ZacksTrade Review 2023
Zacks Trade is an international investment broker that offers competitive margin rates and free subscriptions to reputable research and market analysis. This 2023 broker review covers commission rates and account fees, regulatory licences and the firm’s robust trading platform. Read on to find out how to make the most of your investing with Zacks Trade.
Headquartered in Chicago and founded in 1978, Zacks Trade is a US-based broker boasting over 40 years of investment research. The brokerage was created following the success of Len Zacks’ influential paper on predicting stock movements using Analyst Estimate Revisions.
Zacks Trade is now a division of LBMZ Securities Inc., a broker-dealer and member of the Securities Investor Protection Corporation (SIPC), ensuring protection for the firm’s clients.
LBMZ Securities is authorised and regulated by the US Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).
Zacks Trade offers one online trading platform, Zacks Trade Pro. The broker’s proprietary platform is free to all its clients and supports investing in options contracts from over 19 countries from one single account.
Our experts found the following key features:
- Multiple watchlists
- 120+ technical indicators
- Trade directly from charts
- Customisable interface and charts
- Strategy builder for advanced order spreads
- Real-time alerts based on volume, market, price and time
You can download ZacksTrade Pro for Windows, Mac OS and Linux computers. The broker also provides a dedicated client portal, a single access point for those wishing to manage positions, access account subscriptions and tinker with their settings.
Products & Markets
Zacks Trade offers a variety of securities and assets for options and margin traders:
- Mutual Funds
- Stocks (including penny stocks and over-the-counter (OTC) stocks)
Zacks Trade Fees
While using Zacks Trade, we found that customers can expect varying levels of commission rates:
- Stocks and ETFs > 88p – £0.0088 per share (88p minimum)
- Stocks and ETFs < 88p – 1% of trade value (88p minimum)
- Options – first contract 88p and 66p thereafter
- Mutual Funds – £24.17 on every position
- Corporate Bonds < £8,800 – 0.1% times the face value plus an additional £2.64 per bond
- US Government Bonds < £8,800 – 0.025% times the face value plus an additional £2.64 per bond
Zacks Trade also charges an inactivity fee of £13.18 a month for customers with an account balance of less than £22,000.
Also, whilst your first withdrawal is free of charge, there is a fee of £7 per additional wire in the same month.
Zacks Trade offers clients the opportunity to increase their purchasing power with margin trading. The level of margin available is dependent on your account balance and requires consultation with the firm.
The online broker uses a tiered rate schedule, in which the margin rates are subject to your margin loan balance, as per the below:
- Tier 1: 7.33% up to £80,000
- Tier 2: 6.83% up to £800,000
- Tier 3: 6.58% up to £40,000,000
- Tier 4: 6.33% above £40,000,000
The firm uses a blended rate schedule. This means that the first £80,000 of the account balance is charged at the tier 1 rate, while the next £720,000 is charged at the tier 2 rate, and so on.
Margin privileges can be added during the application process or in the account management area at any time.
Portfolio margins are also available to traders with a balance of £90,000 in Net Liquidation Value.
The Handy Trader application provides Zacks Trade clients mobile access to various products in the global markets and supports the creation of several watchlists, great for those on the move. Investors can monitor their portfolios and receive real-time news on their open positions wherever an internet connection is available.
When we used ZacksTrade’s app, we found it to be intuitive and comprehensive, allowing users to invest and exercise outstanding option positions in a secure environment.
The Handy trader app is compatible with both Apple (iOS) and Android (APK) devices.
The firm accepts the following payment methods with zero deposit fees:
- Wire Notification
- Bank Cheque Notification
- Online Bill Pay Notification
- Personal Cheque Notification
- ACH (Automated Clearing House)
How To Invest With Zacks Trade
Create An Account
To open an account with Zacks Trade, navigate to the top-right-hand corner of the web page and click on Open an Account. Enter your first and last name, email address and phone number and proceed to the next step. You will then be prompted to choose your account type, followed by a username and password, plus confirmation of your email address.
Once security and trading experience questions have been answered, you will need to complete the identification process, which requires you to show proof of identity and residency and, finally, sign a virtual contract.
Account approval is based on annual net income, liquid net worth and investing history, where you must have completed a minimum of 100 live trades.
Make A Deposit
Once your account has been verified, you can log in and deposit funds into your account. Click on Transfer & Pay, found under Account Management on the left-hand side of the page and then head to the Transfer Funds section.
On this page, select the transaction type, the currency and the method. Note that wire notification is the quickest method, where you will be credited immediately once the broker receives the funds from your bank. You will be prompted to enter your bank account details, which you will have the option of saving.
Place An Order
To begin investing at Zacks Trade, navigate to the top-left-hand corner of the platform. In the order entry window, type in your chosen stock symbol and click enter.
Once selected, in the drop-down menu, click on a product and exchange and click on Buy. You can then decide your quantity of shares and the order type.
When you have submitted your order, a preview screen will pop up, allowing you to review your order before submission.
The same process can be used to close your position when you are ready. However, click Sell after selecting the desired product.
Zacks Trade offers a paper trading account for both new and existing investors. This allows the customer to familiarise themselves with the proprietary platform, explore new markets and test new strategies.
Deals & Promotions
Welcome bonuses and loyalty promotions are fairly limited. However, if you switch to Zacks Trade by filling out an account transfer reimbursement request, the company will cover the fee (up to £130) for transfers of at least £4,400.
Zacks Trade is regulated by the US financial authorities, SEC and FINRA, via LBMZ Securities. These are highly-rated financial regulators and a good indication that the online broker is trustworthy. So whilst Zacks Trade is not regulated by the UK’s FCA, oversight from tier-one US agencies is a good sign.
In addition, account protection of up to £500,000 is provided by the Securities Investor Protection Corporation (SIPC).
The following are powerful analysis and investing tools available to Zacks Trade clients:
- SpreadTrader – allows investors to easily manage complex options orders
- Volatility Lab – real-time measurement and forecasting of financial volatility
- Probability Lab – allows investors to analyse options probability distributions in various markets
- Algos – ready-built automated trading bots that include time-weighted average price (TWAP) and volume-weighted average price (VWAP)
- Basket Trader – quickly and effectively purchase and sell predefined groups of securities
- Market Scanners – free stock, options and fund screeners
- Options Strategy Lab – generate strategies by entering price or volatility forecasts
- Rebalance Portfolio – stay on track by automatically changing the weightings of your assets based on your goals and risk approach
Whilst Zacks Trade does not offer an education section, it does have an extensive library of research subscriptions. These include many from third parties plus some from its own proprietary department, Zacks Investment Research.
The broker offers several account types, making it an attractive firm for investors with varying levels of experience.
The following account types require a minimum deposit of £2,200 and the Reg T Margin account requires you to maintain a capital balance of £1,800.
- SEP IRA
- Roth IRA
- Rollover IRA
- Traditional IRA
- Reg T Margin
- Unincorporated Business
- Limited Liability Corporation
A Portfolio Margin account is also available for a minimum deposit of £96,700. However, there are restrictions in place if your capital drops below £87,900.
Benefits Of Zacks Trade
- Penny stocks
- Free demo account
- Suite of analysis tools
- Ready-made algo bots
- Zero maintenance fees
- Competitive margin rates
- Free research subscriptions
Drawbacks Of Zacks Trade
- Inactivity fees
- No 24/7 customer support
- High minimum account balance
- No MetaTrader 4 or MetaTrader 5
ZacksTrade’s regular opening hours are Monday to Friday, 09:30 to 16:00 EST. However, the firm allows its customers to engage in extended trading outside of traditional market times.
Bear in mind that there are risks to extended hours investing, including lower liquidity and greater volatility, which can result in partially executed positions or no execution at all.
Zacks Trade customer service is available Monday to Friday, during regular business hours 09:00-18:00 EST. When we used Zacks Trade, our experts found that the support team were friendly and clearly answered any queries we had.
You can reach customer support via email (email@example.com) or by dialling the following telephone numbers:
- Fax – 312.265.9547
- Local – 312.265.9406
- Toll-Free – 888.979.2257
The broker’s live chat is only available after you have started the account opening process and have provided a valid email address.
The company’s headquarters address is 10 S. Riverside Plaza, Suite 1600, Chicago, IL 60606.
ZacksTrade is dedicated to ensuring the highest security and protection for its trading accounts. You will receive a security code device, which will generate a unique number that you will need every time you log in.
Our experts found the following additional security features that safeguard users’ assets:
- Automatic Logoff – after a specified period of inactivity, the firm will automatically log you off
- 128-bit SSL Encryption – secures the connection between the online broker and your computer
- Failed Login Attempts – after a specified number of failed login attempts, Zacks Trade will automatically restrict your account
Should You Trade With ZacksTrade?
Zacks Trade offers competitive margin rates, cutting-edge tools and actionable research, all of which provide a comprehensive and advanced investment experience. Clients can buy, sell and trade across 19 international exchanges to expand their portfolio performance and gain experience in the global markets.
Does Zacks Trade Offer A Demo Account?
Zacks Trade offers a free demo account, which allows prospective clients to try new strategies or simply practise investing.
Is Zacks Trade Safe?
Prospective clients should be reassured that their investments and accounts are protected by the SIPC, alongside regulation by the SEC and FINRA, two top regulatory authorities.
What Research Subscriptions Are Available To Zacks Trade Clients?
Zacks Trade offers 20 free research subscriptions for non-professional and professional investors. These comprehensive resources are available through the Interactive Brokers Information System (IBIS), which is an add-on to Zacks Trade Pro. Customers can explore market news with Zacks Investment Research, Morningstar equity, ETF and credit reports, Thomas Reuters Worldwide Fundamentals and more. Premium newswires are also made available to clients at a monthly fee.
Does Zacks Trade Charge For Inactivity?
Zacks Trade does not charge inactivity fees unless your account balance is less than £22,000, in which case customers are charged £13 each month.
What Stocks Does Zacks Trade Offer?
Zacks Trade offers a wide range of stocks, including penny and OTC stocks, allowing clients to trade on a range of exchanges with low prices and high liquidity.
Compare ZacksTrade with Other Brokers
These brokers are the most similar to ZacksTrade:
- IG Index - IG is an award-winning broker that has an excellent reputation globally. The brand offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
- Interactive Brokers - Interactive Brokers is a leading global brokerage that provides access to a comprehensive offering of stocks as well as forex, futures, metals, bonds and cryptos. The firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, IIROC, and SFC. Traders use the proprietary Trader Workstation and can access powerful tools and data feeds as well as comprehensive educational resources.
- Trade.com - Trade.com is a trustworthy online broker with a global presence. The broker offers 2,100+ CFDs in major markets, as well as futures, options and more. The broker offers best-in-class platforms and superior analysis tools for experienced traders. The broker is also regulated by top-tier authorities including the FCA and CySEC.
ZacksTrade Feature Comparison
|ZacksTrade||IG Index||Interactive Brokers||Trade.com|
|Markets||Stocks, Crypto||Forex, Stocks, Commodities||Forex, Stocks, Commodities, Crypto||Forex, Stocks, Commodities, Crypto|
|Minimum Trade||$3||0.01 Lots||$100||0.01 Lots|
|Regulators||FINRA||FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA||SEC, FCA, IIROC, SFC||FCA, CySEC, FSC, FSCA, FINRA|
|Leverage||-||1:30 (Retail), 1:222 (Pro)||1:50||1:30 (EU), 1:300 (Global)|
Trading Instruments Comparison
|ZacksTrade||IG Index||Interactive Brokers||Trade.com|
ZacksTrade vs Other Brokers
Compare ZacksTrade with any other broker by selecting the other broker below.
|Zacks Trade is a FINRA-regulated US broker offering trading on stocks, ETFs, cryptocurrencies, bonds and more through a proprietary terminal. The broker is geared toward active traders and offers very affordable fees on most assets as well as an app and a vast amount of market data.|