Zacks Trade Company

Zacks Trade Company: An In-Depth Overview

1. Company Overview

Founding Date and Background

Zacks Trade Company was founded in 2013, emerging from the legacy of Zacks Investment Research, which has been a significant player in the investment research space since 1978. The company was established with the goal of providing a comprehensive trading platform tailored for active traders, emphasizing low costs and robust trading tools.

Parent Company/Ownership Structure

Zacks Trade operates as a division of LB MZ Securities, which is part of the broader Zacks Investment Research ecosystem. This structure allows Zacks Trade to leverage the extensive research and analytical capabilities of its parent company while focusing on brokerage services.

Headquarters Location

The company is headquartered in Chicago, Illinois, a strategic location that positions it within one of the largest financial hubs in the United States.

Global Business Scope

Zacks Trade serves clients in over 218 countries and territories, allowing access to more than 90 international exchanges. This global reach positions Zacks Trade as a competitive option for international investors seeking a robust trading platform.

Main Regulatory Bodies

Zacks Trade is regulated by multiple financial authorities, including the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) in the United States. These regulatory frameworks ensure that the company adheres to strict standards of conduct and transparency.

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2. Company History and Development

Key Milestones

Since its inception, Zacks Trade has achieved several key milestones, including the launch of its trading platform, the introduction of various trading tools, and the expansion of its research offerings. The company has consistently aimed to enhance its service delivery to meet the needs of active traders.

Business Expansion Journey

Zacks Trade has broadened its service offerings over the years, initially focusing on U.S. markets and gradually incorporating international trading options. This expansion has allowed the firm to attract a diverse client base, including both domestic and international investors.

Customer Base Growth

The company has seen significant growth in its customer base, driven by its commitment to low trading costs and exceptional customer service. The integration of advanced trading tools and research has also attracted more sophisticated investors.

Platform Development History

Zacks Trade has continuously improved its trading platforms, originally launching with basic functionalities and evolving to offer advanced features such as customizable dashboards, extensive charting tools, and mobile trading capabilities. The introduction of the Zacks Trade Pro platform has been a notable development, catering to the needs of professional traders.

Important Awards or Recognitions Received

While specific awards are not frequently highlighted, Zacks Trade has garnered positive reviews from industry experts for its research offerings and customer support, positioning it favorably in comparison to other brokerage firms.

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3. Trading Services Offered

Forex Trading Options

Zacks Trade offers a competitive array of forex trading options, providing access to numerous currency pairs. The exact number of pairs can vary, but the platform typically includes major, minor, and exotic currencies, catering to a wide range of trading strategies.

Stock Trading Options

The company provides stock trading at a cost-effective rate of $0.01 per share, with a minimum commission of $1 per trade. This pricing structure is appealing to active traders who engage in high-volume trading.

CFD Trading Products

Currently, Zacks Trade does not prominently feature Contract for Difference (CFD) trading in its offerings. Instead, the focus is primarily on traditional stock, options, and forex trading.

Other Financial Instruments

In addition to stocks and forex, Zacks Trade has expanded its offerings to include cryptocurrency trading, allowing clients to trade popular digital assets. The platform also provides access to commodities and bonds, further diversifying its product range.

Special Services or Unique Advantages

One of Zacks Trade's unique advantages is its integration of extensive research tools and resources. Clients have access to over 20 free research subscriptions and can subscribe to additional premium reports, enhancing their trading decisions with in-depth market analysis.

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4. Regulatory and Legal Background

Detailed Regulatory Information

Zacks Trade is regulated by several key bodies, including:

• Financial Industry Regulatory Authority (FINRA)
• Securities and Exchange Commission (SEC)
• Commodity Futures Trading Commission (CFTC) (for futures and forex activities)

Legal Entity Structure by Region

In the United States, Zacks Trade operates under the legal entity of LB MZ Securities. For international clients, the legal structure may vary depending on local regulations, but the firm maintains compliance with applicable laws in each jurisdiction.

Client Fund Protection Measures

Client funds at Zacks Trade are protected through various measures, including membership in the Securities Investor Protection Corporation (SIPC), which provides limited protection for securities and cash in the event of a brokerage failure.

Countries/Regions Served

Zacks Trade caters to clients in over 218 countries, enabling access to a wide array of financial markets. This global reach is complemented by the ability to trade on more than 90 international exchanges.

Compliance History

Zacks Trade has maintained a clean compliance record, with no significant regulatory infractions reported. The firms adherence to regulatory standards reflects its commitment to ethical trading practices and customer protection.

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5. Competitive Landscape

3-5 Main Competitors

Zacks Trade competes with several major brokerage firms, including:

• Interactive Brokers
• Charles Schwab
• Fidelity Investments
• TD Ameritrade
• E*TRADE

Positioning in the Industry

Zacks Trade positions itself as a boutique brokerage firm focused on active traders and sophisticated investors. Its competitive pricing structure and extensive research offerings differentiate it from larger, more generalized brokerage firms.

Market Differentiation Factors

Key factors that set Zacks Trade apart from its competitors include:

• Low trading commissions for high-volume traders.
• Access to extensive research resources, including proprietary research from Zacks Investment Research.
• Broker-assisted trades at no additional cost, providing personalized support for clients.

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In summary, Zacks Trade Company has established itself as a reputable brokerage firm catering to active traders and investors seeking comprehensive research and competitive trading options. With a solid regulatory foundation and a commitment to customer service, Zacks Trade continues to evolve and adapt to the dynamic landscape of the financial markets. For more information, learn more.