Zecco.com - Free Online Trading

[LEYKIS101]

http://www.zecco.com/Default.aspx

Does anyone use them or heard anything about Zecco? Looks very good from their FAQ page, just never heard of them.

 

[ivyconniver]

They've been around for about a year now, free trades if you start with a balance above $2500. They're legit.

 

[ivyconniver]

actually, I just checked again, they removed the $2500 minimum, now it's just free all the time.

If you know your way around brokerage termanology and don't need someone holding your hand, it's a great way to get free trades. Super for the young investors who would get killed with $7-$10 commissions on each side.

 

[D2bets]

actually, I just checked again, they removed the $2500 minimum, now it's just free all the time.

If you know your way around brokerage termanology and don't need someone holding your hand, it's a great way to get free trades. Super for the young investors who would get killed with $7-$10 commissions on each side.

They must make money somehow. How do they earn revenue?

 

[LEYKIS101]

They must make money somehow. How do they earn revenue?

They say by margin accounts and "premium products like options", but I'd think a free trading promotion wouldn't attract a lot of people buying on margin, only they know that I guess.

From their FAQ's:
http://www.zecco.com/reference/faq.aspx

"How do you make money then?
We make money from the interest on margin balances. It’s a small amount, about 3%, but on a large volume of customers it becomes a tidy sum. Secondly, we do charge commission for premium brokerage products like options trading. At $3.5 per trade and 60 cents per contract we’re still among the very cheapest around but we do make money from these transactions. Keeping our costs down is equally important. We don’t spend $5 of every commission marketing to you. And we don’t spend $400 in advertising for every new account. We attract customers like you by having the best deal in the market. Lastly, we’re building an online financial community where investors can connect with investors. Where you can find all the tools and information you need to trade, plus gain access to financial blogs, forums, and up-to-the minute financial news. We think that’s a winning combination for advertisers"

 

[ivyconniver]

I think there's some serious money to be made by them off advertising and affiliate deals as well

 

[BigM+]

it's legit, been using them for almost a year

perfect site for the average investor

 

[asufan550]

What exactly is a margin account?

 

[sunnyblue100]

A margin account is an account offered by brokerages that allows investors to borrow money to buy securities. An investor might put down 50% of the value of a purchase and borrow the rest from the broker.

 

[sunnyblue100]

So I guess they made part of their profit from the interest they charge for the right to borrow money.

 

[sunnyblue100]

I guess for the broker that offers this kind of free trade, the execution speed won't be great? not good for momentum kind of trade?

 

[sunnyblue100]

Also I guess they won't offer service like streaming quote? What free service does they provide? Thanks for sharing.

 

[ivyconniver]

It's free to sign up, just try it.

 

[8ate]

i signed up; got approved for margin and option trade accounts in one day; gonna wire cash to fund account tomorrow; then see how the place works; starting small until comfortable with operation..>>

looks good though; for anyone with 500k or less to invest

jmho

gl

 

[WorldNumberOne]

they dont offer streaming quotes , am i reading that right ?

or can you pay for that feature ?

i didnt see anything in their questions area.

 

[8ate]

T:money8: ook me 2 days to get trading, but i gotta admit i like it; no commisions; but i am not using this account for short term trading, i am creating my own pseudo-mutual fund; and able to buy odd lots of higher priced stocks to keep every equity at a low % of total..> still evaluating efficiency/speed of trades, but looks good for now..!!!

jmho

gl

 

[LEYKIS101]

Good news then, 8ate.

Keep us updated. Im still on the fence on Zecco, but sounds good now.