Zecco is an internet discount brokerage.
What separates them from other brokerages is what they have to offer:
- If you have $2,500+ in the account they give you:
10 Free Equity Trades/ Month, $4.50 thereafter
- If you have less than $2,500 in the account then it is $4.50 per Equity trade
For Option Traders it is $4.50 per trade + 50 cents per contract.
Previous the the change in their fee schedule, they were offering 40 Free Equity Trades per month. But, because they are looking to improve the number of customer service representatives, trading platforms, and such, they've lowered the amount of free equity trades from 40/month to 10/month. After the allotted free equity trades, Zecco was also offering $3.50 per trade. This is a 30% ($1.00) increase per trade. Still, Zecco is cheaper than most brokerage firms.
The good news is that for existing customers the trade commissions don't kick in until January 1st 2008 (next year). For new customers who sign up after October 1st 2007, they will be under the new trading commission system this year.
For me, this trade commission system means that I will be more selective in selecting stocks. There was a tendency for me to buy less than favorable stocks because commissions were ZERO. Now that I am only allotted 10 trades per month, I believe this will help me identify only the best stocks to enter and trade.
Labels: Finances, Pro Stock Trading Tips