Zecco Review - Free Stock Trades

Zecco has become the first mainstream broker to offer commission free stock trading. For those of you who are new to investing, commissions are one of the most costly items for an active trader.

Typically, when you buy a stock you pay a broker a commission. This can range anywhere from $7.00 on up depending on how much you want out of your broker. Then of course when you go to sell a stock you have to pay an additional commission of $7.00 on up.

So even with the cheapest discount broker you are going to pay at least $14.00 each time you buy and sell a stock. So if you are an active trader that can add up to a lot of money over the course of a year.

However, there is a new player on Wall Street who wants to make the playing field more level for the average investor.

Zecco is a division of Equinox Securities, a fully disclosed broker/dealer and member of the NASD and SIPC, and they have begun to bring their customers commission free stock trading.

So how can they do this you ask?

Well the word on the street is that they make their money by selling advertising space and the interest off of their various other investment services.

It is true, believe it or not, that they do offer their customers free trades.

Their pricing structure works as follows:

For a simple everyday investor 10 trades a month is more than you would ever need.

So what's the catch?

That was my first question as well. Zecco is more for investors who just want access to a reliable free trading platform. They do not offer some of the bells and whistles that other brokers may offer. So it just really depends on what you are looking for, and how much help you feel you need in making your investment choices. As well as how much you are willing to pay in commissions.

As an example:

If you used the current cheapest online broker who charges $7.00 a trade, and you moved in and out of 5 stocks in a month; it would cost you $70.00 in total commissions by the time you bought and sold those 5 stocks. Over the course of a year that would add up to $840.00 using a traditional broker charging $7.00 a trade.

However, if you used Zecco it would not cost you one single dime in commissions if you maintain a balance above $25,000.