Recently, I received an email from Zecco about changes to my account. This makes the second change within the time I have had an account with Zecco. I transferred my portfolio from Scottrade to Zecco to save on commissions. Then, the first notice came stating that my account had to be valued at $2,500 to receive 10 free trades; before it was unlimited free trades no minimum. Big difference but I didn’t make many trades in this account, so, I keep the account open. This morning, I woke up to another email from Zecco stating that my account has changed once again.
Now, Zecco wants $25,000 for you to get 10 free trades, this is the same value that gives you 100 trades per year with Wells Fargo and 30 per month with Bank Of America. Why would anyone want to stay with Zecco? When I opened the account, they were all about helping the little guy; $25,000 isn’t necessarily a little guy. I used Zecco to build a dividend portfolio for investment income but with the ever changing terms over my time with Zecco, I think its time for me to say goodbye.
So, I am transferring back to Scottrade which I have been using for research, since Zecco lacked it. Commissions might be a little higher but I am ready to pay extra cost for more certainty. Scottrade also offers fixed income, which Zecco lacked.
I look for Zecco to go belly up, as many people left them on the first change to commissions. There is currently no reason to go to Zecco. Commissions are still $4.50 but the platform is probably the worst in the industry and costumer service is poor, probably worse now with the mass exodus.
I thank Zecco for the free trades but with so many changes to their business model since being with them, I get a feeling the company might be in trouble. So, I am getting out now before getting hit with higher commissions and fees if I wait.
Tags: BrokersStumble it!
Digg This Article
Subscribe To The DailyMoneyAdvice.com Feed
