Zecco Removes Stock Trade Account Minimum to Lure More Investors

i would say they are GREAT because it’s free. they are NOT GREAT because their website/UI/navigation/FAQ is not friendly and sometimes confusing. being not great has something to do with being new. as long as they remain free and continue to improve their website(like recently they introduce the paperless transaction to open an account) it will be GREAT.

Smells like desperation to me. Zecco has received too many negative reviews by most of the PF Blogger world so far and the only redeeming value is the “free” trades.

In my opinion, if a new stock trader doesn’t have at least $10k let alone $2500 to trade, then they shouldn’t be trading at all.

FT

@MillionDollarJourney.com

And why is that? In order to properly diversify? What about those who subscribe to the Warren Buffett school of thought which equates roughly to do your research on companies, buy a good portion of them and then hold forever (pretty much eschewing the concept of diversification)?

It is IMO poor logic to state that new stock traders need to be upwards of $10k to trade since their losses in this new “game” could be huge and therefore psychologically damaging (potentially) compared to getting started small and learning the basics of individual stock risk and how to evaluate companies.

Think of it this way, a new investor puts in $100 to Zecco and places it on 2 stocks out of the blue, then both companies close doors. He’s out now $100, but doesn’t feel so bad since he can stomach the loss. Have him save up and place $10k in thirty stocks, and then have the whole market turn into a huge bear therefore losing 5K and potentially turning him off to this whole stock business. Is this really a better idea than starting small?

The only time when saving huge amounts before getting into stocks is a good idea is if trading costs are involved, but since Zecco has none, there is no good reason for a small investor curious about stocks and willing to put money on them to not try this.

This is great news – I signed up the second after I read about this. I actually think it’s a good option for people without much money to invest, as it allows them to “practice” with a smaller amount of funds without having to dedicate thousands of dollars to a stock.

Yes, I got the email as well. By the way, thanks for the series of reviews. Maybe it is the time for me to jump. Just need to come up with some spare money.

Zecco I want my $6,000 back NOW!!!