Zero Markets Review 2024

Trust

Zero Markets Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the entities operating under the Zero Markets trade name:

• ZERO Markets (NZ) Limited is licensed and regulated by the Financial Markets Authority (FMA) under FSP 569807. We rate the FMA as a Tier-1 regulator.
• Zero Markets LLC is a registered company of St. Vincent and the Grenadines with a Limited Liability Number 503 LLC. The entity is not regulated.

We have summarized the most essential aspects of Zero Markets in terms of regulation and safety in the table below:

*For full disclosure, please contact Zero Markets here: support@zeromarkets.com

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities because it allows them to serve clients worldwide. However, licenses obtained by regulators in different jurisdictions do not always entail the same degree of protection. Some regulators mandate compliance with the strictest financial frameworks, whereas others are less rigid. That is why traders need to familiarize themselves with the safety mechanisms ensured by the entity they want to open an account with beforehand.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All Zero Markets entities ensure segregated client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. This is especially important in volatile markets. Both entities ensure negative balance protection
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. Zero Markets LLC has issued professional indemnity insurance.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage on the New Zealand entity is 1:200, while on the global entity is 1:500.

Is Zero Markets Safe to Trade With?

I assessed that Zero Markets is generally safe to trade with, even though its offshore entity is not regulated. The broker adheres to the most essential safety requirements by ensuring segregated client funds and having issued indemnity insurance.

While Zero Markets LLC does not provide negative balance protection or cap the maximum retail leverage, its margin call (at 100%) and stop-out (at 50%) policies offer traders certain safety nets against adverse market volatility.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focus on the broker’s length of service, size, and transparency in terms of readily available information.

In evaluating Zero Markets’ transparency, several aspects were particularly noteworthy. The broker implements a client categorization policy during account setup and maintains a ‘best execution policy’ to ensure traders receive the most favorable price quotes under current market conditions.

The only minor issue I noted with Zero Markets is the absence of a live spread feed on their website. However, I found that the average spread rates listed for each instrument in the contracts specification section of the website were accurate.

In summary, my research indicates that Zero Markets can be regarded as having a sufficient level of trust and stability due to the following factors:

• Regulated by FMA in New Zealand
• Has issued private indemnity insurance
• Has a client categorization policy
• Operates on a ‘best execution’ basis

Fees

Zero Markets’ Trading Fees

Zero Markets’ Spreads

I tested Zero Markets’ spreads during the most actively traded times – the London open at 8:00 a.m. GMT and just after the U.S. open at 2:45 p.m. GMT. The test was conducted on 3 December 2023. The results are shown in the table below:

Broken down by asset class and compared to the broader industry, Zero Markets offers low spreads on FX pairs and share CFDs, low-to-average spreads on commodities, low-to-high spreads on indices, and high spreads on cryptocurrencies.

Zero Markets’ Commissions

For its Super Zero account, Zero Markets charges a $5 round-turn commission per traded lot (100,000 units). This rate falls below the industry average of $6. The commission is charged for trading FX pairs and metals. There is also a $0.02 per share commission for trading US stocks.

Zero Markets’ Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

My tests indicated that Zero Markets’ swap charges meet the industry average. I found them suitable for implementing longer-term trading strategies, such as day and position trading.

Zero Markets’ Non-Trading Fees

Dormant accounts with Zero Markets are not charged an inactivity fee. Additionally, any banking fees for deposits to Zero Markets accounts will be waived, except for EUR bank wires under SEPA. There are, however, withdrawal fees for most payment methods.

Are Zero Markets’ Fees Competitive?

I assessed Zero Markets’ fees to be quite competitive. The broker generally charges below-average spreads and commissions, though this varies depending on the instrument and asset class that are being traded.

Zero Markets also offers swap-free trading via its Islamic accounts. Additionally, the broker has very few non-trading fees, mostly for withdrawals.

However, thanks to the broad range of payment methods available at Zero Markets, clients can select an option that avoids third-party banking fees.

Accounts Comparison

I’ve compiled the table below to clarify the difference in trading fees between Zero Markets’ two account types. It displays the spreads and commissions recorded for the EUR/USD pair for each account type, along with typical costs for ECN and STP accounts in the industry. The table demonstrates how much you must pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My tests indicate that Zero Markets’ Standard account features above-average costs compared to a typical STP account. In comparison, its Super Zero account features a combination of raw spreads and fixed commission that falls way below the industry average for an ECN account.

Platforms and Tools

MetaTrader 5 has many essential features, such as one-click trading, an alarm setting option, and a depth of markets tool. These accommodate fast order execution, which is essential for implementing high-frequency trading strategies like scalping and intraday trading.

MetaTrader 5 has a rather rugged design that is outclassed by newer and sleeker platforms. I had a tough time scrutinizing price action because of the platform’s limited charting capabilities, making it exceedingly difficult to conduct probing technical analyses. Nevertheless, Zero Markets should be praised for including MetaTrader’s advanced charting toolbox.

Those interested in algorithmic trading can use MetaTrader’s built-in Expert Advisors (EAs) feature. Additionally, Zero Markets provides free VPS (Virtual Private Server) hosting. This service is available to Standard accounts on which at least 10 lots are traded per month. For raw spread accounts, the rate is 20 lots.

Zero Markets’ Desktop MetaTrader 5 Platform

General Ease of Use

MetaTrader 5 is easy to navigate because of its simplistic design. Account info is displayed at the bottom of the screen; charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window; and a panel with various settings and configurations can be found at the top of the window.

Charts

I consider the chart screen a platform’s most important feature. It aids technical analysis by providing an overview of price action behavior and allows traders access to many analytical tools and chart configuration possibilities. In my view, a good chart should afford easy scaling up and down of price action.

I have broken down the available analytical tools and chart configurations with MetaTrader 5 below:

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next. The problem with MetaTrader 5, in my opinion, is that applying 2 or more indicators to the chart obscures price action rather than contextualizing it. This is due to the ruggedness of MT5.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather big collection of drawing tools, the ruggedness of MT5 makes it difficult to discern price action behavior.
• 21 timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term. The standout feature of MT5 is its wide range of timeframes, including ones with a period lower than 1 minute. These can be used for high-frequency trading like scalping.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity makes it possible to examine potential trading opportunities from different angles.

Orders

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 5 Platform

I appreciated the possibility of fast and precise order execution, especially via MT5’s EAs feature, but I suppose chart artists will find MT5 insufficient for spotting intricate trading developments. Though noticeably more advanced than its predecessor, MetaTrader 5 still suffers from the same underlying issues. In my opinion, carrying out comprehensive technical analyses is obscured by MT5’s rugged design. This is partly offset by the incorporation of the advanced MT4&5 toolbox.

Zero Markets’ MT5 Mobile App

The mobile app version of MT5 affords quick and easy access to the market. It is very useful for making snap adjustments to any open trades, even on the go. The market is volatile and ever-changing, and staying on top of the latest developments is made easy with the mobile app version of MT5. You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT5’s Mobile App

MT5’s mobile app suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of any open positions and make changes if needed.

Tradable Instruments

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery. For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars. One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With Zero Markets?

I have broken down the available instruments with Zero Markets below:

• 72 Currency Pairs
  Major, Minor, and Exotic
• 10 Commodities
  Metals and Energy
• 543 Share CFDs
  US and China
• 16 Indices
  Europe, Asia, and the US
• 46 ETFs
  Currencies, Commodities and Shares
• 12 Cryptocurrencies
  Major and Minor

Compared to the broader industry, Zero Markets offers an average amount of FX pairs and cryptocurrencies, and a high number of commodities, share CFDs, indices, and ETFs.

Forex	Commodities
EURUSD | GBPJPY | GBPNZD | EURCHF | USDBRL | USDNOK	Crude Oil | Gold | Silver | Brent Oil | Palladium | Platinum

Share CFDs	Indices
Apple | Tesla | Alcoa | Disney | Cisco | Alibaba | PayPal | Citigroup	Dow Jones 30 | Germany 40 | Japan 225 | Australia 200 | France 40

ETFs	Cryptocurrencies
iShares Core U.S. Aggregate Bond ETF | SPDR Gold Shares ETF | iShares Russell 1000 Value ETF	Bitcoin | Ethereum | Ripple | Cardano | Solana | Doge Coin | Polkadot

My Key Takeaways After Exploring Zero Markets’ Tradable Instruments

My overall impression of Zero Markets’ instruments offering is a prevailingly positive one. I found it suitable for all kinds of traders, from highly risk-averse and conservative traders to speculative risk-takers. Zero Markets’ ETF offering caters to the needs of the former, whereas its wide range of cryptocurrencies, indices, and share CFDs is geared towards the latter.

Customer Support

The easiest way to get in touch with Zero Markets is via the live chat option, which is available from the bottom-right corner of the main page. The website also has a dedicated FAQ section intended to help with more general queries about the broker’s services.

Customer Support Test

When we test a broker’s customer support team, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on 4 January at around 12:34 CET via live chat. An agent connected almost instantaneously but seemed to struggle with my questions about Zero Markets’ average execution speed and professional indemnity insurance. I was mostly referred to different departments of the broker’s support team and did not receive any straight answers.

Deposit and Withdrawal

Zero Markets’ Deposit Methods

Zero Markets’ Withdrawal Methods

Deposit fees are typically waived, except for EUR SEPA bank wires. Withdrawal fees vary depending on the country and selected payment method. It is possible to withdraw without having to pay third-party banking fees. Concerning waiting times, Zero Markets usually processes payment orders fairly quickly.

Account Types and Terms

Why is Choosing the Right Account Type Important?

Your account should reflect your goals, needs, and ambitions on the market. You should take into consideration several factors, such as whether the account type has a minimum deposit requirement, its spreads and commissions, the execution method, and more.

What Account Types Does Zero Markets Offer?

I have broken down the features of Zero Markets’ account types below:

I assessed the conditions of the two retail account types and found them to generally support the implementation of most types of trading strategies – from scalping and intraday trading to day trading and position trading. And with a low minimum deposit requirement of $100, the two are available to most retail traders.

I also appreciated Zero Markets for implementing a client categorization policy. During account setup, the broker requires information about your trading experience and personal wealth, enhancing the safety of its services for novice traders.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Zero Markets’ Execution Model

Zero Markets utilizes market execution. The broker operates on an Electronic-Communications-Networking (ECN) basis without a dealing desk. Order requests are transmitted to the interbank level, where Zero Markets’ liquidity providers fill them. As long as there is enough liquidity in the market, all order requests will be filled at varying speeds.

Zero Markets’ Account Opening Process

The account creation process with Zero Markets is straightforward and quick. You can go at your own pace, though realistically, you will be done with everything within an hour. I have summarized the step-by-step process below:

• Step 1. Click ‘Open Account’ at the top-right corner of the main page.
• Step 2. Fill in your name and email. Enter the verification code you are sent to the email address you have provided.
• Step 3. Set up a password.
• Step 4. Choose whether to set up a live or demo account.
• Step 5. For live accounts, enter your details.
• Step 6. Verify your account by uploading proof of ID and address.
• Step 7. Complete a questionnaire as part of the trader categorization process.
• Step 8. Select a trading platform and account type.
• Step 9. Confirm your account.

Why is a Demo Account Important?

Zero Markets offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself alongside your live CFD account.

Zero Markets’ Restricted Countries

Zero Markets does not offer its services in the following countries: United States of America, Venezuela, Afghanistan, American Samoa, Belgium, Botswana, Cambodia, Central African Republic, Congo, the Democratic Republic of the Congo, Republic of the Côte d’Ivoire, Equatorial Guinea, Eritrea, Ghana, Guinea-Bissau, Heard Island and McDonald Islands, Vatican City, Iran (the Islamic Republic of), Iraq, Japan, Kazakhstan, Korea (Democratic People’s Republic of), Lebanon, Liberia, Libya, Mali, Myanmar, New Zealand, Pakistan, Palestine, State of, Puerto Rico, Russia, Somalia, South Sudan, Sudan, Syrian Arab Republic, Trinidad and Tobago, Ukraine, Uganda, United States Minor Outlying Islands, Vanuatu, Virgin Islands (U.S.), Yemen, Zimbabwe.

Research

Research Tools

I have broken down the several types of research content below:

• Economic calendar. The economic calendar is an essential tool in a trader’s arsenal. It informs traders of upcoming market events and releases that have the potential to stir price action, thereby creating viable trading opportunities.
• Market and volatility analyses. Available to verified Zero Markets accounts, Autochartist’s market analyses present a nuanced and comprehensive picture of current market developments and their underlying causes.
• News feed. Also incorporated from Autochartist, the market news feature helps traders stay on top of the latest market news.

My Key Takeaways After Assessing Zero Markets’ Research Content

Autochartist’s content is both sophisticated and practical, beneficial for Zero Markets clients seeking insights into global capital market drivers and potential trading opportunities. However, a slight drawback of Zero Markets is its absence of video content. Offering both written and video materials is crucial for accommodating the different learning preferences of traders.

Education

Zero Markets’ educational content is almost exclusively comprised of how-to videos on basic topics, such as how to incorporate content from Autochartist, how to use the MetaTrader platform, or how to use Autochartist’s VPS. However, there are no comprehensive materials related to the ABCs of trading; beginners cannot rely on the broker to learn about price action assessment, risk management, or fundamental analysis techniques.

Zero Markets used to publish educational webinars before, but it no longer does. There is no glossary.

The Bottom Line

From my research of Zero Markets and its licensing documents, I assessed it as fairly reliable. It is regulated in New Zealand by FMA and also has an unregulated entity that serves traders globally. The broker offers access to over 680 tradable instruments, both lower-risk and higher yield/risk, at competitive prices. I found that its services are very well-calibrated, with some minor exceptions.

One of Zero Markets’ significant strengths is its versatility, catering to various types of traders. Risk-averse and novice traders can take advantage of its ETF offerings and Autochartist integration. On the other hand, more speculative traders have access to advanced charting tools, a free VPS service, and cost-effective trading fees, ideal for high-frequency trading.

However, there are some drawbacks to consider. Zero Markets lacks alternatives to the somewhat cumbersome MetaTrader 4 and 5 platforms. Additionally, I found their customer support to be unreliable, and their educational content was limited.

FAQ