Zecco Trading problems? Is there an annual fee?


I'm often being asked the following questions: What are Zecco's cons? Any problems with Zecco brokerage services?

Like any brokerage firm, there are some areas where Zecco can improve. I identified the following problems with the company:

  • $2 per trade surcharge on penny stocks
  • Extended hours trades have $0.005 per share surcharge on applicable commission
  • $30 annual IRA fee

These cons are not major issues for most clients, especially beginners and long-term investors. But for IRA account seekers and penny stock traders those could be deal-breakers.

There is no annual fee for regular accounts at Zecco. But the firm does charge $30 annual fee for IRA accounts. While many other brokers offer no-annual-fee IRAs, they also have much higher commissions, which might result in higher overall cost of maintaining retirement account than a $30 annual fee.

Second issue is a surcharge on penny stocks. It's usually a very bad idea to buy penny stocks - it's one of the easiest ways to loose a lot of money fast. This is why many brokerage firms have additional fees on these trades. But some investors want to be able to trade stocks below $1 at a reasonable price. $7.95 commission on penny stocks trades (including surcharge) offered at Zecco is one of the best rates in the industry.

I, personally, have had account with Zecco since 2009 (like with most other brokerage firms reviewed here) and my experience with it has been generally positive. You can read more about the company in Zecco Review.

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