Is Zecco a Scam? Is Zecco Safe and Legitimate?


I'm often being asked the following questions: Is Zecco a scam? Is it safe to use Zecco? Is it FDIC secured? The short answer: Zecco Trading (Zecco Review) is a safe, legitimate brokerage firm, just like TD Ameritrade (TD Ameritrade Review), Etrade (E*Trade Review) or Scottrade (Scottrade Review).

Zecco Trading Inc. is a member of FINRA/SIPC. FINRA (Financial Industry Regulatory Authority - http://www.finra.org/) is the largest independent regulator for all securities firms doing business in the United States. Its chief role is to protect investors by maintaining the fairness of the U.S. capital markets. SIPC (The Securities Investor Protection Corporation - http://www.sipc.org/) either acts as trustee or works with an independent court-appointed trustee in a missing asset case to recover funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. SIPC is an important part of the overall system of investor protection in the United States. While a number of federal, self-regulatory and state securities agencies deal with cases of investment fraud, SIPC's focus is both different and narrow: Restoring funds to investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms.

All this means is that customer accounts are insured in case of brokerage firm failure, very similarly to the way bank accounts are insured by the FDIC. There is also a regulatory, government created organization to which rules Zecco has to comply.

I, personally, have had account with Zecco since 2009 (like with most other brokerage firms reviewed on this website) and my experience with it has been very positive.

Zecco offers very low stock commissions: $4.95 per trade for stocks and ETFs. There is no catch. Read more about the company in Zecco Review.

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