Zacks Trade

What Zacks Trade does

Zacks Trade is a self-directed online brokerage platform operated as a division of LBMZ Securities, Inc., a registered SEC broker-dealer and FINRA member headquartered in Chicago, Illinois. Established in 2020, the platform targets active self-directed traders who make their own investment decisions without receiving recommendations. It provides access to stocks, ETFs, options, mutual funds, corporate and government bonds, and currency conversion across 150 markets in 34 countries from a single multi-currency account, delivered through a web platform and dedicated iOS and Android mobile applications.

The core product surface is anchored by the Zacks Trade trading platform and differentiated by the Zacks Rank Trading Tool, an exclusive integration with Zacks Investment Research, Inc. that allows account holders to screen for Zacks Rank #1 stocks by theme, sector, and industry and place orders directly from the research interface. Order execution and clearing are outsourced under a fully disclosed introducing-broker arrangement with Interactive Brokers LLC, which handles all routing, execution, and settlement — meaning Zacks Trade does not operate its own clearing infrastructure. Customer support is delivered by licensed brokers available by phone and email weekdays from 9 a.m. to 6 p.m. ET, including complimentary broker-assisted trades.

The business model is transaction-driven. Revenue comes primarily from per-share and per-contract commissions on stock, ETF, and options trades, and from interest income on margin loans extended to customers. Pricing is positioned as a cost-leadership play: stock and ETF trades start at $0.01 per share with a $1 minimum, options contracts at $0.75 (with $1 for the first contract), and margin rates from 8.83% — meaningfully below Charles Schwab (11.825%), E*Trade (12.45%), Fidelity (11.825%), and Vanguard (12.00%). The minimum account size is $2,500, and customer acquisition runs entirely through digital channels: the company website, app stores, and third-party review coverage on Brokerage-Review.com, Benzinga, NerdWallet, and Bankrate. No revenue, headcount, or funding figures are publicly disclosed.

Name

Zacks Trade

Legal name

LBMZ Securities, Inc.

Website

https://zackstrade.com

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

1–10 employees

Short description

Zacks Trade is a Chicago-based self-directed online brokerage (division of LBMZ Securities, Inc.) offering low-cost stock, ETF, options, and margin trading across 150 markets in 34 countries to active individual traders.

Ownership category

akta.pro rank

Product category

Online Brokerage

NAICS

Securities and Commodity Contracts Intermediation and Brokerage (5231)

SIC

Security Brokers, Dealers & Flotation Companies (6211)

akta.pro primary industry

Options Brokerage (FSAEACAI)

akta.pro secondary industries

Derivatives & Futures Brokerage (FSAEACAL), Agency Equity Execution (Cash Equities) (FSACAFAA)

Keywords

• Online brokerage
• Stock trading
• Options trading
• Margin lending
• Self-directed investing

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Transaction-based Commissions: Commission-based revenue from stock, ETF, and options trades. Customers pay per-share commissions for stocks/ETFs and premium fees for options contracts. Revenue is directly tied to trading volume; the more transactions, the more fees collected.
2. Margin Interest: Interest earned on margin loans extended to customers who borrow funds to purchase securities. Margin rates start at 8.83%, lower than major competitors, creating competitive advantage while generating interest income.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

Zacks Trade is a self-directed online brokerage platform operated as a division of LBMZ Securities, Inc., providing individual investors with access to trade stocks, ETFs, options, mutual funds, corporate bonds, and government bonds across 150 markets in 34 countries. The platform charges per-share commissions on stocks/ETFs (from $0.01 per share, $1 minimum), $0.75 per options contract, and margin lending rates starting at 8.83%. All order execution and clearing are handled by Interactive Brokers LLC under a fully disclosed introducing-broker arrangement.

Product overview

Zacks Trade is a self-directed online brokerage platform (division of LBMZ Securities, Inc.) offering a unified trading experience. The core product consists of the Zacks Trade platform itself—providing stock & ETF trades from $1, 75¢ option contracts, and 8.83% margin rates—augmented by the proprietary Zacks Rank Trading Tool (powered by Zacks Investment Research) for stock research and screening, plus a dedicated mobile app for on-the-go trading. Users can access 150 markets across 34 countries from a single account.

Differentiator

Problem solved

Functional benefit

Brands

• Zacks Rank Trading Tool: A proprietary trading tool that provides access to the Zacks Rank stock rating system from Zacks Investment Research, Inc.

Products and services

• Zacks Trade Online Brokerage Platform
• Zacks Rank Trading Tool
• Zacks Trade Mobile App

Quantifiable outcome

• Margin rates 25-30% lower than major competitors (8.83% vs 11-12%+)

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Two partnerships are on record, tiered core.

• Interactive Brokers LLCcoreTechnology or IntegrationInteractive Brokers LLC serves as the fully disclosed executing and clearing broker for all Zacks Trade customer orders. IBKR handles order routing, execution, and settlement services. Zacks Trade routes all equity and options orders to IBKR for processing. This is a critical operational infrastructure partnership enabling all trading activities.
• Zacks Investment Research, Inc.coreTechnology or IntegrationZacks Investment Research provides the proprietary Zacks Rank Trading Tool exclusively to Zacks Trade customers. ZIR's earnings estimate revision methodology powers the trading tool, which is provided for free to account holders. Zacks Trade and ZIR are separate companies under common branding.

Scale indicators2 records

Recent moves6 records

Expansion highlights4 records

Broad incumbents

• Ally Invest: Ally Invest is the self-directed brokerage arm of Ally Financial, offering stock, ETF, and options trading to retail customers. It competes in the same low-cost, self-directed segment as Zacks Trade, with comparable commission pricing on options contracts.
• E*TRADE: E*TRADE is a major US online broker competing directly with Zacks Trade in stock, ETF, and options trading for self-directed retail investors. It is named in Zacks Trade's margin-rate comparison and offers a similar mix of web, desktop, and mobile trading platforms.
• Charles Schwab: Charles Schwab is a full-service incumbent broker-dealer that competes for the same self-directed retail and active-trader segments as Zacks Trade, and is explicitly named in Zacks Trade's margin-rate comparison. Schwab offers broader product breadth (banking, advisory, retirement) and far larger scale.
• Fidelity Investments: Fidelity is a top-tier incumbent broker-dealer that competes for self-directed retail traders with a full suite of trading, research, and retirement products. It is also named in Zacks Trade's margin-rate comparison and offers a comparable stock/ETF/options product set.

Direct peers

• Robinhood: Robinhood is a self-directed retail brokerage competing for the same commission-based trading customers as Zacks Trade, including options traders. While pricing model and product breadth differ, both target mobile-first, self-directed retail investors executing stocks, ETFs, and options.
• TradeStation: TradeStation is a direct competitor in the active-trader online brokerage segment, offering stocks, options, and futures with emphasis on advanced charting, strategy automation, and low per-trade pricing. Target customer (experienced self-directed active traders) and product mix closely overlap with Zacks Trade.
• Webull: Webull is an online brokerage serving self-directed retail and active traders with mobile-first platforms, options trading, and low or zero commission pricing. Customer profile and product mix overlap materially with Zacks Trade's self-directed active-trader target segment.
• Firstrade: Firstrade is an online broker focused on active self-directed traders and options users, offering commission-free stock/ETF trades and competitive options pricing. It targets a very similar niche to Zacks Trade, including international investors and cost-sensitive active traders.
• Interactive Brokers: Interactive Brokers is both Zacks Trade's execution/clearing partner and a direct competitor in the active-trader retail brokerage category, offering low-margin rates, global market access across 150+ markets, and per-share pricing. Overlap with Zacks Trade is high in target customer (active self-directed traders), product set (stocks, options, futures, FX), and pricing model.

Emerging players

• tastytrade: tastytrade is a brokerage and content platform focused on options traders and active retail investors, offering low per-contract pricing and an education-driven acquisition funnel. Its specialization in the options-active retail segment makes it a close niche peer to Zacks Trade's options offering.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/zackstrade

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Zacks Trade