TradeZero Review

TradeZero Broker Review 2024

TradeZero Review. Are you looking for a way to get around that pesky PDT rule if you’re outside the USA? Want to save some coin in commission fees? Today, you’re in luck; we’re reviewing this popular broker. As a result, this might be the broker you’re looking for. Brokers are important to trading because they are the hub where everything happens. Therefore, you want to pick the best broker for your trading style. 

Trade Zero is a legit online discount brokerage firm offering commission-free stock trading, free limit order trades, no PDT rule (as long as you are not a US resident, more info below), high-day trading leverage, and state-of-the-art trading software. They are attractive to active traders looking to keep costs down.

TradeZero Website Review

High Day Trading Leverage

We must shout out to offshore brokers and their ability to offer high-day trading leverage. This can be a catch-22, so consider yourself warned.

Margin is a loan extended by your broker that allows you to leverage the funds and securities in your account to enter larger trades. You can get in over your head trading on margin, and we don’t want you getting carried away with that.

So, what does this mean for you? Well, the margin is based on account size. You get zero margins if you have less than $1000 cash in your account. Cash accounts just under $2,500 receive 4:1 leverage.

Now, this is where things get interesting: once you have over $2,500 in your account, leverage goes up to 6:1. In layperson terms, with a $5,000 account, you can trade $30,000 worth of equities.

However, larger trades mean larger risk, and you don’t want to be gambling. 

COURSE
Day Trading Course Options Trading Course Futures Trading Course
DESCRIPTION Learn how to read penny stock charts, premarket preparation, target buy and sell zones, scan for stocks to trade, and get ready for live day trading action
Learn how to buy and sell options, assignment options, implement vertical spreads, and the most popular strategies, and prepare for live options trading How to read futures charts, margin requirements, learn the COT report, indicators, and the most popular trading strategies, and prepare for live futures trading
INCLUDED

TradeZero Pro Platform

Are you looking for a stand-alone program with precision control and depth? Look no further than the ZeroPro platform. It provides all the bells and whistles needed for trading. This platform has advanced charting, direct order routing with short-locate request buttons, conditional orders, and options trading, to name a few.

TradeZero Pro Platform Review
An inside look of the ZeroPro platform.

Is TradeZero a Good Broker?

Tradezero is a good broker because it offers zero commissions, high leverage, and customized trading software powered by DAS TRADER. They are one of the early brokers who claimed fame with 100% free limit orders. Of course, like anything in life, conditions apply.

The trade is free if the limit order is over 200 shares and doesn’t create an immediate match. Remember, the symbol must cost more than $1 and trade on the NYSE, AMEX, or NASDAQ to be eligible.

There are no free OTC or Pink Sheets orders, but that is a pretty commonplace practice, even when comparing them to other free commission brokers.

You pay a .99 cent flat fee when buying less than 200 shares. Click HERE to see how the updated pricing works.

What does “unmatched” mean? Well, it means you, as the trader, must provide liquidity. You do this by selling or shorting on the inside ask/offer or buying/covering on the inside bid.

TradeZero Web Platform

Users of  ZeroWeb have direct market access, complete with level 2 data and hot keys. All of these features are mission-critical for the active trader.

Since ZeroWeb trading is a browser-based platform, it will run on any connected device. All windows update dynamically tick-for-tick and in real time. As a result, windows can be linked with one another, and the layout is customizable.

The ZeroWeb Level 2 window includes all market depth, Level 1 information, streaming time, and sales. Orders can be placed by pointing, clicking, or using advanced hot keys. Check out a list of the top trading companies.

Mobile Trading

Access your trading account wherever you are using your iPhone or Android mobile. Trade and locate stocks in real-time when you’re on the move.

View real-time streaming quotes, access account portfolios, and charts, locate hard-to-borrow stock, and check open orders and execution history.

The mobile platform links to THE Pro and the web platform. Orders that are sent update dynamically on all platforms.

TradeZero Executions Review

Because TradeZero offers US market access and clears through a US clearing firm, Trade Zero is subject to Reg NMS. This means firms must provide investors with executions at the best possible price.

As long as you are trading high-volume mid-caps and large caps, you shouldn’t have a problem. Trading low-float stocks will always bring execution issues no matter what broker you are using.

Knowing how to use hotkeys is vital to success for day traders. The split-second order execution ability determines whether you eat Filet Mignon for supper or ground beef.

The hotkeys are the same caliber as Sterling Trader Pro and DAS Pro, both leaders in their fields.

Borrows & Locates

They are exceptional for hard-to-borrow stocks (for example, low-float stocks)! Short-sellers take a deep breath; TradeZero has short-seller access to 14,000 symbols. Yes, I said it, 14,000. Thank the lack of SEC regulations for that.

For those who love to short like me, it’s a trader’s dream. It will cost you about $0.03 for those hard-to-hard-to-borrow shorts. Are you looking to hold overnight? It’s 7x/share cost for the first night and 1x/share cost after that.

They have shorts on virtually any hard-to-borrow stock you can imagine, and of course, you do have to pay a premium to locate these shares (as you would with any other broker).

TradeZero Free Review

Here is the Zero Free Platform, which works on all devices. ZeroFree is a browser-based platform that will run on most devices, but like most platforms, it works best on Google Chrome. The features you can expect with this are good. Direct hard-to-borrow locating, Hot-keys, Level 2, Custom Watch lists, and fairly decent charting, to name a few. This is a great platform for newbies to start with.

TradeZero Minimum Deposit Review

  • The minimum deposit is $500 for a cash account. That means no margin for you.
  • Accounts with $500 to $2499 will give you access to 4 to 1 leverage.
  • Now if you have $2500+ you are getting access to 6 to 1 leverage.

What’s the Downside?

Unfortunately, U.S. residents without citizenship in another country will have their application rejected unless they go specifically for the U.S. version of traders.

Also, there’s always a tad more risk with offshore money. However, according to their website, TradeZero has insurance through Bahamas First General and Lloyds of London.

They have an A, excellent rating. That’s a good peace of mind if you plan on opening an account. We also respect them for creating a U.S. version and a global version…we think that shows they are trying to do the right thing.

TradeZero News

TradeZero News 3/24

Final Thoughts: TradeZero Review

This TradeZero review shows that this broker is best for non-US traders who don’t have $25,000 cash in their accounts. If you can handle 200 share limit order trades, it’s perfect. It’s a great starter platform and appears pretty popular with our members outside the USA.

Short-sellers especially will love the short-late Trade Zero offers. US traders don’t despair; check out the discount brokerage ETRADE or Interactive Brokers for more advanced trading tools. We have a full list of reviews and data on all the brokers with our first-hand experience.

Frequently Asked Questions

  • US Citizens cannot use Tradezero—Co, based in the Bahamas. You CAN use TradeZero America Inc., which is based in the US and is the US  compliance version of Trade Zero. It isn't very clear, but know that there are TWO separate entities. If you're outside the US, use the former; if you are inside the US, use the latter. For US citizens, there are other options for PDT avoidance.
  • Even if you find your way around the PDT rule, you must know the right ways to trade. And not over-trade! (Don't worry, we'll teach you in our free courses!) Some of the benefits of using trade zero are:
  • Tradezero makes money in a few different ways. The obvious way is selling access to their ZeroPro and ZeroWeb platforms, which DAS TRADER powers. Another way is other brokers pay them to assist with market order flow. Lastly, they earn income by providing margin to traders.
  • Zero Pro, their desktop software, is $79 monthly with level 2 data. Zero Web, the web-based platform, is $59 per month. If you like to trade while you wait for appointments, their Zero Mobile platform is free!
  • If you trade high volumes, your monthly fees are waived! Winning! 

Investors cannot purchase shares of TradeZero because the company is privately held.

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