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Zacks Trade Review: Robust Research and Trading Tools in One

Review Updated
Charlie Pastor, CFP®
By: Charlie Pastor, CFP®

Our Brokerages Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

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.

Ratings Methodology

Our Rating:

Rating image, 3.5 out of 5 stars.
3.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

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.

Fees:

As low as $0.01 for stocks and ETFs ($1 min.)

Account Minimum:

$2,500

Alternatives to Consider

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.

Account Fees Account Minimum
Logo for Robinhood
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
$0 for stocks, ETFs, and options $0
Logo for Fidelity
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
$0 commission for online U.S. stock and ETF trades; trade fractional shares for as little as $1 $0
Logo for E*TRADE
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Commission-free; other fees apply $0

Full Zacks Trade review

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.

Pros

  • Expansive research offerings
  • Low margin rates
  • Access to human brokers

Cons

  • High minimums
  • High commissions and fees

Top perks

Research for traders

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.

Low margin rates

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.

Access to human brokers

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.

What could be improved

High minimums

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.

High commissions and fees

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.

Commissions

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)

Buying mutual fund and ETFs

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.

Fees

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)

Trading platform

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.

Margin rates

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%
Source: Zacks Trade

Research offerings

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.

This brokerage is right for you if:

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.

  • Top quality research is your top priority. Zacks Trade outcompetes most brokers with the wide variety and quantity of research materials it offers to investors. Top names on their offer list include Dow Jones, Morningstar, Seeking Alpha, The Motley Fool, and Thomson Reuters. Many brokers offer their customers one of the leaders in equity research, but Zacks Trade offers most of them for free.
  • You trade on margin. One of Zacks Trade's best aspects is the low cost of borrowing. With many other top brokers, margin traders can expect to pay a rate two or three times higher than that offered by Zacks Trade. If you frequently trade on margin, that difference can add up quickly.
  • You need the tools of the trade. Whether they experiment in one of the "Labs" or employ one of the many algorithms built into the software, investors of all stripes are sure to enjoy the powerful tools offered by the Zacks Trade Pro platform.

Our brokerage rating methodology

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

Our Brokerages Expert