While researching possible stocks to invest in, I found a blurb about the upcoming launch of Zecco.com. It sounds like a nice idea. People sharing ideas and news on stocks. Then they will also have the option to execute stock, option, and mutual fund trades. I think I heard someone say that they would be offering free trades (no commission). I don’t know how that is possible, but that feature won’t be available at launch. It looks like a lot of their ad sponsors are from financial services companies. I am a bit worried about the idea of users spreading news/rumors and pushing stock prices in the wrong direction. Indiviuals don’t have to disclose the same things large companies and analysts have to. So I don’t trust blogs to give honest stock recommendations…
Its interesting to note that commission fees are dropping. I remember paying $35 per trade and I now pay $12.95. I also don’t have quarterly or yearly fees on my Schwab account. TechCrunch has an interesting take on this new service.
1 comment so far
Hi Bettin … I am one of the guys behind Zecco, and just for the record we will be launching zero-commission trading from day 1 (October 9th). The way this is possible is simple. We don’t intend to spend around $6 per transaction in sales and marketing costs like the big boys … instead we’ll simply pay the $2 that is the actual cost of the trade. We’re betting this will give us a lot of customers and good word of mouth. Simple as that. Likewise with quarterly or yearly fees … none of that either. Once we open our doors on October 9th I think you should pay us a visit and see what we have to offer. Try out the solution and see how the trading platform works. Compare it to what you are using today … then ask yourself if there is any reason to pay that $12,95 you are paying today.
Anyways … I’ll be looking forward to seeing your comments on the new site once we get airborne.
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