Zecco Scales Back Free Trading Offer
It seems to me that Zecco doesn’t have a clear plan on how to run their business.
First, they asked a ton of paperwork to open an account, then ran a promotion with a lowered minimum requirement that didn’t want anybody to know, shortly after the secret promotion, they decided to get rid of all the paperwork for good and went even further to eliminate the minimum. It finally became a true free trading broker in June. At one time when I called them with questions about my account, I was told they were flooded by new applications.
I guess they must be either exhausted by the processing or overwhelmed by customer calls complaining their trading system that they don’t want it any more because, less then three months after the elimination of the minimum, they reversed course and reinstall the $2,500 account minimum and scaled back monthly free trading offers from 40 per to 10 (details can be found on their website).
Beginning next year, each qualified Zecco Trading account will get 10 free stock trades per month. Additional trades cost only $4.50, a deal we think is hard to beat. If you have more than one account of the same type (individual, joint, Rollover IRA, Traditional IRA, and Roth IRA), you’ll get free trades in the first account of that type.
For your accounts applied for or opened before 12:01AM PST, October 1, 2007 you’ll continue to get 40 free trades a month, 10 free trades a day and pay $3.50 each additional trade until December 31, 2007. For options trades, you’ll pay $3.50 per trade plus 60 cents per contract till then. The new commissions kick in January 1, 2008. If you apply for or open a new account on/after 12:01AM PST, October 1, 2007, your new account gets the new deal from the start.
The change won’t affect me too much before so far I only made three trades (two buys and one sell) and going from 40 free trades to 10 probably won’t change the way most Zecco customers trade as they claim that 98% of their customers made far less trades than offered. However, the back and forth does show how unpredictable Zecco is.
I wonder what’s next. Maybe start to charge fees for trading? After seeing what they have done in the past six months, I can’t totally rule that out.
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