Zacks Trade Review
Zacks Trade is a US brokerage offering flexible trading platforms and research tools. Funding options and educational resources are limited. There is no MetaTrader platform and no Futures, Commodities, or Forex trading. They are very limited when compared to other online brokers.
Zacks Trade Review, Pros & Cons
- Securities Investor Protection Corporation (SIPC)
- Premium research tools
- Flexible trading platforms
- Competitive fees
- Minimum $2,000 deposit
- No support for futures, commodities or forex
- Limited educational resources
- No MetaTrader platform
- Restricted leverage
- Limited funding options
In this detailed Zacks Trade review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
Zacks Trade Overview
Zacks Trade is an online broker located in the United States and headquartered in Chicago, Illinois. They offer online trading services to self-directed traders and investors from all around the globe.
Zacks Trade are targeted primarily towards the active trader with a range of flexible platforms to choose from, actionable research and professional customer support. The fees they charge are competitive when compared to other US brokerages, starting from $3 on stocks and ETF trades.
Founded in 1978 by the brothers Len and Ben Zacks, they treat every client with the same respect, regardless of their trading experience or investment size. The Zacks group of companies as a whole manage more than $5 billion in assets. All investors have the same access to innovative trading tools, research and customer support.
Zacks Trade Regulation
Zacks Trade brokerage products and services are offered by LBMZ Securities who are a member of the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC) scheme in the United States.
The SIPC is an investor protection scheme established in order to protect clients against the loss of cash and securities in case the broker cannot fulfil their financial obligations. The SIPC protection is limited to $500,000 with a $250,000 limit for cash.
They also have an excess SIPC policy with certain underwriters at Lloyd’s of London for up to an additional $30 million (with a cash sublimit of $900,000) subject to an aggregate limit of $150 million.
SIPC coverage provides protection against failure of a broker-dealer, not against loss of market value of securities and does not protect accounts that are compromised or when fraudulent activity occurs. Brokerage products are not Federal Deposit Insurance Corporation (FDIC) insured, not guaranteed and may lose value.
Account protection and security is a top priority for the broker and is taken very seriously. They implement industry leading encryption technologies and extra precautions to help keep your account and assets safe and secure.
- Secure Socket Layer – 128-bit SSL encryption to secure the connection between your computer and Zacks Trade
- Login Limit – Restrict account access to specific IP addresses
- Security Monitoring – Dedicated security team to monitor and detect suspicious activity
- Automatic Logoff – Automatically logged out after a specified period of inactivity
- Failed Login Attempts – Restrict logins after certain amount of failed attempts
Zacks Trade Countries
Zacks Trade is a US online brokerage but can accept clients from over 200 countries depending on the relevant regulations within each jurisdiction. Some Zacks Trade broker features and products mentioned within this Zacks Trade review may not be available to traders from specific countries due to legal restrictions.
Zacks Trade Platforms
Zacks Trade have a choice of platforms to suit different experience levels and styles of trader.
Zacks Trade Pro
This is Zacks Trade proprietary and flagship platform that has a fully customisable interface and contains a range of built in trading tools for assisting with detailed market analysis, news research, technical analysis and more. It contains most of the functionality every trader will need, being user friendly enough for those just starting out whilst having enough advanced capabilities to satisfy the more seasoned investors.
Clients have access to their very own online client portal where they can view their account, place and manage trades, make deposits and withdrawals, adjust settings and subscriptions, etc.
There is the browser based Zacks Trader platform that is a scaled down version of the Zacks Trade Pro platform but still maintains most of the important features. It is good for those who wish to run the platform directly in their web browser without needing to download any additional software.
Zacks Trade have versatile and easy to use mobile trading platforms that can be used on iOS and Android devices and are readily available from the relevant app stores. The mobile trading apps are very useful for those who need to access their account and trade whilst on the go, provided they have an internet connection. Users can place/manage/close trades, monitor portfolio, study charts, set notifications and more.
Zacks Trade Trading Tools & Education
Zacks Trade offer a variety of powerful trading tools so suit the needs of different trading styles. These tools can be used for advanced charting capabilities, efficient trading, conducting detailed market analysis and more.
- Algos – Zacks Trade Pro Stock algos including Arrival Price, Percentage of Volume Strategy, TWAP and VWAP
- Probability Lab – Offers options probability without any of the usual complicated mathematics involved. This can be fully adjusted based on your particular forecasts
- Basket Trader – This can be used to import baskets of stock orders and executes them within Zacks Trade Pro
- Rebalance Portfolio – Quickly and easily rebalance your entire portfolio based on your investment goals and risk tolerances
- Market Scanners – Screen stocks, options, mutual funds, bonds and more, based on the specific parameters that you set
- SpreadTrader – Create and manage complex option orders with relative ease. You can easily close or reverse any spread positions
- Options Strategy Lab – Enter price or volatility forecast for the underlying stock and view a list of potential trading strategies
- Volatility Lab – This is a comprehensive toolkit of volatility tools that provide a snapshot of past and future readings
There is also a collection of research and market analysis which can be used to support your trading decisions. Clients have access to over 20 free research subscriptions and 80 premium trials that can help them to find investment opportunities and for them to make the most of their trades.
- Dow Jones – Dow Jones news wires deliver premium in-depth business news, commentary and insight in real time
- Morningstar – Access research from Morningstar, one of the leading global providers of independent market analysis to help trader make more informed decisions
- Seeking Alpha – Seeking Alpha provides articles that cover a broad range of stocks and investment strategies from buy side investors and industry experts
- The Motley Fool – The Motley Fool is a popular financial and investing website with podcasts, books, newspaper column, radio show, mutual funds, and other premium investing services
- Thomson Reuters – Thomson Reuters provides a wide range of business-critical information and software with actionable insights into different markets
- Benzinga – Benzinga Professional is a source for breaking news headlines, including market earnings reports and rating coverage gathered from hundreds of research firms
Zacks Trade Instruments
Zacks Trade provides 24-hour access to the global economy with over 90+ international exchanges in 19 countries to trade on with competitive commission rates on stocks and ETFs starting from $3. The trading products offered include stocks, options, ETFs, bonds and mutual funds. Currently, they do not support futures, commodities, or forex (for purposes besides currency exchange).
- US Stocks & ETFs – from $3 ($0.01 per share, $3 minimum)
- Option Contracts – $3 for 1st contract + $0.75 per additional
- Mutual Funds – $12.55
- Bonds – From 1% * Face Value + $3 per bond
- Broker Assisted Trades – No extra fees
- Margin Rate – 5.4% or less depending on your account balance
Zacks Trade Accounts & Fees
There is the standard brokerage account type offered for trading that gives flexible access to all of the platforms and trading products offered.
There is a minimum amount of $2,500 for opening a cash account. For margin accounts, the required minimum to maintain is $2,000. There are no account inactivity or maintenance fees. They also do not have any IRA Custodial fees.
Margin rates start from around 5.4% (up to $100,000) or potentially lower depending on your account balance. Any balance greater than $3million has a margin rate of 4.2%.
If you want to transfer an account that is at least $5,000 over to Zacks Trade, they will cover the transfer fee for you, up to $150. You just need to fill in the account transfer reimbursement for and provide proof of the charge.
As broker fees can vary and change, there may be additional fees that are not listed in this Zacks Trade review. It is imperative to ensure that you check and understand all of the latest information before you open a Zacks Trade broker account for online trading.
Zacks Trade Support
The brokerage has knowledgeable customer support representatives available via online chat, telephone and email. They are available Monday – Friday from 9:00 AM – 6:00 PM EST excluding during the market holidays. Zacks Trade representatives are only able to discuss account specific information via telephone after you have successfully completed a security verification process.
There is also a frequently asked question (FAQ) section that covers a range of general topics, including how to open an account and use the trading platforms.
Zacks Trade Deposit & Withdrawal
Zacks Trade have a limited choice of methods for depositing and withdrawing funds from your trading account. This includes bank wire, ACH and check. It would be more convenient for some investors if they offered online payment systems such as Neteller, PayPal and Skrill. Please note that some methods may only be available to specific countries. There may be some fees charged when using certain payment methods.
Withdrawal requests are processed within the same day or next if outside working hours. The withdrawal time can vary depending on the payment provider and method. Bank transfers may take a few business days to clear whilst some methods can be instant. Clients get 1 free withdrawal per month with any subsequent withdrawal in the same month being $1 for an ACH, $4 for a check and $10 for a wire transfer.
You may need to verify your account to remove limits on particular methods in some countries. Zacks Trade strictly does not accept third-party payments. All funds deposited into your trading account must be under the same name as your Zacks Trade account.
Zacks Trade Account Opening
It only takes a few minutes to apply for a Zacks Trade brokerage account. You just need to provide your information using the online form to commence the application process. You can choose the account type and specification that is most suitable depending on your individual requirements.
After you have submitted your application it will be reviewed by customer support who will then contact you for the next steps. The process can take a few days to complete and you will need to verify your account with proof of identification (passport, drivers license, etc) and proof of address (utility bill, bank statement, etc).
Zacks Trade Summary
Zacks Trade is a US broker offering a wide range of trading products with competitive fees and easy to use trading platforms that are accessible across multiple devices. They provide clients with an abundance of premium research tools although educational materials are distinctly lacking and funding options are limited. Furthermore, they do not supply the popular MetaTrader platform and currently do not support futures, commodities, or forex trading.
Trading complex instruments can come with a high risk. You should consider whether you understand how investments and trading work and whether you can afford to take the high risk of losing all of your money.