Review of Zecco as a Forex Broker

Online Forex Broker Rating: ★★★★★★★★☆☆

About Zecco

Zecco is headquartered in the San Francisco Bay Area in Burlingame, California. The company opened in October of 2006 and is currently serving 100,000 investors. According to Investor’s Business Daily, Zecco is known for its leadership in the Web 2.0 technology community. Zecco is also a member of Securities Investor Protection Corporation (SIPC) and protects its investor’s accounts up to $500,000. For accounts in excess of this amount, additional insurance is acquired for protection.

Foreign Exchange (Forex)

Forex is an acronym for the Foreign Exchange Market. Typically, a foreign exchange is described as a transaction that involves investors purchasing and selling a currency simultaneously. The end result is an exchange of currency.

Foreign exchange holds one of the highest trading volumes of any security. Daily the volume reaches over $3 trillion. Zecco assist customers in with Forex transactions, as well as, stocks and options. Trading on the foreign exchange involves a significant amount of risk; however, the returns or leverage also increase with risk.

Foreign trade accounts for about 5% of foreign currency activity. The remaining percentage results from profit speculaton. The most popular or most liquid currencies include the Japanese Yen, US Dollar, Euro, Swiss Franc, British Pound, Canadian Dollar, and the Australian Dollar. These currencies account for nearly 90 percent of Forex transactions each day.

Most Popular Features

Zecco is a popular trading platform for two reasons: online social networking or investment community and low cost trade prices.

Social Networking Community

Zecco community members are provided with the latest stock tips and information from other community members. The information is available upon login. Through the online community ZeccoShare, investors can begin their own investment groups, participate in online forums, and find the latest stock predictions. Currently, Zecco is one of four that possess this type of online investment community.

Low Trading Prices

Zecco offers some of the lowest trade execution fees in the industry. Zecco Forex offers their customers commission free trades. The cost of the transaction is simply the difference between the bid and the ask price.

Investors who desire other types of transactions must maintain $25,000 in an account or execute 25 trades each month to receive 10 free trades. If investors do not meet those requirements, the fee is only $4.50 per trade. Many companies charge up to $10 or more per trade. Zecco eliminated high transaction costs to encourage active trading.

Other important features include:

$50,000 Virtual Practice Account
Real-Time Quotes in over 35 Currency Pairs
Customizable Charts
Up to 100:1 Leverage
Streaming 24 hour News Reports
Easily Accessible Customer Support
Forex Research
Real Time Price Quotes in 0.1 Increments
Low Trade Spreads: 1 to 2 pips
Fractional Pips for Real Time Quoting
Gold and Silver Spots

Trading Tools

Zecco’s stock analysis software or trading tools are available to investors free when an account is opened. The platform is web based. Therefore, investors must have Firefox 2 or Internet Explorer 6 or higher.

The trading tools offer several features to accommodate investors. Investors remark on the intuitive and easily navigable user interface. Investors can customize the interface, charts and multiple order types. Common order types include conditional orders, stop orders, and others. Investors may also create multiple Watch Lists and view Streaming Quotes and News.

Other technical analysis tools allow investors to test previous market trends to determine future behavior. Fundamental analysis tools evaluate the social climate of the particular currency, including economic indicators, government policy and other societal factors.

Education

Zecco provides beginning and seasoned investors with educational advice on trading strategies, trading options, trading stocks and online trading tools. The fundamentals of trading stocks and options are reviewed, as well as, research strategies and investment tips.

Zecco Forex educational tools also teach investors how to evaluate currencies and their behavior over time. By evaluating past behavior, investors can make an educated prediction of how the currency will behave in the future. Both technical and fundamental analysis tools are explored for this purpose.

Regulation

Zecco currently possesses a membership with the Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority (FINRA). SIPC protects investor’s accounts up to $500,000. Additional insurance is required for protection of amounts in excess of this amount. This supplemental insurance is provided by Lloyd’s of London. FINRA is currently the largest independent regulator in the nation. Nearly 5000 brokerage firms are regulated by FINRA.

Other Pertinent Details of Zecco’s Forex Accounts

Average spreads:
1 to 2 Pips

Trading Desk:
Forex Trading Desk is open to investors 24 hours daily Sunday –Friday. The desk is also open on most holidays.

Maximum leverage:
100:1

Minimum account size:
Minimal margin requirements are $2,500. One hundred thousand dollars is my minimum trade size. Forex also offers mini accounts for investors. The minimal margin requirements for this account are $250. The minimum trade size is $10,000. Investors must have sufficient funds in each account to execute a trade.

Listed below are examples of the spreads provided for Zecco Forex investors. The smaller the spread, the more money the investor will save per transaction.

PAIR Min. Spread
EUR/USD 1.6
USD/JPY 1.6
USD/CHF 1.8
EUR/GBP 0.7
EUR/JPY 1.8
EUR/CHF 1
GBP/USD 1.8
USD/CAD 1.8
AUD/USD 1.8
AUD/NZD 4.5
GBP/CAD 3.5
EUR/NZD 7.5
AUD/CHF 5.5
NZD/CAD 7.5
USD/HKD 3.3
SGD/JPY 4.5
USD/SEK 21
EUR/NOK 21.5
EUR/DKK 4
NZD/USD 1.3
CHF/JPY 2.5
CAD/JPY 3.5
AUD/JPY 4
NZD/JPY 4
GBP/JPY 3.3
GBP/CHF 4
EUR/AUD 4
EUR/CAD 3.5
AUD/CAD 2
GBP/AUD 4.5
GBP/NZD 1.7
NZD/CHF 6
CAD/CHF 6
USD/SGD 5
USD/NOK 21.5
USD/DKK 7.5
EUR/SEK 21.5