Cheap Trading: Zecco.com

Posted on September 7, 2007

I have been seeing other bloggers writing about Zecco and was curious to investigate the company for myself. Over the years stock trading has come down tremendously in price. I remember having an account with Morgan Stanley in the late 90s and over the course of a few years the fees went through the roof. I quickly got out of that and put my entire portfolio in Ameritrade. I liked their service and ease of use, as well as low cost trades and reasonable minimum balance requirements. It seems now Ameritrade has been “one-up’ed” by a new comer to the low cost investing and trading arena.


With rock bottom prices “you can make up to 10 trades in any one day up to a total of 40 trades a month at no cost, and after that you only have to pay a paltry $3.50 per stock trade. Option trades only cost $3.50 plus $.60 a contract.” I am more of a long term investor, but every now and then even the long term guys have to make a trade. When I was with Morgan Stanley that was about a $40 task, with Ameritrade a $10 task, and now with Zecco.com that cost is eliminated.

Advantages of Zecco.com:

  1. Ten free market/limit trades per day with a maximum of 40 free trades per month. 
  2. There are no minimum opening requirements for standard accounts, and no minimum balance needed to ensure fees are not assessed. 
  3. No inactivity fees.

Disadvantages of Zecco.com:

  1. New and has little past performance record.
  2. There is a $30 annual fee for IRAs.
  3. Margin accounts require a $2000 minimum.
  4. Possibility of increasing fees at later date.

See what other bloggers are saying about Zecco.com:

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    Comments

    2 Responses to “Cheap Trading: Zecco.com”

    1. Kyle on September 18th, 2007 3:48 pm

      Hey,
      Just stumbled upon your site and was glad to find a fellow UCF alum (class of ‘06). How about that Texas game, tough loss, but good performance.

      Anyway, just wanted to say that federal reserve requirements state that you must deposit 50% of the purchase price or $2000, whichever is greater if using margin. That is only if you plan to borrow, you can deposit as little as you like if you plan to use your own funds only to purchase.

    2. Mark on October 1st, 2007 10:47 pm

      Zecco just changed their rules - there is now a $2500 minimum and you only get 10 free trades a month. After that, it’s $4.50.
      If you have less than $2500, you pay $4.50 per trade…

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