Coupled with low fees and clever advertising, Zecco and TradeKing are the two discount brokerages that I get asked about the most often. In this article, I plan to give a Zecco vs TradeKing comparison.
Introduction of the Two Discount Brokerage
Zecco Trading came to market with a big splash when it introduced commission free stock trading. Over the next few months, the discount brokerage tweaked its commission structure but by and large, Zecco still offers free commission trading for the masses.
on the other hand has more of a traditional business model in that it charges commissions on trades. It is also one of the first major discount broker to really try to build a community around its brokerage, in that it offers a message board for TradeKing customers to talk about stocks and investments. In 2006 and 2007, TradeKing also earned the top spot on Smart Money’s Broker Survey with its unparalleled customer support, fast execution and low trade commissions.
Major Selling Points of Zecco and TradeKing
What Zecco has going for it is obviously their free commission structure. Note however that you only get 10 free trades a month and you need a minimum balance of $25,000 to qualify for the free trades. (Notice that this is a new changed requirement. The original minimum to qualify for free trades was $2,500)
on the other hand is known for its great community and also its responsive customer support. This is in addition to its low commissions (only $4.95 per trade) which isn’t bad in comparison to other offerings that charge double that (TD Ameritrade for instance charges $9.99 per trade).
Major Complaint of Zecco and TradeKing
Not many complaints about TradeKing (although a lower commission is always welcomed) while Zecco seem to really need work on its customer service. Of course, Zecco offers everything for free though and unless you need to contact customer service (usually at the beginning), you don’t have to worry too much as both these brokerages are very popular.
Other Facts Comparing The Two Discount Brokerages
PO Box 60670
Pasadena, CA 91116, USA
Market and Limit Orders: 10 commission free trades a month with a minimum of $2,500 account equity
Mutual Funds: $10 flat
Options: $4.50 per trade + $0.50 per contract
Minimum to Open: $0 (you need $2,000 for margin accounts though)
Inactivity Fee: None
5455 N. Federal Hwy, Suite E
Boca Raton, FL 33487-4994, USA
Market and Limit Orders: $4.95 for stocks
Mutual Funds: $14.95
Options: $4.95 per trade + $0.65 per contract
Minimum to Open: $0 for cash accounts, $2,000 for margin accounts (same as Zecco)
Inactivity Fee: None (same as Zecco)
Conclusion of Zecco vs TradeKing?
The answer depends really on how much help you need as well as your account balance and your trading behavior. If you are just starting out and the amount of each trade is small, Zecco is a great option because commissions can really add up no matter how low they are.
However, as your investment account equity grows through time and each transaction becomes bigger, the commission (whether it’s $4.95 or $0) will become a smaller and smaller piece of the pie. At some point, the superior customer service and trading platform of will be worth the tiny amount of commissions that you are paying for.
- – Official Site
- Zecco Trading – Official Site