Zecco Trading has just changed their pricing for new accounts from 40 free trades/month to 10 trades/month, and there is a new requirement that you must have $2,500 in account equity (cash + value of stocks). If you have less than $2,500, then trades cost $4.50. However, existing customers and anyone who applied before 10/1 will keep the old pricing until the beginning of 2008. After that, everyone will be at 10 free trades/month.
Instead of paying for free trades you may not use, we’re investing that money in the tools and functionality that you will. Over the coming months you can expect:
* Significant investments in the number of service representatives and training.
* Addition of 3 and 4 legged options strategies so you can trade butterflies, condors, and more.
* Release of a sophisticated options analytics platform.
* Access to ZeccoShare, the ground-breaking investor social network at zecco.com.
Zecco is still the cheapest place for my “fun money” account and 10 trades is enough for me, although I’ll have to add some more money into my account in a couple of months to reach $2,500. If you already have an account, log into your trading account for more info; there is also a new offer FAQ. If you are researching Zecco, be sure to check out my Zecco Review (two parts) for some tips to maximize your account. Thanks to Wes for the tip.
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Wow, you’re fast. I just got the e-mail myself and forwarded you a copy, and I see you already knew about it for a few hours 🙂
I assume this is the beginning of the end for the free trading, my guess is a few months later it’ll drop to 5 trades, and maybe to 2 or 3 after that (they’ll probably leave some way to get at least a few free trades because of their Zecco name), but I assume they’ll keep adding new requirements to take advantage of their “new and improved trading features”)
I don’t do a lot of trading, so I’ll stick with them as long as they stick to the 10 trades and don’t raise the minimum any higher…
classic bait and switch…!
its not cool to pull a fast one, after getting so many good word of mouth publicity.
and to top that, the email from the CEO is so disingenuous… so full of politician-talk … he says 98% dont use 40 free trades – and if we dont trade they dont lose money – so why reduce it??
i’ll be leaving them dec31 2008.
Yea I think thats still a great deal, and I havnt had any issues with them besides customer service. As long as I can get the smae thing I get at scottrade/etrade but for free ill stick with them.
Honestly I’m going to be happy with any free trades. I’m using zecco as a replacement for sharebuilder, so as long as I get at least one free a month it’s probably going to be cheaper than sharebuilder… plus I get the added advantage of buying when I want to, not just on a Tuesday at some random time during the day.
There are now cheaper and better places to go. TradeKing, SogoInvest, and others.
Oh no, it’ll hurt me. I make about 40 trades a month, because I can’t do more. And they are going to lower their free trades number. My account is under 2,500. It’s gonna be one of my worst New Year’s Eves.
I’m not surprised. It’s still better than alternatives, though I’ve stopped using it.
Am I still allowed to make the 40 trades a month until the year’s end? If so, I’m transferring in some more funds and milking it for all it’s worth until then. Hopefully, the company won’t go bankrupt and tie up my money. I’m going to set up some more accounts with other brokers, as soon as possible, and be ready for the end of the year.
I can deal with only 10 trades/month. But it sounds like it will cost some money to liquidate an account once you go under $2500 now. Some may consider bailing out in advance of 2008.
I’m going to have to agree with ram here, classic bait and switch. Whatever happened to “we make our money with advertising and margin interest”? I guess they got greedy. I’ll be moving my money out of zecco when the new year hits.
Too bad Zecco will be known as a short lived phenomenon rather than a revolutionary.
It’s forced me to rethink my whole strategy. I thought that CEO babble was so uncool as well. Anyway, it was fun while it lasted and I learned a lot without spending tons on fees. It gave me confidence and my portfolio is up 11% now which isn’t all that hot I suppose but I don’t think I could have done it without the free trades of buying and selling to get that set of stocks. My biggest hurdle now is choosing which money mkt to put that $2500 into. I wonder what they’ll really use our money for. Trading fees probably….
I traded more than 40 times a month, I was satisfied with zecco until this 10 trades news hit, I will definitely get out of zecco at the end of the year.
Any suggestion for alternative? I’ve heard BOA gives 30 free trades per month. and how about tradeking? is it good?
I have money I want to put in ETF funds…mostly vanguard.
Should I sign up for vanguard because they dont charge to invest in their ETFS.
Or should I just buy them using zecco?
Does not charging if your signed up for vanguard mean theres no ETF expense? Or am I basically paying the same for both these options?
I’m not a fan of zecco, they’re asking me show mail in additional paperwork and not allowing me to withdraw funds, anyway i’m out of zecco for good.
This is terrible! I am ruined as a trader! What has Bernanke wrought!!
http://actualanarchy.blogspot.com/2011/02/my-tunisian-street-vendor-moment.html
I wouldn’t blame Bernanke…that’s silly. I don’t know how many zecco members there are but, like insurance, when the pool starts to shrink the fees/rates go up. I wrote a letter to zecco asking why and got a reply that didn’t answer my question. I was just shy of the $25,000 minimum. Anyway, I’m taking suggestions on other brokers. I ggogled lowest trade commissions and found sogotrades, choicetrade, interactive brokers, and optionshouse.