Zacks Trade Review: Tons of Good Research, but Surprisingly High Fees
Review
Updated
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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.
On Zacks Trade's Secure Website.
Zacks Trade is a great option for investors who value research, tools, and margin trading. But the stock and ETF commissions aren't competitive, and the inactivity fees encourage active trading, rather than allowing for a more passive approach.
As low as $0.01 for stocks and ETFs ($1 min.)
$250
On Zacks Trade's Secure Website.
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 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
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 |
Managing your finances under one roof | $0 for stocks,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
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 |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
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 |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
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.
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.
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 offers first borrowed dollar rates of 8.83%, and it typically beats the rates of many brokerages.
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 offers complimentary access.
The Zacks Rank Trading Tool is a proprietary search tool that allows traders to search for stocks by specific themes, sectors, or industries from within the proprietary stock ranking system called Zacks Rank. Investors only need a minimum balance of $250 to access the tool, and they'll have access to these top stocks and the data that supports each pick from Zacks Investment Research, Inc.
Although Zacks Trade offers a range of ways to invest, including stocks, ETFs, options, mutual funds, and bonds, it is sorely lacking in other basics like futures and commodities. You can certainly trade these things elsewhere, but for Zacks Trade to be a full service platform, these should also be available.
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. Plus, 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.
Although Zacks Trade is well within its rights to do so, its $15 per month inactivity fee is fairly off-putting for buy-and-hold investors. It's designed to encourage people to be constantly trading, which is hardly ideal for long-term portfolio growth.
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) |
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.
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.
What's more, Zacks Trade charges $15 per month for inactive accounts worth less than $25,000 if they have less than $15 in commission fees each month. This is not ideal for investors who prefer to park their money and watch it grow, and instead encourages active and frequent trading.
| 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) |
| Inactivity Fee | $15 per month for accounts under $25,000 with less than $15 in commission fees each month |
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.
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 | 8.83% |
| $100,000-$1 million | 8.33% |
| $1 million-$3 million | 8.08% |
| Greater than $3 million | 7.83% |
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.
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.
At Motley Fool Money, 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.
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Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
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J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
