Zecco: $0 Stock Trades! Too good to be true!?

Zecco is my new favorite discount brokerage.  They offer $4.50 trades for stocks and options, as well as $0 trades if you execute more than 25 trades a month or have more than $25,000 in your account.  This is huge, as it basically eliminates a big part of the cost of personal investing.  I highly recommend switching from whichever brokerage you’re using now.

They have a really nice user community interface that allows you to see what other users are doing in real-time, and how their portfolios are performing.  You can also opt to share your performance with others, though I have this turned off currently.

I managed to move my entire account from Scottrade just using a web browser and email (of course, I had to take a picture of a paper document I signed and send in an image of it).  But the ability to do this and avoid fax machines is very convenient.

I really like the options strategy builder.  It allows you to see a real-time plot of how different straddles, strangles, naked and covered options work.  It’s 100% customizable – you can plug in anything you want.

The only issue seems to be the margin rates, which are a lot higher than its competitors.  But if commissions are the main part of your cost, definitely consider Zecco.


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