PENNY STOCK TRADING AT ITS BEST

Alright, by now you probably know what Zecco is. In case you don't, Zecco is an online broker that allows 40 free trades a month. This is quite a nice deal, especially for moderately active traders. But the story gets much better for anyone who trades in penny stocks.

Penny stock traders, get a load of the following information.

The current state of penny stock trading is not very good with most brokerage firms. A penny stock is usually defined as a stock with a market value of less than $1, some brokers define a penny as less than $2. Either way, nearly every single broker treats penny stocks differently than starndard, listed stock.

Many brokers either discourage or do not allow trading in penny stocks. This is for a few reasons. Penny stocks are harder to trade than listed stock (often a broker needs to actually make the trade, rather than relying entirely on computers)and they also involve a lot more risk than a listed stock. Usually, people who are interested in trading penny stocks have smaller balances in their accounts. The mainstream brokerage community wants high value investors who trade in large blue chip stocks. The commissions from these trades can be justified more easily. And the trading itself is very basic, being executed almost instantly with computers.

Since many traditional brokers push away penny stock traders, it has fallen to the online discount brokers to take in this market pool. But firms like Ameritrade, Etrade, Schwab and other discount houses want to make extra money from traders of penny issues. They know that anyone who wants to trade these lowered priced stocks must use a discount broker. There has been an unwritten rule among all the discount houses, which basically entails milking these traders for more money.

Here is how it works. Ameritrade, Scottrade, Etrade, all the online discount houses have a normal, flat commission for trading listed stocks. The pricing varies from $8 per trade to $29 or more. But the point is that it truly is a flat price. These same brokers all have a more gouging method when it comes to trading in penny stock. Not only is a penny stock trade subject to the normal flat commission, but the brokers will charge various upcharges for a penny trade. A common upcharge used for penny trades is to charge 1/2% of the total order value (total dollar amount traded) in addition to the standard commission rate. Another trick is to charge an additional penny (or half a cent) for each share traded. Needless to say if you a stock that is trading at below one cent this represents a huge problem. You cost just for the underlying stock just went up more than 100%.

Having said all of the above, I know need to say the rules have just changed. In a complete and total fashion. This is not a mild change, this is a sea change.

Zecco, the new online stock broker allows 40 free trades a month. This includes trading penny stocks! There is no limit to the number of shares per transaction and there are no hidden fees associated with the trade. You truly can trade penny stocks every month for no dollars in commissions. The technology platform that is used for trading is essentially no different than the system you are accustomed to having. The important thing to realize is that trading in penny stocks is now a reality even for small worth investors. Traders who trade in size will benefit just as much. Everyone who trades penny stocks, anyone who has wanted to trade penny stocks but hasn't because of high costs, they both can take advantage of the amazing program at Zecco. This is the best deal for penny stock traders in the history of Wall Street.

If you are skeptical, check out their website. Read all the fine print, the offer is real. The deal is totally legitimate. Look for loopholes, and you will find none. Many people ask what happens after I reach my 40 trade limit. The news is great here as well. Once you reach the 41st trade, you do begin paying commission.

The commission is $3.50 for any trade. This is a flat commission, with no upcharge or extra fee structure at all. You pay $3.50 for any number of shares traded. Don't forget this is after you have already placed 40 trades in that calendar month. So you have two types of stock trades at Zecco. You either pay zero dollars or you pay $3.40 as a flat fee. For penny stock traders this is the best deal to have ever come along. Take it, and do like I did, say thank you to Zecco!

ZECCO MEANS FREE TRADING

Have you heard of Zecco? Zecco is a new discount stock brokerage firm, with a great twist. In fact, it is so good it is hard to believe it's true.

Zecco is the first online discount broker to provide free stock trades. Yes, free, totally free. No secret fees, no sneaky way to make money back.

There must be a catch, right? Well, there is not a catch. There is a limit, but no catch. Here is exactly how it works. When you sign-up for a free Zecco account you will receive 40 free trades every month. As part of those 40 free trades, you can trade up to 10 times in one trading day. All with no brokerage commissions, trading fees or cost of any kind at all. The limit comes in after the 40th trade. Once you get to the 41st trade in any given month you do have to start paying a flat commission on your stock trades. A whole $3.50 a trade.

Now, let's take a step back. All through the 1990's the discount trading brokers kept lowering prices and offering more services. Some, like Ameritrade and Brown came down in their brokerage fees to almost zero. If my memory serves me correctly, Brown & Co. charges a flat $5 fee and Ameritrade charged $8 for a single trade. Remember, no company has ever offered free stock trading, with zero cost associated at all. This is a brand new game. Zecco wants business from online traders, they want those assets under their roof adn they are willing to provide the service to get those customers. There is no reason not to take advantage of their great offer.

Another trick a lot of online brokers play is the limitations of shares purchased. In other words, Charles Schwab may offer a flat commission of $29 for trading a stock, but the number of shares you can trade is limited to 5000 shares. Each additional share in a given trade would be create an upcharge into the commission structure. Basically, your flat commission structure at most online brokers was not flat, it came with multiple tricks to charge more money.

Back to Zecco. This is a free online broker, where you can trade stocks for no charge at all, for the first 40 trades each month. That's 480 free stock trades, for any volume in the shares traded, every year! This is ridiculously awesome. As a off and on again online trader for the last 14 years, this is exactly what I have been looking for in a broker.

One note, check back for the information that Zecco has for trading penny stocks. It is amazing. There will be an entire post dedicated to strictly penny stock trading, because Zecco is going to quickly become the king of penny stock traders.

Check out Zecco today, there is no better brokerage firm for you. Or anyone for that matter.