Zecco Review – Free Trades & Online Trading Fees
December 20, 2008
Free Stock Trades
If you have a balance of $25,000 Zecco gives you 10 free stock trades every month. Many people wonder how Zecco can just give away free trades, well the cost of executing a trade has become very low. (Zecco’s cheeky line: “Shows you how much those other brokerages are making off you with their fat commissions.”) Zecco admits it still loses some money giving investors free stock trades but they make their money in other ways, which we’ll look at below.
Once you’ve made your free 10 stock trades for the month, Zecco charges you $4.50 for each additional trade.
For options trading, Zecco charges $4.50 per leg and 50Ã‚Â¢ per contract. Although Zecco does charge for options, the company says on its web site; “we challenge you to find a better deal than that.”
If customers opt to borrow margin and leverage their investments, Zecco makes money on the interest.
If customers leave money hanging out in their cash account while they are deciding what to invest in, Zecco makes a little interest on that money. But as the company adds; “And you do too”.
Some more advanced tools on Zecco’s site are not free. The company says that it provides them as a premium service to interested customers.
Zecco says it earns a small amount of money by allowing other companies to advertise on its site. Again, the company has a reason; “Sometimes, you might even see a competitor’s ad sneak in. We don’t care though – we challenge you to find a better deal.”
Affording Free Stock Trades
Everyone knows the saying, “there’s no such thing as a free lunch”, so of course some people are skeptical when they hear about companies giving away things for free. Hopefully, this section of the Zecco review has explained how it is they can afford to offer free trades.
Opening a Zecco Account
Next time we’ll take a look at the process of opening a brokerage account with Zecco.
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