Zecco and TradeKing both have attractive features that can be appreciated on a variety of different levels. As far as pricing goes, Zecco originally offered $0 stock trade commissions, but has recently shifted from their free offer to a pay commission model which invalidates the very essence of their name “Zero Cost Commissions.” Still if you can keep $25,000 in your account at all times you are entitled to 10 free trades each month. It also offers ten free trades if you make at least 25 trades every month. Otherwise, each trade will cost you $4.50.
TradeKing on the other hand charges $4.95 per trade, this being half the amount of some other discount brokers. It is true that this is forty five cents more expensive than Zecco, but TradeKing has other features that, depending on your needs, might easily make up for this. TradeKing will also pay up to $150 in transfer fees if you are transitioning from another broker, whereas Zecco doesn’t offer anything. TradeKing charges $4.95 for option trades and sixty-five cents for each contract, which is a bit more expensive than Zecco, which charges $4.50 per trade and 50 cents for each contract.
The entire concept of creating a community for investors to discuss their stocks and investments originated with TradeKing, so it isn’t surprising that they outshine Zecco in this aspect. While Zecco does offer their own version of a community, the tools and interaction do not compare to those of TradeKing’s.
Zecco has also had some poor customer service reviews. In the beginning when they offered zero cost trading this might have been understandable, but now that their prices have gone up this might be more of a concern for some new clients. On the other hand, TradeKing is well-known for amazing customer service. In both 2006 and 2007 TradeKing was ranked number one on Smart Money’s Broker Survey for having unparalleled customer service, inexpensive trade commissions and quick execution.
Zecco also charges a $50 yearly fee for a tool called GainsKeeper, which allows you to track realized and unrealized gains in addition to helping maximize your tax strategy along the way. Along the same lines TradeKing offers Maxit Tax Manager, which provides the same service at no charge. While Zecco offers a multitude of other premium features, many of them require a subscription but can be found for free at TradeKing.
When it comes to account minimums, TradeKing and Zecco are very comparable-both have a $0 minimum account balance for cash accounts and require at least $2000 for margin accounts. There are no inactivity fees for either broker.
Zecco’s new pricing strategy has really helped to level the playing field, so there is no longer a great advantage to trading with Zecco because their trade commissions are no longer free. In the end, it appears that TradeKing offers almost everything that Zecco does without charging extra for the services. At TradeKing you will also find a robust trading platform, an excellent community and some of the best training resources available to investors on the web.