TradeZero and Dune Acquisition Corp. Merger Announcement Learn More

FAQ

How are overnight borrow rates calculated?
The cost to borrow located shares overnight for the 1st night will be 4x times the average charged locate rate.
For example, if 100 shares were located for 0.01 per share and another 100 shares are located for 0.02 per share, the cost to borrow 200 located shares overnight will be:


The cost to carry an overnight borrow for every night after the 1st night will be 1x the original average charged locate.
For example:


*if an account receives a Reg Sho Notice, the shares receiving the notice, no matter whether a 4x or 1x fee was paid, will need to be liquidated as per instructions.

These changes are a/o 7/14/2021
When is the last day to open an Options trade?
Options positions may be opened up to 1:59 pm est on the day of expiration.
What firms are used to locate stock?
Vision, Convergex, and others.
How does TradeZero profit from free limit orders?
The TradeZero smart router will route the non-matched orders to market centers that provide payment for order flow or rebates. These market centers include ARCA, EDGX, BATS, NSDQ and others.
How does TradeZero make money if it offers $0 commission?
Rebates are paid for order flow by various market centers including EDGX, ARCA, and NASDAQ.
If TradeZero is directing my trade, will I still get the best possible execution price?
As TradeZero offers US market access and clears through a US clearing firm, TradeZero is subject to Reg NMS. This basically states that firms are obligated to provide investors with executions at the best possible price. To read more about Reg NMS on Wikipedia, click here.
How can I always pay $0 in commission with my trades?
It doesn’t matter if you are long or short, as long as you use a limit order to execute away from the market, and the stock is trading at $1 or higher in share price.
Who is the clearing firm?
Vision Financial Markets. Vision is a US based clearing firm registered with FINRA and the Securities and Exchange Commission. http://www.vfmarkets.com/
Does TradeZero charge any routing fees?
No, all fees are either $.005 per share or free. There are no additional routing fees.
What are the client support options?
Phone support is available from 8am to 6pm eastern time. Web chat is available 24 x 7.
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?
There are NO Pattern Day Trading restrictions. Accounts with $500 or more are approved for margin and can daytrade without restriction.
Is TradeZero Bahamas insured by SIPC?
TradeZero holds Professional Indemnity and Excess SIPC Insurance through Lloyds of London Syndicates Arch, AXA XL and Kiln . The Excess SIPC coverage is limited to $250K per account.

http://www.lloyds.com


Are accounts accepted from the US?
TradeZero Bahamas does not open accounts for Bahamian citizens, US Citizens or Green Card Holders of the United States. If you are a permanent resident of the United States, we will not accept your account.

US Citizens can open with TradeZero America, Inc. the US based, FINRA member broker/dealer located in NYC.
How is the short list?
The short list is extensive and derived from multiple pools of easy to borrow lists, including Vision and Convergex. Hard to borrow shares can also be located for a fee.
How much is needed to open a new account?
Accounts can be funded with as little as $500 for 1 to 1 leverage, $500 to $2499 for 4 to 1 leverage and $2500+ for 6 to 1 leverage.To read more about account leverage, please click here
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. 
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!
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.
How can I become an associate of Tradezero?
At Tradezero our door is always open to new relationships. Please contact us if you would like to be part of the TradeZero team. We offer all our associates unlimited earnings potential. Learn more by clicking here. Get started today and become one of our trusted partners.
Can I hold more than 2 to 1 equity after 4pm?
All levered accounts cannot hold more than 2 to 1 leverage after 3:45 PM EST. TradeZero reserves the right, at its discretion, to sell or cover any account that has exceeded this threshold, by or after the 4PM EST close. All levered accounts are limited to only 2 to 1 in the after-hours session.
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. Please note that daily loss limits are only active from 8:30 a.m. est to 5 pm est. Sellouts will not occur during the premarket hours of 4 a.m. est to 8:29 a.m. est and 5:01 pm est to 8 pm est in the after hours session. This daily loss limit does not 100% guarantee against any loss. Clients should still be monitoring their trading accounts actively. Orders such as Stop Loss order should also be used when trading.
How can I fund my account?
Funding of accounts are made by (direct) bank to bank wire transfers. We currently do not allow for alternative options such as paypal, debit or credit card funding. Also,the name appearing in the bank account from where the funds are transferred must be the same as what is on file with us. Please note Third Party Funding is not accepted.
Does TradeZero pay dividends?
No, we do not pay dividends. Accounts that hold securities short on ex-dividend date will be charged the dividend.
When does my buying power update for the new trading day?
7AM eastern standard time.
Do you offer Pre and Post market trading?
Yes, Pre-market trading begins at 4 am eastern, and Post-market trading ends at 8 pm eastern time.
Can I freeze or put my account on hold so I do not pay software fees?
Yes, your account can be placed on hold or switched to our ZeroFREE platform so you do not incur any software fees when taking time away from trading.  Please make sure you switch or cancel your software before 4PM on the last business day of the month.  All accounts with less than $99 equity will automatically have ID frozen on last day of the month.
Do I need funds in my account to select my trading software?
Accounts must have a minimum balance of $200.
Is TradeZero insured?

Tradezero holds Professional Indemnity and Excess SIPC Insurance through Lloyds of London Syndicates Arch, AXA XL and Kiln . The Excess SIPC coverage is limited to $250K per account.

http://www.lloyds.com



Are there any restrictions or rules for trading?
  • Stocks below $1 cannot be shorted
  • Cash accounts and accounts with less than $500 cannot short sell
  • Stocks below $3 are trading in cash only
  • Stocks less than $0.10 cannot be traded
  • Margin accounts must be at 2 to 1 after 3:45 PM EST
  • Position Concentration is maximum 65% of margin buying power for accounts with 6 to 1 leverage
  • Margin buying power after 4PM is 2 to 1
  • Accounts will be fully sold out if they go below $99 in total equity remaining.   Accounts may be sold up to 50% equity if they drop below 8% equity at any time. Accounts will be fully sold out to if they drop below 8% and $300 in total equity remaining.

All of the above is at the discretion of management and can and will be adjusted based on real time market and account conditions.

What are the minimum specifications for running ZeroPro?
  • Win7 SP1+ (no Mac)
  • .Net Framework 4.6.2+
Can you use the platform on Mac OSX?
Yes, ZeroWeb and ZeroFREE can be used on a Mac via Google Chrome and or Mozilla FireFox, please do not use it with Safari. ZeroPro version would require Windows emulation, Parallel PC to run on Mac.

How does TradeZero handle options contracts on the expiration date?

To minimize risk we may close option positions in the last 30 minutes of trading on the day of expiration.

How are corporate actions handled in my TradeZero account?

Corporate actions on a security resulting in stock splits, mergers or name changes will be removed from the trading platform after 4:00 pm est, the day before the corporate action is to occur.  The securities will be replaced in your trading platform after confirmation of the correct shares, symbol or action to be taken with the clearing house.  

It is the client’s responsibility to be aware of pending corporate actions and how such events will affect their outstanding portfolio. TradeZero charges $35.00 for processing corporate actions. 

Can I limit the amount of shares per order?

Yes, share size limits may be set and must be requested through the live chat or by e-mail to [email protected]
What does Marked to Market mean?
Marked to Market is an industry standard accounting method of keeping track of the p/l on your overnight or long term position(s). The closing price at 4 pm est is used to determine the unrealized profit or loss on your position. This amount is added or subtracted from your equity daily. This method is also used if you enter a position after 4 pm est. You can read about this method further using the following link - https://www.investopedia.com/terms/m/marktomarket.asp 
Does Tradezero offer Options trading?
Yes, Tradezero presently offers single legged trading at this time. Multi legged trading will be available in the near future. Approvals are only provided for level 1 and level 2 trading. 
What are the reasons my Options position(s) may be sold out?
Positions may be sold out for the following reasons:
  • Contracts are not fully held in cash (less than 100% equity)
  • Contracts held where the equity level is below $99
  • Contracts that are in the money at 3:45 pm est on the expiration date

Are there any fees associated with Options trading?
Yes, the fees related to Options trading are as follows:
  • Per contract - $0.59
  • Options Clearing Corp (OCC) fee - $0.055 per contract
  • Options Regulatory (ORF) fee - $0.0388 per contract
  • Options Exercise or Assignment - $35.00
What is the requirement for choosing my own route for my trades (ARCA. EDGX etc)
An approved account with at least $5,000 in equity and presently on a live platform is needed to request a manual routing account. Once these requirements have been met, an e-mail may be sent to [email protected] for processing. Free Trading does not apply with direct routing.
On which date are the monthly statements available for review and/or download?
Statements are issued on the 5th of each month.
How can I get my first month FREE?
In order to take advantage of the FREE month offer, please note the following:
  • You must choose ZeroPro as your first software selection (any other selection may be subject to a software fee) 
  • The month that you subscribe is considered your free month, and will not carry over to the following month if you subscribe before the 25th. 
  • All subscriptions after the 25th of the month will get the rest of the current month for free as well as the following month. All switches to another platform will void your free month - this includes switches to real-time data demos