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Home » Mutual Funds, Reviews, Stocks

My Zecco Review

Last updated by on 9 Comments

<Update: Zecco has officially merged with TradeKing, and moved to the TradeKing platform – so my recommendation would be to start a new account with TradeKing>

Zecco Review: $4.95 Stock Trades

What follows is a Zecco review based on my personal experience with them, updated for 2012. I maintain my Zecco account to this date.

If you invest in stocks or mutual funds, you know how limiting trading fees can be when you want to buy or sell through your broker. If you like to dollar cost average or simply have smaller amounts to invest, you know how $8.95 (Schwab) or $9.99 (E-Trade) trading fees can cut into your returns. It’s for this reason that I decided to try Zecco, to take advantage of their $4.95 stock trades and free account with no inactivity or maintenance fees.

Discount Brokers I’ve Tried other than Zecco

In addition to Zecco for my personal account, I recently switched my ETrade IRA to TradeKing, who offers $4.95 trades and a no-fee IRA (Zecco’s IRA’s are $30 per year, but non-retirement accounts are free). Both have zero inactivity fees. I had been using Scottrade for my personal account, whose $7 trades were once considered the lowest in the business. However, new competitors such as TradeKing and Zecco have really challenged the industry. I’m a little disappointed that ETrade and Scottrade haven’t lowered their stock trade pricing to stay competitive.

zecco reviewWhere Zecco Reviews Well:

  • $4.95 trades is still among the best prices out there (only Optionshouse is cheaper at $3.95). Mutual funds are only $10 to buy into, which is extremely competitive versus other online brokers.
  • There are no inactivity or account maintenance fees for non-retirement accounts, a true rarity these days.
  • These guys are legit. They are SIPC members and your account is insured up to $500,000 ($250,000 max in securities).
  • Their trading tools are very good.
  • They have a social network aspect so that you can communicate with other investors.
  • Service. The one time I did call for customer service, I was on hold for less than a minute. I spoke with an native English speaking American, and he was extremely friendly.

Where Zecco Reviews Not so Well:

  • IRA’s have a $30 annual fee and $30 closing fee. For that reason, I have opted to use TradeKing for my IRA. Note that this only applies to IRA’s, not regular non-retirement accounts.

Who is Zecco a Good Option for?

Zecco is an excellent option for non-IRA stock investments (i.e. for your regular trading account), which is exactly what I was looking for. However, lately, Optionshouse has been the cheaper alternative with a better sign on bonus, so you may want to check them out.

For retirement savings, I would opt for TradeKing because their IRA accounts have no annual fee, zero inactivity fee, and $4.95 trades (I don’t trade much in my IRA, but when I do, I want it to be cheap).

And that concludes my Zecco review.

Zecco Discussion:

  • Which online broker do you use? Why?
  • Do you have any really good or really bad experiences with Zecco or another broker?

About the Author
I am G.E. Miller, & this is my story. My goal is financial independence ASAP. If you share that goal, join me & 7,500+ others by getting FREE email updates. You'll also find every post by category & every post in order.


9 Comments »
  • Shaun Connell says:

    The website ads probably bring in an incredible amount. The investing niche is filled to the brim with advertisers. Investopedia.com claims that their private ad sales generate up to $48-80 cpm.

    I’ll try out Zecco next. I’ve been playing with Trade King for a while.

  • Bill M says:

    I been with them for a while and extremely happy. You can not beat the Free Trades.

  • Tea says:

    Zecco’s customer service has been great. I have e-mailed them several different questions and they’ve always gotten back to me the next day.

  • Rich says:

    I trade with Wells Fargo. if you maintain $25,000 across all of your accounts you are eligible for a PMA package with no fees. The PMA comes with 100 free trades per account, which is pretty nice. So my wife and I get 300 free trades a year for our individual IRAs and our non-retirement brokerage account. The only drawback of course is reaching that initial $25k.
    disclaimer: I work for Wells Fargo, but the PMA benefits are the same for everyone.

  • brian says:

    thanks for the review, I’ve been contemplating zecco for years but I was too skeptical to switch from e-trade. However, after reading through your experience I’m moving my money to zecco for 2009, thanks!

  • PeteC says:

    I’m looking for another broker. I currently trade between 300 and 2,000
    options daily (buy then sell). I have two accounts, TDAmeritrade and
    ETrade. I need an alternative for ETrade because their executions are too
    slow. When I enter market orders, I click “enter” on both, a split second
    apart. The TD status shows “Executed” in seconds or maybe, for large orders
    (>1,000 options), in three or four mouse click updates. ETrade always takes
    longer, sometimes over a minute.

    Since I typically buy in a rising prices and sell in a declining prices, I
    get better execution prices on TD.

    I should move the ETrade account to TD but I already have three accounts
    there. If something goes wrong, like TD goes belly up, I could be SOL until
    the SIPC settles.

    So, based on how I trade, any recommendations on a broker?

    TIA,

    Pete

  • Tuan says:

    I am looking into a regular trading account as some companies that I am researching does not provide their own DRIPs. I guess I will check out Zecco shortly.

  • Jim says:

    I’ve been w/ Zecco for three years and have been very happy with dealing with them. Good execution times. Trade costs very reasonable. Only negative is limited trading tools. Many tools available elsewhere free. Customer service is real and quick.

  • Jnifer says:

    I have been w/ Zecco for 3 years and have been happy with coping with them. Good execution times. Trade costs affordable. Only negative is restricted trading tools. Many tools available elsewhere free. Customer support is real and quick.

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