$0 Commission - Legit?

[ep510]

I have run across a zero commission site (zecco.com) and was wondering how legit these kind of sites are. Does anyone have any experience or knowledge about the matter?

Thanks.

Eric

[gull]

Zecco is indeed legit.

[granted]

Ameritrade tired this before , relying on order routing fees and other methods to collect revenue . They stopped in 2005 . This new company is backed by real money so it is "legit" but they are tackling it sort of as a website type deal . Their plan is to try and make money by selling advertisement and to draw eyes to the ads by giving away the trades commission free.

Bank of America is getting set to offer free trades as well to try and suck in new banking customers so Zecco probably won't be the only choice for folks trying to get commission free trades .

[sunnypoker]

ok i'm still a sucker for investing etc.
my question is, i'm pretty sure there are other hidden costs which are higher (perhaps maybe in Options etc).
will this be of no problem for beginners like me who will most likely only be buying and selling shares at a basic level??

[pig4bill]

B of A requires $25k minimum, so they are making money off of your uninvested cash.

[AvivaSimplex]

[ QUOTE ]
ok i'm still a sucker for investing etc.
my question is, i'm pretty sure there are other hidden costs which are higher (perhaps maybe in Options etc).
will this be of no problem for beginners like me who will most likely only be buying and selling shares at a basic level??

[/ QUOTE ]

You'll likely get very bad routing and execution, so you might lose (at most, on average) a penny each time you buy and sell a stock. For traders, that's horrible, for buy-and-holders and especially small investors, it's not too bad.

[hedgeyerbets]

[ QUOTE ]
B of A requires $25k minimum in deposit accounts, so they are making money off of your uninvested cash.

[/ QUOTE ]

[gull]

[ QUOTE ]
[ QUOTE ]
ok i'm still a sucker for investing etc.
my question is, i'm pretty sure there are other hidden costs which are higher (perhaps maybe in Options etc).
will this be of no problem for beginners like me who will most likely only be buying and selling shares at a basic level??

[/ QUOTE ]

You'll likely get very bad routing and execution, so you might lose (at most, on average) a penny each time you buy and sell a stock. For traders, that's horrible, for buy-and-holders and especially small investors, it's not too bad.

[/ QUOTE ]


Do you have any evidence to suggest this???

Zecco.com uses the same firm as MBtrading I believe. It's the fifth largest in the world.

[AvivaSimplex]

No, I was just guessing that if you're paying nothing, you're not getting gold-plated treatment.