Question:

Is trading on Zecco as good as any other broker in terms of price they get?

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One of my friend is saying these big names like fidelity, etrade can get you better price than Zecco or any small brokerage on market order. They have better chance of executing a limit order. Is it true or a myth?

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  1. The difference wouldn't be enough to make a difference, and I don't think there really is a difference.  

    The main thing to look at is commissions.  How large will your orders be?   You shouldn't ever spend more than 2% (which is really way too much)  to get in and out of a position.  So with Zecco you could buy as little as $450 of stock  for a round trip at 2% of it in commission.  And if you have put in $2500 you can make 10 free trades a month.  So if you are just an amateur and trade a few times a month, I don't think you can beat them, even though they have poor customer service and very few frills.


  2. Myth

    Fidelity or any other broker dealer can not and do not get you a better price

    All major brokerage firms have basically the same trading platform, (the format may be a little different), most route stocks in the same manner, and direct orders to the proper place,

    The best firm is the firm that makes you feel comfortable, and gives you satisfaction.    Personally, I have account with Fidelity, Scottrade and ThinkorSwim, all serve a particular purpose based on the product being traded.

    You can listen to your friend, to keep you friendship, but maybe you should do what you want to do.   That's why there's chocolate and vanilla.

  3. No one can get you a better price on a stock than what is stated on the stock exchange (NYSE, NASDAQ,...).

    However, they can get you a better price on the commisions. But I believe the few dollars on Etrade, Ameritrade, Sharebuilder,... are non-negotiable due to the fixed price, where the brokerage houses charge according to amount of $$$ & number of shares sold/bought.

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