TradeZero Review [year] - Pros & Cons Revealed

Editor’s Verdict

TradeZero is an equity and options brokerage headquartered in the Bahamas that focuses on high-quality order execution. Founded in 2015, TradeZero provides a US-centric asset selection and a subscription-based trading platform, but its mobile app remains free. After concluding my TradeZero review, I can recommend it to traders who wish to trade US-listed assets, including OTC stocks with intraday leverage of 1:6. Is TradeZero the best broker for your portfolio?

Overview

TradeZero delivers excellent order execution and price improvement technology.

TradeZero Five Core Takeaways:

• A 25.10% price improvement ratio
• An average order execution speed of 0.035 seconds
• An NBBO-or-better entry ratio of 95.52%
• No direct algorithmic trading
• A fee-based trading platform

TradeZero Regulation & Security

Trading with a regulated broker will limit the potential for fraud and malpractice. I always recommend that traders check regulations and verify them with the regulator by double-checking the provided license with their database. TradeZero has one regulated entity with a good track record.

Is TradeZero Legit and Safe?

My TradeZero review found no verifiable misconduct or malpractice by this broker, founded in 2015. Therefore, TradeZero is a legitimate and safe broker.

TradeZero regulation and security components:

• TradeZero is regulated by the Securities Commission of the Bahamas (SCB) and is a member of the Bahamas Financial Services Board
• Founded in 2015
• Segregation of client deposits from corporate funds
• No negative balance protection
• Cash and securities held at Securities Investor Protection Corporation (SIPC) member brokerage firms

What would I like TradeZero to add?

I would appreciate it if TradeZero would offer third-party insurance, but SIPC protection covers most traders. TradeZero keeps client cash and securities at third-party brokers but does not disclose them.

Fees

I rank trading costs among the most defining aspects when evaluating a broker, as they directly impact profitability. TradeZero advertises free limit orders, which are free at all brokers, but it levies a $0.005 commission per share and has a $0.99 flat fee for up to 200 shares. OTC/Pink Sheets stocks have a maximum commission of $7.95 up to 250,000 shares. The same applies to all shares priced below $1.

Options contract fees are $0.59 per contract, and the ZeroPro trading platform costs $59 monthly, excluding add-ons. TradeZero also levies a $15 internal withdrawal and deposit fee, a $35 reorganization fee after reverse splits and symbol changes, and $30 for broker-assisted trades. Regulatory fees also apply.

An inactivity fee does not exist, and since all accounts are USD accounts and all assets are in USD, a currency conversion does not apply.

Here is a snapshot of some TradeZero fees, excluding options and non-trading fees:

Swap rates on leveraged overnight positions are the most ignored trading costs. Depending on the trading strategy, they may become the most significant fee per trade. I always recommend that traders check them before evaluating the total trading costs.

I found no mention of financing rates for leveraged overnight positions, which is an unacceptable lack of transparency.

Range of Assets

TradeZero only offers US-listed equities listed on the NYSE, the NASDAQ, the AMEX, and the OTC/Pink Sheets. I like the latter's availability, as not many brokers cover this high-risk, high-reward exchange. While I miss cross-asset diversification, I rank TradeZero among the best brokers for US-listed equity portfolios.

TradeZero offers the following selection of asset classes:

• Stocks
• Options
• ETFs

TradeZero Leverage

What should traders know about TradeZero’s leverage?

• The maximum intra-day leverage is 1:6
• The overnight leverage is 1:2
• Negative balance protection does not exist
• TradeZero starts forced liquidation if account equity drops below $99 or $300 with equity of 8%
• All accounts that drop below an equity ratio of 8% face forced liquidation until the ratio reaches 50%
• Traders should always use appropriate risk management with leveraged trading to avoid magnified trading losses

Account Types

TradeZero offers one account type to all traders plus a premium upgrade for accounts exceeding $25,000. This upgrade provides a 10% discount on locating short-selling equities to traders with a $25,000+ portfolio.

My observations concerning the TradeZero account type are:

• A $500 minimum deposit requirement
• A maximum intra-day leverage of 1:6
• Overnight leverage of 1:2
• No short selling of stocks trading below $1
• Short selling requires a minimum balance of $500
• Stocks trading below $2 are cash-only

Traders cannot trade stocks trading below $0.05 per share

TradeZero Demo Account

Demo trading does not grant exposure to trading psychology and can create unrealistic trading expectations. Therefore, I want to caution beginner traders about using demo trading as an educational tool and suggest they consider its limitations.

What stands out about the TradeZero demo account?

• Data is 15 minutes delayed
• A demo account requires registration but not account verification

Trading Hours

Trading Platforms

Traders get the proprietary Zero trading platform. While TradeZero offers a free version and mobile app, active traders who wish to use hotkeys and trade OTC markets pay monthly fees. Therefore, it only suffices for low-frequency buy-and-hold investors. Otherwise, the ZeroPro platform, which includes a web-based alternative, costs $59 monthly, but OTC fees apply, increasing the cost to $79.

The family of Zero platforms promises rich features but trail advanced trading platforms. The absence of algorithmic trading stands out, and I rank the ZeroPro trading platform as mediocre at best amid the lack of cutting-edge features and a modern user interface.

Unique Features

The unique features that stood out during my TradeZero review are the availability of OTC markets and its excellent order execution statistics.

Research & Education

TradeZero does not provide research but publishes a DailyEdge newsletter to 250,000+ subscribers, offering daily, 5-minute content without actionable trading information.

What about education at TradeZero?

TradeZero offers live sessions with its five educators, which can provide quality lessons, but a necessary introduction or classroom-style education is unavailable. Therefore, the available content is an addition to an educational course.

My conclusion:

• First-time traders can use the video lessons as a valuable addition to their education
• I strongly recommend that beginners seek in-depth education from third parties focusing on trading psychology and the relationship between leverage and risk management
• Avoid paid-for courses and mentors

Customer Support

Customer Support Methods
Support Hours	24/7
Website Languages	EN

TradeZero offers 24/7 multi-language live chat support in Arabic, English, Hebrew, Italian, Portuguese, and Spanish. Traders can also e-mail and call TradeZero, but I recommend the help section before contacting a customer support representative.

Noteworthy:

• TradeZero offers phone support, but I miss a direct line to the finance department, where most issues can arise

Bonuses and Promotions

During my TradeZero review, traders received a minimalistic 1% deposit bonus, a 5% short locates discount, and three free months for the ZeroPro trading platform. Terms and conditions apply, and I recommend traders read and understand them. Stating that traders will “gain an edge” confirms the lack of market understanding and awareness of bonus offers from competitors.

Opening an Account

The TradeZero online application is a multi-step process that starts with selecting the resident country, followed by name, e-mail, and desired password. TradeZero will e-mail a confirmation code before completing the registration.

What should traders know about the TradeZero account opening process?

• TradeZero complies with global AML/KYC requirements.
• Account verification is mandatory
• Most traders pass verification by uploading a copy of a government-issued ID and a proof of residency document issued within the past six months
• TradeZero requires a tax identification number from the resident country
• All documents must be in English
• TradeZero may ask for additional information on a case-by-case basis

Minimum Deposit

The minimum deposit requirement is $500.

Payment Methods

Withdrawal options
Deposit options

TradeZero supports bank wires processed by Wise or Revolut.

Accepted Countries

TradeZero accepts traders from all countries except the Bahamas.

Deposits and Withdrawals

The secure TradeZero back office handles all financial transactions for verified clients.

What are the key takeaways from the deposit and withdrawal process at TradeZero?

• The minimum deposit is $500
• TradeZero charges a $15 deposit fee, except on the initial deposit
• A $15 withdrawal fee applies
• External processing times and fees depend on the bank
• In compliance with AML regulations, the name of the trading account and payment processor must be identical

Is TradeZero a good broker?

I like the trading environment at TradeZero for US-based equity portfolios and OTC traders, but I recommend the TradeZero trading platform, which costs $79 monthly. The order execution is good, and the commission-based cost structure is competitive, but the free Zero trading platform is only suitable for low-frequency traders. 24/7 multi-lingual customer support exists, but leverage is palpable, especially compared to the offer of competing international brokers. Therefore, I can only recommend TradeZero to US-resident traders who cannot access more competitive trading environments, and the absence of algorithmic trading support is notable. International traders will find a superior product and services portfolio elsewhere.

FAQs

Is TradeZero available in Europe?

TradeZero is available in Europe.

How long does it take to withdraw money from TradeZero?

Since TradeZero only supports bank wires, traders may wait up to ten days to receive their funds.

Is TradeZero truly free?

TradeZero is not free and levies a series of trading and non-trading fees.

Is TradeZero trustworthy?

TradeZero has stood the test of time under the SCB's oversight. Therefore, I consider TradeZero a trustworthy broker.

By DailyForex.com Team

The DFX Team at DailyForex is a group of veteran financial analysts, traders, and brokerage industry experts dedicated to producing in-depth broker reviews and cutting-edge market insights, plus analysis of market trends. Holding over 16 years of experience in global financial markets, and 4 B.A. level academic qualifications in relevant degrees, we conduct thorough, unbiased evaluations of brokers to enable traders make informed decisions, using the most advanced methodology in the industry. Also, the DFX team is involved in generating technical analysis, signals, and trading strategies, with a consistent commitment to accuracy and transparency. Whether you’re a beginner or a professional trader, the DFX Team works to ensure you have the tools and insights you need to succeed as a trader in the retail CFD industry.