Are you a long-term investor, tech-savvy investor, or a day trader looking for the best online trading platform? Then, you might want to look at what Zacks Trade has to offer.
Zacks Trade offers professional tools and analysis on earnings estimates, helping long-term investors to make informed trading decisions. It also provides feature-rich platforms and tools for tech-savvy investors.
Moreover, day traders can work on the go or from the comfort of their homes, leveraging the low fees, international trading, and multiple platforms that Zacks Trade offers.
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Zacks Trade Background
Based in Chicago, Zacks Trade is affiliated with Zacks Investment Research, which is popular for its incisive research reports and stock analyses.
You need at least $2,500 to invest with Zacks Trade. This program is also great for beginner investors, thanks to its free broker-assisted trades service.
Namely, they can guide you through the trading process until you can be able to make successful trading decisions on your own. Zacks Trade allows you to invest in a wide variety of securities, including the following:
- Stocks
- Government bonds
- Corporate bonds
- Mutual funds
- Exchange-traded funds (ETFs)
It is ideal for:
- Active traders
- Options traders
- Investors who want to trade on foreign exchanges
Zacks Trade Commissions and Fees
Zacks Trade offers some of the most competitive rates in the brokerage market. Here’s a quick look at its commissions and fees:
| Stocks & ETFs (Over $1 per share) | $0.01 per share, but you have to spend at least $3 |
| Stocks & ETFs (Below $1 per share) |
1% of trade value, but you must spend at least $3 |
| Options | $3 for the first contract and $0.75 for every additional contract |
| Options exercise/assignment fee | $0 |
| Broker-assisted trades | No additional cost |
| Currency conversion to USD | About $2.0 to $2.50 |
One of the best things about Zacks Trade is that there aren’t many additional charges like account set up or maintenance fees, account inactivity fees, order cancellation fees, or IRA custodial fees.
It’s also worth noting that Zacks Trade allows you to make one withdrawal from your account every month at no cost. For any additional withdrawal, you will need to pay $4 for a check and $10 for a wire transfer.
What We Like About Zacks Trade
From affordable rates to flexible global trading, Zacks Trade offers a range of benefits that make it one of the most popular brokerage companies.
Competitive Rates
Zacks Trade offers exceptionally low rates compared to its major competitors. For example, the company’s stocks and ETFs start at $3.00 minimum per trade and $0.01 per share.
Its options, on the other hand, start at $3.00 for the first contract and $0.75 for every additional contract. You don’t need to pay any extra cash for broker-assisted trades.
Lowest Margin Rates in The Market
With margin rates of up to 2.64 percent, the company offers some of the lowest margin rates in the brokerage market.
With such margin rates, you can be able to save a significant amount of money in interest per year. Moreover, Zacks Trade’s margin rates on stocks are at least 25 percent.
Comprehensive Research
With Zacks Trade, you get free access to 26 research and news reports, which include Zacks Investment Research. You also get access to an additional 87 subscription reports, at different costs.
Robust Trading Platforms
Zacks Trade allows you to choose from any of its three powerful trading platforms at no additional cost. The platforms are:
- Zacks Trader – This is an online platform. It has a simple interface but offers advanced trading features and tools to help you attain your investment goals.
- Zacks Trade Pro – This a desktop platform designed to help you trade stocks, bonds, options, and other funds on over 16 international markets from one account. This platform is equipped with advanced features that will help you optimize your trading efficiency.
- Mobile Trading – This is a smartphone app that allows you to conduct your trading activities wherever you are. It is designed to give you easy time trading stocks, options, bonds, and other funds from virtually any type of mobile device, including Android smartphone or tablet, iPhone, iPad, and BlackBerry.
Mobile trading allows you to enter and manage orders, view executions, and monitor your portfolio and account balances on the go.
Flexible Global Trading
With Zacks Trade, you get the opportunity to trade in the international markets from a single account. It allows you to trade a wide selection of securities globally, including stocks, bonds, options, and warrants. The brokerage company has over 90 market centers within 20 countries.
It offers you access round-the-clock access to their international market. You also get to enjoy lower commissions for international trades than you would with most other online brokerage firms.
SmartRouting Technology
The Zacks Trade SmartRouting system is designed to find the best possible stock, option, and combination prices that are available when you place an order. It can dynamically re-route a part of or your entire order to look for optimal execution.
Additionally, the system continually analyses any rapidly changing market conditions to ensure you get stock and option price executions that are far better than those offered by Zacks Trade’s competitors.
Customer Support
Zacks Trade is also popular for its exceptional customer service. You will be assigned a dedicated broker, and you will have his direct desk line. You can even reach the customer service team through phone or live chat during regular business hours.
It is also worth noting that you won’t pay a dime for making trades over the phone. That means you can still make your trades if you are out of internet coverage without worrying about incurring extra costs.
What We Don’t Like about Zacks Trade
Despite its great attributes and loads of valuable trading features, Zacks Trade is not without some setbacks. Let’s look at some of the downsides:
Not Favorable for Beginner Investors
You need to have at least $2,500 in your Zacks Trade account to be able to trade. If you are a beginner investor with limited finances, a brokerage account minimum of $2,500 could be quite high for you.
However, if you have been in the business for some time or if you have sufficient funds, you may not find Zacks Trade’s brokerage account minimum inhibiting.
Mutual Funds are Higher Than Competitors
At $27.50 on no-load funds, mutual funds offered by Zacks Trade are higher compared to its major competitors.
It is advisable, therefore, to evaluate the number of mutual funds being offered without transactions fees to find out whether or not you are getting a good deal before making any investment decisions.
Higher Commissions Than Some Competitors
Zacks Trade is known to offer some of the most competitive rates in the industry. However, some brokerage firms like Interactive Brokers charge half of what Zacks Trade charges per share.
Therefore, if you are looking for the most cost-effective trades, there could be better options than Zacks Trade.
Alternatives
Ally Invest – Ally has long been one of the least expensive full service online brokerages. With good research tools and low fees, Ally is a top brokerage for those wanting to do their own research.
M1 Finance – Bringing a no fee approach to investing, M1 Finance allows you to invest in more than 6,000 stocks and ETFs with on trading fees.
TD Ameritrade – One of the longest running brokerages, TD Ameritrade is a top pick for ETF investing.
Zacks Trade Review Bottom Line
Zacks Trade is a solid online brokerage platform. It offers some of the most affordable prices in the market. It also has a well-structured, user-friendly website with all the information you may need for an excellent trading experience.
Moreover, the company has excellent customer support options. You can reach them via phone, email, and live chat. You also have access to a dedicated broker. While Zacks Trade is ideal for all traders and investors, regardless of their experience, it may not be a good option for beginner investors with limited funds, thanks to the brokerage account minimum of $2,500. Nonetheless, it is a great brokerage platform.
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