies to their platform as well and we should see that rolling out in the near future.

Minimum deposits and account leverage

Below is the breakdown of minimum deposits allowed and leverage (margin). Please note that you do not have to use margin, but for experienced traders with good risk management principles, margin trading is a great tool to give you the purchasing power to trade multiple positions at once with a smaller account size.

The minimum deposit is $500 for a cash account. Cash accounts cannot be traded on margin.

Margin Account Leverage is broken down as follows:

Accounts under $500 – Cash account with no leverage.

Accounts under $500 – $2499 – Gives traders 4:1 leverage

Accounts over $2500+ – Gives traders 6:1 leverage

Trade Zero USA vs. Trade Zero International

Trade Zero has a different free structure for US based customers than for international customers (e.g. customers from Canada or the UK).

Trade Zero USA clients have the benefit of 100% free (commission-free) trades whether adding or removing liquidity from the market.

You can open an account as a US dealer here!

Trade Zero International Trading and Platform Fees

Below is the breakdown of the Trade Zeros pricing model for international (non-US) customers.

How can Trade Zero offer free trades?

They route their limit orders through EDGX, ARCA and other ECNs that offer a liquidity rebate. So when you place a free limit order trade, they route it through EDGX (or another rebate route) so they can collect the liquidity rebate and pass it on to you for free.

How is the execution of Trade Zero?

Trade Zero does not interalize orders and aims to provide clients with the best execution price available at all times. When I add or remove liquidity to the market, there is no delay in execution, orders are executed instantly.

Because TradeZero offers access to the US market and settles through a US clearinghouse, TradeZero is subject to Reg NMS. This essentially states that companies are obliged to offer investors execution at the best possible price.

How do I return borrowed shares for credit?

Easy! After borrowing the shares, scroll to the Short List window and click on the Inventory tab. This will show the borrowed shares you have and to the right of that you will see a quantity box and the Balance button. Simply enter the number of shares you would like to redeem and click ‘Credit’. Your shares are then placed in a queue of available shares for other customers to purchase on a first come, first served basis.

What platforms does Trade Zero offer?

Trade Zero offers three platform options. Zero Pro, their desktop software ($79 per month with data for international customers and just $59 per month for US customers) and Zero Web, their web-based platform ($59 per month), and Zero Mobile, which gives them a mobile Platform offers free for mobile devices.

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