Zecco
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| Zecco | |
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| Type of Company | Private |
|---|---|
| Founded | 2006 |
| Headquarters | Los Angeles, California, USA |
| Key people | Jeroen Veth, CEO |
| Industry | Financial Services |
| Slogan | Zero Commision Costs |
| Website | www.zecco.com |
Zecco (acronym for Zero Commission Costs) is a privately-owned brokerage firm which began accepting accounts in October 2006. Zecco differs from its brokerage rivals in that it offers its customers free stock trading.
Zecco offers up to 10 free stock trades per day and up to 40 a month before a fee of $3.50 per trade comes into effect. This compares favorably with its rivals such as Scottrade at $7 a trade and TD Ameritrade at $10 a trade.
The CEO of the company is Jeroen Veth, a former vice-president at Merrill Lynch, who claims that other brokerages spend large amounts of money on advertising and that they then pass those expenses on to their customers. He says the actual cost of a trade is closer to $2; by spending little on marketing, he says the firm can be profitable from the interest drawn on margin accounts, charges for premium services such as options, and advertising revenues drawn by the site's hosted bloggers.
Zecco also claims its overhead is additionally lowered by using current trading software, relieving it of the expense of maintaining costly legacy systems.
Zecco also incorporates blogging and forum features that may rival that of Yahoo! Finance and its forums.
Zecco Trading is a division of Equinox Securities.[1]
