TradeZero Margin Interest Rates
At TradeZero America, the maximum day trading leverage is 4:1 for accounts with a balance over $25,000. If the account equity falls below this level, the leverage decreases to 2:1.
Securities priced under $3 cannot be purchased on margin in a US account. For short positions priced at $2.50 or less, TradeZero requires a 100% margin, meaning you must fully fund these trades.
The margin rate at TradeZero America is 9% for all account levels.
The Lowest Margin Rates
| Broker |
$0 - $4,999 |
$5,000 - $9,999 |
$10,000 - $24,999 |
$25,000 - $49,999 |
$50,000 - $99,999 |
$100,000 - $249,999 |
$250,000 - $499,999 |
$500,000 - $999,999 |
above $1,000,000 |
|
Robinhood
|
6,25%
|
6,25%
|
6,25%
|
6,25%
|
6,25%
|
6,25%
|
6,25%
|
6,25%
|
6,25%
|
|
IBKR Lite
|
7,33%
|
7,33%
|
7,33%
|
7,33%
|
7,33%
|
7,33%
|
7,33%
|
7,33%
|
7,33%
|
|
ZacksTrade
|
8,83%
|
8,83%
|
8,83%
|
8,83%
|
8,83%
|
8,33%
|
8,33%
|
8,33%
|
8,08%
|
See
Lowest Margin Rates Brokers »
Can You Sell Short at TradeZero?
Do you want to find a low-cost broker with high-performance software to short stocks? TradeZero may be your answer. Keep reading for more information.
Shorting Assets at TradeZero
Adding up stocks and ETFs on the major exchanges and the OTC marketplace, TradeZero has about 14,000 assets available for shorting daily.
To short a stock or fund at TradeZero, you can use any of the broker’s platforms. There are three computer programs and one mobile app. All four of them have short locate tools that can find thinly-traded securities.
TradeZero’s computer platforms have a discrete Short button (it’s in maroon red). To enter a short position, you’ll want to use this button instead of the regular Sell button (which is in regular red).
Unfortunately, the broker’s platforms do not have bracket orders. If you want to set up some orders that will take you out of your trade (either above or below the entry price), you’ll need to enter these exit orders individually after your entry order.
If your trade simply moves sideways and neither one of your exit orders triggers, you can buy to cover your position. This is accomplished on one of the computer platforms with a blue Cover button.
Short Locating Software
On the best desktop platform (ZeroPro), you’ll find the short locate widget under the Main menu. After opening this menu, you’ll see a variety of icons. Click on the one labeled Short List.
A new window will be generated. It will show a list of stocks with the locate price per share along with the total number of shares that can be borrowed. You can either accept or cancel each offer.
The total list can be refreshed, and if you have a symbol in mind, you can enter it and see if it’s on TradeZero’s list.
Short Strategies via Options
TradeZero provides trading in options. If you don’t find the luck you’re hoping for in the stock or ETF market, you can instead make bearish bets in the options market.
Purchasing a put contract is a bearish trade. If the price of the underlying stock goes down, the value of the put goes up.
Cost of Shorting at TradeZero
TradeZero, in keeping with its promise in its name, imposes zero surcharges on short sales. Its regular commission on stock and ETF trades is zero dollars as well, an industry norm nowadays. Its per-contract option commission is also zero dollars, although it does charge $35 for assignments and exercises.
There are fees at TradeZero to locate hard-to-borrow securities. These charges vary by day (and even within a day) and by security. The exact fee is displayed on TradeZero’s short locate widget.
Over-the-counter trades do cost 0.3¢ per share. This very low fee is also assessed against securities on the big exchanges if they are priced at $1 or under, or if they are traded between the hours of 4:00 am, EST, and 7:00 am.
The two best platforms at TradeZero, ZeroPro and ZeroWeb, do have monthly fees.
Alternative
For short selling a great alternative broker is
Interactive Brokers. It
has a number of advantages over TradeZero: lower margin rates (6,33%),
virtual (paper) trading, and much better trading tools.
Interactive Brokers Promotion
Open IB Account
Updated on 10/2/2024.
|