Commissions, fees and taxes eat away your investment profits, and before now the only way to avoid them was to not buy or sell any stocks. In October, Zecco.com was launched, which is a commission-free online brokerage program.
What’s The Catch?
There’s no catch. There is no charge for your first 10 stock trades a month, and after that they’re only $4.50 per trade. That’s still lower than the $9.99 per trade offered by Zecco’s rivals.
To qualify for the free stock trades all you need is a $2,500 minimum account balance. If you don’t reach the minimum, trades still only cost $4.50 per trade, which is still a bargain.
How Do They Do It?
Zecco.com has a few ways to make up the revenue:
- Google AdSense adds
- Interest on idle cash in your account
- Options trading fees
Zecco.com plans to keep their advertising and marketing expenses down and build loyalty primarily through word of mouth. Is it working? So far their financial news, live blog feeds and community forum is quickly gaining attention. Customers can only hope their business plan pans out and commission-free trading lives on.
Millionaire Money Habits: When considering investments and exit strategies taxes and fees need to be considered. By reducing your taxable income and brokerage fees, you can build wealth at a faster pace and enjoy reinvesting more of your profits. -RT
I’ve heard a little about Zecco before, but I’ve been using Scottrade for a while now and am pretty happy with them. If I start to rack up too many fees then I may look for something else like Zecco though.
This is great if you have the $2500. Since I do not, I’ve been using ING ShareBuilder. It’s $4.00/trade if you do it on a Tuesday. Not so bad as long as you aren’t in a hurry.
Thanks for the post
Lisa
What is the feedback regarding Zecco’s IRA Funds? If old, tried and true investment companies are going under, how safe is one as new as Zecco?