Zecco stands for “Zero Cost Commission” trading. Their platform has been around since 2006 and is based in San Fransisco, California. Zecco *used to be* famous for their 10 free trades per month offer (which they stopped offering at the end of Feb 2011). They are also well known for the ZeccoShare social network, an innovative online trading community exclusive to Zecco.
UPDATE: In the last year, Zecco has introduced a new front-end website, made substantial investments in their customer service, and upgraded their core infrastructure to improve performance and reliability. They’ve also added an great iPhone App, Zecco Streamer (a tool for real time updates), and Zap Trade (which is a really nifty tool that allows quicker integrated trading right from your Firefox web browser, so you can do your research on your favorite sites and place orders instantly with one click).
What they offer: No minimum to open an account, $4.95 trades, good customer service, and a thriving social community for sharing tips and trading strategies.
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How Zecco compares to other brokers: With $4.95 trades (they used to be $4.50 until early 2011), Zecco is still among the cheapest brokers you’ll find. They offer similar tools to most brokers, but some of the more advanced tools are not free. All in all Zecco ranks around the middle of the pack in terms of quality brokers, but makes up for it with their awesome community atmosphere and low pricing.
The Verdict: Zecco is a good choice for you if you’re an experienced trader looking for a low price and solid service. Education resources are a bit thin but still OK, and let’s not forget how useful the social networking feature is to share notes, tips and trading strategies with other successful traders. We think it’s great.
Where to join: Open an account at Zecco (see below for special promo codes)
In-Depth Zecco Review
Setting Up An Account:
It takes less than 10 minutes to sign up for an account with Zecco’s 3 step process. Deposit funds by linking your bank account, paper check, wire transfer, transfer from another broker (Zecco will cover up to $150 in account transfer fees).
Hint: make sure you pick a great username if that’s your style and you want to participate in the Zecco community.
Fees/Commissions:
- Stocks: $4.95 per trade (equities with a trade price of less than or equal to $1.00 per share are $6.95 per trade).
- Options: $4.95 per trade + $0.65 per contract.
- Broker assisted trades are $19.99.
- Zecco’s price structure is ultra cheap and easy to understand.
- Forex spreads as low as 0.7 pips for major pairs.
- Margin rate: 4.5%
Investments Offered:
Stocks, Options, Bonds, FOREX, ETFs, Mutual Funds, Retirement Accounts, Education Savings Accounts.
Spot gold & spot silver.
Ease Of Use:
Zecco ranks around the middle of the pack when it comes to ease of use. The platform is good, but isn’t poised to win any awards quite yet. One really cool feature that sets Zecco apart in terms of usability is Zap trade, which integrates with your browser, so you can do your research online and fill orders with just a click. It’s awesome.
Trading/Investment Tools:
Solid tools for trading complex options positions (calls, puts, straddles, condors, etc.)
Free real time quotes (not streaming).
Research reports provided by Standard and Poors.
Unique social network community aspect built into their platform. We think it’s awesome. The Zecco community offers you the opportunity to chat with others, share trading strategies, view others trades, and even share your own trades if you choose.
Customer Service/Support:
Customer service has improved in recent years. They started offering Live Online Chat in 2009 which boosted the quality of their customer service.
Awards:
3 stars in Customer Service from SmartMoney (2009)
3 stars from Barrons Review (2009)
The Final Word…
If you’re chasing cheap trades and like to get social, give Zecco a shot.
Current Promo Codes:
Sorry, but there are no special promotions running for Zecco right now. We always update whenever there are, so check back regularly.
Also Read: Zecco reviews by Kipplingers, SmartMoney and Barrons.
Zecco raised the stock commission to 4.95 but if one trades stock under $1.00 commission is $6.95. Significant price increases
Posted by Rob Johnson | February 26, 2011, 8:05 pmThanks Rob. Our review will be updated to reflect this by the end of the day today.
It’s an interesting move on their part. It looks like they are pretty much matching the prices offered at TradeKing. They have also stopped offering their famous 10 free trades per month.
To be fair, they have added a few more features recently (Zecco streamer, Zap trade, and their iPhone app). We’ll have to wait and see how this affects their future…
Posted by Editor's Choice | March 1, 2011, 6:07 pmI know I am now looking at new options with the price increase, I went with Zecco because of the low cost, I have my other brokerage account if I wanted higher costs and research.
Posted by Thunderbird1956 | March 4, 2011, 9:03 pmHave you read our OptionsHouse review? Stock trades (including broker assisted) are $3.95 flat there.
Posted by Editor's Choice | March 4, 2011, 9:28 pmI just moved my zecco account to Just2Trade.com . Half price for the commission $2.5, even sogotrade.com has low price ($3) better tools.
Posted by jster007 | March 9, 2011, 5:23 amZecco has pulled off a major bait and switch. They did not grandfather in their current customers and did not waive ACAT fees so they could transfer out. They even have the option to do JRT transfers but refuse to sign the forms in an attempt to force customers to stay with them. They are extremely unethical and they have lied numerous times to me. I have reported them to the BBB and the FTC. They have violated their contract and refuse to do their job.
Posted by jon | April 7, 2011, 1:49 pmBeware of Zecco. Had 2 dead stocks (around $0.0001) sitting in account and wanted to get rid of them. When placed order commission was quoted at $6.95, 2 weeks later I recieved a Margin call for almost $300. They said it was commision on sale of an order that was worth $30. I asked about the other pending order and was told it was fine would be $6.95. Couple weeks later another almost $300 dollar commission. I will take the blame for the first one but after asking about the second and being lied too by customer service…I would never use or recommend thier service again.
Posted by NoLonger | October 20, 2011, 2:11 pmAlthough the trade costs less at zecco but as the old saying goes “you get what you pay”. The zecco platform the new or old one both are horrible. The equity amounts, average trade prices..every number on my page seems in accurate and you need to keep a close eye on your account w.r.t total equity. I have heard complains from people that their trades are not executed in timely manner and people have lost money. Sometimes you login and you see nothing…everything seems blank.
Posted by zecco_is_a_bad_platform_to_trade | January 22, 2012, 2:31 amThis is the most frustrating online trading company i have ever encountered. please stay away from it.
I am looking for any other reliable company and would really appreciate any feedback.