July 2010
M T W T F S S
« Jun    
 1234
567891011
12131415161718
19202122232425
262728293031  

Free Trades - finally they are here

Most trading systems concentrate on the entry system when they should concentrate on the exits. The problem with entrys is, that when opening a trade, it will always be in the red, since it loses the commission to the broker.
Especially when accounts are small, these costs can add up quickly because percentagewise they are expensive.

But finally it is possible to cut costs at entry level. The first broker to give you free trades is Zecco.

Obviously there is a catch. You need to maintain at least a minimum of $25.000 in the account to get those free trades. Nevertheless, compared to other brokers this is a good offer, because according to the Pattern Day Trader rules, anyone who engages in short term trading in the US does need to maintain those $25.000 minimum.

If you want to get the scoop of these rules, you will find a nice explanation here.

Just in case you are looking for the official rule, you can find it at FINRA.

FINRA came into existance in 2007, when the NASD merged its regulatory functions with the enforcement arm of the New York Stock Exchange. It is the abbreviation for Financial Industry Regulatory Authority (FINRA).

It is always good to research before you commit you hard earned money to anything, so go on over to Zecco and check out there community first. People are communicating there trades and the community is building fast.

It was about time, that free trading became available.