Hey guys - this is Dan Pipitone, Co-Founder from TradeZero. You wouldn’t believe the shit going on behind the scenes right now. 10 hedge funds have fallen, and our clearing firm emailed to block ALL trading platforms from $GME, $AMC, and the like.

That some trading firms are blocking these symbols is disgusting, unprecedented, and beyond fucked up. Our clearing firm tried to make us block you, and we refused - after 3 hours on the phone they backed down.

So - ask away! ANYTHING. There’s some things I might not be able to touch on because of licensing restrictions. Anything that’s not a literal compliance requirement, I’ll level with you.

What this has been like running a trading firm, the communications we’re getting from clearing firms, what I’m hearing in the background, apocalyptic collapses in the financial sector, questions about TradeZero, whatever.

On a personal note - you’re a bunch of goddamn heroes. This has been one of the most exciting weeks of my career and holy shit have you autists sent earthquakes through the system.

(I tried to post this on /r/wallstreetbets, but it keeps getting removed. Looking forward to doing an AMA there once the mods approve me!)

For "yes I am me" stuff:

LinkedIn: https://www.linkedin.com/in/daniel-pipitone-579560b/

Twitter Verification:


Fire away!

-Dan (tradezero_dan)


Okay guys this AMA is over but we will be around. In fact if you’re interested in joining this team, please contact us at [email protected]. We’re primarily looking for mobile developers but if you have passion and willing to hit the ground running, don’t hesitate to send us your resume! We’re looking to improve and be better than ever.

Comments: 1708 • Responses: 45  • Date: 

nico10162125 karma

How does Trade Zero make money if it doesn't charge for commissions? Do you do the same thing as Robinhood and sell deal flow and information to large institutional players like hedge funds?

If so, what are you doing to mitigate any conflicts of interest moving forward?

tradezero_dan3321 karma

TradeZero makes money on short interest and short locates. RH doesn’t allow shorting. Every firm out there must post their 606 report for order routing. We make about .$70 per 1000 shares while the boys at RH make $2.60 per 1000. That difference translates to price improvement for our clients and not $ for us! In addition, non marketable limit orders are routed directly to exchanges like NASDAQ. This can be verified by viewing the 606 reports on every brokers website. Including ours. We also make $ on margin interest and finally on platform subscriptions.


grishnackh273 karma

Props to you for honesty despite being crapped on already in the comments to this question.

I think I’ll look at signing up to your platform.

tradezero_dan332 karma

No cap, we didn’t see this comment until now. If you haven’t noticed, market has been a little insane ;) It’s been incredibly busy and we needed to unwind a bit. we had no issue telling you guys our pricing structure. Apologies on the delay. It’s Friday night

TheGreatGuidini124 karma

I can’t tell if you’re saying no cap ironically or not.

tradezero_dan240 karma

I’m not as young as I look.

MoistBootyBoy1025 karma

Will you sell your client order data to hedge funds?

tradezero_dan1862 karma

FUCK NO! And we've been approached

yoitsn8747 karma

The Interactive Brokers founder explicitly stated that they stopped allowing buying in order to protect themselves from having to pick up the tab for the shorts, which also means they intentionally stole from retail investors in order to help pick up the tab. What can be done about this?

tradezero_dan1290 karma

And honestly - this is showing which firms are actually on the side of their customers, and who is just posing in their PR materials. When push comes to shove, Robinhood and IB refused to stand by their customers.

Customers must revolt, or it will happen again and again. Vote with your business.

mac-one-oh302 karma

What's it going to cost to transfer my portfolio from IB to TZ?

tradezero_dan823 karma

We will pay your transfer fees in. So $0

Socaboy23233 karma

is this US only or is there access to this in Canada?

tradezero_dan457 karma

Canada also! Email our support team and they will get this 100% covered for you.

tradezero_dan173 karma

You can switch brokers!

Comfortable-Spread54538 karma

Hi - many traders lost large amounts of capital when TradeZero went offline for hours - and returned to huge red positions.

These losses incurred - how can this be prevented in the future and does TZ take any accountability or responsibility for this?

tradezero_dan839 karma

We are always trying to ensure that the platform is up 100% of the time. There are a ton of moving parts to these systems. We are aware of some users experiencing down time on the web platform this week, we are implementing the following steps:

A back up simple order entry form so that web users will have a back up, in addition to the mobile app. In addition, any web user that wishes to try the Pro platform, we will provide it free for three months. Just come to the live chat or email us at [[email protected]](mailto:[email protected]) and we will enable the Pro free for three months.

Our whole engineering team was fighting like crazy to keep things live yesterday - downtime is horrible, and we work our asses off to avoid it. That said, like u/rykerrk said, this does happen occasionally for any trading firm.

We managed to scale to 100x the volume in 2 hours. In comparison, Robinhood was down for 48 hours straight last year.

That’s no excuse though. We want to curb stomp them on stability AS WELL as functionality. Our VP Engineering is very much on top of our scaling requirements, and performance will CONSTANTLY improve.

mutesillo531 karma

Do you think any of the people involved in this situation both sides will face legal repercussions? Im hoping the hedge funds pay for this mess. Thanks. Have a nice day.

tradezero_dan630 karma

I dont think individuals will. IT will definitely be interesting to see. That may change if there were some folks that were really leading the charge to trade collusively

kevlinson514 karma

What was the conversation like with the clearing firms yesterday?

tradezero_dan1796 karma

Well there were at least 100 F bombs thrown at them. I was like theres NO WAY we are shutting these off. Shut me down, do what you have to do, but this is still America and who are you to tell people that they cant trade their $

YossaRedMage379 karma

Here's the big question: What does all this mean for the overall market? Many people are talking about a big correction on the horizon, and the SPY daily isn't looking too hot.

tradezero_dan663 karma

Well the market has been on a tear for almost a year with the Fed contiuously pumping money in. When that stops, so will the party!

haltowork370 karma

Hi Dan,

On your email you said you would mention hedge funds that are going down by the hour. Could you give some more information on that? Is there merit to holding GME to cause a squeeze?


tradezero_dan470 karma

While I cannot recommend buying or selling. I would say, BE CAREFUL! These are HIGHLY volatile stocks and make sure you are using only risk capital!

Consweyla260 karma

What are your thoughts on the outcome of more well known trading sites like Robinhood; do you see them lifting restrictions? What kind of pressure is being applied to them? Aside from your apparent defiance, why were they forced to cave when you weren't?

tradezero_dan448 karma

They actually just added some more restrictions in. So this DOES NOT look like a one off. Fasten your seatbelts RH users

peetar245 karma

Have you received any calls from a government entity instructing or asking you to shutdown buying of these volatile stocks? SEC, someone in Biden's administration, etc?

tradezero_dan566 karma

Nope! Because its not the SEC. It is firms MISMANAGING their capital and then having to force people to not open new positions

tradezero_dan235 karma

HEADS UP - going to have to head off in 10 minutes, been going for an hour and a half .

We'll definitely be doing this again - sorry if I couldn't get to your question!

In the meantime, be sure to go to https://tradezero.co and signup for your TZ account.

  • Real customer service that actually picks up the phone.
  • Robust short functionality, including shorting hard to borrow stocks
  • Support for all platforms - web, android, iOS, PC. Wherever you want to trade, we're there.
  • A leadership team that will go thermonuclear on clearing firms if they try to block your trades. Screw everyone that rolled over on this.

Catch you all soon!

feelsbadmannnnn196 karma

How hard was it to find GME short locates?

YourReactionsRWrong198 karma

GME locates were NOT available at all. ZERO. The last day I got a short locate was 1/25, and that was the day they increased margin requirments for GME. By doing that, I couldn't credit back my shares (error said: insufficient shares).

tradezero_dan351 karma

GME has been extremely tough to borrow., As GME has been on the NYSE threshold list which means that locates can only be used one time. So whenever we have shares to borrow on a threshold security, the borrow/locate rate accepted includes not only the fee to locate, but also the fee to hold those shares short for the fisrt night

feelsbadmannnnn22 karma

Did u have any luck with AMC or NOK?

tradezero_dan51 karma

Yep had and have those both long and short.

ObsoleteBane131 karma

Hi Dan, appreciate you doing this and having the balls to stand up for what's right! Off topic question, will TradeZero platform ever be available on Mac?! lol

tradezero_dan155 karma

LOVE IT!!!! Yes.... We are working on a Mac version. Right now you have the Web Pro which is full streaming and also a totally customizable layout

jelloh91115 karma

Do you think the big squeeze happened yet?

tradezero_dan305 karma

We are in it! The RETAIL RECKONING IS OCCURRING And the hedgies aer all scrambong to rework their algos

AshenAmarantos210 karma

hedgies aer all scrambong

"Scrambong" is an excellent misspelling.

tradezero_dan63 karma

LOL! Just noticed that

flibbidygibbit100 karma

How likely is it that the Hedgies will resort to a life of bike messengering while squatting in an abandoned warehouse?

tradezero_dan106 karma

Not very! But a hysterical visual!

OklahomaMeat89 karma

Is it possible to move my portfolio from RH to TradeZero?

tradezero_dan151 karma

Yes, just open a new account and then you can fill out the ACAT form and we can pull the RH account

mac-one-oh86 karma

Do you think the markets are down because institutions are selling off positions to cover their losses on shorts?

tradezero_dan153 karma

I think thats part of it..... But also with the country shutting down, entire industries still shuttered, the rise and fall of the market has been inline with the promise or the dissemination of stimulus

Martintradenow83 karma

Is Tradezero going bankrupt?

tradezero_dan260 karma

TradeZero is well capitalized. we signed 5k+ accounts yesterday, we’re profitable, and grew 3x in 2020. Growth rate is accelerating in 2021 by a LOT

983A55 karma

Why do the clearing firms care about restricting trades? Don't they just settle transactions?

tradezero_dan99 karma

They have capital requirements based on the notional value that the firms that clear there trade. The notional value is max exposure of a firm, So the firms were asked for larger sums on deposit with regulatory . Some were unwilling or unable to meet those calls, thus they shut down trading!

solidg8352 karma

What do you think will be the future for retail traders? Is anything going to change?

tradezero_dan107 karma

The Retail Reckoning is here. And while the Fed continues to pump in $, this will continue imo

Wrdesantis46 karma

Why do locate prices fluctuate? Is it algorithm based, nothing more annoying then wanting to add into a winner but the locate doubled, and then after new lows 10minutes later its back to the original price, thanks :D

tradezero_dan65 karma

Locate prices will fluctuate as we buy through less expensive locates and get to higher priced ones. Then sometimes when we are onto a higher priced vendor, someone with less expensive shares will come in and the price will go down.

Wrdesantis43 karma

Why the poor execution arrows for entries and exits?!?! I there its fair to say a majority of traders would prefer DAS like execution arrows on TZ Pro, why not at least give the option, some executions can be so tricky to read, thanks

tradezero_dan61 karma

Noted! We will adjust those.

BTW... Did you see that there is a new version of ZeroPro out today? Has some cool stuff like Hot Buttons! Check it out

YourReactionsRWrong42 karma

How is your recent growth in new registrations, good for current customers/clients, when you tout your expansion as a good thing? The bigger the platform, the more lag and load it endures, which happens frequently on the OPEN. Secondly, more people means short locates & borrows harder to find (or more expensive). Both of these things is bad news for people on your platform. Address this concern, for your current customer.

tradezero_dan61 karma

It shows that more folks are putting their trust in us.. And we have expended locate supply and are further increasing it with some new relationships. A lot will be noticeable with respect to locate rates in the next couple weeks. Stay Tuned!

kevlinson32 karma

A stock that wasn’t really talked about yesterday that was restricted yesterday was GBR. I managed to get a position in tradezero, but other brokers restricted it even though it wasn’t part of the WSB madness. Thoughts?

tradezero_dan38 karma

We had it available. Both LONG and SHORT!

laley129815 karma

Hey Dan, Thanks for doing this!

My question is will you be selling cryptocurrencies?

tradezero_dan46 karma

Potentially - working on it! Not something in the next 6 months but definitely something we want to do, and will do.

EVERYONE wants this, so it's an obvious thing to build. A lot of our roadmap is doubling and tripling down on our short functionality. Most firms don't offer short locates, so if you want to short something that isn't TSLA, you're hosed.

There's a lot of technical infrastructure that goes into that kind of stuff. We're also vastly expanding our options capabilities in the months to come.

tradezero_dan24 karma

Especially to do it right

Salami60606065 karma

Have you invested in gme?

tradezero_dan19 karma

I have not personally. Im long $BA right not.. BORING!!

Socaboy233 karma

Is TZ available in Canada?

tradezero_dan3 karma

YES! Visit tradezero.co - TradeZero International has no PDT rules whatsoever, and 6:1 margin with low deposit requirements. check it out

Remarkable-Ad-95023 karma

Hey Dan. Your outgoing wire transfer fees are A LOT. IB offers first free and then $10 USD. Why chage a lot? Lower the Wire fees. Trust me you will get way more customers!

tradezero_dan3 karma

Great thought. We are going to lower that!

CrassostreaVirginica2 karma

Hi tradezero_dan, your post has been removed because:

Your post has been removed because it lacks adequate proof.

Unfortunately, the links or photos you've posted could have been posted by anyone, and they don't prove that you are the person doing the AMA. Your proof needs to be something that connects the fact that you're doing an AMA with your identity. This could be something like a photo of you showing what you're doing the AMA about with a sign that has your username and the date. It could also be documents (partially redacted if desired) with a note that has the username and the date.

Here's a link to the section of our wiki that discusses proof.

Please let us know when the proof has been added by replying here and we'll put the post back up. Cheers!

Please contact the mods if you need further assistance

tradezero_dan6 karma

Hi there! Sure thing. Below's another photo verification.


Also, our official twitter accounts have been updated with a link to the post. Thanks!

CrassostreaVirginica5 karma

Ok, your post has been reapproved. Please edit the specific proof links into the AMA introduction.

tradezero_dan6 karma

You bet - doing that now. Thanks!

jdos09142 karma

Why did you change your minimum deposit from $500 to $2500 when you had an influx of new users?

tradezero_dan5 karma

We did not! Our minimum is and has always been $2500. TZ Intl has a lower minimum (for non US folks). However, for smaller accounts, please check out OpenHand. www.openhand.com

[deleted]2 karma


tradezero_dan5 karma

live chat

ieatpixeldust1 karma

Is tradezero ready and scalable for the influx of customers. Keeping the service fast and reliable?

tradezero_dan2 karma

Yes, have and are bringing in additional staff as we speak!

ashkaydontcare1 karma

I’m kind of scared to finish the application for Trade Zero. There’s a lot of signing involved, why?

tradezero_dan6 karma

Well these are all legal docs that require your acceptance. Because our service is geared towards active traders, things like the day trading risk disclosure, the pre and post trading disclosures and the penny stock risk disclosure require signatures. Hopefully this will put you at ease. If not feel free to call us with any questions: 718-709-4925