Zecco is an online broker that is defying all others by offering FREE... yes, you read it correctly, free stock trades. They are able to do this by making their profits via interest on your money, as well as using ads on their site. Other brokers do the same, but still charge fees for each trade. Zecco offers up to 10 free trades a month for accounts with a minimum balance of $2500. After that, or if you have a balance under $2500, you pay only $4.50 a trade. Even more, they now have NO minimum funding level. For investors trading with small amounts of money, that don't need much customer service, Zecco is certainly a broker to consider. Setting up an account with Zecco can be a bit tricky, however, and if done incorrectly can lead to some headaches.

Zecco's contact info - phone: 1-909-657-6655

*** up to 10 free trades per month with a $2500 minimum balance. Then $4.50 each thereafter, or if account balance is less than $2500. Note: This has has recently changed as of October, all new accounts will be affected by this policy. Previously opened accounts are still subject to old fee schedule until 2008.

Tips Before Setting up an Account

• Don't try to transfer shares or funds from another broker. While we have seen reports of success, doing so will result in more paperwork, and hassles if something goes wrong. We recommend using Zecco as a secondary broker. Zecco has worked great for us, but due to their limited customer support, we recommend a broker such as ShareBuilder or TDAmeritrade for critical trades.
• Make sure to be very diligent when filling out the online application. It isn't as polished as the big online brokers, and may not have the same level of error checking. Make sure you scan each part of the form(s) and ensure the correct entries.
• If you receive any notification during the application process, or via e-mail, indicating that you need to send in ANY paperwork, make sure to do so before starting to fund/trade. Sometimes a W-9 form and Government ID is required for exemption from backup withholding
• When setting up an ACH account for funding, make sure you wait until the verification deposits are made before trying to start a transfer.
• When making your first ACH, or any other deposit, use a small amount of money (~$20) just to verify that the account is set up properly. After the funds arrive in the account, it will take 3 days for them to clear for trading.
• After your first small deposit has cleared, make a trade with the funds to make sure everything works properly. Remember, any % gain is a profit with no commissions! If you want to take even more precaution, after you sell, wait for the funds to clear for withdrawal, and take them out. If you can get the funds into the account and trade with them, however, you will probably be fine to take them out.

Account Setup Process

1. Apply for a MyZecco Account. To open a Zecco trading account, you have to have a "MyZecco" account first. MyZecco is the part of the site where you can visit and post to numerous blogs and forums. This is the "Free Trading Community" side of Zecco. Once you apply for a "MyZecco" account, you can then apply for a "Zecco Trading" account. Applying is easy and quick, so we will not go into further detail.
   
   
2. Apply for a Zecco Trading Account. The trading account application is fairly standard when it comes to broker apps, but is not as refined and user friendly as the larger, well-known brokers. Just be sure to scan each page of the application to verify each field and check box is completed properly. If you can, you might want to apply for a margin account. A margin account requires a $2000 minimum funding level, but does not restrict your buying power until your trades settle like a non-margin account.
   
   
3. Wait for your approval. Shortly after you complete the application, you should receive a confirmation email saying:
   
   "Welcome to Zecco Trading! We are processing your application. You should receive account information and/or further instructions shortly."
   
   -After this, you must wait for your account approval. Ours was approved within an hour, but we have heard it can take about one business day. The beginning of the approval will read:
   

   "Congratulations, your Zecco Trading account application with reference number XXXXXXXX is approved.

   IMPORTANT NOTE: Occasionally we need to request signed new account application documents and a copy of a government-issued ID prior to activating an account. If this is the case, you will be notified by email. Otherwise, enjoy your trading!"
   
   -As stated in the tips section above, and in this IMPORTANT NOTE, if you receive any notice that additional paperwork is required, make sure to complete and send it in. We recommend faxing the paperwork to avoid any delays. E-mailing it is another option, but is less secure. For a basic account for a non-professional, the most likely form that will be required is a W-9 along with a Government issued ID. In some cases this is required to ensure exemption from backup withholding. If this is not completed when requested, nearly 30% of your profits will be withheld for tax purposes.

4. Wait for your Trading Account Activation. Even though your account has been approved, your trading account will probably not be ready for login immediately. The approval email will indicate this:
   
   

   "Please note that it may take a few moments (up to three hours) after account approval before you can access your Trading Account."
   
   -When the account is ready, you will see an 8 digit number next to your username in the login box for the "Zecco Trading" area. To get here just log into your MyZecco account and click the pink "Zecco Trading" tab.

5. Log into your Trading Account. To log into your trading account, leave the account field as is, and in the "Trading Key" you will enter your initial trading key. Your initial Trading Key is a combination of the first three digits of your Social Security Number and the last four digits of your new Zecco Trading Account Number, as displayed in the Trading Key box (no spaces).

6. Change your "Trading Key". You need to change your trading key right away to ensure your account is secure. Do not use your MyZecco password as your trading key. To change it just click the "Change Trading Key" tab.
   
   
7. Set up an ACH Relationship. To fund your account, we recommend using an ACH relationship with a bank account. These transfers are free, and are usually completed within a few days. To set one up, first log into your trading account, then click the gray "Funding and Transfers" tab. On the left you will then see a link to "Add External ACH Account". Click here and you will get to this page shown below:
   
   
   
   -Enter your 8 digit account number in the box that the green arrow is pointing to. Then just click the "Request New" button - yellow arrow. NOTE: Your account number can be found next to your username on the Zecco Trading login.
   
   Clicking will bring you to this page:
   
   
   
   -On this page enter your bank account information - green arrow, and click the submit button - yellow arrow.
   
   Within a couple business days, two small deposits will be made to your bank account from Penson. Write these down, and then go back to the "Add External ACH Account" page in your Zecco Trading account and click on the Green Check Mark next to the ACH Relationship. On the following page enter the exact amounts of the two cash transfers that were deposited into your checking account. Click submit and the ACH relationship has been established!
   
   
8. Add Funds to your Account. As we stated in the tips, to avoid any potential problems, we recommend making a small ~$20 deposit first, to ensure your account is working properly. We are in no way saying you are likely to have problems with your account if it is set up properly, but should you have an issue it is better that only a small sum of money is at risk.
   
   -To make a deposit via your newly established ACH relationship, go to the Funding and Transfers tab, and click the "Move Cash" link on the left. This will bring you to the page shown below:
   
   
   
   -Here you simply need to click the "Request New Transfer" button - green arrow. You will then be sent to this page below:
   
   
   
   -Here you will enter your 8 digit account number. NOTE: Your account number can be found next to your username on the Zecco Trading login. After clicking the "Go" button you will get to this page below:
   
   
   
   -Here just fill the form out with the proper entries to schedule an account transfer and click "Submit". You can set a one time, or recurring deposit or withdrawal by using the "Frequency" drop-down.
   
   
   
9. Wait for your funds to clear. It normally takes about 3 days for a deposit to clear for trading penny stocks. You can check if your funds are available by going to the "Trading Center" via the gray tab, and then clicking on the "Balances" tab. Available funds will be showing in the "Buying Power" row.
   
   
10. Start Trading for FREE! Congratulations, your account should be all ready to start trading. As we said in the tips, it is a good idea to make a round trip trade (buy and sell) to make sure everything works properly. When everything is verified to be functional, go ahead and add more funds and enjoy commission free trading!