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Zecco
Posted on 3/10/10 at 12:21 pm
Posted on 3/10/10 at 12:21 pm
Does anybody have experience with this broker?
They seem to have the lowest fees of all the online brokers at $4.50/trade. I'm guessing you sacrifice some research capabilities, but does this outweigh the discounted rates?
Note: I am planning to buy individual stocks, not funds (I'll use Vanguard for that)
They seem to have the lowest fees of all the online brokers at $4.50/trade. I'm guessing you sacrifice some research capabilities, but does this outweigh the discounted rates?
Note: I am planning to buy individual stocks, not funds (I'll use Vanguard for that)
This post was edited on 3/10/10 at 12:22 pm
Posted on 3/10/10 at 3:14 pm to Feed Me Popeyes
You pay for what you get, not sure about their research tools but I'm sure its minimal at such a low price. I'd say if you were going to go discount broker do Scottrade, 7 bucks a trade and having a local branch is nice. Also, if you put 25000 in you get some much better research tools as well. If not, look into some other form of research to supplement.
Posted on 3/10/10 at 4:25 pm to Feed Me Popeyes
What dollar amount would you estimate your average trade to be?
Will you be buying income stocks/ETFs?
How many trades do you estimate you'll execute per quarter?
Will you be buying income stocks/ETFs?
How many trades do you estimate you'll execute per quarter?
This post was edited on 3/10/10 at 4:26 pm
Posted on 3/10/10 at 4:37 pm to RedStickBR
In the low hundreds per trade, but not the thousands or anything. I don't have firm dollar estimates, but it's safe to say I'm a really small fish for now
This is more of a "getting started" account. I will not trade often and I am only planning to use this for stock trades, not ETF's.
This is more of a "getting started" account. I will not trade often and I am only planning to use this for stock trades, not ETF's.
Posted on 3/10/10 at 4:54 pm to Feed Me Popeyes
If you'll be investing in the low 100s/trade, then definitely go with whichever broker offers the cheapest commissions despite how sucky the rest of their services may be. The name of the game for you right now is beating commissions. On a $100 trade via E*Trade, and for someone who is not an active trader, you'd have to make 13% before you even break even. With Zecco, that may be more like 5%. On a $200 trade w/ Zecco, your break even percent gain is 2.5%. This is definitely more manageable than with E*Trade, although it will still be a task. I would recommend putting your entire position on one stock as a way of defeating the strangleholds commissions will be putting on you. With all of your eggs in one basket, you will have to do very good due diligence. Once you get more capital, then you can start branching out w/ other positions. Some people will preach diversity until they're blue in the face ... it has its merits, but not for people with only a few hundred in their accounts. And like Buffett says, "wide diversification is only required when investors do not understand what they are doing.”
Once you get a few thousand, then I'd recommend switching over to E*Trade.
Once you get a few thousand, then I'd recommend switching over to E*Trade.
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