FAQ | TradeZero Commision Free Trading

FAQ

Who is TradeZero?
TradeZero America, Inc. is a broker dealer located in New York. We are members FINRA and SIPC. Check Broker Check registration here:, please click here.
TradeZero America Inc.'s mission is to provide stock and options trading services through its full suite of trading platforms.
When does my buying power update for the new trading day?
3AM eastern standard time.
How does TradeZero profit from Zero Commission orders?
The TradeZero smart router routes the orders to market centers that provide payment for order flow or rebates. These market centers include ARCA, EDGX, BATS, NSDQ and others.
What are the overnight borrow rates on Hard to Borrow Securities?

Overnight borrow rates for hard to borrow securities can be very expensive especially when held for many days.  The hard to borrow fees may be substantial and vary daily based on demand for the security. Beginning on February 1, 2019, updated pricing for holding hard to borrow securities overnight is as follows:


  • Seven times (7x) the accepted borrow rate per share for the first night.
  • One time (1x) the accepted borrow rate per share for each night thereafter.
  • Weekdays and holidays are counted. For example, any hard to borrow short position held for the first night on a Friday will incur a 7x charge for Friday night and, subsequently a 1x charge for Saturday and Sunday respectively.
  • There will be no additional charges billed on settlement.

TradeZero America may inform the trader if TradeZero America does not have the ability to carry a trader’s short position overnight or if the trader’s short position exceeds TradeZero America’s risk parameters. If the trader does not cover the position, TradeZero America may cover the short position by 4pm Eastern Time and a $20 desk fee will apply.

If TradeZero is directing my trade, will I still get the best possible execution price?
TradeZero is subject to Reg NMS. This states that firms are obligated to provide investors with executions at the best possible price. Read more about Reg NMS here: click here.
What firms are used to locate stock?
We use a custom blended list from several different clearing firms.
Who is the clearing firm?
Electronic Transaction Clearing, Inc. (ETC) is a US based clearing firm located in Los Angeles, California. ETC is a SIPC/FINRA member https://etc-clearing.com/
Are there any other fees associated with Zero Commission Trading?
Hard to Borrow Short Location At cost
Hard to Borrow Overnight Shorts 7x market rate cost for 1st night, additional days charged at 1x market rate
Hard to Borrow Overnight Short Positions Odd lot positions will be rounded up to the nearest hundred
Margin Debt Interest Fed Funds Rate plus 300bps (starting 06/01/2019)
TAF Fee $0.000119 per share, sell side only
SEC Fee 0.0000207 x dollar amount, sell side only
NSCC Fee 0.00003 per share, $0.18 maximum and $0.033 minimum
FOCUS Fee 0.0000007 per share
SIPC Fee 0.000015 per share
What are the client support options?
Live support via chat on our web site, telephone (1-877-4-TRADE-0) or email support@tradezero.us
Does the demo provide real time data?
The free demo provides streaming 15 minute delayed data. Demo executions DO NOT in any way reflect live trading executions. They should not be used as a metric for how live trading works or executes in any way.
Are there any day trading restrictions?

Yes. Pattern Day Trader(PDT) restrictions apply. A Pattern Day Trader is a FINRA designation for a margin account that executes four or more day trades in five business days, provided the number of day trades are more than 6% of an accounts total trading activity for that same five-day period. These accounts need to maintain a daily equity balance of $25k or more and receive 4:1 Day Trading Buying Power from the clearing house. When the Starting Day Equity Balance is below $25k, the Day Trading Buying Power is reduces to zero (0).

Margin accounts receive 2:1 margin and must adhere to the PDT restrictions when the Starting Day Equity Balance is below $25k.

Cash Account must have settled funds before a purchase can be made and before a security can be sold. These accounts are not allowed to short stock.

Is TradeZero a member of SIPC?
Yes, TradeZero America, Inc. is an SIPC Member. Please click here
Are accounts accepted from the US?
We are able to accept accounts in every state and territory in the US.
Can you use the platform in a mac?
ZeroWeb and ZeroFree can be used on a Mac via Google Chrome and or Mozilla FireFox. Please do not use it with Safari. ZeroPro platform may be used with Windows emulation, such as Parallels Desktop. However, TradeZero does not provide technical support for ZeroPro run on any emulation.
How is the short list?
The short list is extensive and derived from the use of an automated proprietary system that blends multiple pools of easy to borrow lists. Hard to borrow shares can also be located for a fee.
How much is needed to open a new account?
Initial funding of new accounts must be $2500 or more.
How are clients able to see what stocks are shortable?
The short list is imported daily into the trading platform. If the stock permissioned to be shorted the platform will show a green S next to the symbol box. The entire short list is also posted in the online portal.
What are the short locate fees?
The fees are quoted per share. The rate is determined by the difficulty to borrow the stock on that day.
I do not have experience trading, but I am curious and I want to learn, can you help?
TradeZero has education partner relationships that can help with trading education. TradeZero can provide you a real-time demo that will allow you to trade the stock market and not lose a single penny! These Live Paper Trading accounts are offered to active clients for $79 a month. TradeZero is not an education company.
How can I fund my account?
You can fund your account by sending a Bank Wire or Automated Clearing House (ACH) Transfer. We do not accept Third Party Wires. Your name and legal address from your bank must match the information you provided on your account paperwork.
How can I become an associate of TradeZero?
TradeZero has education partner relationships that can help with trading education. TradeZero can provide you a real-time demo that will allow you to trade the stock market and not lose a single penny! TradeZero is not an education company.
What is the Pattern Day Trader Rule?

TradeZero America, Inc., like all other registered Broker Dealers in the US, enforces the Pattern Day Trading (PDT) rule as defined by FINRA Rule 4210 (Margin Requirements).

The PDT rule generally states that a customer is limited to three (3) round trip trades in any consecutive five trading day period unless maintaining a daily equity balance of $25,000.

If a customer creates a fourth (4) roundtrip trade, the account is classified as a pattern day trading account for ninety days. During this time, the account is restricted from day trading unless the equity balance is $25,000 or more.

Click here to read FINRA Rule 4210 on Pattern Day Trading (PDT Rule).

Day Trade Counting
Examples
This is one day trade because account bought and sold 100 shares XYZ in the same day. Account starts with 0 shares XYZ.
Buy 100 XYZ today
Sell 100 XYZ today
This is one day trade because account shorted and covered 100 shares XYZ in the same day Account starts with 0 shares XYZ
Short 100 YXY today
Cover 100 XYZ today
This is one day trade. The trade that opened before today does not count. Account start day with 100 shares XYZ
Sell 100 XYZ today
Buy 100 XYZ today
Sell 100 XYZ today
This is one day trade. The Buy of 50 and Sell of XYZ occurred today. Account starts day with 100 XYZ
Buy 50 XYZ today
Sell 100 XYZ today
This is one day trade because there is only one change of direction in the account, going from long to flat on the same day. Account starts day with 0 shares of XYZ
Buy 100 XYZ today
Buy 100 XYZ today
Sell 50 XYZ today
Sell 50 XYZ today
Sell 100 XYZ today
This is two day trades because a change of direction happened when a Cover of 50 XYZ occurred. The counter started on the second trade on the next short of 100 XYZ. Account starts day with 0 shares of XYZ
Short 100 XYZ today
Short 50 XYZ today
Cover 50 XYZ today
Short 100 XYZ today
Cover 100 XYZ today
Cover 100 XYZ today
Can you set a daily loss limit on my account?
Yes, we have risk tools and can enable a daily loss limit to your trading account.
Will TradeZero ever cover your equity positions?

TradeZero America can force the sale or cover of equities positions in a customer’s account(s) without prior notice. If during the trading day, the equity in a customer’s account:

  • Falls between 15-20%, TradeZero America may, at its discretion, buy-in or liquidate the customer’s position in order to raise account equity up to 25% or more;
  • Falls to 15% or below, TradeZero America may, at its discretion, buy-in or liquidate the customer’s entire account.

After buy-in or liquidation, it is the customer’s responsibility to maintain or increase account equity to meet the requirements stated in the Electronic Transaction Clearing (“ETC”) Margin Form.

Likewise, If ETC cannot continue to borrow the securities in which a customer has a short position, TradeZero America may notify customers to cover their short positions during trading hours.

Furthermore, if the customer receives a margin call and fails to fund his/her account, TradeZero may liquidate any positions in the account to satisfy the maintenance margin call.

Do you offer Pre and Post market trading?
Yes, Pre-market trading begins at 7 am eastern, and Post-market trading ends at 8 pm eastern time.
What are the minimum specs for running ZeroPro?
  • Win7 SP1+ (no Mac)
  • .Net Framework 4.6.2+
What is the cost of shorting stocks under $2.50? Is it marginable?
It will be 100% of $2.50. ex: if you short a stock at $1 for 1000 shares, the marginable cost will be $2500
How can I check my account balance?
You can check your account balance by logging into the ETC Portal -> Click Reports -> Select “Balance” from the drop down menu
Is there an ACH fee?
ACH Deposits are free of charge and Withdrawals will incur a $5 fee
How long does it take for an ACH deposit/withdrawal?
ACH transfers may take up to 3 business days
When will I receive access to the platform?
You will receive access to the platform once the account is funded with a minimum of $2500
Do you offer a live paper trading account?
TradeZero offers Live Paper Trading accounts to active clients for $79 a month
How much money must I have in my account to maintain access to a trading Platform?
You must maintain an equity balance of $250 to maintain access to a trading platform.