Zecco Cancels Free Trades!

[Z]ecco has decided to cancel it’s free trades that it was offering for accounts with over $25,000 in assets. Zecco, when they entered the highly competitive discount broker scene, became very popular for their free trades for those with a balance of just $2,500.

But soon they discovered this was unsustainable and decided to increase that limit to $25,000. Yesterday, they removed free trades altogether.

All trades will be $4.95 per trade.

There is a lot of resentment by Zecco users as seen from the discussion boards.

Hey, fool me once…
Zecoo cancels free trades, 2011

If you are thinking of switching from Zecco, this post may be worth reading.

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9 thoughts on “Zecco Cancels Free Trades!

  1. Their bust. They have probably done more harm than good and it will eventually show over time.

  2. Oh boy, PR nightmare. I’ve heard of Zecco, but never used them. Funny, Catch-22, you have to build up a userbase to compete with the established players, but you can end up going down a slippery, unsustainable slope. If you ran Zecco, how would you handle this? Or at the beginning, would you have gone with free trades as well or done something differently?

    • I liked the way OptionsHouse handled a price increase. It honored the price for existing customers and raised it only for new customers.

      Zecco could’ve done something similar. No one likes bait-and-switch tactics.

      It’s funny, last year when I was looking to switch to a broker with the least amount of trading fees, I skipped Zecco even though they were attractive, simply because I couldn’t get to trust them after their first bait and switch tactic.

      Thankfully, my decision was right.

  3. Doesn’t matter much to me. I use commission free exchange traded funds mostly at Schwab and only make several buys/year.
    I guess a big deal for active traders.

  4. that’s a shame, and what a hassle for so many investors! Most of my investments are commission free as well, and with my stocks it’s usually only a handful of buys a year. Though I pay a little more for my brokerage, I like having all my accounts under one, well-respected and rock solid brokerage house.

    • Very smart move DP!

      A lot of Zecco users are learning the hard way. Pick a broker like you pick a stock – for the long haul!

  5. Zecco has completely lied to my face and will not transfer my account to another broker without me paying them $100 for two ACAT’s. They can easily do a Journal Request transfer, it’s even easier for them, but they want to screw their customers out of more money. They are by far the most unethical business I have ever encountered.

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