Zecco to cease 10 free trades for accounts less than $25,000!

January 31st, 2009 · No Comments

I just checked my e-mail and saw that I had received an e-mail from Jeroen Veth @ Zecco Trading.  The e-mail states that as of March 1, 2009, Zecco will cease to provide 10 free trades per month to accounts with a portfolio balance of $2,500.  Instead, accounts will need to either have a portfolio size of at least $25,000 or make 25 or more trades per month.

image: http://www.sxc.hu/profile/cobrasoft

image: http://www.sxc.hu/profile/cobrasoft

You can read the full details about this on their company blog.  Here’s their statement of why they are making this change:

Why was this necessary now? Anyone who’s read a newspaper lately knows that the US and world economies have been hit hard over the past 4 months. As a result, some of the largest corporations in the world have had to cut costs and adjust to new business realities. With reduced retail trading volumes and lower interest rates, we at Zecco Trading simply could no longer provide free trades to as many people as we would like.

This is a big blow to our GI trading / investing plans.  I had been counting on the free trades to maximize our ability to put money to work at relatively small incremental amounts of around $300 or so per month.  In fact, I’d just initiated a cash transfer into Zecco of about $3,000 to get started with the free trades.  Now I’m very glad I held off on doing an ACAT transfer of our ShareBuilder holdings.  (An ACAT transfer is where you don’t need to liquidate your holdings in order to move them to a different brokerage.)   We’ll need some time to figure out what to do now but I’m guessing we’ll stick with ShareBuilder for awhile more since their base commission is $4 (discounted to $3 by our Costco affiliation) vs. Zecco’s $4.50.  Oh well.

For those sticking around with Zecco, I note this intriguing bit from their announcement:

We’ll also be upgrading to an entirely new trading platform later in 2009. This new platform will improve reliability as well as introduce advanced order types, enhanced options trading capabilities, online bond trading, better account management, single-step login, and a faster website.

Tags: Brokerage

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