I have around $3,000 to invest and will be looking at stocks.
Any alternatives that I should consider?
Anything I should watch out for with Zecco?
2007-06-03 15:33:04 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
Zecco is fine... but as a beginner do you really want to go with any broker that's geared to "heavy traders"? Deep discount brokers are the worst place for a "newbe".
I'd suggest using Schwab. They've got people you can talk to 24 hours a day. They've got a good research "arm".
Also:
Before you just buy a stock because you heard it was good or have a feeling it will take off..........
That's not investing. That's gambling. Spend 6 months to a year learning the "basics". Read as much as you can. Understand "asset allocation". Have a plan (which includes an exit strategy). Stay away from penny stocks (stocks at $5 or less) for at least 3-5 years.
Good Luck.
2007-06-03 16:25:24 · answer #1 · answered by Common Sense 7 · 2⤊ 0⤋
The Zecco website states that more than 10 transactions a day OR 40 a month will be charged $3.50 per trade. If you are over either of these limits, and buying 100 shares at a time, it will look like you are paying 3 cents more than you expected. Additionally, the Zecco user agreement states that the data is not guaranteed accurate, timely, or sequenced. This means that your trades are conducted at the market price, which can be VERY different from the displayed price. Obviously, they are not in business to not make money. They must have some form of income. The user agreement leaves open the possibility that they charge a "spread". This refers to the difference between the "buy" price and the "sell" price on a single transaction. This is how traders on the floor of the markets make their money. Typically, traders on the floor work for a spread of less than a penny a share. This doesn't sound like much until you realize the BILLIONS of shares traded each day. They can charge this spread because you don't have any way to confirm the actual price paid for the shares. The user agreement says you won't hold them liable for any discrepancy in the data, which is what their lawyers will claim in court. The legalese in the agreement protects them.
2016-05-20 22:17:55 · answer #2 · answered by donald 3 · 0⤊ 0⤋
Always avoid hot stock tips. Unless you have at least 10 grand, stay away from individual stocks. Buy shares in an S&P 500 index mutual fund and save as much as possible.
2007-06-03 21:52:00 · answer #3 · answered by Gretch 3 · 0⤊ 0⤋
zecco service is pretty ok . i got 20 free trades already, that means i save 200 dollars. should give a try
2007-06-04 12:41:32 · answer #4 · answered by MikeMIke 2 · 1⤊ 1⤋
Sharebuilder.com
2007-06-03 16:24:17 · answer #5 · answered by NOVA50 3 · 1⤊ 0⤋