Zacks Trade Review – 5 things you should know about zackstrade.com

Zacks Trade Review – 5 things you should know about zackstrade.com

Beware! Zacks Trade is an offshore broker! Your investment may be at risk.

RECOMMENDED FOREX BROKERS

IG USForex.com

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

Zacks Trade brokerage is an interesting bird for sure. On the surface, everything seems legit and the company seems to be visible in the public space. Its CEO is a prominent figure in financial research. However, things are not as kosher as they look and we are going to find out why.

Zacks Trade Regulation and safety of funds

From the information available on the website, we understand that Zacks Trade is a division of LBMZ Securities with an address in Chicago, US. You may not know but US brokers are one of the most heavily regulated by the National Futures Association (NFA) which keeps a register of forex brokers. LBMZ Securities does appear in the register but as you can see from the image below, it is not an NFA member and it is far from being regulated. This is proof that this broker is not to be trusted and we do not advise you to engage in any trading activities with it. The claims that clients’ accounts are protected will not hold water in case of unfavourable events.

 

NFA register

 

NFA and the Commodity Futures Trading Commission (CFTC) which regulate US brokers have set up stringent requirements that have to be met and they include one of the highest capital requirements which is a net capital of at least $20 million. By being well-capitalised, forex brokers will have the ability to protect their clients from unfavourable events as in the US, there are no existing compensation funds or schemes. Other requirements include the so called ‘first in, first out’ rule which prevents traders from going long and short on the same pair at the same time which means that hedging is not allowed. In addition to that, US brokers must meet certain reporting requirements and recordkeeping guidelines, as well as providing their clients with access to certain transaction execution data.

Zacks Trade Trading software

Opening a trading account with Zacks Trade and downloading one of the three trading platforms is subjected to approval that takes 1 – 2 days. This broker offers Zacks Trade Pro platform for PC and a web-based version Zacks Trader in addition to the Handy Trader app.

If you visit the ‘How to’ section on Zacks Trade website, you will see that the platforms look rather complicated and will not suit newbies in forex trade.

We want to advise you that many licensed and reputable brokers offer a better quality trading software which consists of the MetaTrader 4 and MetaTrader 5 trading platforms which are not so complicated to understand and use and which offer at the same time an excellent package of trading tools and instruments that consist of an auto trading option, trading signals, code base with customs scripts, VPS, an app market, a financial calendar, etc., that facilitate the execution of transactions and enhance clients’ trading experience.

Zacks Trade Deposit/Withdrawal methods and fees

The initial minimum deposit for opening a  trading account is $2,500. We find the amount of the minimum initial deposit to be rather high. Legit and licensed brokers would usually ask for as little as $1-5.

For deposits and withdrawals, clients can use wire, Check deposit and ACH which is the Automated Clearing House Network used in the US for electronic bank-to-bank money transfers.

Interestingly, we found out that Zacks Trade offers an IRA tax-deferred retirement account where clients who do not participate in any pension plan at work can set aside a certain amount of money per year which they can withdraw at the age of 59.5 or older. The earning that the clients make accumulate on a tax-deferred basis until the funds are withdrawn.

There is no inactivity fee.

There are no withdrawal fees for once per month withdrawal. However, any subsequent withdrawal within the same month incurs fees between $1 and $10 depending on the withdrawal method.

How does scam work?

A lot of people get scammed every day, not because they are naive or stupid, but because scammers are inventive and they are masters of manipulation. Often, as you scroll up and down on the Internet or social media, you come across ads for a quick and easy profit which sometimes sound too tempting not to fall into their traps. So you deposit some money into the account and what happens next is the incessant calls of the scammers. First, they congratulate you for taking the first steps towards becoming rich and next, they try to convince you to invest even more money into their ‘profitable’ business. What you probably don’t know is that your money has just gone as a commission to some scammers. And so, you wait and build the sandcastles of your dreams for a better and ‘richer’ future. And you wait, and you wait, for the money to come. But where is it? Now is your turn to call the scammers and to ask what’s going on. They try to placate you and ask you to be more patient. But have had enough and all you want is to get your money back. The scammers kind of promise, but now they are asking you to provide this document or fill out that form, etc., etc., all done in an attempt to delay you from filing for a chargeback.

What to do if scammed?

If this happens to you, our advice is to act immediately and if you have paid your deposit via credit/debit card, to file for chargeback which is retroactive cancellation and refund of your previous transaction. Visa and MasterCard give you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.

Rich Snippet Data
Review Date
Reviewed Broker
Zacks Trade
Broker Rating
11stargraygraygraygray

Top Forex Brokers

BrokerCountryRatingMin. DepositWebsite
US5/5$50 Click for a special offerWebsite
USA5/5$250 Click for a special offerWebsite
UK, Cyprus, Belize4.94/5$5 Click for a special offerWebsite
Australia, Cyprus4.93/5$100 Click for a special offerWebsite
UK, Australia4.85/5$50 Click for a special offerWebsite
Cyprus, SVG4.8/5$100 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *