Zecco Removes Stock Trade Account Minimum to Lure More Investors
Now it seems that everything is free at Zecco (except option trading).
I was tipped off by Joe yesterday about the change and just got an email from Zecco this morning that now you can open a Zecco trading account with no account minimum.
You asked, we listened. In response to popular demand, we’ve lowered the minimum to open a Zecco Trading account from $2,500 to $0. Now, no matter how much money you want to invest, you can start trading stocks for $0 commissions in a Zecco Trading account.
The new pricing information can also be found on their website.
With many discount brokerages don’t require any minimum for opening an account (such as Scottrade, Sogo, Firstrade, and Sharebuilder and, interestingly, none of them makes to their comparison list), Zecco’s initial $2,500 requirement is quite high for small investors who want to join but have to wait till they can save enough to meet the requirement. Now with that removed, it will be much easier to enjoy the commission free trading. Actually, during my application, the minimum requirement never came up and I was able to transfer only $1,000 to the account. So I suspect it probably has been a while, they just didn’t officially announce it until now. Two months ago when they had the $1,000 minimum promotion (a unannounced one as well), I questioned whether the move signaled things were not going very well at Zecco. That concern remains with this new push to get more investors.
Other than the free trading, my feeling of Zecco isn’t that great (check out first Zecco review and first trading experience). I guess that’s a small price I have to pay just to save on commissions.
On a related note, be careful when using ACH to fund your Zecco account. Zecco uses two small trial deposits to verify your ownership of the bank account that you are trying to connect to Zecco, but they will later withdraw the money (I was told this procedure is included in their FAQ, but didn’t find it). So if you are using a savings account to fund your trading, then the two withdraws may cause you over the 6 withdraws per month limit for a savings account.
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