Logged into my Zecco account today to make a trade... here's what I saw.
Dear Zecco Trading Customers:
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.
Additionally, as of March 1st, 2009, you'll be able to earn $75 for each friend referred to Zecco Trading through our Zecco Friends Program. You can use that cash to offset trade commissions or make new investments.
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.
Many customers will not be affected by this change. For those of you who are impacted, I want you to know that I understand this is disappointing news. Since our founding, our goal has always been to provide a great value to online investors, and we've always made free stock trading part of that. And while we continue to provide some of the lowest trade commissions of all leading online brokerages at $4.50 each, we understand that nobody likes to pay for something that was previously free.
I'd like to emphasize that we are continuing to invest in our customer service and trading platform. You may have already noticed the improvements within our customer service team. We'll also be upgrading to an entirely new trading platform later in 2009. This new platform will improve reliability as well as introduce advanced order types, enhanced options trading capabilities, online bond trading, better account management, single-step login, and a faster website.
So how can you qualify for free stock trades? There are two simple ways to do it:
1. Keep $25,000 in net assets in your account. This doesn't have to be cash -- it can be stocks, ETFs, mutual funds, options, or other assets.
2. Make 25 total trades in a calendar month. These can be stock, ETF, or options trades. And yes, free trades count.
For more qualification details, visit: http://www.zecco.com/trading/newpricing.aspx
As mentioned above, as of March 1st, 2009 you'll also be able to earn $75 for each friend referred to Zecco Trading. You must refer your friend through our Zecco Friends Program, and your friend must open and fund their Zecco Trading account with at least $500. See program details here.
Thank you for your loyalty to Zecco Trading. We intend to continue earning your business as the best value for online investors.
Jeroen Veth
Founder and CEO
Zecco Holdings, Inc
Hah! Zero Cost Commission (Zecco) broker my ass! Unsustainable business model apparently... it reflects in the customer service.
It just means that Zecco's
It just means that Zecco's not the brokerage for you. Although you might become a very successful daytrader, most people who try will not be. For the majority of retail investors who are serious about building wealth through dollar cost averaging, 10 trades per month is fairly adequate. And um, if you're a pattern day trader, shouldn't you have 25k in your account anyway?
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although I do have >25k in an account in order to daytrade at this point, when I wrote this I was using several small accounts (~5, $2500+)to avoid the PDT rule (see this post)
thus there began to be little reason to keep a Zecco account, as the ONLY attractive part of their service was the (previously) very low cost they provided for about 5 roundtrips/month (zero dollah baby!)