I have updated my review on Zecco to reflect their nasty bait-and-switch. Do you know how many people opened up accounts with them in October for the free trades? Only now to rope them in with either $4.50 commissions or a $50 transfer out fee. A very shady company.
After some thought I have decided to close my Zecco account and switch to Sharebuilder. I considered some other brokers (Sogotrade and thinkorswim) and I've settled on Sharebuilder. Sogotrade's $3 trades seem nice, but I'm a little hesitant about some of these smaller brokerages - will it still be the same next year? Sharebuilder has been around for quite a while.
My experiance with Sharebuilder before has been good - the only advantage that Zecco had was the free trades, and that's now gone. Also, I forgot about their pricing plans. For $12 a month I can do 6 automatic investments. I opened up a new account with them (but it's linked to my other account) and using the promo code TRADEUP50, I'll get $50 when I transfer $500 of securities from another company to them. This makes my transfer out of Zecco free.
The nice thing about the plans at Sharebuilder is that I can change them at any time. So if I'm only going to make 1 or 2 trades, I will choose the Basic Plan for $4 a trade. If I'm doing 3 or more, I will choose the Standard for $12 (up to 6 transactions, $2 thereafter). The only downside is that selling a stock is $9.95. Of course, since I am a buy-and-hold investor, that shouldn't happen too much.
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1 comments:
Hear hear. Zecco's move made me very unhappy--i felt rather cheated. At the same time I think even if they needed to cut down on costs, there were much better ways for them to do it to keep their customers. They sort of shot themselves in the foot. Like you I'll be switching to ShareBuilder, as at this point I think they are the best deal for buy-and-hold investors who want to dollar-cost average.
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