Zacks Trade Rating: 
Overview of Zacks Trade
If you’re looking for a day-trading broker with advanced software, tons of data packages, and a crypto service to boot, Zacks Trade should definitely be at the top of your list. For the full story, read on.
Zacks Trade Pros
Customer service: Broker-assisted trades have no surcharges.
Advanced software: Thanks to Interactive Brokers.
Global trading: Several foreign exchanges are available.
Zacks Trade Cons
No commission-free trading: Every asset class has a fee to trade.
Research will cost money: Most data packages and several research apps carry monthly fees.
Inactivity fee: Day traders can avoid it, though.
Investment Lineup
Zacks Trade customers can buy and sell the following investments:
- Stocks
- ETFs
- Closed end funds
- Mutual funds
- Options
- Bonds
- Warrants
- Cryptocurrencies
The crypto service is through a partnership with Paxos. Zacks Trade is one of the few brokers in the
United States that provides access to foreign exchanges. On these exchanges, the stocks of many
foreign companies can be traded. Available exchanges include
Switzerland, the UK, Spain, Belgium, and Mexico.
Zacks Trade will also open accounts for residents and citizens of many foreign countries. Only a few
locations are ineligible. Once again, it is one of the few U.S.-based firms to do so. Form W-8 is
required.
There is a decent selection of account choices at Zacks Trade. The brokerage house has taxable and tax-advantaged accounts in joint, individual, business, and retirement modes.
Zacks Trade does not have any managed accounts, so everything is self-directed. These do-it-yourself accounts can subscribe to a wide variety of market data and research add-ons. Some of these are free, while others are in the hundreds of dollars per month.
Opening an Account
It’s very easy to open a brokerage account with Zacks Trade.
Just look for the orange button on its website to obtain the online application. This is where foreign residents should begin as well. They will need to fill out and submit IRS Form W-8 to Zacks Trade’s clearing firm (appropriate email is newaccounts@interactivebrokers.com) along with the recently-opened account number.
Zacks Trade will not accept physical stock certificates for deposit.
Try Zacks Trade
Get the lowest margin rates.
Open ZacksTrade Account
Customer Service
Zacks Trade used to have a human chat tool on its website. Unfortunately, this widget has been removed. Nevertheless, there are still some useful channels. First is an email address (support@zackstrade.com). Next is a phone number (888.979.2257). Finally, there is a fax number (312.265.9547). When we dialed up the customer service line, we were sent to voice mail after a few minutes. In the past, they would pick up right away.
Most lines of communication are open only during market hours, an obvious downside. Furthermore, there are no branch locations, so support options nowadays are pretty limited.
The one strong point Zacks Trade has in this category is Chicago-based customer service. Interactive Brokers outsources much of its customer service to foreign countries.
Zacks Trade Fees and Commissions
Zacks Trade has not jumped onto the zero-commission bandwagon, at least not yet. Here is the broker’s commission schedule for equities and options:
Stocks & ETFs $0.01 per share, $1 minimum commission
(Greater than $1 per share)
Stocks & ETFs 1% of Trade Value, $1 minimum commission
(Less than $1 per share)
Options $1 for first contract, $0.75 for each additional contract
Mutual fund trades cost $27.50 each. Most bond trades are $3 for each security plus a percentage of face value. Cryptocurrency trades have a minimum commission of $1.75 but are capped at 1% of trade value.
Zacks Trade requires a minimum deposit of $2,500 to open an account. It recently added a $15 monthly
inactivity fee for accounts below $25,000 in assets. Obviously, it is a day-trading broker now.
And Zacks has another bothersome fee: a withdrawal fee. The first withdrawal in a month is free. Every subsequent withdrawal during the month will cost $1 for an ACH, $4 for a check, and $10 for a wire.
Then there are the data package fees. Although some subscriptions are free, many are not. Here’s a sampling:
| Bundle | Non-Pro | Pro |
|---|
| NYSE AMEX Options Depth of Book (L2) | USD 11.50 | USD 62.50 |
| IB Market Signals | FREE | FREE |
| OTC Markets Top of Book (L1) | USD 6.00 | USD 35.00 |
| Euronext Currency Derivatives Depth of Book (L2) | EUR 3.00 | EUR 3.00 |
| Oslo Bors Depth of Book (L2) | NOK 110 | NOK 387.50 |
Although Zacks Trade clearly is not a cheap brokerage firm, it doesn’t charge anything for an outgoing ACAT transfer.
Margin
As a high-powered brokerage house, Zacks Trade of course has margin accounts. An existing cash account can upgrade to margin trading on the website in the Account Management section.
Interest rates are currently quite competitive. Here’s the tiered schedule:
|
Debit Balance
|
Margin Rate
|
|
$0 - $100,000
|
7.33%
|
|
$100,001 - $1,000,000
|
6.83%
|
|
$1,000,001 - $3,000,000
|
6.58%
|
|
$3,000,001+
|
6.33%
|
Zacks Trade offers portfolio margin for accounts with a minimum net liquidation value of $110,000. This service results in increased leverage.
Zacks Trade’s software displays margin requirements for an entered ticker symbol. Let’s take a look at these platforms now.
Zacks Trade Pro
A desktop platform called Zacks Trade Pro is available at no cost. This program is actually Trader Workstation that Interactive Brokers customers will recognize. It does have the Zacks Trade logo on it.
The software with either logo has some really advanced features on it. Here are some of the highlights:
- Order ticket with 19 order types and many advanced features
- Full-screen charting with many tools
- Time & sales data
- Asset scanners
- Lots of option tools
- Watchlists
- Alerts
- Economic calendar
- And much more...
The order ticket has an advanced tab on it where bracket orders will be found. There’s also an options chain link that produces just that for the entered ticker symbol. A strategy builder can be turned on for quick selection of a multi-leg play.
A chart on Pro can be expanded the full width of the screen. This, of course, will be helpful when using one of the program’s 100+ technical indicators. A right-click menu has trade buttons and much more.
In the bottom-left corner, there are Mosaic and Classic tabs. These change the layout, although most tools appear in both versions. A Learn tab is an absolute must for beginners on this platform. This is a high-level program, so we really recommend spending some time here. Plus, the program has a demo login for practicing with zero risk.
Client Portal
Up next is the client portal, which is a web-based trading environment. Although it is a website, it is quite good. Another sophisticated trade ticket appears with lots of order types. Charting is courtesy of TradingView, which means there are many graphing tools.
Although the website is best for account configuration and management, it also has a decent mutual fund screener and deposit/withdrawal tools.
Mobile App
The third and final trading platform we’re going to examine is Zacks Trade’s mobile app. This, too, packs quite a punch. During our trial of the app, we really liked the order ticket, which has a swipeable chart (from right to left). The ticket itself has lots of advanced features, including a price management algo tool and several professional-level trade types, including mid-price and time variant percentage of volume.
There are some decent options tools, which include not only Greek values but also profit-loss diagrams. There aren’t many pre-installed strategies, although it’s possible to build custom orders.
A chart can be displayed horizontally, and there are three display styles: candlesticks, bar, and mountain. There are a handful of technical studies, although only five years of price data can be shown.
Education & Security Analysis
Zacks Trade does not cater to beginning investors. As such, it does not offer much in terms of financial education. While it doesn’t provide much market news itself, some of the many add-ons specialize in this area. Free subscriptions include 24/7 Wall Street, Dow Jones, Seeking Alpha, and The Motley Fool.
Zacks Trade also delivers a lot of security analysis tools on its trading platforms, primarily its desktop program and client portal. On the website, a security’s profile has many data points, including:
- Analyst Forecast
- News
- Ownership
- Dividends
- Social Sentiment
- Key Ratios
- ESG Ratings
- Forecast: EPS
- Technical Insights
- Short Selling
Underneath the Research tab in the top menu, there are many useful market resources, including an economic calendar and a global exchange center.
The desktop system has lots of security analysis tools. These include an advanced stock screener that can look on foreign exchanges and many options analysis tools.
Day Trading and Swing Trading
Leverage: In a regular margin account, up to 4:1 leverage is available. In a portfolio margin account, the maximum goes up to 6:1.
Shorting: Shorting is possible with a Zacks Trade account. Some platforms show how many shares of a security are available for shorting.
Level II quotes: Not only does Zacks Trade offer Level II data on the U.S. exchanges, it also offers Level II quotes on many foreign exchanges. Usually, there’s a charge for the information.
Direct-access routing: Zacks Trade offers direct access to market makers and ECNs on both American and foreign exchanges.
Routing fees and rebates: Zacks Trade offers some rebates on orders that remove liquidity.
Other Services
Initial Public Offerings: IPOs are unavailable at Zacks Trade.
Fractional-share Trading: Stocks, ETFs, mutual funds, and cryptocurrencies can all be traded in fractional shares/coins.
DRIP Service: Dividend reinvesting is possible for a fee.
Individual Retirement Accounts: Roth, Traditional, SEP, and Rollover IRAs are available at Zacks Trade. An IRA can sign up for limited margin, which means it can day trade. The highest option level on an IRA is level 1. Zacks does not charge any additional commissions or fees for IRAs.
Extended Hours: Pre-market and after-hours trading sessions are available at Zacks Trade.
Periodic Mutual Fund Purchases: Not available.
Try Zacks Trade
Get the lowest margin rates.
Open ZacksTrade Account
|