Trading without paying commissions?

Discussion in 'Retail Brokers' started by PitchBlack, Sep 23, 2006.

  1. Josh009

    Josh009

    Looks like they make their money from interest on margin.
    see http://www.zecco.com/reference/faq.aspx

    Obviously this won't work for daytrading, but it might be decent for longer term trades.

    Bit - let us know how it works out for you.
     
    #21     Oct 9, 2006
  2. will do but won't e the first guinea pig, that's for zure...still, broker has clearly been designed to profit from other activites aka ads and as u say margins, me thinks it could be popular with investors and will take off well.
     
    #22     Oct 9, 2006
  3. dcvtss

    dcvtss

    #23     Oct 9, 2006
  4. i opened an account to see...but you have to mail in the copied pdf file...with copy of license....or send originals...but fax copies.....way too bs.......this is an indication of what the rest of their services will be ---half-ass....their market data site.....looks like a kids "picture/reading book"....i will probably not send them any money/or send in my app. too much hassle and inconvenience for so little payoff....compared to ib, fidelity,,,,but maybe they can get ib to stop charging for canceled orders:)
     
    #24     Oct 9, 2006
  5. Here's what isn't free. (From the website).

    Please keep in mind that only the first account of any account type is eligible for our Free Trading program. Any multiple accounts of the same type with the same registration are not eligible for the free trading program.

    Options Orders
    With no minimum contract size, and no minimum commission charge for option trades, our commission fees are among the lowest in the industry.

    Online Options Trades $3.50 plus $.60 per contract with no minimums

    Mutual Funds Orders
    Mutual Funds No Load Only
    Online Trades $10 (Not Included within the 40 free Stock & ETF basket of zero commission trades)

    Note
    If you require the assistance of a live-broker, trades are only $19.99 for stocks and mutual
    funds, and $19.99 plus $.75 per contract for options.

    Other Charges

    144 Sales $35.00 plus regular commission
    Accommodation Transfers $25.00 plus certificate fees per issue
    Automated Customer Account Transfer (ACAT) $50.00 per account
    Physical Stock Deposit $50.00
    Prepays on Customer Trades $10.00 plus interest to settlement date
    Reg. “T” Extension $10.00 per request plus interest from settlement date until paid
    Reorg Items and Tenders $15.00 per request plus interest from settlement date until paid
    Research & Statement Copies $15.00 per hour (1 hour minimum)
    Returned Checks $20.00 plus interest from the earlier of the settlement date or date of deposit
    Securities purchased against Non-Cleared Funds Interest on balance (see margin interest rates)
    Taxpayer ID Penalties At Cost
    Transfer Fees At Cost
    Wire Funds $15.00
    Foreign Wire Fee $55.00
    Saturday Delivery Checks $25.00
    Overnight Check Delivery (U.S.) $15.00
    Overnight Check Delivery (Int’l) $25.00
    Stop Payment $25.00 per check (only if check is 10 or less days old)
    Overdrawn NSF Fee $35.00
    Restricted Stock processing fee $35.00 + transfer agent fee to re-register and FedEx
    FedEx Overnight Fee $15.00
    FedEx Saturday Fee $25.00
    Transfer and Ship (Certificates) $50.00 per request
    IRA Annual Fee $50.00
    IRA Closing Fee $50.00


    Margin Rates
    Margin interest rates will vary with the base rate determined by the going market rate.
    Your margin interest will be based upon the margin rate and your average debit balance for a predefined period; normally monthly.


    Dollar Range Above/Below Base Rate* Margin Rate
    Above $999,999 Base Rate 8
    $250,000 - $999,999 + 0.75% 8.75%
    $100,000 - $249,999 + 01.25% 9.25%
    $ 50,000 - $ 99,999 + 1.50% 9.50%
    $ 25,000 - $ 49,999 + 2.00% 10.00%
    $ 0 - $ 24,999 + 2.50% 10.50%

    Base Rate is currently calculated using various market interest rates and internal costs. The Base Rate is subject to change without prior notice.
     
    #25     Oct 10, 2006
  6. Yes free.....lol...

    Vinnys "discount" lending..
     
    #26     Oct 10, 2006
  7. Those margin rates are actually equally comparable to the other major retail brokers (lower than a few too).
     
    #27     Oct 10, 2006
  8. If your paying more than FedFunds+100bps your getting smoked.....
     
    #28     Oct 10, 2006
  9. You're right, I meant in comparison to the mainstream vanilla online brokers (Ameritrade, Scottrade, etc). All of them are 9.5-11% ripoffs.
     
    #29     Oct 10, 2006
  10. I can't understand why you missed this part:

    Pricelist
    Please acquaint yourself with the only fees you’ll ever encounter at Zecco Trading. Our prices are not introductory, nor are there any hidden fees after your account is established. By the way, Zecco Trading will credit an interest rate of 1% annually (1% APR) on cash balances held in all accounts. 1% APR paid monthly based on average monthly cash balance.


    Stock & ETF Transactions Trade Unlimited Shares
    Online Market Orders Zero Commission
    Online Limit Orders Zero Commission
    Online ETF Orders Zero Commission

    AND ESPECIALLY THIS PART:

    You can make up to 10 trades in any one day up to a total of 40 trades a month at no cost, and after that you only have to pay a paltry $3.50 per stock trade.

    Then comes the rest of what you posted....


    Free my foot. Nothing is free. How many of us make only 10 trades in a day? And even if you made only 10 trades, would you really care about the commissions??? For highly active traders, this is garbage...
     
    #30     Nov 18, 2006