Discount Brokerage Going Free Brokerage?
Bank of America just weaved trading commission fees for their clients. Does this mean that the brokerage industry is going for the zero commission in the long run? Zecco (coverage here) already offered an almost free trading account. Will other follow suit?
But Bank of America requires its customers to hold $25k in account balances before one is granted free trades. I’m sure most people won’t stash $25k in Bank of America’s pathetic 0.20% APY savings. So BAC is trying to pull a fast one on its customers if you ask me.
However, Zecco does have immense potential if it remains profitable in the first 3 years of operation. Those are undoubtely the most crucial to their long term success. So as any frugal stock trade would, I opened a Zecco account, and plan to buy a few stocks in the near future. I detailed my entire sign-up process in my zecco review, and like many others struggled through the long trading application. It took 20 minutes of my time, but will hopefully save me $$$ in the future!