http://venturebeat.com/2006/09/21/zecco-will-kill-stock-trade-commissions/ You can check out: www.zecco.com
Commission-free trading usually means that the broker profits by selling to you at above-market prices and buying from you at below-market prices; or by allowing some 3rd party to do the same thing to you, in exchange for a cut of the loot made by the 3rd party. The CFTC has fined brokers for fraudulently advertising this type of trading as "free". Is this the type of trading zecco has in mind?
Before giving your money to a broker... It is prudent to verify that broker is stable and ** profitable **. This is highly unlikely... In cases where unproven, unique, or fraudulent business models are employed. One year ago I was offered a carte-blanche prop job by a broker that advertises here... But after seeing their expensive offices... I could not imagine how they could possibly compete with IB Canada... In other words... They could only make money through deception... By manipulating people into paying about 3 times what IB charges... And loading up the special fees for software, etc. There is definitely something wrong with that picture. One year ago they had 2 reviews over in the "Broker" section... Today they have 2 reviews in the "Broker" section... One a shill job stating "they rule Canada". It is downright bizarre that a firm that advertises here VERY heavily... Can't scare up even one review in the last year. Not saying they are bad people... Or a front for whatever it is they really do... Just unlikely to be profitable or offer you a competitive deal.
I would seriously open an account with a small amount to support this group for a start. I'm glad to see a company push the trading 'envelope' , even farther than the direct discount online brokers have done. Thanks for posting this article. I saw it first here on Elite Trader's site. **
i'll wait 'till is fully functional and then may open an acct if it is really for free and orders are handled with fearness. may do a test with a few grand and see how it goes.
Thanks Bitstream and GK1. Do let us know if it turns out to be good. I might just open an account with them if the reviews are good.
"You only have to pay a paltry $3.50 per stock trade after 40 trades a month, up to 10 trades a day." What happens after 10 trades? $3.50/10 new trades? Or do you hit day limit and no more trades?
You can have any two of cheap, fast or good. If its free you may have to give up on both fast and good. But realistically the infrastructure and customer service must be payed for somewhere so there will be some way in which you pay the piper.