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Marrying the extensive research of Zacks Investment Research and the low margin rates of Interactive Brokers, Zacks Trade is an incredibly attractive broker for the do-it-yourself trader. This broker also offers an excellent user experience with free human support and customizable platforms for desktop and mobile. In our Zacks Trade review, we’ll break down its research offerings, trading tools, fee structure, and more to help you decide if it's the best broker for you.
Zacks Trade
Zacks Trade is a great option for investors who value research, tools, and margin trading. But the high account minimum and stock and ETF commissions aren't competitive.
As low as $0.01 for stocks and ETFs ($1 min.)
$2,500
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
This stock broker is a good fit for: Investors seeking a wealth of information and professional research to enhance their trading strategies, and investors who want to get the most out of margin trading with some of the lowest rates we've seen.
Zacks Trade offers an extensive suite of market data, research, and tools to its users. For no cost, Zacks Trade customers receive access to over 20 publications, including reports from Morningstar, Zacks Investment Research, Thomson Reuters, and The Motley Fool. If that isn't enough, Zacks Trade allows customers to easily subscribe to over 80 additional reports through the platform.
Zacks Trade is related to Interactive Brokers, a pioneer in low-cost borrowing. As a result, Zacks Trade offers some of the lowest margin rates we've come across. While many other brokers charge upward of 10% interest on the first borrowed dollar, Zacks Trade charges less than half of that, and it typically beats the rates of many brokerages.
Zacks Trade helps investors trade over the phone by connecting them to a human broker at no additional cost. Many brokers do not allow customers access to human support, and very few offer such service without a fee. Zacks Trade off complimentary access.
New customers who open an account at Zacks Trade first have to meet the broker's high minimum requirements -- its $2,500 minimum is well above the industry average. Many brokers do not require an account minimum, which may dissuade beginners from Zacks Trade.
Many brokers have embraced the zero-commissions trading model for stock and ETF trades, but Zacks Trade still charges modest commissions. The broker's fees (detailed below) may seem small, but can add up for active traders. Additionally, Zacks Trade's fee on options trades is higher than the industry average. High-volume options traders may find its fees to be prohibitively expensive compared to Robinhood's $0 commission on contracts.
Zacks Trade is one of the few top brokers to charge commission fees on trades of stocks and ETFs. Many other brokers employ a zero-commissions approach. When an investor trades a stock or ETF with a share price above $1, the broker charges $0.01 per share. If an investor trades a stock or ETF with a share price below $1, the broker charges 1% of the entire transaction value. It is important to note that each of these transactions would be subject to a $1 minimum commission fee. Zacks Trade also charges a commission fee on options -- a $1 fee on the first contract, plus $0.75 for each additional contract.
Transaction | Commission |
---|---|
Stocks & ETFs (Price >$1/share) | $0.01/share ($1 minimum) |
Stocks & ETFs (Price <$1/share) | 1% of trade value ($1 minimum) |
Options | $0.75/contract ($1 for first contract) |
Zacks Trade charges a fee of $27.50 on all mutual fund transactions. The broker offers zero no-load, no-commission mutual funds -- rare for a large broker.
Like many brokers, Zacks Trade charges low fees for account holders. With a $0 account management fee, Zacks Trade is at the industry average. However, with a $0 fee for account transfers, it beats the industry average. Zacks Trade does not charge for the first withdrawal from an account in a month, but does charge for additional withdrawals at $1 for ACH transfers, $4 for a check, and $10 for wire transfers. By not giving customers unlimited no-fee ACH transfers, Zacks Trade is atypical in the brokerage industry.
Fees | Cost |
---|---|
Account Management Fee | $0 |
Account Transfer | $0 |
Withdrawals | $0 first in a month (subsequent withdrawals in the same month cost $1 for an ACH, $4 for a check and $10 for a wire) |
Zacks Trade offers a uniquely customizable trading platform for desktop and mobile users. Customers automatically have access to the Client Portal, which clearly displays account balances and information, and allows placing trades.
Zacks Trade Pro is a platform for active traders that puts functionality in the front seat. This customizable interface houses a suite of tools including the Options Strategy Lab, SpreadTrader, and Volatility Lab. Active and high-volume traders should take note of the powerful tools offered by the Zacks Trade platform.
For on-the-go investors, Zacks Trade offers the Handy Trader on mobile devices and tablets. With portfolio management and trading, the Handy Trader provides many of the same functionalities as the Client Portal.
Zacks Trade offers some of the lowest margin rates we've seen. Margin rates use a tier-based approach, in which higher account balances mean marginally lower rates.
Balance | Margin rate |
---|---|
Up to $100,000 | 3.56% |
$100,000-$1 million | 3.06% |
$1 million-$3 million | 2.75% |
Greater than $3 million | 2.75% |
Zacks Trade prides itself in offering research to traders, and rightfully so. With a Zacks Trade account comes an extensive list of free research and news services, including the powerhouse Zacks Investment Research. Investors may also access over 80 additional services with a free trial. For customers who seek even more market information, Zacks Trade allows the a la cart purchase of dozens of newswires, subscriptions, and data bundles. Additionally, international traders can purchase market data from across the globe for a monthly fee.
Zacks Trade offers a unique brokerage experience to seasoned investors. If any of the following apply to you, Zacks Trade should be on your shortlist.
At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
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Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.