Despite early doubts of success, Zecco, the $0 commission trading platform and online investor community is thriving with 17,000 unique visitors every day and 95,000 members registered in the community. As long as your account balance exceeds $2,500, the free trading community gives you 10 free stock trades monthly ($4.50 for each additional) along with a slew of other benefits including low margin ratesÃ¢â‚¬”for those of you whose middle name is leverageÃ¢â‚¬”and no minimum cash balances to open basic account or IRAs.
In addition to providing investors with a free, intuitive and comprehensive trading utility, Zecco gives users access to three crucial resourcesÃ¢â‚¬”namely, a community, quotes and research, and basic educational materials for noobsÃ¢â‚¬”to ensure smarter investment decisions. ZeccoShare, the companyÃ¢â‚¬â„¢s online community, is worth highlighting because it supports the popular business philosophy, Ã¢â‚¬Å“many are smarter than the few,Ã¢â‚¬Â which seems to be influencing a number of startups in this space. Members of the community can join groups, communicate with fellow investors and debate investment strategies, all the while evaluating the sources of the information they receive from others by viewing their portfolio performances.
Fortunately, I had a chance to ask Tony Leach, ZeccoShareÃ¢â‚¬â„¢s Product Manager, a few questions. When asked what type of investor is best suited for Zecco, he said, Ã¢â‚¬Å“Zecco is ideal for the self-directed investor – the kind that researches their own decisions and wants to use new tools like the ZeccoShare community to get an edge on the market.Ã¢â‚¬Â Zecco lies at the intersection of a brokerage and a community of plentiful resources and thus Ã¢â‚¬Å“sets us apart from the competition.Ã¢â‚¬Â
Part of ZeccoÃ¢â‚¬â„¢s plan for the future is to integrate with the broader online community and it appears they are heading in that direction. Zecco has implemented Motley FoolÃ¢â‚¬â„¢s CAPS stock recommendation system, which produces ratings for stocks based the ratings of investors that take positions in them. Although the CAPS system has been somewhat controversial, it may for the time being give you a little edge to beat the market.
If you didnÃ¢â‚¬â„¢t make the cut for Covestor because you arenÃ¢â‚¬â„¢t Ã¢â‚¬Å“provenÃ¢â‚¬Â and youÃ¢â‚¬â„¢re looking for a more dynamic community with more resources than Cake, stop by Zecco and open an account (no minimum).