Discount Stock Broker, Zecco, Changes Its Free Trade Policy

First, let's start with an overview for the stock market beginner. You, as an investor, want to purchase a share of company XYZ. You must open a special account with a broker that is licensed to purchase and sell shares of stock. Think of a broker as the equivalent to a real estate agent in the housing market. You put your money into a brokerage account, then give order information. It must be stated which company you want to invest in, at what price, and for how many shares in total. There are many different types of brokerage accounts. At one end of the spectrum there are traditional brokerage houses which are where you have a personal financial advisor to assist you in your investing. At the other end are discount brokers which are usually websites where you do not have extra assistance in your decision making. Any time that you make an order to purchase or sell stock, there is a fee to do so which is where many companies generate revenue. With discount brokers, their main purpose to to fulfill stock orders (also known as "trades") at the cheapest price possible.

Zecco, The Original Model
Zecco is one of the newest discount brokers that has opened on the web. I have been with them for several months. Previous, I have not traded stocks with any other broker so I cannot give you comparisons, but I can tell you that my overall experience has been good. There original model was to offer 40 free trades per calendar month and only charge $3.50 per trade after that. They noted that they generated revenue from other areas including advertising and interest on some of their products offered. It was a solid idea and I hoped it would continue to last.

Out With the Old, In With the New
Recently, Zecco has changed their policy. The new model calls for only 10 commission free trades a month with a minimum balance requirement of $2,500. If you do not meet the balance minimums or if you go past your 10 free trades per calendar month, then it will cost you $4.50 per trade. When researching fees at other sites, Zecco is still the cheapest at $4.50 with the runner up being Scottrade at $7 per trade. Since trading fees can really cut into returns, Zecco is still a solid place to transact stock market business.

Should You Leave Zecco?
I do not think that anyone should leave Zecco over their recent change. In fact, I think that anyone who would like to start investing or switch their discount broker should consider looking into opening an account with Zecco.com. I am glad that they are attempting to stay with their original model, but are tweaking it a little bit so they can function as a business because I want to see them stay around. Zecco has stated that it will use the money that it will generate to produce better customer service and create more useful tools and products. I am happy that the company is attempting to produce a better atmosphere for investors while seeking to opening the door for people of smaller budgets to have a portfolio. I am thankful for Zecco and I will continue to be a satisfied client of theirs. Do not let their recent change in policy turn you away. You should check it out.