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Unsurprisingly, the discount online brokerage firm online broker zecco been forced to change its pricing structure due to the economic crisis. Now the company is putting further restrictions on trades. The full letter is below. Zecco is no longer making money thanks to the now low interest rates on customers accounts.
And revenue from discounted commissions are amounting to very little. We saw the writing on the wall for the trouble this company could face in an unstable market. In an effort to boost trading, Online broker zecco is allowing customers who make at least 25 total trades per month to also qualify for 10 free trades.
In early January, Goldman Online broker zecco forecasted a 28 percent decline in daily average revenue for discount brokers. Even the premier brokerages like Charles Schwab are not immune to the current economic crisis so its of no surprise that Zecco, whose pricing structure raised some red flags inis being forced readjust its pricing model. Last week, Charles Schwab warned that revenues could drop as much as 20 percent this year and online broker zecco it will cut between and jobs, or 5 percent of its staff in the current quarter due to low interest rates and a decrease in trading.
You can use that cash to offset trade commissions or make new investments. Why was this necessary now? As a result, some of the largest corporations in the online broker zecco have had to cut costs and adjust to new business realities. With reduced retail trading volumes and lower interest rates, we at Zecco Trading simply could no longer provide free trades to as many people as we would like.
Many customers will not be affected online broker zecco this change. For those of you who are impacted, I want you to know that I understand this is disappointing news. You may have already noticed the improvements within our customer service team. This new platform will improve reliability as well as introduce advanced order types, enhanced options trading capabilities, online bond trading, online broker zecco account management, single-step login, and a faster website.
So how can you qualify for free stock trades? There are two simple ways to do it: Make 25 total trades in a calendar month. These can be online broker zecco, ETF, or options trades. And yes, free trades count. See program details here. Thank you for your loyalty to Zecco Trading. We intend to continue earning your business as the best value for online investors. Jeroen Veth CrunchBase Information. Information provided by CrunchBase.