Don’T Trust Zecco!
May 16th, 2009No comments »
Greetings.
My name is Chris, and I felt the need to warn traders about Zecco. It is the absolute worst online trading experience I have ever had. Before I begin, I should say that I actually MADE money with Zecco, so this doesn’t come from a salty or clouded perspective. Everyone is responsible for their own trades. BUT! It doesn’t help when the system is broken and the employees don’t even know what they’re doing. To start, their customer service reps and managers are woefully misinformed about SEC regulations and their responsibilities to their clients’ money. They take the longest time on ACH transfers (20-30 days). A few of mine were cancelled for no reason and I had to call the office to follow up numerous times. Many times the reps say that they will call back to resolve an issue, and they simply don’t.
Their online platform is mediocre to bad. Their trailing stops feature was down for a week during volatile market times, when my other brokerages were doing fine. Their charts lag relative to their competitors, and their executions are slow. Also, uninvited total screen refreshes put you behind the 8-ball when you have to wait, wait, wait, then make a quick move. Don’t even think about trading on 5 minute intervals.
Third, they have hidden fees on every transaction. The $4.50 is not accurate. It’s listed in their Terms and Conditions, but who reads that? (I did, and that’s how I found out.) Their accounting system is broken. I’m having my accountant look over their records because my buying power doesn’t even coincide with what their own account records say. As it is, I’m out about $500 because of a mistake they made, which I have yet to see fixed. I have complained to FINRA and the SEC. Yes, I believe it’s that bad.
Lastly, I know some people would be willing to put up with all this crap for commission free trades, but as of March 01, that competitive advantage is OUT THE WINDOW!! It now takes $25K to get the free trades, which makes their structure merely competitive, not a hands down advantage. Think about it: If you make 20 trades at $4.50 (+hidden fee) and 10 are free, it’s the same as making all 20 at a $2.50 commission. Plus you have to put up with all the above crap.
ESPECIALLY TO NEW TRADERS: I hope you’ll find some of this info useful. It’s a harsh world out there and the market is especially unforgiving. Emotion is your enemy in the markets, so save yourself the hassle of dealing with Zecco. They are reversing every promise they ever made, and it’s only going to get worse. They truly shouldn’t survive this market.