LBMZ Securities, Inc. (“LBMZ”, “we”, “us” or “our firm”), which operates as Zacks Trade, is a registered broker-dealer with the SEC and is a member of FINRA that provides self-directed brokerage accounts. Brokerage and advisory services differ. It is important to understand the differences between brokerage and advisory accounts. For your convenience, free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers and investing.
What investment services and advice can you provide me?
We offer self-directed brokerage accounts. If you open a brokerage account, you will pay us a transaction-based fee, generally referred to as a commission, every time you buy or sell an investment.
Our firm does not make recommendations; the decision as to your investment strategy and the purchase or sale of investments will be yours.
We do not offer account monitoring. We do not send you account statements by mail. You will receive account statements each quarter electronically directly from our executing broker. Your account statements are available online.
We offer only exchange-traded securities and options. We do not offer proprietary products or a limited menu of products or types or investments. There is a minimum account size of $2,500 to establish a brokerage account, which we may waive at our discretion. Our clearing broker may charge you additional fees, such as custodian fees, account maintenance fees, and account inactivity fees.
Some questions you might ask our representatives:
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Given my financial situation, should I choose a brokerage service? Why or why not? |
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How will you choose investments to recommend to me? |
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What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean? |
What fees will I pay?
The fee you pay is based on the specific transaction and not the value of your account. With stocks or exchange-traded funds, this fee is usually a separate commission. With options you pay a premium fee for each contract.
Our fees vary. The amount you pay will depend, for example, on how much you buy or sell and what type of investment you buy or sell.
LBMZ is an introducing broker. We do not clear or settle transactions.
The more transactions in your account, the more fees we charge you. A possible conflict of interest would be encouraging a retail investor to engage in transactions.
Fees and costs affect the value of your account over time. Please refer to your account documentation for personalized information on the fees and costs that you will pay.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
A question you might ask our representatives:
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Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me? |
What are your legal obligations to me when providing recommendations? How else does your firm make money and what conflicts of interest do you have?
We offer only self-directed trading. We do not provide recommendations. The way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the services we provide you. In other words, the more you trade, the more money we make. We therefore have an incentive for you to trade more. In addition, we may have an incentive for you to make transactions in securities which bear higher fees or commissions to us.
A question you might ask our representatives:
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How might your conflicts of interest affect me, and how will you address them? |
How do your financial professionals make money?
Our financial professionals are paid a salary and a bonus based on the revenue the firm receives.
Do you or your financial professionals have legal or disciplinary history?
Yes. Please visit Investor.gov/CRS for a free and simple search tool to research our firm and your financial professional. To help you better understand our disciplinary history, you can ask us:
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As a financial professional, do you have any disciplinary history? For what type of conduct? |
For additional information about our brokers and services, visit Investor.gov, BrokerCheck (BrokerCheck.Finra.org), our web site (zackstrade.com), and your account agreement.
To report a problem to the SEC, visit Investor.gov or call the SEC’s toll-free investor assistance line at (800) 732-0330. To report a problem to FINRA, call 301-590-6500. If you have a problem with your investments, account or financial professional, contact us in writing at [email protected]. You can request up-to-date information about our firm, as well as a copy of our relationship summary via [email protected] or 312-265-9406 Local 888-979-2257 Toll Free.
A question you might ask our representatives:
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Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me? |