UPDATE: In order to qualify for 10 free trades your account must be valued at $25,000.
Looking for an easy way to cut your investing commissions? Many investors pay up to $10 per trade. If you have millions to invest, I guess $10 is nothing more than change, but the fact is, many non professional investors don’t have anywhere close to millions to invest and that $10 could be better used working for you. Zecco offers investors the opportunity to put that $10 to work. If you make 1 trade per month and saved that $10 in a high yield savings account at a modest 3% interest rate you would have $5,581.94 after 30 years. With the market average of 10% per year, that’s $22,803.25 from just $10 a month. Isn’t it time for you to drop your commissions?
Zecco Account Requirements
First, before going any further you should know the requirements for opening a trading account with Zecco. In order to receive free trades your account value must be at least $2,500 $25,000. There is no minimum account value for cash trading; margin accounts must open an account with at least $2,000 and maintain at least $2,000 to trade on margin. If you meat the $2,500 $25,000 account level, you receive 10 free equity trades per month.
Zecco Commissions
Equity Trades (Stocks and ETFs)
If you don’t meet the $2,500 $25,000 account level or go over the 10 free equity trades, you will only pay $4.50 per trade; still one of the lowest commissions in the industry.
Options
Option trades are $4.50 plus $0.50 per contract. Once again, Zecco is one of the lowest commissions among discount brokers. Exercise and Assignments are $4.50.
Mutual Funds
If you are a mutual fund investor, Zecco might no be for you. No Load Funds are $10, broker assisted $19.99.
Who Is Zecco For?
Zecco is NOT for active day traders; you’re better off going to a direct access broker. For those who are looking at building an income portfolio, those who swing trade, or just a small investor investing for the long haul, Zecco is a great way to decrease your commissions or eliminate them all together.
Research tools at Zecco are rather limited but are constantly improving and they are adding more tools. Many sites are available online to conduct stock research and you really don’t need your broker. Yahoo Finance, Google Finance, and MSN Money offer a lot of information for investors to use. Spend some time digging through these sites and you’ll find almost anything you want.
How Can Zecco Offer Free Trades?
Well, take a trip to their site and you will see something that is uncommon with brokers…advertisers. Zecco uses advertising to make some of their income. They also make money off interest, which almost every broker does. Then of course, they make money off commission when applicable.
I use Zecco for an income portfolio and a few swing trades. I am satisfied with the service.
No longer using Zecco, I wen’t back to Scottrade! Read Why.
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