Zacks Trade Review 2020

Zacks Trade has both low trading fees and low non-trading fees. The stock, ETF, and bond fees are especially low and the stock margin rates are spectacular. However, mutual fund fees are quite high.

How we ranked fees

We ranked Zacks Trade's fee levels as low, average or high based on how they compare to those of all reviewed brokers.

To get things rolling, let's go over some lingo related to broker fees. What you need to keep an eye on are trading fees, and non-trading fees.

• Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.
• Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

In the sections below, you will find the most relevant fees of Zacks Trade for each asset class. For example, in the case of stock investing the most important fees are commissions.

We also compared Zacks Trade's fees with those of two similar brokers we selected, Tradestation and Fidelity. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of Zacks Trade alternatives.

To have a clear overview of Zacks Trade, let's start with the trading fees.

Zacks Trade trading fees

Zacks Trade has low trading fees. We also liked that the fee structure is transparent and easy to understand.

Stock fees and ETF fees

Zacks Trade has generally low stock and ETF commission. It is comparable with Fidelity.

The commissions on the different markets are as the following.

 If you prefer stock trading on margin or short sale, you should check Zacks Trade margin/financing rates.

A margin rate, is charged when you trade on margin. This basically means that you borrow money or stocks from your broker to trade. For this borrowed money/stock you have to pay an interest. This is the financing rate. It can be a significant proportion of your trading costs.

Zacks Trade financing rates are low. The financing rates vary based on the base currency of your margin account.

There is also a cost if you want to short sell. The rates range between 0.25% and 200% depending on the asset you want to trade with. You can find the rates in the watchlist on the platform. 

Fund fees

Zacks Trade fund fees are high. Compared to Fidelity, however, the fees are a bit lower.

Bond fees

Zacks Trade has generally low bond fees.

Options fees

Zacks Trade options fees are low.  However, Zacks Trade customers can only trade with US options.

Non-trading fees

Zacks Trade has low non-trading fees.

Zacks Trade does not charge any account, inactivity, or deposit fee. The first withdrawal each month is also free of charge, while subsequent withdrawals carry a fee. 

Zacks Trade has a fully digital account opening and accepts clients from all over the world. You can start using your account by depositing less than $2,500, however, Zacks Trade recommends to deposit this amount. On the negative side, we found the process slow and hard to navigate.

Can you open an account?

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Zacks Trade is available globally in many countries. There are only a few exceptions: customers from Australia, Canada, Japan or Hong Kong can't open an account with Zacks Trade.

What is the minimum deposit at Zacks Trade?

There is no minimum deposit at Zacks Trade. However, Zacks Trade recommends depositing at least $2,500.

Also, if you have an account balance of less than $2,000, you're not eligible to subscribe to live market data or trade on margin.

Account types

Zacks Trade offers many account types, which fall into two big groups:

• accounts for individual traders and investors
• accounts for institutions

As an individual trader or investor, you can open many account types. A few of them, like an IRA account, are available only for US clients.

How to open your account

Zacks Trade's account opening is fully digital but overly complicated. Due to the volatile market environment in April-May, account verification took more than 1 week.

At first, you have to go through an online registration, which takes roughly an hour. We experienced a few bugs and errors throughout the process, for example, the system froze when we tried to upload our documents.

The 9 steps of Zacks Trade account opening:

1. Add your name, email and phone number
2. Choose an account type
3. Confirm your email address
4. Input more personal details like location, address, and phone number
5. Confirm employment status and income details
6. Choose security questions
7. Determine your trading goals and experiences
8. Upload proof of identification and residency documents (these include copies of a passport, drivers license, residency permit, utility bills, or national IDs)
9. Agree to disclosures and permissions documents

Zacks Trade has one free withdrawal per month for nearly all currencies offered. However, credit/debit cards and electronic wallets are not authorized to deposit or withdraw funds.

Account base currencies

Zacks Trade provides a lot of account base currencies, which is great if you trade with assets in various currencies.

Compared to its competitors, you can see that Fidelity has a similar selection, while TradeStation offers less base currencies.

Why does this matter? For two reasons. If you fund your trading account in the same currency as your bank account or you trade assets in the same currency as your trading account base currency, you don't have to pay a conversion fee.

A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. Revolut or Transferwise both offer bank accounts in several currencies with great currency exchange rates as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

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Deposit fees and options

Zacks Trade charges no deposit fees. However, deposit options are limited for most customers, as neither credit/debit cards nor electronic wallets can be used.

One popular deposit option can be the wire transfer, which is available both for international and US customers. Wire transfers usually take one day in the US, while up to 5 days for international transfers.

If you reside in the US, however, you have multiple extra options, such as: 

• ACH (Automated Clearing House)
• Check
• Online bill payment
• Direct Rollover (IRA accounts only)
• Trustee-to-Trustee (IRA accounts only)

You can also transfer accounts from your previous broker using the ACAT (Automated Client Account Transfer).

Zacks Trade withdrawal fees and options

The first withdrawal each month is free of charge. The subsequent withdrawals' fee depends on the currency and the method you use for withdrawal.

Non-US customers can use only wire transfers, while US clients can receive checks or ACHs, as well as wires.

ACH and check withdrawal cost $4 and $1 respectively, while wire withdrawal cost as per the table below.

How long does it take to withdraw money from Zacks Trade? We tested the bank transfer withdrawal and it took 2 business days. You can only withdraw money to accounts in your name.

How do you withdraw money from Zacks Trade?

• First, log into the Client Portal then click on 'Transfer & Pay' and 'Transfer funds.'
• Select the account you want to use for the transaction.
• At the top of the page, click on the 'Withdraw Funds' tab. 
• Select the currency of your withdrawal, then the withdrawal method.
• Fill out the required information.
• Submit your withdrawal request. 
• You can see the status of your request in 'View Transaction History.' 

Compare to other brokers

Zacks Trade web platform is simple and easy to use even for beginners. On the negative side, it is not customizable.

Zacks Trade offers two options for web-trading- the Client Portal and the Zacks Trader. In this review, we tested the Client Portal since it is more user-friendly and easier to use than Zacks Trader.  

The Client Portal is available in multiple languages: Dutch, English, French, German, Italian, Japanese, Russian, Simplified Chinese, Slovakian, Spanish, Traditional Chinese.

Look and feel

The Client Portal platform is particularly user-friendly and intuitive. You will easily find every feature even if you have just started trading. On the negative side, it is not customizable at all.

Login and security

Zacks Trade provides a safer two-step login. You can use more options for two-step authentication:

1. You can use two-step authentication through SMS messaging.
2. You can activate two-step authentication feature through Zacks Trade's mobile trading app, the Handy Trader.

Search functions

The search function is easy-to-use and works better than on the Zacks Trade Pro platform.

All you have to do is type in the preferred asset's name, and you can see a list of exchanges and products. The search bar can be found in the upper right corner. 

Placing orders

Client Portal offers many order types. If you prefer more sophisticated orders, you should use the desktop Zacks Trade Pro. Available order types are:

• Limit
•  Market
•  Stop
•  Stop Limit
•  Limit-on-Close
•  Market-on-Close
•  Trailing Stop
•  Trailing Stop Limit

To get a better understanding of these terms, read this overview of order types.

There are also order time limits you can use:

• Day
• Good-til-Canceled (GTC)
• Immediate or Cancel
• Market-on-Open
• Limit-on-Open

Alerts and notifications

You can set alerts and notifications, but only through the built-in chat. We think that it would be better if users could set alarms when they set up their orders.

Portfolio and fee reports

Zacks Trade portfolio and fee reports are transparent. The portfolio tab gives a clear overview of your performance, including historical profit/loss balance and the fees you paid.

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Zacks Trade mobile trading platform, called Handy Trader, has a lot of functions and a useful chatbot, but its user interface could be better.

You can use Zacks Trade's mobile trading platform, called Handy Trader, both on iOS and Android devices. In this review, we tested the iOS version of the mobile app.

The number of available languages is almost the same as those available on the Client Portal, only Slovakian is not supported.

Look and feel

The mobile trading app is handier compared to the web platform. On the other hand, its overall look and user-friendliness lag behind the competitors' mobile platforms. 

Login and security

You can use a two-step login, which is safer than a simple login. Furthermore, if your device has a fingerprint sensor, you can also use biometric authentication for convenience.

Search functions

The search function works well, just like at the web trading platform. You can access the search button easily from any menu.

When you type in the asset you are looking for, the app lists all asset types. For example, if you search for Apple, you can choose between Apple stock, futures, options, warrants, as well as CFDs.

After you have chosen the product are you interested in, you will be greeted by an information and trading window, which shows:

• Asset market information 
• An interactive chart with technical indicators
• Related news
• Some fundamental data
• Summary of the latest analyst report
• The buy and sell buttons that transfer you to the order panel.

Placing orders

Handy Trader has the same order types as Client Portal, Zacks Trade web trading platform.

Alerts

You can set alerts only via the chatbot, which is not the most intuitive method.

Special feature - Chatbot

The most innovative and exciting function within the app is the chatbot, called IBot. You can use the chatbot to execute or close an order, or to get basic info quickly.

The chatbot understands basic commands, such as “apple price” or “buy 1 apple share.” On top of this, you can also search for company fundamentals, like dividend yields or PE ratios. Some of the functions, like displaying a chart, are also available via the chatbot.

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Zacks Trade Pro is a desktop platform with many customizable options and advanced execution functions. However, the platform is not user-friendly and is more suited for advanced traders.

Zacks Trade's desktop trading platform, the Zacks Trade Pro is so advanced that even a separate review would not be able to cover all of its features. Nevertheless, we tried to provide you with a comprehensive summary.

In the desktop trading platform, you have literally every feature you could desire. Whether you were dreaming of replicating your favorite ETF or trading with chatbots - with a platform like this, you can do them both.

The desktop trading platform is available in multiple languages, but fewer than the web trading platform. For example, Dutch and Slovakian are missing.

Look and feel

This platform is extremely complex. It is ideal for you if you consider yourself a professional user. If you are a beginner or someone who seeks long-term investments, you may have difficulty navigating all of Zacks Trade Pro's features.

Despite its complexity, the platform is highly customizable, for example, you can set up and save your own templates and create your own watchlists.

Login and security

Similarly to the web and mobile trading platforms, Zacks Trade Pro has provides two-step authentication. It makes the platform safer to use.

Search functions

The search function is the platform's weakest feature. Search results are not structured and it is quite difficult to filter out the product you are looking for.

As an example, we tried searching for an RWE stock, a German energy utility. When we typed in "rwe," all the structured and derivative products were listed in the results as well, which made it harder to find the real stock.

Using the chatbot would be a great substitute solution. When you search for RWE directly through this feature, it will direct you to the stock listed on the main stock exchange.

Placing orders

Zacks Trade Pro provides a lot of order types:

The order term options also include some special types beyond the usual ones:

• Good 'till Canceled (GTC)
• Good-Til-Date (GTD)
• Market-on-open (MOO)
• Limit-on-open (LOO)
• Immediate-or-cancel (IOC)
• Fill-or-Kill (FOK)
• Day 'Til canceled (DTC)

If you are not familiar with the basic order types, read this overview.

Alerts and notifications

Alerts and notifications can be set in the 'Configuration panel.' You can select email, SMS, or mobile pop-up notifications.

You can also set additional alerts, for example for price changes, daily profits or losses, executed trades, etc.

Portfolio and fee reports

Reports on Zacks Trade Pro are really transparent, just like on the web platform.

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Zacks Trade offers stocks, ETFs, and bonds from international markets, which is fairly unique for a US-based broker. There are also US mutual funds and options provided. On the other hand, futures or forex asset classes are missing.

Zacks Trade covers the same asset classes as most US competitors. Within the available asset classes, Zacks Trade has outstanding stock, ETF, and options, while average mutual fund and bond selections.

Stocks and ETFs

Zacks Trade gives access to a significant number of global stock exchanges. This includes major stock markets like the NASDAQ, the New York Stock Exchange (NYSE) or the London Stock Exchange (LSE), but also minor ones such as the Mexican Stock Exchange. Other than regular stocks, penny stocks are also available. 

Besides stocks, you can also trade with a lot of ETFs as well.  It is some of the most extensive selection among competitors.

Here you can find which countries' exchanges Zacks Trade gives access to:

Funds

Zacks Trade offers a large number of mutual funds from the US but is limited compared to Fidelity because there are no international providers. 

Bonds

Zacks Trade's bond selection covers US and European government and corporate bonds. Compared with others, this offer is average. 

Options

Zacks Trade provides options from US options markets This makes it similar to its competitors, Tradestation and Fidelity, who have the same product selection.

Zacks Trade offers nearly limitless research possibilities, but the user interface is complicated and we believe, poorly designed.

The quality of the research available is good and you always have the freedom to choose between third-party providers.

Trading ideas

Zacks Trade offers access to recommendations provided by third parties. These research tools are mostly free, but there are some you have to pay for.

Several famous news sources, like Thomson Reuters, Morningstar, The Motley Fool, Dow Jones, and their fellow Zacks affiliate company, Zacks Investment Research are available for free. 

You can access all these third party sources in ZacksTrade Pro, the desktop platform, under the drop-down 'Analytical Tools', and by selecting 'Analyst Research'.

Fundamental data

Zacks Trade provides a broad selection of fundamental data on all three of its platforms. These include income statements for the past six years, a dividend calendar and peer group companies, for example.

Charting

Zacks Trade has nearly unlimited charting abilities. You can use 120 technical indicators. However, the charting tool itself takes considerable time and effort to learn.  The features are not user-friendly, so we recommend using the educational resources to understand the capabilities. 

Other special technical tools include:

• Stock/ETF benchmarker: helps you to benchmark your stock or portfolio versus a selected benchmark
• Mutual fund and ETF replicator
• Volatility lab
• Option probability lab: a group of option analysis functions
• VaR, Sharpe: portfolio performance analyzers

News feed

You have access to:

• News
• Daily summaries
• Multiple economic calendars

There is also integrated third-party news and recommendations to its desktop platform.

Upon entering the platform, you have the option to read daily summaries of the markets through the Daily Lineup. This feature helps you to be informed about the latest news and analyst recommendations.

Earnings and economic calendars are also helpful quick shortcuts to start off your day. The Economic Calendar informs you about upcoming events that will have an economic impact. The feature can be accessed separately at any time from the menu, though the design could be better. If you look for an all-around economic calendar that includes upcoming national holidays for the year 2020.

Compare research pros and cons

Zacks Trade has a quick and useful customer service, however, we are missing the 24 hour support that would help out international customers.

You can contact Zacks Trade via:

• Live Chat
• Telephone
• Email

Zacks Trade has a very fast live chat. The relevancy of the answers was satisfactory, with links to information that helped us verify the information. However, you can only contact Zacks Trade on the chatbox live during working hours Eastern Time in the United States. Outside of these hours, Zacks Trade is available for email support. 

Our emails were followed up with clear responses within 3 days. But, we missed the 24/7 availability.

Phone support is limited to US local and toll-free numbers. Zacks Trade clients outside of the US should be wary that phone support will be charged at international rates because the contact numbers are not toll-free from abroad. 

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Zacks Trade offers a demo account and videos on how to use their system. However, we missed some educational tools, such as general educational videos or webinars.

At Zacks Trade you can learn in the following ways:

• Demo account
• Platform tutorial videos

To utilize the free demo account, navigate to Platforms and then Zacks Trading Pro. At the bottom of the page, there is a registration to 'Start Paper Trading'.

However, we felt they are missing basic information on trading and investing, which would help out beginners. This reiterates our belief that Zacks Trade is geared towards experienced traders.

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Zacks Trade is considered safe because it has a long track record, there is a high level of investor protection, and it reports annual financial statements. However, Zacks Trade is not listed on a stock exchange and it does not hold a banking license.

Is Zacks Trade regulated?

Zacks Trade is a division of LMBZ Securities, which is regulated by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).

LMBZ Securities' clearing and execution services are provided through Interactive Brokers, a global stockbroker regulated by many top-tier financial authorities globally.

Is Zacks Trade safe?

To be certain, we highly advise that you check two facts:

• how you are protected if something goes wrong
• what the background of the broker is

How you are protected

All accounts at Zacks Trade are served by a US-regulated legal entity. This matters because you get the US investor protection amount, called SIPC.

SIPC investor protection protects against the loss of cash and securities in case the broker goes bust. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. A non-U.S. citizen with Zacks Trade is treated by the SIPC the same as a US resident in case something goes south. The provided amount is a substantially higher amount than most European investor protection schemes. 

On the other hand, Zacks Trade does not provide negative balance protection. If the balance on your account goes into negative, you will not be protected.

Background

Zacks Trade is a division of LMBZ Securities, which was established in 1978. The longer track record a broker has, the more proof we have that it has successfully survived previous financial crises.

Being in operation for a long time, disclosing transparently financial statements, and regulated by top-tier authorities are great signs for Zacks Trade's safety.

Find your safe broker

Zacks Trade is a great US discount broker. Zacks Trade is a division of LMBZ Securities, which is regulated by the SEC and FINRA.

On the plus side, Zacks Trade has low fees, outstanding stock and ETF selections, and great customer service.

There are some drawbacks though, the desktop trading platform and research tools are complex. The account opening is complicated and slow. Lastly, we missed some useful educational tools.

As Zacks Trade provides a demo account and doesn't require any minimum deposit, feel free to try it.

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