How does zecco work?

Question

I am signing up with my first online stock trading service... I have no idea how it works or what to expect... I have a few quesions...

1)When you sell stocks, is the money transferred automatically to your zecco account, and are there any charges other than the contract fee associated with that?

2) Is it 5.00 when you buy plus when you sell a stock?

3)Is it pretty much instant that you get the stock, or does it take some time? (Do they buy the stock for the current market value, or what the market value is when they buy the stock?)

Answer 1

I do not recommend Zecco for first-time investors.  First of all, to qualify for 10 free trades per month, they require a minimum of $2,500 deposited in the account, which is a lot to put on the line for a beginner.  Usually I would recommend that beginners start out slow so if they lose money, they don't lose a lot.  Another problem with Zecco is that they have a very hard-to-use website, making it very difficult for beginners.  In addition, they have been rated for having one of the worst customer service in the online discount broker industry.

I don't have a Zecco account so I can't really answer your  questions.  However, as for trade execution speed, I do know that stock trades are not instantaneous, but they are are executed between a few seconds to half a minute.  I don't know exactly how fast Zecco is, but I currently use Firstrade ( http://www.firstrade.com ) and they're so fast that they offer a 3-second trade execution guarantee.  I recommend forgetting about Zecco and transferring to Firstrade.

Answer 2

Zecco works like any other broker/dealer since they all are governed by the same rules and regulations.

When you sell stock, you are charged a commission (unless the firm gives you a round turn trade), so you proceeds of the sale are net of any commissions.

Yes you pay a commission for each trade.\

Most market orders are executed within seconds.

Before you open any brokerage account, you should take the time to learn what you are doing, why you are doing it and how to do it.