Zecco Tradingterrible on-line stick broker

B

Zecco Trading has so far been my worst experience ever, though I haven’t dealt with many online brokers. I was lured by the concept unlimited of free trades in the past (the $30.00 yearly maintenance Fee wasn’t an issue) & decided to try it with a small IRA account as a test, about $5, 000. Shortly after the unlimited of free trades turned into 10 free trades a month which would still work for me, though it did cost me some commissions. With the latest change of $25, 000 minimum requirement I decided this wasn’t for me so I transferred the account to an existing account in TDAmeritrade which just arrived today with a $81.00 debit (Zecco’s cost for transferring funds & closing the account). I don’t usually believe that you get what you pay for, but in this example it has been a very costly test with no upside. I would recommend exercising caution on using this low rated broker.

Responses

  • Co
    CommonSense Feb 17, 2009

    Looking at their terms, they clearly state you're allotted 10 free trades a month, after which a fee of $4.50 applies

    0 Votes
  • MAC Feb 17, 2009
    This comment was posted by
    a verified customer
    Verified customer

    MY ADVISE::

    STICK'S & B;OND'S ARE PROLABY NOT THE BSET CHOISE IN THIS ENOCOMY

    IF NOHTGNIG ELSE U SHOLD USE A REAL LIFE STOICK BRKOER NOT ONE WHIHC IS "" ON LINE "" DUE TOO TO MANY CASSE'S OF ITNER NET FREUD, ,

    THEIR IS A NEHPEW OF MINE WHO HAS LOST THOSAND'S OF DALLOR'S RESETNLY DUE TOO A DISHONETS STICK BRKOCKER "" ON LIEN "" (WEB STIE'S)

    HE HAS COTCNACTED THE FEDEREAL TRADE COMIMSION ONE TWO SERPATATE COCASION'S BUTT TOO NO AVALE

    BUIER BE WARY!1

    BLESING'S

    Dr M A CARNARVORO

    1 Votes
  • Ac
    acoustoman Jul 01, 2009
    This comment was posted by
    a verified customer
    Verified customer

    This is the worst stock brokerage firm I have ever used. Their customer service is the worst I have ever experienced. First they offered me free trading and then switched to fee based trades. I stuck with them anyway as they were still cheaper. Well cheap is not a good way to go. I had set up an ACH account which they cancelled after a few weeks. When I called and told them my ACH was no longer active, they accused me of deleting it. I had no way of moving money to or from my account. (At least not without a hassle) I complained for days with no resolution. Finally I filed a formal complaint with FINRA. I then got a nasty letter telling me that I was to liquidate my account immediately as they no longer wanted me as a customer. They then cut off my ability to purchase any more stocks. I refused to liquidate my portfolio and transferred them to another broker. They then charged me $50.00 for doing so. Good ridance! They are a total joke.

    0 Votes
  • Sh
    shlyer77 Sep 23, 2009

    I totally agree that it's wrong to start charging a fee after promising free trades. Their 60 day warning was a joke too since they did it in the middle of the recession when about everyone's portfolio had lost about 20%. I don't know how it's not extortion when your only choice is to sell at a loss or pay their fees. At the very least they should have applied the fees to new customers only and/or those with gains on individual stocks.

    0 Votes
  • 5m
    5Michelle5 Oct 08, 2009

    I would STRONGLY recommend researching this company before doing business with them. I actually filed a complaint with the FTC. Also, go to Manta.com----this is NOT a Charles Schwab---it has three employees.

    Issue One: With Zecco you risk arbitrary stock liquidation. This caveat is buried in the bottom of their emails.
    “ Zecco Trading reserves the right to liquidate stock or option positions at any time if it deems that sufficient risk exists to the firm. In the event Zecco Trading takes action to mitigate risks by closing out positions, the client is not absolved of his/her financial obligations to meet additional margin calls or unsecured debit balances. Any market losses due to forced liquidations are the sole responsibility of the account holder(s).”

    Issue Two---Price Gouging: 4.50 a trade? Expect more fees. This is from another email they sent to me.
    "“Dear Client, Please be advised that recent activity or market value adjustments has generated a Required Maintenance (RM) margin call in your Zecco Trading account. NOTE: If you have a cash account and are receiving this Required Maintenance Margin Call, please know that your actual call type is a Money Due call and you may have a different due date. Please contact us immediately for details or visit the Margin Call Summary Page under “Account Records” once in the Trading Center of the Zecco Trading website.”"

    ISSUE THREE: CHARGING CUSTOMERS FOR ACH TRANSFER PROBLEMS:
    They also will charge fees (again with no warning on their site) if they have problems accessing the bank account used to set up the stock account, even though they admitted this is a common problem with credit unions, &an issue between institutions, and an issue that the consumer has no control over. (Secondly, my two micro deposits went in my account successfully, and then Zecco even withdrew a micro-deposit from my account successfully, yet they then claimed they could not “access” my bank account and I owed them 30$.)

    If this is a common problem, and they are going to charge the 30$ fee…they need to have a written warning on their web site, and they do not.

    P.S. I called Charles Schwab and E-Trade to ask if they charged a fee if the ACH transfer didn't go through, and they said definitely not. This is NOT common practice.

    In closing, their customer service reminded me of talking to someone on the Sopranoes---talking down, whining saying they have to get money from somehwerre, etc. Probably one of the most unprofessional companies I have dealt with ever.

    0 Votes
  • Md
    m.del May 27, 2011

    i have doing trades with zecco 4 3 years now, no problems

    0 Votes

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