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Zecco Review 2012
Zecco Promotional Code - click image to the left to get up to $150 in transfer fee reimbursed when you transfer account with $15,000 or more.
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Zecco Review 2012: Commissions, Fees and Investment Products
- 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
Zecco's new account application is one of the fastest we experienced -- we opened a regular (non-IRA) account in just 10 minutes.
There are no lengthy forms to fill and no papers to mail. After a new account is approved (in as little as
30 minutes during work-hours), new users are ready to use all features of the Zecco.com website.
Zecco Website (Zecco.com)/Trading Tools Review
Zecco's trading system uses simple and intuitive web interface. Users could easily
enter and cancel orders but, unfortunately, they can't modify them (except for a price) - they have to cancel existing order and then enter
new one. Zecco's trading tools don't offer some of the more advanced features used by very active trades.
Zecco is big on security -- before placing new order customer will have to enter security key. The firm introduced new Firefox plugin,
Zap Trade, which is a toolbar that stays visible on all pages and allows fast access to trading from customer account. There is also a new iPhone
App, which got four stars rating in Apple Store and provides convenient access to Zecco's account, but with no ability to trade
(trading should be implemented by the end of the year). Company just introduced free streaming quotes for all customers.
Zecco Trading created very active and helpful online community, where users could improve and learn new trading strategies, ask questions
and get answers from more advanced investors as well as get investment ideas.
Zecco Review: Pros
- 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
Zecco Review: Cons
- $2 per trade surcharge on penny stocks
- $30 annual IRA fee
Zecco Review Summary
We start Zecco review with trading costs.
Zecco Trading offers very low, $4.95 per trade commission on stocks and ETFs (exchange traded funds). Options trading
is priced at $4.95 plus $0.65 per contract, with the lowest assignment and exercise fees of all discount brokerage firms - $4.95.
Mutual funds are just $10 per transaction. There are no surcharges for large orders but
the company charges $2 per trade more on penny stock trades.
Zecco also has Elite Premium Service for customers who maintain a total combined account value of $250,000 for at
least three months or, average 25 or more trades per month over a three-month period. They get $4.95 pricing for
broker-assisted trades (phone orders), free access to the Zecco Streamer ($19.99/month saving), no IRA annual fee
($30/year savings), plus reimbursement of their bank’s wire transfer fees for qualifying deposits.
Zecco doesn't have account maintenance (non-IRA accounts), inactivity and hidden fees. The firm offers its customers free dividend
reinvestment and it just started offering extended hours trading. However, we would love to see the company to finally provide order
modification feature (can modify price but nothing else) and to cancel its $30 annual IRA fee.
One of the best features Zecco created is a helpful online customer community. There users could learn from each other,
share investment ideas, ask questions and get answers from more experienced investors and traders.
The firm offers very good pricing. But after it canceled its "10 free trades per month" offer in February of 2012,
we believe it lost much of its competitive edge to other discount brokerages like
TradeKing (TradeKing review) and
Optionshouse (Optionshouse review).
It is still the cheapest firm for international investors who want brokerage account at the US firm.
We recommend Zecco to international investors, swing traders, mutual funds (good mutual funds screener tool) and "buy-and-hold" investors.
Account with the company could be opened with no money down and no commitment in 10 minutes and you could see for yourself if Zecco
works for you.
Zecco
Reviewed by Brokerage Review on
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Rating: 4
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