Zecco Changing Free Stock Trades Requirement

by Andy Hough on January 31, 2009

As of March 1, 2009 Zecco is increasing the minimum level of assets needed to earn 10 free trades per month to $25,000. They are also adding a new way to get free trades. Customers who make at least 25 total trades per month will also qualify for 10 free stock trades per month. If you do not qualify for free trades than you will have to pay $4.50 per trade.

This change means I will no longer be able to qualify for free trades. This won’t be that big of deal for adding new positions. It will cause me a problem for reinvesting dividends though. Zecco has a dividend reinvestment program but they only reinvest full shares. Since I have small stock positions this doesn’t work very well for me. Rather than use their program I reinvest my dividends myself into whichever stock position I like as my dividends accumulate. At $4.50 a trade this will no longer be reasonable financially. I guess I’ll sign up for Zecco’s dividend reinvestment program and let the leftover dividends accumulate for a much longer time before I invest them.

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