TRADEZERO Review 2022: Is The Broker Legit or Scam?

trade-zero

TradeZero claims they offer retail investors ETFs trading, Stocks trading, warrant trading, and Options trading.

If you’re looking to get into high-volume equities trading, you may want to consider this service but hey don’t sign up just yet!

We have provided a complete review of Trade zero broker including how the platform works and what users are saying

Having a reliable and capable broker is crucial to your success in online trading. Make sure that your broker is not fake or unreliable to avoid losing your investment. Ensure that your needs fit the profile of your broker as well, in order for you to have a good working profitable relationship.

What is Trade Zero

Regulatory and Insurance Structure

TradeZero is based in the Bahamas and is regulated by that country’s Securities and Exchange Commission. It is not a member of FINRA, SEC, or SIPC. Although not part of the SIPC, TradeZero accounts are insured.

The broker has contracts with Lloyds of London and the Bahamas First General. The last group has an A- rating (considered excellent) by A.M. Better.

Available services

TradeZero offers:

  • ETF
  • Stocks
  • Warrants
  • options

This is a longer list than some offshore brokers offer. For example, Capital Markets Elite Group offers only stock trading.

In addition to trading shares on major US exchanges, TradeZero also offers access to the over-the-counter market. Trading in extended business hours (before and after business hours) is available. and also day trading.

Day trading at TradeZero

TradeZero offers many of the services that day-to-day traders need. This includes margin, shortcut routing, tier II offerings, short locations, and a professional desktop platform. you can read this post on Fpmarkets review

Perhaps the biggest advantage in this area is the lack of PDT (Daily Pattern Trading) rules. Since the broker is not subject to SEC regulation, there is no account of at least $ 25,000 for daily transactions. The broker sets a minimum account of $ 500 for intraday trading privileges.

To explore

TradeZero assigns leverage based on account size:

  • Accounts with assets of $ 2,500 or more can be traded with 6: 1 leverage.
  • Accounts with 6: 1 leverage cannot have more than 75% of margin purchasing power in a single position.
  • There is no leverage below $500.
  • Accounts over $500 have 4:1 leverage

TradeZero prohibits accounts from maintaining leverage greater than 2: 1 at 15:55 EST (5 minutes before the closing bell). The broker declares that it reserves the right to hedge or sell bonds to bring leverage below that level.

Account Policies

There are some guidelines that the most ambitious traders may find uncomfortable:

  • Shares priced below $ 1.00 cannot be shorted.
  • Shares under $0.10 cannot be traded.
  • The broker closes any account under $ 100.
  • Shares under $3.00 are available for cash payment only.
  • Citizenship restrictions

Perhaps the worst policy of all is TradeZero’s nationality policy. The broker does not accept applications from US citizens or US citizens. When we tried to open an account, the USA was not an eligible country for online application.

Interestingly, TradeZero also does not allow citizens of the Bahamas to open accounts.

TradeZero Prices

As the name suggests, TradeZero offers (some) commission orders without commission. To qualify for the $ 0 price, an order must be an unmatched limit order. And the shares must be traded at $ 1.00 or more on the Nasdaq, AMEX, or NYSE.

Other orders cost $ 0.005 per share with a minimum of $ 0.99. It costs $ 20 to negotiate with an active agent.

Fees apply to short locations for stocks that are difficult to borrow. They are based on the difficulty of borrowing the shares on that market day.

Option contracts are based on 99 cents at a rate of 79 cents per contract. Tasks and exercises cost $ 35 each.

Deposits and withdrawals can be very expensive for non-Bahamas residents. A one-way transfer costs $ 70 and the other direction costs $ 30.

On the positive side, there are no downtime rates.

Software fees

The broker charges an additional $ 25 per month for trading options at ZeroFree.

The broker also has a mobile application. Derivatives cannot be traded on it; and it lacks some important resources, including Level II quotes and warnings.

Trading Instruments

ZeroPro

TradeZero’s flagship trading platform is ZeroPro. The software has some very interesting features. During our test run of the program, we found that the Level II window is easy to use.

The platform order ticket is located in the level 2 offer field. There are separate buttons for sales and short sales. There are also several buttons to buy and cover. All four are color-coded for faster and easier order entry.

TradeZero demo account

Like most of the best stock trading apps, TradeZero offers a free demo account for the ZeroPro software and gives you access to the free version of ZeroWeb. Please note that account approval takes 3 to 5 days. You can then log into the ZeroWeb demo account. However, the broker currently does not allow users to test the mobile app on a demo account, unless they sign up for the paid demos.

TradeZero Stock app payments

TradeZero does not provide clear information about the payment methods available, but it appears that you can deposit to your account using the following payment options:

  • Credit card
  • Bank transfers
  • Skrill
  • Neteller

This is a relatively small amount compared to some other stock apps. However, we recommend that you contact the support team for more information about financing methods in your country.

TradeZero minimum deposit

In the United States, investors must meet a minimum deposit requirement of $ 250. Foreign users must deposit a minimum of $ 300 to a cash account with a 1: 1 leverage account, between $ 500 and $ 2,499 for an account 4: 1 leverage, and a minimum of $ 2500 for a 6: 1 leverage account.

TradeZero contact and customer service

When it comes to customer service at TradeZero, our review of the TradeZero app found that you can contact the broker via email, live chat, phone, or ticket form. The customer service team is available seven days a week from 8:00 am. In addition, the broker maintains a FAQ section on its website, where investors can find a lot of information about the account creation process, trading conditions, fees, and commissions, etc.

Is TradeZero safe?

Overall, TradeZero looks safe. Although the broker is not currently licensed by top regulators such as FCA, CySEC, and SEC, it is regulated by the Securities and Exchange Commission of the Bahamas. This means that citizens of the Bahamas and the United States cannot open an online trading account through TradeZero’s international office. However, the company recently received the necessary regulatory approvals and is now accepting US citizens under FINRA and SPIC.

TradeZero America Inc FINRA

In terms of the security of client funds, all accounts are protected up to $ 250,000, as TradeZero is insured by Argenta Group, a subsidiary of Lloyd’s in London.

TradeZero app

follow the guidelines below to participate in the TradeZero stock trading app.

Step 1: Download and install the TradeZero app

First of all, you need to download the app on your phone. To do this, you can visit the TradeZero homepage or search for TradeZero on the App Store or Google Play. Click the Install button to download the application and install it on your device.

Step 2: Open an account

After installing the application on your smartphone, you can sign up for an online trading account. TradeZero allows you to complete the registration process directly on your phone.

It is important to note that the registration process is time consuming and you will have to complete an extensive questionnaire that includes your personal information, business experience and financial history. You will also need to upload your pass ID to verify your identity. For this reason, we recommend that you register on the broker’s website.

Step 3: Deposit money

You will now be asked to deposit funds. As mentioned above, TradeZero mainly accepts bank transfers. To transfer funds, navigate to the Bank transfers tab in the application menu.

Step 4: trading stocks and options

Once the funds have reached their goal, you can start trading. When you go to the mobile app, use icon search to find an action and click on the results that appear. You will be directed to an order form where you can enter a short sale or order. To view your open order, navigate to your portfolio, where you can monitor order execution.

Tradezero review

  • International TradeZero is nice and affordable for my needs, customer service is always consistent and reliable. In regards to ZeroPro, I enjoy the platform, it does have a lot of aesthetic growth that I would like to see, but that may be subjective.
  • Fantastic live chat service, always nice and on point! Useful ShareSS
  • Fast effective help signing me on to Zero Pro.
  • TradeZero in terms of its platform, customer service, and efficacy has been perfect. Extremely pleased in all aspects.
  • Excellent customer service and as a user I enjoy all the new futures and hard work put into all the updates. That is why I stay with TZ.
  • I had a question about an email I got from TradeZero, sent bij Saransh. I didn’t understand the e-mail so I got into a live chat and first got someone else but a minute later I was chatting with Saransh, who helped me understand and make life easier for both of us. Great service!
  • I’m new to this trading industry, literally, my first platform ever, and the support team has been nothing less than great and efficient.
  • Knowledgeable and provided clear and precise information.

Who is TradeZero most suitable for?

This service is intended for any day trader who does not have a lot of deposits to start with. Many potential traders are put off by the $ 25,000 deposit requirement, which, frankly, is pretty steep.

You may find the broker’s agenda very attractive if you are comfortable with 200 stocks per trade using limit orders.

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TradeZero- Pros and Cons

There are advantages and disadvantages to this business, and we will mention them shortly.

Pros

  • The service is free on most charges, such as routing charges, downtime, and account maintenance.
  • A broker who trades a large volume of shares would get the broker’s software for free.
  • Extended trading hours are permitted
  • You can control your positions on the road

Cons

  • The service is not regulated by FINRA or NEC and does not have SIPC insurance
  • Third parties cannot fund the account

Wrap Up

One notion that our TradeZero analysis dispelled is that you don’t need to have a lot of money to be a successful day trader.

The service has its flaws, but it still has several useful tools and resources that any day trader would appreciate. Most importantly, even if you are starting from scratch, this program makes it much easier to participate and learn the basics.

Above all, the platform is tailor-made for US-based traders. This is a great advantage if you live anywhere in the United States.

Check out our article on Financial Leverage: Simple Guide to help you get started. It will benefit you a lot.

TradeZero FAQs

Can US citizens use TradeZero?

TradeZero provides reasonable commissions as well as a robust platform for active traders and access to the direct market. The main disadvantage is that US nationals are not permitted to open accounts with them. A broader selection of investment vehicles than some other day-trading organizations provide.

What is the minimum deposit for TradeZero?

The account minimum at TradeZero is $200. Unrestricted trading requires $500, while the maximum level of leverage requires $2,500.

Is TradeZero available in Canada?

Yes, as of February 2022, TradeZero is now available to Canadians, including those in Ontario. TradeZero was approved by the IIROC in January 2022.

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