If you’re searching for the best online stock trading account and haven’t heard of Zacks trade – please keep reading. Although they may not be as well-known as some of the other ones (E-trade, Ally Invest, etc), they have decades of investment knowledge packed into their interface.
What is Zacks Trade?
Zacks Trade is an online trading platform that is offered by one of the leading investment research providers. Started in Chicago around 1978, Zacks Investment Research has been consistently operating. This was all started by Len Zacks when he published a highly influential paper which documented an innovative approach to investing: analyzing earnings estate revisions to predict stock movements.
Although Zacks manages $5 billion in assets in their own company, they have opened Zacks Trade to bring that same investing knowledge and background to everyone else!
Here are the key points:
Low cost pricing:
Here is the fee and commission structure:
- Stocks and ETFs (Greater than $1 per share) – $0.01 each with a $3 minimum
- Stocks/ETFs below $1 cost have a commission of 1% of the principal with a $3 minimum
- Options – First contract is $3 and each following is $0.75
- Broker assisted trades are free
- Fees – No ongoing fees
- $2500 minimum to open an account
Compared to other online brokers, this is fairly cheap. Just for comparison, E-trade charges $6.95 per Stock/ETF trade. If you want a broker assisted trade, that’s $25. Zacks charges nothing for broker assisted trades. Definitely some food for thought.
Some people are a fan of using RobinHood for trading as well, but there is a hidden catch with how they do business as well. Your account may be free to set up and stocks may be free to purchase but they charge very high fees when you sell. According to their site, there is a $13 fee per $1,000,000 of principal. Basically, you’re charged $13 when you sell a stock. Ouch.
Who is this good for?
After researching this online trading platform for a while, it does seem to gravitate towards the more advanced users. I think with some practice, a novice investor could get started – especially with the help of YouTube.
Zacks Trade does offer a fully customizable workstation which really lets the user tailor fit how they want their interface to be. Again, I think this would appeal to a variety of user types because it lets the more advanced users bring in more data screens that would appeal to them and conversely let the newer investors simplify their layout.
Options Strategy Builder – This option lets you select a certain strategy to approach for trading, specifically if you are more into day trading. If you want to automatize your trading, this is a tool to look into.
Portfolio builder – This tool lets you craft a portfolio based on the specifications you provide, along with feedback from the software. It will even compare your strategy against any benchmark of your choice.
If you’re someone who is checking their stocks frequently, you’re most likely doing it from your phone. Zacks Trade lets you do this from their app – Handy Trader, which you can download on the App Store or Google Play store.
If you’re looking for a low cost stock trading platform, Zacks Trade is definitely a contender. Is it the best online stock trading account? That depends on what you’re looking for. It boasts plenty of free features and research backed tools that let you take your investing to the next level. If you’re new and just starting with stock trading, it can also be helpful as it gives you a very low barrier to entry and allows you to learn with the support of decades of research.
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