How can TradeZero Europe offer commission-free stock trading?

TradeZero Europe offers both Free Limit Orders and Paid Orders.

Free Limit Orders

Limit Orders need to meet certain criteria to be commission-free. The most important requirement is that the limit order must not create an immediate match in the market. This means the limit order adds liquidity to the market. These orders can have economic value in the U.S. market structure because they help make buying and selling easier for other market participants. That value can help offset the commission that would otherwise be charged.

Let’s unpack this:

• A Limit Order means: “Only buy or sell at the price I choose, or better.” A limit order gives you price control. You will not accidentally pay more than your chosen price when buying, or receive less than your chosen price when selling. The trade-off is that your order may not execute. If the market never reaches your chosen price, nothing happens.
• “Not create an immediate match in the market” means your order does not trade right away. For example, this may happen when your buy limit price is below the current market price, or your sell limit price is above the current market price. In that case, your order waits on the market until another participant is willing to trade at your chosen price.
• “Adding liquidity” means your order becomes available in the market for someone else to trade against. In very simple terms, it is like placing an item on a shelf in a shop. It does not sell immediately, but it is now available for someone else who wants it. A buy limit order adds buying interest to the market; a sell limit order adds selling interest. This helps make it easier for other market participants to buy or sell later.
• Why is adding liquidity valuable? Because markets work better when more orders are available. It is like a shop with fuller shelves: buyers and sellers can trade more easily. In a market structure, that can have economic value, which can help offset the commission that would otherwise be charged.

In summary, eligible commission-free stock orders must be non-marketable limit orders. This means the order must not create an immediate match and must rest on the market for at least one second. The order must also be for 200 shares or more, relate to a stock trading on NYSE, AMEX or NASDAQ, and the stock must be priced above USD 1.00. Please see our complete Fee Schedule for all details.

Paid Orders

Unlike non-marketable limit orders, some orders are designed to execute immediately. These include Market Orders and Marketable Limit Orders. Because they trade against orders that are already available in the market, they remove liquidity rather than add it. These orders are therefore charged under our standard pricing schedule.

TradeZero Europe does not receive any rebate or fee in return for transmitting your orders. Where executing brokers route TradeZero Europe orders to execution venues or execution partners, they must comply with applicable laws and best execution obligations, even if they receive an exchange rebate.