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Zecco to Limit Free Trades in 2008
Posted By Jim On 10/01/2007 @ 12:37 pm In Investing | 5 Comments
I just received an email from Zecco  about a change to their fee structure, effective 01 Jan 2008, and below is a comparison of the changes as I can tell.
|Free Trades per Month||40||10|
|$ Per Trade||$3.50||$4.50|
*Minimum Balance: Under the new structure, you only get 10 free trades a month if you have a balance over $2,500. Those with balances under $2,500 will not get any free trades. So, while the account has no minimum balance, to qualify for ten free trades you must have more than $2,500 in that account.
This likely will have little effect on the majority of Zecco users as Zecco claims that 98% of their investors will not be affected, that is, 98% trade less than 10 times a month (good!). I bet you that they saw a large percentage of their costs being eaten up by day traders and so they decided to change the structure such that they can start charging those “power users” without upsetting the majority of their customers. This also allows them to add a number of features they’ve wanted to such as increasing the number of service representatives, adding 3 and 4 legged options strategies (butterflies, condors, etc.), releasing options analytics, and building up their ZeccoShare social network (all these were described in the email).
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