Wednesday, May 14, 2008

Discount Online Trading Broker Zecco Review

Here's a review on my primary discount brokerage firm, Zecco.com.

Fees/Commissions: Zecco.com offers $0 commissions up to 10 trades per day or 40 trades per month. Commission fees are $3.50 after the free trade requirement is met. Options trading is $3.50 + $0.60 per contract. They offer no-load mutual funds for $10 a transaction.

Investments Offered: Zecco offers basic investments including stocks, options, mutual funds and ETFs.

Platform Features: Zecco's platform provides real-time quotes, graphs, and options chains. The more informal platform, myZecco, has forums and blogs for other investors/traders to swap ideas and questions. Zecco also has a small table below your main trade window with lines for various quotes that can be updated on the fly without having to leave the current screen.

Security: Zecco has two layers of security. First, you must access your myZecco page. From there, you can log in to any of your trading accounts using a different password. Zecco is also an SIPC member.

Ease of Use: Their trading platform was not as easy to use as TradeKing's, but it's sufficient for the first time investor. In order to join their money market sweep program, you must contact their customer service directly.

Support: Zecco's main form of communication is via e-mail. They normally respond rather quickly during business hours. I did recieve an e-mail from Zecco once during the weekend so it does appear that they have a skeletal crew working the weekend shifts.

Pros

  • Two layers of security
  • ACH link was extremely quick (about 2 business days)
  • Allow for beginning options trading with little to no investing experience
  • FREE Commissions (as long as you don't pass their limits)
  • Money market sweeps average about 4%
  • Daily snail mail transaction reports

Cons

  • Money market sweeps requires minimum of $500 in your cash account to be eligible
  • ACH deposits can take a couple of business days to clear
  • Sales of equities can take a couple of business days to clear into your account
  • Not the most appealing platform
  • No after hours trading
Summary:

Zecco.com appears to be gaining steam in the discount brokerage game. It's very difficult to top a $0 commission fee on regular equities. Their options fees are also very low. Their ACH process was much quicker than TradeKing's. Customer service has been quick to respond to my e-mails (less than 24 hours during business days). Zecco does not offer after hours trading (TradeKing does but requires you to call it in) which is either a blessing or a curse. There have been nights I wished I could have jumped in after hours. It does force some discipline though. Overall Zecco's a very solid discount broker with great fees (or lack thereof). Remember though that you do get what you pay for. Don't expect much in the way or aesthetics or research. The forums and blogs can be useful but I prefer other sites for my research and interaction with other investors.

100% Free Stock Trade - Open Your Account at Zecco.com Now


Tuesday, May 13, 2008

Free Online Trading - Zecco

Free Online Trading? Yes!

Look at what I found - $0 Stock Trades

10 each month with $2,500. $4.50 otherwise.

Free trades? What's the catch?

There is no catch. Zecco.com can give away free trades because the cost of executing a trade has become very low. And like other brokerages, they make money on interest income and options trades. Pretty simple, right?

Sign up FREE Online Stock Trading here!