In this Zions Direct review, you'll learn that they weren't named after the last human city on the planet Earth from the movie The Matrix; which would have been pretty cool. Instead, you'll learn how this discount brokerage can save you time and money.
Is Zions Direct a Good Broker? (Review Breakdown)
- Zions Direct is a discount broker that offers the ability to trade stocks, ETFs, options, and mutual funds. Low commissions and an advanced trading platform is a nice combination, and Zions Direct delivers.
In 2017 Zions Direct chose Interactive Brokers as its clearing firm. In addition, the firm switched over to Interactive Brokers' TWS platform and technology.
While the previous platform was mediocre, now Zions Direct offers a fast, state-of-the-art one. Our trading service wants to make sure you have the best trading companies for your trading style.
Not only that, we also provide you with online trading courses so that you can use your broker to make money. Our Zions Direct review looks at the different platforms they offer you.
1. Trader Workstation (TWS)
The downloadable TWS platform provides live quotes, advanced charting, technical research, and analysis tools. It also includes sophisticated scanners, multiple watch lists, and streaming news.
The platform is customizable and supports over 60 order types. It also provides algorithms, risk management tools, and simulated trading capabilities.
TWS is an advanced platform robust enough for active and experienced traders. For the details on Trader Workstation, read our Interactive Brokers Review.
In addition to TWS, Zions Direct offers Interactive Brokers' WebTrader. It's a more streamlined web-based version of the platform and easy for newbies to use.
The brokerage also offers MobileTrader for mobile devices, including Apple and Android. It delivers fast streaming data and provides the core functionality necessary to trade while out and about. Zions Direct review
Zions Direct offers individual and joint accounts. Also, the brokerage accepts traditional, rollover, and Roth IRAs (check out a list of the best brokerage firms)
Additionally, Zions Direct offers trust, UGMA (Uniform Gifts to Minors Act), and UTMA (Uniform Transfers to Minors Act) accounts. As for institutions, partnership, corporation, limited liability corporation, and unincorporated business accounts are available.
If you invest in funds, then Zions Direct offers you the choice of single fund or multiple funds accounts. Zions Direct review
There is no account minimum. Although, the minimum for margin accounts is $2,000. Also, day trading accounts require a $25,000 minimum. Fund your account via check, ACH, wire transfer, online bill payment, or direct deposit.
The brokerage is a member of FINRA (Financial Industry Regulatory Authority, Inc.) and the SIPC (Securities Investor Protection Corporation). Check out our live trading room so you can see us in action.
What Are Zion Direct's Fees and Commissions for 2020? (Pricing Review Breakdown)
- Here are Zion Direct's fees and commissions:
- Rates for stocks and ETFs is $0.005 per share with a $5.00 minimum.
- Conversely, the maximum is 0.5% of the trade value.
- The rate for options is $1.00 per contract with a $5.00 minimum.
- For mutual funds, the rate is $19.95.
- Although for No Transaction Fee funds, the rate is $0.
- Commissions for bonds are tiered.
- Corporate and municipal bonds cost 0.1% of Face Value (10 basis points) for trades of $10,000 or less.
Zions Direct is a discount brokerage, charging low commission rates. The company also enables you to reduce account fees by deducting commission rates from them.
Also, the minimum is $5.00 and the maximum, 0.5% of the trade value. If the trade is over $10,000, then the rate is 0.05% of Face Value (5 basis points).
Additionally, for this amount, no minimum or maximum applies. For Treasuries, the rate is 0.05% of Face Value. That's 2 basis points for trades of $1,000,000 or less or 0.2 basis points for trades of over $1,000,000. Also, the minimum for Treasuries is $5.00 with no maximum.
Zions Direct charges tiered margin rates ranging from 4.9% to 3.7% depending on the loan amount. Note that the brokerage offers blended margin rates.
In other words, if you borrow $1,000,000, then the first $100,000 costs 4.9% and the next $900,000 costs 4.4%. There are four tiers; 4.9% is the tier I price, then 4.4%, the tier II price, etc.
1. Account Activity
Regarding account activity fees, if you spend at least $10 in commissions monthly, then the fee is waived. If your commissions are less than $10, then the fee is $10 minus the amount of your commissions.
However, there are two exceptions. First, for UGMA or UTMA accounts, the commissions are not subtracted. If your commissions are any amount less than $10, then the fee is $3.
Second, for traders age 25 or less, the account fee is $3 minus commissions. Therefore, you only need to accrue $3 in commissions to avoid the fee.
For account balances of $100,000 or more, the fee is waived regardless of commissions. Additionally, if you spend $30 in commissions, US non-professional real-time market data is free.
Final Thoughts: Zions Direct Review
At the beginning of this Zions Direct review, I mentioned that Zion is the name of the city in Matrix. You may wonder what that has to do with trading unless you read the book from Van K. Tharp: Trading Beyond the Matrix.
The Red Pill for Traders and Investors. Tharp says that trading is similar to the plot of the Matrix movies to the extent where we are all programmed by our beliefs.
Moreover, he said that most of those beliefs are not conducive to becoming a super trader. So like Neo did in the movie, you have to reprogram yourself and function with a different set of rules with the most powerful tool at your disposal, your mind.
According to Van Tharp, super traders think differently. He says that this paradigm shift happens when you work on getting rid of non-useful beliefs.
However, you must first be aware of what those beliefs are. Awareness is the key or, as those ancient Greek sages would have said: "Know Thyself."
Stock trading is very much an exercise in self-discovery and personal growth. Zion the brokerage firm may not help you in that regards, but the Bullish Bears Community definitely will.
Get started, give it time, and grow both personally and financially with proper stock training.