I have now had my Zecco Trading account for over a year now and here is an updated review.
About Zecco is an online broker started on July 4, 2006 that offers free stock trades and low cost option trading. Zecco says it will make money from interest income and margin spreads, as well as by charging a low fee for options trades. Zecco also hopes to attract advertisers to its financial portal site.
Cost I have made 127 stock trades since I have opened my account with Zecco and I have paid $13.50 in commission. I have made 124 buys and 3 sells. I also paid $.07 in fees associated with the sell orders. Comparing the Zecco account with my Scottrade account, I have saved $875.50! There are no account fees for regular accounts but there is an annual charge of $30 for IRA accounts. You get 10 free trades a month with a minimum net account account equity of $2,500 and after 10 trades you are charged $4.50 per trade. Online options trades cost $4.50 plus $.50 per contract with no minimums and online mutual fund trades are $10. Here is a link to all Zecco fees.
Flexibility I love the ability to make small purchases to help create a well diversified portfolio with a limited amount of assets. I can use dividends from a couple of my large stocks to make purchases into new holdings, again allowing me to diversify my portfolio at no cost.
Ease of use You can now open an account online through a very streamlined process compared to the paper process I went through. Once you are logged into the Trading Center there is a simple to use Stock Order Entry. You enter the stock symbol, buy or sell and the number of shares. It also allows limit orders on this same entry form. Trades are processed very quickly and I have not noticed any difference in execution versus Scottrade.
Trading Tools There are limited trading tools to help with additional financial analysis of stocks. Zecco does offer Motley Fools stock rating “CAPS”.
Customer Service The customer service I have received has been very good. You can contact customer service via email or phone. I had a question on my account when I first opened the account which I submitted via email that was answered the next day. I also transferred stocks from Scottrade via ACAT and the process was very smooth and took about two weeks. I also enjoy the ability to process online ACH bank transfers to and from my Zecco account.
Community Zecco offers a program called Share which is in beta testing. Zecco Share is a secure area where Zecco account holders can share trade history, make blog posts and write comments to other users. If you are a Zecco member, you can follow my trades under my user name ZEEMAN.
Overall I have to say I have been very pleased with my Zecco account and would recommend Zecco to anyone who wants to save money on stock trades. If you are skeptical, open an account and purchase as little as one share to see how it works. Give Zecco a try if you're a novice investor or a seasoned investor, you can't beat free stock trades!