Review of Zecco's Trading Platform and Community

Finding, Placing, and Managing Stock Trades as a Zecco Customer

Jul 4, 2009

Online brokerage firm Zecco offers a wide array of tools for traders: screeners, research, and account management features. A detailed look at them is well-invested time.

Zecco, a relative newcomer in the world of online trading, has quickly distinguished itself as a low-cost broker for active investors. Investors and traders looking for an online trading platform - or a new one - should know the following information about Zecco's service.

Zecco Pricing

The commission structure may well be Zecco's key attraction. Stock trades cost $4.50 per transaction. However, for accounts with 25 or more trades per month, ten of those trades are free. Also, accounts with balances above $25,000 receive ten free stock trades per month.

Option commissions are a reasonable $4.50 per transaction plus 50 cents per contract.

Zecco Trading

The basic trade-entry platform itself may disappoint investors who have used comparable brokerages. There is no software-based interface; trading is all browser-based. It's adequate, and offers all the order types an active trader would need (AON, FIK, etc.). However, the features found with other online brokerage platforms - such as 'one click' trade screens and 'one click' charting- are missing. Some of those features are available at a nominal premium price.

Though a drawback, also bear in mind Zecco's commission structure may more than offset these missing niceties.

Zecco Research

The Zecco stock screener is complete, though not necessarily any more robust than comparable stock-finding tools found with other online brokers (or for free at several websites). On the other hand, it's not missing anything either. A similar screener is available for mutual funds. The firm offers no access to research reports from the likes of Standard and Poor's or Thomson.

Zecco Analytical Tools

Option traders will find Zecco's online profitability analytics considerably more robust than what's offered by most of their competition. Aside from access to option chains and volatility calculators, option trades also have access to an option valuation calculator and profit/loss charts for single-option positions.

Premium Features

While all the features and tools described above are offered free of charge to Zecco customers, two additional services are offered for a nominal subscription fee. A tax planning and portfolio performance tracking tool are made available through GainsKeeper. Six months worth costs $24.95.

Streaming quotes are available for $20 per month. This service isn't just quotes, however. It includes news feeds, charting, watchlists, and time and sale information. The streaming quote interface is also very customizable. A lighter version of the streaming quote service (called QuoteGrid) is available for $8 per month.

Final Grade

Active investors and traders who are predominantly cost-conscious and don't need or warn bells and whistles will enjoy Zecco's amazingly low commission costs. Option traders will also find a healthy number of profit-oriented tools. Anyone in these two groups is encouraged to open a free Zecco account.

Traders who are more interested in research and analysis than cost - or traders who don't trade options - may be disappointed. These investors are encouraged to explore other services that may cost more, but offer a data-rich and easier-to-navigate platform.