Zecco vs Tradeking was not even a fair comparison before Zecco increased their minimum requirements for free trades recently. However, now that Zecco decided to compete more in the paid trading arena, it’s finally appropriate to write a Zecco vs Tradeking comparison.
Doesn’t Zecco Trading Offer Free Trades?
Zecco Trading no longer offers free trades. The old structure gave you free trades if you:
- had a $25,000 minimum balance in your account
- executed at least 25 trades a month
However, this is no longer the case.
So pricing wise, Zecco and is remarkably similar.
Zecco vs TradeKing Trading Commissions (as of Apr, 2011)
Assuming you don’t quality for the 10 free trades, the commissions are as follows:
Zecco – $4.50 vs TradeKing – $4.95
Zecco – $4.50 + $0.50 per contract vs TradeKing – $4.95 + $0.65 per contract for up to 8 contracts. $8.95 + $0.15 per contract from 9 contracts and up.
Broker Assisted Trades
Zecco – $19.99 vs TradeKing – $4.95
Zecco -$0 – $49,999 (7.20%), $50,000 – $499,999 (6.70%), $500,000+ (4.70%)
TradeKing – $0 – $49,999 (6.50%), $50,000 – $249,999 (5.50%), $250,000+ (4.50%)
Thoughts on the Rates
Looks like Zecco still wins on rates even if you don’t qualify for free trades by $0.45 per trade and $0.15 per contract. However, TradeKing kills Zecco in the broker assist department as TradeKing does not charge extra for broker assisted trades. It almost sounds too good to be true.
Also, the margin rates of TradeKing is much better than Zecco. While I don’t recommend using margin to buy stocks, it is common practice and the difference is huge.
Customer Service of Zecco vs TradeKing
Instead of writing a long winded version of this, consider the 2008 Smart Money’s annual broker survey in this category:
Zecco or TradeKing?
- The Case for Zecco Trading – $0.45 is $0.45. For those that trade many times per month, any difference in price adds up. Also, once you start hitting the 25 trades per month mark, you get 10 free trades per month (that’s $45 every month). Sure, the customer service might not be very good but how many times do you actually need to call them? Also, for those that don’t have $25,000, make more money in the stock market and you will get to the threshold in no time (that’s the whole point of having a trading account anyway right?) By going with Zecco, you now have an added incentive to make more money.
- The Case for TradeKing – For only $0.45 per trade and $0.15 per contract more than Zecco, TradeKing actually offers customer service that is best in the industry in case you need to call. It also offers unbeatable commission rates on broker assisted trades and awesome margin rates. If you borrow money to trade at all, then there is no comparison. Go with .
- Zecco Trading – Official Site
- – Official Site