Important Change Regarding How Tradezero Charges For Overnight Borrow (ONB) Fees

TradeZero provides an Estimated Overnight Borrow Calculator to help you understand and manage the costs of holding a short position overnight.

Please note:

Any displayed intraday overnight borrow rates are estimates and subject to change throughout the trading day.

TradeZero’s actual overnight borrow rates are established on T+1, settlement, and based on the close of regular trading hours (4:00 pm Eastern Time). However, the actual rate is not known until T+2, when TradeZero is actually charged by our clearing firm.

Overnight borrow rates can vary significantly from day to day.

If you hold a short position overnight for one or more nights, you agree that TradeZero will charge the actual overnight borrow rate applicable for each night until the position is covered. As a result, it is important to check the estimated cost daily if you plan on holding a short position for more than one day. You are ultimately responsible for all risks and costs associated with your trading.

Beginning April 1, 2025, when you hold a security short overnight, TradeZero will hold back an estimated amount to cover the overnight borrow fee on the trade date from your account balance. When the overnight borrow fee is charged by our clearing firm, on T+2, the estimated amount held back from your account, will be returned, and the actual overnight borrow fee will be deducted from your account.

• For example:
  
  Entry Date: 3/17/2025
  Deposit: $0.00
  Withdraw: $20.00
  Type: Locate & Borrow Charge
  Note: ONB Estimate Hold
  
  Entry Date: 3/19/2025
  Deposit: $20.00
  Withdraw: $0.00
  Type: Locate & Borrow Charge
  Note: ONB Estimate Return
  
  Entry Date: 3/19/2025
  Deposit: $0.00
  Withdraw: $18.00
  Type: Locate & Borrow Charge
  Note: ONB Actual
  

If you hold a short position after 8PM Eastern Time on Friday, the cutoff period to close your position, you will NOT be charged overnight borrow fees for the weekend due to the short trade settling on Monday. However, all short positions, if held after 8PM Eastern Time on Thursday, the cutoff period
to close your position, will be charged overnight borrow fees for
the weekend due to any covering trade not settling until Monday at the
earliest. It is important to understand, an overnight borrow fee is based on
settlement (T+1) date.

• For example:
  
  Entry Date: 3/10/2025
  Deposit: $0.00
  Withdraw: $10.00
  Type: Locate & Borrow Charge
  Note: ONB Estimate Hold t/d 3/10/2025
  
  Entry Date: 3/12/2025
  Deposit: $10.00
  Withdraw: $0.00
  Type: Locate & Borrow Charge
  Note: ONB Estimate Returned t/d 3/10/2025
  
  Entry Date: 3/12/2025
  Deposit: $0.00
  Withdraw: $8.00
  Type: Locate & Borrow Charge
  Note: ONB Actual Fee t/d 3/10/2025

Important: For shorts held overnight on Thursdays:
all short positions held after 8PM Eastern Time (the cutoff period to close your position) on Thursday, will be charged overnight borrow fees for the weekend due to any covering trade not settling until Monday at the earliest. It is important to understand, an overnight borrow fee is based on
settlement (T+1) date but charged by our clearing firm on T+2 date. If you hold a position short overnight on Thursday, your account will incur 3 nights of overnight borrow fees as the earliest a short position held overnight on Thursday can settle, will be Monday.