SogoTrade and Zecco = Pure Discount Broker Crap

Update 4/15/2008: Zecco has people griping in their own forums now - and they said it better than I ever could have: (reprinted for perpetuity)

I tried logging in Monday morning - and failed; After about and hour, I gave up for the day and went about my business. Something similar happened early in Zecco's life, so I figured It's just a start-up problem.

However, that being said - Zecco should be nearly out of the start-up stage. Zecco has an Official Notification out regarding the website being offline and a offhand reference to misleading default "scheduled maintenance"/404 page - An internal review is needed - and not of the technical dashboard problem.

The Friday update was scheduled and advertised ahead of time - meaning that Zecco should not have been surprised with the consequences.

Picking Friday for updating is a smart move on IT's part. Not having a secondary system in place to rollback production changes is unacceptable for a real-time website. I highly suggest IT or management review system update policies to ensure that a plan is in place to rollback changes instantly.

In IT, updates are a part of life. With that in mind, we know that unanticipated consequences of an update are also part of life. However, for real-time systems, clear oncall/quick chain-of-command, multiple response teams & backup servers running alternate versions are part of life(or should be) - in 2008 it's cheap to use virtual servers as backups running proven older versions with proven older routing configurations.

and also from the same forum thread:

I've called at least once a week, every week complaining about the matter of fact attitude zecco seems to have about keeping it's system up at trading times. It's VERY clear these are server errors and crashes (I'm retired from an IT career) Denying these server failures only fuels my fire that I'm dealing with a bunch of liars that only care about numbers. I trade options which generate revenue for zecco/penson everytime I click the mouse.

Today, I'm making arrangements to transfer my account to anywhere else. I'm done with sloppy management and unprofessional IT people. I suggest all of you follow suit.

Allen Reynolds Jr.


My experience:

So I get up this morning and attempt to get into my two brokers' websites.

Zecco is completely unresponsive and I have not been able to log in for over an hour since the markets opened today!

I thought SogoTrade was fine - until it decided to do this to me while I was watching my NTZ position:


SogoTrade shows its true worthless colors with this classic error

AWESOME!

At least I didn't have an open position in Zecco... unfortunately I do have a somewhat precarious position of 300 short shares of NTZ that I'm holding in my SogoTrade account, which is sitting at a minor loss, but if it moves against me even more... I'd like to at least have a stop order in place. If I would have known SogoTrade was so worthless I would have put my stupid protective stop in, jeebus!

I guess with Zecco and SogoTrade you get what you pay for. Maybe one of these days I might be able to get an actually worthwhile broker that I can rely on. These have not been my first connectivity issues with either broker, and Zecco has proven itself to be particularly unreliable.

Is this their way of sticking you for the cost of 'broker-assisted' trades that you can make by calling them up?

At least some brokerages have the integrity to not make you pay more for a phoned-in trade; maybe because they realize that a lot of those phone-ins will be because their web-platform is COMPLETELY AND UTTERLY WORTHLESS?

I was finally able to get to the Zecco homepage without simply being unable to connect - they say the site is down for scheduled maintenance!

SCHEDULED MAINTENANCE ON MONDAY MORNING RIGHT WHEN THE MARKETS OPEN

Scheduled maintenance my butt - what broker would be so dumb as to schedule maintenance at possibly one of the most crucial trading times? Sounds like someone puked all over their servers, or they're using IT slave labor from foreign countries that have no clue about market hours.


discount broker Zecco's servers show their true colors

Wow Zecco, you got my vote - you have such an awesome sense of how to run your business and please your customers!

Cost for Zecco phone-in trade: $20
Cost for SogoTrade phone-in: $27

For reference:
Zecco Brokerage Account Review - yeah, decent execution if you can actually place any orders.
SogoTrade Brokerage Account review - supposedly NXTM was on their short list on last Friday, but I was unable to short it and received no explanation why I was unable to do so (their customer service has been worthless in responding to this issue).

Long story short - if you're more active than you are completely and utterly dead, you might not want to choose either of these brokers.

Still recommend?

Would you still recommend SogoTrade? Is it reliable or has it been consistently reliable?

I don't recommend any broker unequivocally

So far SogoTrade has treated me somewhat better than Zecco and I have found it to be more reliable in terms of connectivity. This issue I had connecting to the SogoTrade servers is the only one that I have had, while I have had consistent connectivity problems with Zecco over the entire time I have had a brokerage account (admittedly only a few months). This Monday morning debacle just happened to be the most egregious. (they were out almost that entire day if I recall, while that SogoTrade issue reported in this post was just a 5 minute hiccup)

For a no-frills broker to be used by a largely passive investor, SogoTrade is an excellent deal. For an active trader, the only real positive other than deep-discount commissions is that they seem to have a good 'short list'.

There are two big negatives I see with SogoTrade for most people:

1. no money market sweep (they give you anemic rates on cash)
2. completely worthless real-time charts

Considering I keep my account in cash most of the time, lack of money market sweep is a big deal to me. I avoid the problem with real-time charts by using Zecco's real-time charts, which aren't what I would call 'good' but they are passable.

Choosing a broker is a very personal decision with a lot of moving parts. It can be very difficult to find a broker that meets your needs (especially if you aren't a big fish), and it will always be a compromise.