Just received an important announcement from Zecco stating that the online broker is increasing their requirements to receive 10 free trades per month. In an e-mail to all its clients, Zecco states:
“I’m writing to tell you that as of March 1st, 2009, we’re increasing the minimum level of assets needed to earn 10 free trades per month to $25,000. We’re also adding a new way to get free trades: customers who make at least 25 total trades per month will also qualify for 10 free stock trades per month.”
Sad to see free trades go out the window, but I expected this a long time ago considering how things have deteriorated in the financial world, which is why Zecco is placing new requirement:
“Why was this necessary now? Anyone who’s read a newspaper lately knows that the US and world economies have been hit hard over the past 4 months. As a result, some of the largest corporations in the world have had to cut costs and adjust to new business realities. With reduced retail trading volumes and lower interest rates, we at Zecco Trading simply could no longer provide free trades to as many people as we would like. ”
$4.95 is still a bargain and their customer service is top notch. I moved to Zecco when I was contacted by one of their representatives and have not looked back since. With a couple of clicks, I can withdraw and deposit money from my bank to Zecco. I will continue to refer business to Zecco as I feel they offer great value to individual investors, both big and small.
{ 5 comments… read them below or add one }
That’s really bummed me out. i will probably withdraw my money from there, because I don’t really like their website, or their sweep accounts, or that they don’t do partial share dividend reinvestment. But I loved the free trades while it lasted.
Can’t argue with you Chris. Each individual has their own preferences as to what they expect from a broker. Can’t blame them though, they simply cannot provide a service they cannot afford
I was waiting for additional funds to open a zecco account because of the free trades but now that their business model has changed, I’ll go to Tradeking. I remember reading an interview of the Tradeking CEO mention that Zecco won’t be able to keep it up. With a CEO like that and on top of the industry, that’s where Im going.
Well the investor with $2500 is not going to be the most profitable client. However this could be the investor who will buy small lots of stocks over time and accumulate thousands of $$$ eventually.
With this move it seems as if Zecco is pursuing a short-term get rich quick strategy rather than a slow accumulation of customers and their money.
I will keep my Zecco account for the free trades, but I don’t like the way they change their pricing all the time.
I’m now switching brokers. The only reason I signed up with Zecco was for the free trades. Their platform is slow. I guess Scottrade or TM Ameritrade will get my business going forward.
- Z