3-star brokerage firm rating



Vanguard

4-star brokerage firm rating


Zecco vs Vanguard



Vanguard vs Zecco: Trading Fees and Investments 2012



Vanguard


Zecco

  • Stocks and ETFs: $7 for the first 25 trades, $20 for subsequent trades for account with less than $50,000
  • $7 for account with $50,000–$500,000 (Voyager Services®)
  • $2 for account with $500,000–$1,000,000 (Voyager Select Services®)
  • Free for first 25 trades, $2 for subsequent trades for account with $1 million (Flagship Services™)
  • Options: $30 plus $1.50 per contract
  • Options for accounts with over $1 million: $8 + $1.50 per contract
  • Mutual funds: Vanguard mutual funds - free. All others - Standard: $35; Voyager® and Voyager Select®: $20; Flagship®, $8
  • Certificates of deposit (CDs): Purchase: $5 per $1,000, Minimum: $50. Sale: $35 per transaction
  • Commercial paper: $50 per transaction; minimum purchase: $100,000
  • U.S. Treasury: $0.75 per $1,000 face amount, $40 min–$75 max
  • Mortgage-backed securities: $50 per transaction; GNMA minimum purchase: $25,000
  • Investment products: stocks, options, mutual funds, bonds, CDs, foreign securities, insurance, commercial paper, ETFs
  • Minimum to open Vanguard account: $3,000
  • All Vanguard fees

  • Stocks and ETFs: $4.95
  • Stocks and ETFs priced under $1: $6.95
  • Stocks and ETFs broker assisted: $19.95
  • Options: $4.95 plus $0.65 per contract
  • Options exercises and assignments: $4.95
  • Mutual Funds: $10
  • Forex: spreads as low as 1-2 pips for most major currency pairs
  • Bonds: $4.50 per bond, with $22.50 minimum per transaction
  • Treasury: $24.50 per transaction
  • Investments: stocks, mutual funds, options, Forex, Bonds, Treasury bonds, ETFs
  • Minimum to open Zecco account: $0
  • All Zecco fees




Vanguard vs Zecco: Pros



Vanguard


Zecco

  • Low cost and good performance Vanguard mutual funds
  • Free Vanguard ETFs
  • Free dollar-cost-averaging transactions for no-fee mutual funds. $3 per transaction, minimum purchase $100, minimum two transactions, for transaction fee mutual funds.
  • Free dividend reinvestment
  • No ACAT fee

  • Very low commissions
  • No account minimum, maintenance or inactivity fees
  • Free streaming data
  • Free dividend reinvestment
  • Great online community
  • Could open account with no money down
  • No surcharge for large orders




Vanguard vs Zecco: Cons



Vanguard


Zecco

  • High commissions in many cases
  • $20 annual maintenance fee for regular accounts with balance less than $50,000
  • $10 monthly Low Balance Fee for accounts with $2,500 or less
  • Poor trading and research tools
  • $3,000 minimum to open account is somewhat high

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




Zecco vs Vanguard: Comparison Summary



Zecco (Zecco Review) is one of the cheapest online brokerages, offering $4.95 per trade commission on stocks and ETFs. Mutual funds are just $10 per transaction.

Vanguard (Vanguard Review), on the other hand, is one of the most expensive brokerage firms, with very high commissions on all asset classes. The firm even has $20 annual maintenance fee for regular accounts and $10 monthly fee if account balance is below $2,500!

Vanguard is known for poor customer service and sub-par trading tools. The only real advantage the firm has is its own low-cost family of mutual funds.

Zecco offers free dividend reinvestment, access to Forex, live online community and $0 to open new account. The firm, however, in 2011 lost the rating of one of the Best Investment Companies.

The choice between these two online brokerages houses is easy - definitely Zecco!

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