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.
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.
They seem to charge for some things that others do for free, like ACATS... http://www.zecco.com/trading/FreeTrading.aspx?tab=WhatsNotFree
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
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. âTâ 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 (Intâl) $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.
Those margin rates are actually equally comparable to the other major retail brokers (lower than a few too).
You're right, I meant in comparison to the mainstream vanilla online brokers (Ameritrade, Scottrade, etc). All of them are 9.5-11% ripoffs.
I can't understand why you missed this part: Pricelist Please acquaint yourself with the only fees youâll 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...