TradeZero

TradeZero is an online retail broker that offers commission-free trading in stocks, ETFs, and options to US customers (through TradeZero America) as well as non-US customers in 188 countries in Europe, Asia, Africa, and Oceania (through TradeZero International).

TradeZero offers four trading platforms on a freemium basis for both US and non-US customers. ZeroFree and ZeroMobile are free interfaces for web and mobile trading respectively. ZeroFree also offers Level 2 quotes and options trading for an add-on fee of USD 25 per month for each facility. The premium platforms, ZeroWeb and ZeroPro, are together priced at USD 59 per month.

The platform requires a minimum initial deposit of USD 2,500 for US customers and USD 500 for international customers. Corporate accounts require a minimum initial deposit of USD 50,000, as well as direct market center access routing for accounts with a minimum balance of USD 30,000. Its patented Stock Locator tool helps short-sellers find and reserve hard-to-borrow stocks. In addition, users must maintain a minimum balance of USD 250 (US) or USD 200 (international) to access a trading platform.

TradeZero is monetized through platform fees and add-ons for its trading platforms; payments for order flow; and interest on margin lending. It also takes a part of the interest earned on uninvested cash balances in users’ accounts. The platform charges short-locate fees based on the supply and demand to locate shares. A commission of USD 0.003 per share is charged on stock trades that are not listed on the New York Stock Exchange (NYSE), AMEX, or NASDAQ. Further, it charges direct routing fees and various account-related fees including outgoing account transfers, corporate actions, and outgoing wiring.

In October 2021, TradeZero announced plans to go public on the NYSE through a SPAC merger with Dune Acquisition Corporation at a valuation of USD 556 million. Following the merger, the company expects to be renamed as TradeZero Global Inc and trade under the ticker symbol “TRAD”. The merger is expected to raise USD 172.5 million in cash, which TradeZero had planned to funnel into strengthening their trading offerings. The company has expressed that it expects revenue of USD 85 million and net income of USD 38 million for FY 2021.