A commenter on a previous post asked what Zecco was, so I thought I’d give a little overview of it. Basically, Zecco is a discount stock brokerage where trades are typically conducted online. I use them for my stock trades, and for my traditional IRA (which I have invested in several mutual funds).
If you have a minimum of $25,000 in your account or if you make at least 25 total trades per month, you get 10 free stock trades per month. Otherwise, the normal cost for stock trades is $4.50 each.
I have only ever used them for simple stock trades (no options or anything like that) and to buy shares in the mutual funds I wanted for my IRA. Mutual fund trades aren’t handled like stock trades. (They are also $10 per trade.) To do the mutual fund buys, I had to send an email to their mutual fund section listing my name, trading account number, what I wanted to do (buy), the fund I wanted, the amount, what to do with dividends and capital gains, and acknowledge a few things. It was pretty simple but I had a hard time finding the directions on the web site. I ended up calling instead and quickly got an answer. (I believe mutual fund orders can also be faxed in.)
I found the sign up process a little tiring, because they ask for all kinds of information from you, but every brokerage house needs that type of information so that’s kind of irrelevant. You also need a “trading key” for each account you have with Zecco, so you end up with a password for the site, plus the key(s). I like that you can have your trading confirmations & statements delivered online or via snail mail. (They do charge extra for snail mail. They also send you reminder emails letting you know the items are available online when they’re ready.)