In this comprehensive review of TradeZero we will cover everything you need to know about this broker so you can make an informed decision as to whether they are a good fit for your trading activities, and share some ideas on how to navigate around some of the potential drawn-downs.
What is TradeZero?
TradeZero is an online brokerage firm designed for active traders who seek low-cost trading, advanced tools, and direct market access. TradeZero offers zero-commission trading on stocks and options, making it a popular choice among day traders and swing traders.
Unlike traditional brokers, TradeZero specializes in providing powerful trading platforms, extended market access, and advanced short-selling tools. This makes it particularly appealing to traders looking for direct execution and access to hard-to-borrow stocks.
TradeZero has expanded outside of the USA and is also available internationally and in Canada. This blog post outlines the specific information for those wanting to use TradeZero who reside in the US. For information on TradeZero International and/or Canada, please see this blog post review.
Key Features of TradeZero:
✅ Zero-Commission Trading – No commissions on U.S. equities and options trading.
✅ Advanced Trading Platforms – Access to ZeroPro, ZeroWeb, ZeroFree, and ZeroMobile for real-time market data.
✅ Competitive Leverage – Up to 4:1 intraday leverage for qualified accounts.
✅ Extended Trading Hours – Trade pre-market and after-hours sessions for more opportunities.
✅ Short Selling Advantage – Industry-leading short-locate tool to find hard-to-borrow stocks.
✅ No PDT Rule for Offshore Accounts – A unique advantage for traders outside the U.S.
What Services Do They Offer?
TradeZero offers zero commission stock and options trading for active traders who demand fast execution, low costs, and professional-grade tools. Whether you’re trading stocks, options, or short-selling hard-to-borrow securities, TradeZero offers an edge with its platforms and features.
Minimum Deposits and Account Leverage
Below is the breakdown on the minimum deposits and leverage (margin) allowed. Please note you don't have to use margin, but for experienced traders with good risk management principles, margin trading is a great tool to allow you the buying power to trade multiple positions at once with a smaller account size.
Note: The minimum deposit is $2500 with TradeZero USA, however, TradeZero Canada and International have a minimum opening requirement of $500. Cash accounts can not trade on margin.
TradeZero Margin Account Leverage:
TradeZero offers varying levels of leverage based on account equity:
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Accounts with Equity Less Than $2500:
- Account Type: Cash Account
- Leverage: No leverage; trading is limited to the cash balance available.
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Accounts with Equity of $2500 or More:
- Intraday Leverage (During Regular Trading Hours): Up to 4:1. This means you can trade with six times your account equity.
- Overnight Leverage (After 4:00 PM ET): Reduced to 2:1. All leveraged accounts must reduce their positions to a maximum of 2:1 leverage by 4:00 PM ET. TradeZero reserves the right to liquidate positions that exceed this threshold after this time.
TradeZero Trading and Platform Fees
TradeZero is known for its competitive pricing structure, making it an attractive choice for active traders. The broker offers zero-commission trading on U.S. stocks and options, allowing traders to execute cost-effective trades. However, certain types of orders and additional services come with fees.
Trading Commissions
For traders placing limit orders that add liquidity, TradeZero offers commission-free trading on U.S. stocks and options. However, other types of trades do incur charges.
For example, pre-market trading between 4:00 AM and 7:00 AM ET comes with a fee of $0.005 per share. The same rate applies to equities priced below $1.00, with a minimum commission of $0.99 and a maximum of $7.95 per trade, up to 250,000 shares. The same fee structure also applies to OTC and Pink Sheet stocks during regular trading hours.
Platform Fees
TradeZero provides several trading platforms, each catering to different trader needs:
- ZeroPro: A powerful desktop platform designed for active traders. It includes dynamic streaming quotes, advanced charting tools, Level 2 market data, and customizable layouts. The monthly subscription fee is $59.00.
- ZeroWeb: A web-based platform offering real-time data and essential trading tools for those who prefer browser-based access. This platform also costs $59.00 per month.
- ZeroFree: The flagship platform that provides essential tools at no cost, making it a good choice for beginner traders.
- ZeroMobile: TradeZero’s mobile app allows traders to monitor markets, manage portfolios, and execute trades on the go. It’s free for users subscribed to either ZeroPro or ZeroWeb.
Trading Options with TradeZero
TradeZero offers options trading with a competitive fee structure. The cost per options contract is $0.59, with no additional commission or routing fees.
While TradeZero provides a robust platform for options trading, including features like single-leg options trading, options chains, and position ticket linking, it is particularly well-regarded for its equity trading services. Traders whose primary focus is options may find other brokers offering more specialized tools and features tailored specifically for options trading.
Options Chain on TradeZero Desktop Platform
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How is it Possible for TradeZero to Offer Free Trades?
TradeZero routes their limit orders through EDGX, ARCA, and other ECNs which provide a liquidity rebate, so when you place a free limit order trade they route it through EDGX (or another rebate route) allowing them to collect the liquidity rebate and pass the trade on to you for free.
How is TradeZero’s Execution?
TradeZero does not internalize orders, and they are required to provide clients with the best execution price available at all times. When I add or remove liquidity from the market, there is no delay in execution, the orders execute immediately.
As TradeZero offers US market access and clears through a US clearing firm, TradeZero is subject to Reg NMS. This basically states that firms are obligated to provide investors with executions at the best possible price.
Shorting Stocks with TradeZero
TradeZero really shines when it comes to short selling. They have some unique features we will discuss in this section. I would argue that TradeZero is one of the best brokers for those who like to short small cap stocks as they have the most availability for borrows compared to other brokers we have tested.
TradeZero Short Locator
With TradeZero's short locator, you can create a list of symbols that you wish to price locates on for a potential short and watch those prices update in real time using their ZeroPro platform. The locator scans dozens of venues, including its own supply for shares on HTB (hard to borrow) stocks to find you the best pricing and availability.
To get short, simply type the symbol you want to short into the locator, enter the amount of shares you want to borrow and press the locate button. You will be quoted a price per share to locate the short. Once you've accepted the locate, you can now short the stock using the borrowed shares as many times as you'd like during that trading day. Below is a screen shot of the TradeZero short locator via the ZeroPro platform:
Returning Borrowed Shares for Credit
Returning borrowed shares is a unique feature that TradeZero added to their platform. Once the shares have been borrowed, regardless of whether you used them or not, you can return them to the market for a credit back to your account. This also creates additional inventory that other brokers don't have, making TradeZero perhaps the best broker online today for the retail short seller.
To return your locates for credit, scroll to the ‘Short List’ window and click on the ‘Inventory’ Tab. This will display the borrowed shares of stock you have and to the right of that you will see a quantity box and ‘Credit’ button. Just input the amount of shares you’d like to sell back and click ‘Credit’. Your shares will then be placed in a queue of available shares for other customers to purchase from on a first come, first serve basis. If someone buys your borrows, you get the money credited back to your account.
Single Use Locates for Short Selling
Another unique feature offered by TradeZero are single use locates which are a new, cost-effective locate for Regulation SHO threshold securities. These locates can only be used once per day, and are typically cheaper than pre-borrows. These particular locates are for one time use only, however, if they are not used they can be credited back.
What platforms does TradeZero Offer?
TradeZero offers three platform options. ZeroPro which is their desktop software ($59 per month with data), Zero FREE which is their free web based platform, and Zero Mobile which is their free mobile platform.
TradeZero Platform Fees
ZeroPro Desktop Platform
The software I've used with my previous brokers are DAS Pro, Sterling Trader Pro, and a proprietary trading software I used in my early trading days with the prop firm I started trading with in 2004.
ZeroPro is TradeZero's desktop platform, which is a white labelled and improved version of Turbo-Tick Pro, which is a professional trading platform. TradeZero's version has added functionality specific to TradeZero, for example, the improved hot keys - which makes it quite a bit better in my opinion.
The platform has access to thousands of trading indicators and charting tools, options chains, a scanner for seeing top volume and top percentage gaining stocks, and much more.
ZeroMobile
For traders who cannot be at their trading desk for the whole session or have to abruptly leave in the middle of a trade, the mobile app meets all your needs. With revised charts, and watch-list configurations, in addition to the ability to grab locates on your phone, TradeZero offers an excellent way for traders who require location flexibility to put on and manage trades.
ZeroMobile App Features:
Some great features you can find directly on their mobile app is the ability to pull up fundamental data on stocks such as their Market Cap, Average Volume, 52-Week High, etc. Also, you can find news relevant to any stock you are trading or looking to trade. ZeroMobile equips mobile traders with everything they’d need from locates, to charting, to trade management and fundamental data.
ZeroMobile Platform
TradeZero charts
I like the platform as a whole for charting and executing orders, tape reading, watching the level 2, and managing positions. I do spend a lot of time reading charts and explaining setups with visuals on my live screen share, and I found the platforms charting to be lacking at first, but they have made some big upgrades over the years that make the charting experience much more efficient. It is of my opinion that ZeroPro charting would meet the needs of most traders as it has access to all popular indicators and is easy to navigate.
TradeZero's Zero Pro Charts
While some people may prefer to use TradeZero with a 3rd party trading platform such as TC2000 or Trading View, the charting included with TradeZeros platform is adequate and good enough for most users.
Platform and Software Updates
TradeZero has recently hired a superstar developer who has made some major positive changes to the platform and charting and they are continuing to roll out updates every couple weeks with new and improved features. The latest software is very good, and the charts are much improved and they are always listening to users opinions and adding new features.
ZeroPro Hot Keys
You may have read my blog post on hot keys and how important they are to me as a trader. At first, their hot keys weren't great and I was finding myself trying to point and click orders instead, which was difficult on some of the faster moving more volatile names that I trade.
As traders we are creatures of habit, and after spending so many years using one hot key setup, its very difficult to change.
I sent them some feedback, and less than one month later they made a huge update to their hot key setup so that they function EXACTLY the same as Sterling Trader Pro and DAS Pro - I couldn't be happier with this change. I'm able to send and cancel orders with the press of one button and have full control with my keyboard for order entry and execution.
For those of you who are curious about my hot key setup with TradeZero, here's a video I did explaining how to set up hot keys with their platform.
TradeZero Application Process
TradeZero's application process is the easiest and fastest I have ever done. I had my account setup inside of 15 minutes. You can sign up for an account (with some discounts and special perks mentioned on that page), and trade with a free demo account for a week to see if you like it.
Here's a quick tip to speed up the application process:
When asked for the standard documents which are required to open any brokerage account, such as photo ID, passports, and/or utility bills, simply take a good clear picture of the documents with your cell phone and email it to yourself. Download the attachment from your email to your computer as an image file and upload it to the application as requested.
TradeZero 24/7 Customer Support
Their support is fantastic. They have a live 24/7 chat widget right on the website and anytime I've needed assistance, there is an immediate response. If phone assistance is required, you can call TradeZero's US or Bahamas branch during normal business hours. TradeZero is on standby 24 hours per day to help you with anything you need.
TradeZero and Livestream Trading
At Livestream Trading we are always looking for new ways to help our group traders get a better edge in the market, and TradeZero has really given our new traders the opportunity to learn and grow an account without having to deal with huge commissions that can nickel and dime a traders account.
When I am shorting a hard to borrow stock, I am happy to know that all of our group traders who are using TradeZero can participate in the trade giving everyone an equal opportunity to profit.
As a member of Livestream Trading, or a follower of our blog, I would like to extend to you a special offer we have worked out with TradeZero.
Get a Discount with TradeZero
To get a discount and additional perks with TradeZero, all you need to do is register to open your account and you can enjoy some huge benefits including better leverage/margin, cheaper platform fees, and more.
Some of the current benefits include a 1-2% deposit bonus, 5% discount on all locates for the first 3 months, and 3 months of free access to ZeroPro and ZeroWeb.
TradeZero Discount
Final Thoughts on TradeZero
TradeZero is one of the leading retail brokers on the scene and I am proud to say I have been a client of theirs for over 10 years. Their top of the line software, customer service, access to hard to borrow stocks for shorts, executions, commissions and rates for software and data are among the best in the business. Furthermore, with the back-end team they’ve put together, they are continuously pumping out new, innovative features and updates to meet any and all customer feedback.
Remember, having the right tools for the job is very important, but the most important aspect of trading is having a back-tested and proper trading system that can produce the results you want as a trader. Please check out this blog post to learn more about developing a profitable trading system and until next time, trade safe and trade smart!
