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Zecco- Commission Free Stock Broker

 

 

Stop wasting your money

Put plainly, if you pay commission for online stock trading, you’re probably wasting your money.  Since commission-free brokerages like Zecco have come out, there are very few reasons to pay any commission at all.  In reality, a free brokerage like Zecco perfectly suits most people’s needs.

Zecco charges zero commissions for trading

Zecco is very up front about their fees. On their website, it shows a chart which makes it easy to compare brokers:

zecco

As you can see, regular online trades are completely free, while trading options or having a live broker assist you costs money. There is also no account minimum, unless you want to trade on margin.

Commission free trading is right for the vast majority of people

Commission-free trading at Zecco is right for most people, but not everyone.  There are a few categories of people for whom paying commission is a good idea, although it’s unlikely you’re one of them.

Hyper-active traders

Zecco allows commission-free trading, but only for 10 trades a day, up to 40 trades per month.  If you trade more than this, then perhaps going with a brokerage meant for active traders would be a better option.  However, since the average person doesn’t make anywhere near 40 trades per month, this isn’t usually a valid reason to burn money on commissions.

Investors who want their hand held

Although you can trade for absolutely free at Zecco, there are some who want the comfort of having their hand held, so to speak.  For such nervous, needy investors, paying expensive commissions at a full-service brokerage may be justified.  For everyone else, with information flowing freely and people taking charge of their own investments, the days of wanting to “hold hands” with their broker are rapidly fading away.  If you don’t require a physical office to walk into or lots of personal phone time with your stock broker, then there’s no reason to pay full-service fees.  

Day traders

Although Zecco executes orders very quickly, if you require split second execution of trades like day traders do, then you may need a direct-access broker.  This really only applies to day traders, though.  If you trade in terms of days, weeks, months or years, then waiting 2 seconds for your order to fill vs. .2 seconds won’t make any difference and doesn’t justify wasting money on commission.

For everyone else commission-free is the way to go

The above categories of people should stay away from commission-free brokers. The other, vast majority of people should seriously consider not throwing their money away. 

One excellent strategy of using Zecco is for long-term investors.  If there is a stock or index ETF you want to own for the long term, then simply buy a set amount of it every week or month.  Zecco will allow you to do this without charging you a penny.  That way you can average into a long-term investment position at frequent intervals without incurring expensive, unnecessary commissions.  Remember, since most mutual funds under perform the market, buying a index ETF like the S&P 500 “SPY” is a great long-term option. Of course, more active traders would also do well using Zecco.  If you like to play the market, then 40 trades per month should be plenty to play with for free. 

Zecco is a virtual necessity for those with very small accounts

For those who make between 1-40 trades a month and have a small account, Zecco is almost a necessity- the cumulative costs of many $10+ commissions will kill a small account, regardless of trading skill. For example, someone who opens up an account with only $300 and then makes 10 trades paying $10 per trade has already lost 33%!

What's the catch?

You might be thinking that a completely free brokerage sounds too good to be true. Well, Zecco is the real deal. They're a registered, legal, reputable brokerage with thousands of happy customers. They make money without charging commissions because they charge interest on margin accounts. This has no effect on their quality of service or trade executions.

Things are changing

Commission-free trading at Zecco is the next step in the evolution of online stock brokers.  Look for this brokerage and others like it to increasingly steal business from traditional brokerages who charge an arm and a leg for commissions.  In the mean time, enjoy free trades by signing up at Zecco now.

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