Zecco Trading Review

Large volumes of stock trades are transacted daily. However, an analysis of the history of discount brokerages reveals that there was no brokerage, which offered extremely cheap rates for stock trades. Zecco hit the market as a discount brokerage that offered commission free stock trades for its clients. Over the years, it has garnered a decent clientele. However, its not so powerful trading platform and its frequent policy changes leave a lot to be desired.

Keep reading this Zecco review for more information and to find out if Zecco is the right brokerage for you!

Zecco entered the market as brokerage offering commission-free stock trades. Initially, this number was limited to 40 stock trades per month and no account minimum. Zecco, however, revised this twice over the past few years. From 2008 onwards, Zecco offered only 10 free trades per month and that too only to clients who had a minimum of $2500 in their accounts. Currently, Zecco has increased the minimum amount qualifying you for free trades from $2500 to $25000 for 10 free trades per month.

Zecco charges $4.95 per stock trade. This is much lesser than what many of its higher-rated competitors charge. This rate is applicable for both market and limit trades. Zecco also offers broker-assisted trades at a rate of $19.99 per transaction. Options, on the other hand can be traded at $4.95 per trade and an additional $0.65 for every contract. This works out very cheap if the number of contracts is low. However, for large volumes, this is extremely high priced. If the options trading is broker-assisted, then you will be charged $19.99 plus $0.75 per contract.

Zecco offers purchase and sale of No-load Mutual funds. If the sale is internet-based, then you are charged $10 per transaction. Broker-assisted transactions are charged $19.99. Bonds can be transacted at a very cheap $4.50 per bond. The minimum per transaction however has been set at $22.5 per transaction. Treasury transactions are charged are $24.50 per transaction.

Zecco also offers trading in currencies. This is not provided by most of its competitors and it provides Zecco with a huge advantage. The spreads are 1-2 pips for most pairs.

Zecco offers a limited number of investment vehicles. It offers trading in stocks (Market and Limit), Options, mutual funds, bonds and US treasury issues. One investment vehicle that is not offered by most other discount brokerages is currencies. As mentioned earlier, Zecco offers trading in this too.

Pros/Advantages:
The pricing program offered by Zecco is one of the cheapest in the market.
It does not charge any account minimum.
It also does not charge inactivity fees. This is good if you are an investor who follows the buy and hold strategy.
They also have a novel Facebook app.

Cons/Disadvantages:
The free trading platform is very basic. In order to upgrade to the higher versions, you have to pay.
The trading platform is very basic and is not suited for experienced investors.

Zecco offers a trading platform that is very basic. They have different tools for different purposes. You have tools for identify potential investments and for analyzing them. You also have tools for trading and for monitoring your portfolio.

Zecco offers new investors educational tools for learning the nuances of stock, options trading etc. They offer many educational videos too. These videos are highly informative and provide a lot of information on various topics such as stock trading, online trading and even retirement.

Zecco has a decent customer service program. The customer service program can be contacted by e-mail, chat or telephone. In addition, they also have an online trading community called ZeccoShare, where you can discuss your problems with other investors.

Zecco lets you invest with many types of accounts such as individual, joint, custodial, corporate, partnership accounts etc. It also lets you open a Traditional IRA, Roth IRA or 401(k) Rollover IRA depending on your needs.

Zecco does not charge any account minimum.

For more information, check out another Zecco review!