EXCLUSIVE: TradeZero Co-Founder Talks Platform Updates, PFOF, What's Ahead For Retail Traders

In light of pandemic restrictions, retail investors, hungry for engagement with the outside world, fueled an impressive rise in trading activity. This was a boon for TradeZero, a commission-free stock and options trading solution for the beginner and advanced market participant.

“January and February were huge,” Dan Pipitone, co-founder at TradeZero, said of the speculative narratives surrounding so-called meme-stocks. “I had basically been positioning myself, my whole career, for that week we had.”

TradeZero saw its active user base rocket, attracting the likes of Dave Portnoy, who entered into a sponsorship deal with the company. 

“Between Robinhood shutting symbols off — and the optics around that — and Portnoy sort of pouring gas on it by saying 'screw you Robinhood, I’m with TradeZero,' … it was awesome.”

TradeZero's Solutions: Core features include free direct-access routing, real-time streaming on web and desktop platforms, pre-and post-market trade, charting and scrolling real-time news feeds, as well as Short Locates Plus, an easy way to source and sell back shares for shoring.

In accordance with its commitment to provide a superior day trading experience, the company added to its Pro Platform the ability to trade directly from the chart, in addition to Level II mappable keyboard hot buttons.

“You’re going to have the ability to trade from the chart using lines; you can set prices for your limits, stops, and then, you can adjust all of the orders using the charts,” Pipitone said.

“We also added hot buttons to our Level II window, and … the ability to map and assign those keys to one click, on a button, on the screen.”

Other new tools include a multi-period VWAP built in partnership with expert traders.

What Makes TradeZero Different: TradeZero is focused on building out a standalone mobile platform, as well as an enhanced cryptocurrency and options trading offering. 

“We have a mobile initiative going on right now … in addition to releasing multi-leg options,” Pipitone said about offering users an easier way to trade even the most complex stock, option and cryptocurrency strategies.

After acquiring data feeds from CBOE Global Markets Inc CBOE, TradeZero will soon release a robust options product that supports both multi-leg and direct routing to TradeZero’s operation on the floor of the NYSE American Stock Exchange (AMEX).

Customers will be able to call floor traders, fill orders and get a better understanding of the flow or real money transactions that can reveal the opinions of the largest, most informed market participants.

Payments For Order Flow: Given that TradeZero is a destination for active traders who may take more of an issue with Payments for Order Flow (PFOF), Pipitone is working on other methods to monetize.

“I believe all of the exchanges are getting ahead of potential regulation over Payment for Order Flow,” Pipitone said in reference to the creation of new order types designed specifically for the retail trader.

“The exchanges are mindful of that and they’re positioning themselves, along with their members,” he added in reference to procuring exchange memberships to seamlessly adopt new methods for routing.

TradeZero Going Forward: Just last month, retail investors bought nearly $28 billion in stocks and exchange-traded funds, the highest amount deployed in a single month since 2014.

That, according to Pipitone, is a positive sign, with meme stock volatility disappearing as active traders return to work.

“Intraday volatility always existed,” he said in reference to being the go-to platform to trade volatility both ways.

“Now, those meme traders are transitioning over to just being more volatility traders.”

In keeping those traders that remain informed on the latest education and market insights, TradeZero will be joined by market veteran Stephen Kalayjian of Ticker Tocker.

Additionally, to promote its cryptocurrency offer, TradeZero purchased the license to a New York Yankees hospitality suite in Yankee Stadium in Bitcoin, marking the ball club’s first transaction using the digital currency.

“We’re giving out tickets to games throughout the summer,” Pipitone said. “There are 16 tickets per game.”

For a chance to be invited, Pipitone encourages readers to follow TradeZero’s Twitter page and retweet the pinned post.

Photo: the TradeZero platform. 

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Posted In: BitcoincboeDan PipitoneDave PortnoyNYSE AMEXPayments For Order FlowPFOFStephen KalayjianTicker TockerTradeZeroVWAPYankees StadiumCryptocurrencyFintechOptionsExclusivesMarketsInterview