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Ha nothing like a good ol class action law suit against them wouldn't doubt if one is going to come against them with all this stupid stuff going on
I wonder if you all had any luck transferring your pennies elsewhere. See my post history to find out what happened when I tried to transfer to Fidelity. After that fiasco, I talked to Scottrade and they said they are not accepting any penny transfers.
Now Zecco is saying my pennies are non transferable period. So my options are to pay to hold them, or simply relinquish them from my account. All thousands of dollars worth!
I've opened a few new accounts at different brokers, and am starting over with cash there. I don't know what will happen to my assets at Zecco.
Non transferable stocks? WTH? I tried to transfer my stocks out again last week, and zecco prevented me from doing so, saying that every single one of my stocks are "non transferable." But I can remove them if I like from my portfolio. We are talking thousands of dollars here.
This whole situation seems very illegal and immoral.
Uh no, they don't. Their tier may change on OTC Markets Group and they may change from DTC eligible to ineligible. But, those changing are almost never a fully registered company with the SEC; and a company almost never drops from registered to unregistered with the SEC unless it is going through financial straights (at which point you likely shouldn't have made that investment to begin with, and you should be responsible for any losses you suffer, just like in any company). Do you even know what you are talking about? Perhaps you're talking about a CUSIP report? Provide the site you are looking at and maybe I'll be better able to inform you. And, provide some stock symbols and I'll show you exactly what I'm talking about. There is a big difference between a company's status/tier on the BB versus whether they are DTC eligible versus whether they are reporting versus whether they are eligible.
I'll get you a great example: VIDA is a fully reporting, fully registered, DTC eligible company, even though it is only listed as OTCQB. This is an example of a company that you would qualify for the whitelist.
Another example is OTCM, which is OTC Markets Group's symbol. This is a stock above $5 and labeled as OTCQX on the OCT Markets Group BB. Right now the company is even DTC-eligible. But, here's the problem: the company only reports using OTC News Service disclosure (the disclosure system used by OTC Markets Groups), not with the SEC. And, because of the way it reports, you also know it isn't registered with the SEC via Sec. 12 of the Securities Exchange Act. And, that's the problem. At this point, given what we have recieved from the DTC, it is eligible to be subject to the ADV+10% rules and could be subject to buy-back and DTC fees when it drops below $5 (which I think is what the SEC classifies a penny stock as).
This here is the issue. Like I said, post some stocks or a link and I'll show you exactly what I'm talking about.
And, ultimately, this is exactly what this is all about, as Jance pointed out: the SEC, FINRA, and the clearing houses are attempting to crack down on the trading of unregistered securities because of the fraud linked to them.
Post the stocks you held that you weren't allowed to trade.
Amen brother! The smart people will leave Zecco and stay away forever! The ignorant bastards can just continue to be screwed by them!
Cheers Mate
PS: I just may have to finally use that ignore feature for the first time - thx LOL! :)
Try ihubs ignore feature LOL
Great post, I left them recently for Etrade and am way better off. The lousy restrictions they put on OTC traded stocks is maddening. 3 seperate stocks they wouldnt let me trade. Had been with them for 2 years. They have lost my business for good.GL
Uh buddy, you clearly haven't read my post. Read it then get back to me.
The one thing that I want to address even without you having read anything is Scott trade - I don't care how I spell their name you get the point of who I'm referring to. The point isn't whether they treat you better or not - and, I have no doubt that they do. It's the fact that they are STILL have the option to pass the increased clearing house costs to you in the future. My guess is Janice was right: we are seeing a seismic shit here in the micro trading sector. Zecco was the first to have to pass along the costs because most of the trades it completed were for non-DTCC eligible costs. So, in the future, as the SEC, FINRA, and DTCC step up their targeting of said stocks, other brokers will start stepping up their pass-thoughs and restrictions. You saw the same thing a week or two ago with Fidelity when two individuals said Fidelity told them they would no longer be accepting transfer accounts with sub-penny stocks in them.
I'm talking about the macro and what is behind the shifts and how traders can avoid the changes (for instance, the whitelist I mentioned of fully-registered and fully reporting companies), you're still rehashing the same old story that is now two months old: Zecco's implementation of the changes sucked (and, BTW, no one is disagreeing with you on that; you just seem to have poor reading comprehension skills).
Frankly Frankie the only hog wash here is by those who get so obsessed with the posting structure that they can't think straight and find themselves speaking in circles.
As far as everything else let me just sum it by saying Zecco wants to move the bigger boards and compete with the bigger brokers and that my friend is the real joke. It won't be long and they will wish they never crapped all over their loyal customers who stayed with them as long as they have.
Zecco's customer service is one of the worst in the industry imo and they just recently were removed from the preferred brokers list. It is obvious that even the professionals who rate and review all the brokerages see that Zecco has made a huge mistake, much as Netflix did.
Zecco screwed over their current customers and now think they can draw in a new customer base to trade on the big boards with some lame contest to win $500. How stupid is that? I mean you do not attract business with a contest, you draw new business with great customer service and competitive rates.
As far as Scottrade goes, you should first learn how to spell their name correctly and second you need to know that they treat their customers with much higher respect and do not stick it to them like Zecco does. I have already had discussions with my Scottrade broker and non of these fees or restrictions are an issue. This is why I am transferring my Zecco holdings over to Scottrade.
The word is spreading fast about Zecco and it is just a matter of time before they find themselves pissing in the wind and whistling dixie! There are much better brokers out there who offer better rates and much better service and any idiot who remains with Zecco after all this has to missing a few brain cells imo.
Zecco is one big joke who screwed over it's long time customers and now will find themselves up a creek with no paddle. Bye Bye Zecco FOREVER!
Cheers!
I read your post the first time around and I still think it is hog wash.
Oh why do I bother sometimes! You must have missed this in my message.
The fact I was pointing out is that Zecco had informed us of the change despite that we purchased these securities and had them in our Zecco account before the new rule was implemented. I spoke of why didn't they implement a grandfather clause or warn us ahead of time. Now do you understand?
It is absolutely beyond me how you can defend this? Tell me what happens when you buy a DTC eligible stock and while you are holding it, it becomes DTC ineligible? Will you get a warning or will you be stuck? The answer is you will be stuck with those additional charges up to $700 without any fore warning! Also, at any time if one of your securities start trading slow, you could be stuck with a limit of how much you can sell at a time. Oh ya that is the kind of broker I want to deal with - NOT!!!
I asked Zecco about this and was told to trade on the bigger boards with stocks over $1. That was their answer and I have record of it! This is a clear direction from Zecco that they want out of this arena with OTC & BB stocks.
If you want to try and defend Zecco, you go right ahead, but it is obvious you have not dug deep enough into this and that you are not the brainiac that you think you are if you really believe your #5 item. It is just a matter of time before everyone who trades these will get stuck with these charges or rules at one time or another. Wise Up!
BTW - Scottrade does not pass on these fees - hmmm makes you wonder if Penson is inflating these cost. Have you seen where penson's pps has went? To the dogs!!!
Fact remains that Zecco suks and Penson suks!
Cheers!
Since you attempted to not having the time to read past posts, I provide a different view.
1. The commission hasn't been raised, it's still 4.95; it just happened to have a fee of 2 dollars on top of that for penny stocks. I imagine that is coming from increased costs from FINRA and DTCC.
2. Penson is doing what they are being forced to do by FINRA and the SEC. Zecco, implemented it incrorrectly. I, as well as other, complained intensely and others transferred their accounts out. Now, if you read my orginial message you replied to, you would notice Zecco has changed in the last two weeks how they are handling penny stocks. If you are trading a penny stock that is on some sort of pre-defined list (a white list is what I called it), then you will not be affected by the fees or ADV+10% rule. That is what Janice, myself, and some other dude spents weeks attempting to figure out. Basically, it seems like if the penny stock is fully registered and DTC eligible, it will be on that white list.
3.Now, if you choose to trade unregistered securities that are DTC eligible, it seems like you will be impacted by the AD+10% rule if liquidity does not exist.
4. Finally, if you decide to trade non-DTC eligible stocks (which means they are also not registered and not reporting), you MAY (not will) get hit with the fees from DTCC (the $100-$700/per trade) and MAY (not will) be subject to buy-back. Now, again the question I asked for weeks on this forum (and pointed out to multiple individuals trading): why are you not doing your research and trading non-DTC, non-registered, and non-reporting companies? That is called not doing your DD. The fee being levied is the externity cost for you forcing your moral hazard of trading shady companies on the risk of us.
Name any company that you have been charged a fee for trading and I can look it up and tell you if it falls into this category, if so you aren't subject to reimbursement and don't have any sort of case. Show me one that is fully registered and DTC-eligible, then maybe you'll have something to go at Zecco with; no one has yet to do that in the past month+ that they have been posting their stocks. Some fully registered and DTC-eligible companies were hit by the ADV+10% rule (my stocks included), but that has since been changed as mentioned in point 2.
5. I agree, they could have implemented it better - but given the changes of the last two weeks, I'm now satisfied and have been made whole.
p.S. You'll still going to be eligible get hit with the fees and be subject to the ADV+10% rule with Scott Trade if you trade non-DTC eligible stocks - just a matter of if the broker will pass along the cost to you.
Being overbearing and attempting to forcefully communicate my message of organization .
I understand, but becoming combative to implement your idea would simply drive people away. Each person sees this site and its uses differently. I myself, do actually read a majority of the posts on any thread I am sifting through. Regardless, it is a very respectable idea - but don't be so overbearing about it.
What else are you expecting in all honesty?
Now this is worth replying to! You are dead on hellcatjr! After raising fees by some 60% this year, Zecco is now passing on these ridiculous fees & new rules from Penson and saying they are not responsible.
Scum bags describes them to a T! They completely surprised everyone with this without any fore warning, when I am sure they were advised this was coming by Penson. They did all this bs to those who have been their loyal customers for years without a blink of an eye.
Now they think this whole $500 a day contest will bring in new business and keep it's current clients after pulling the rug out from underneath us. How stupid do they think we are? This has went way to far this time and it is time for Zecco to go.
I am in the midst of transferring all my securities from Zecco to my Scottrade account, who I have very few problems with over the years.
I would so support any legal action against Zecco and Penson! I too think Zecco can get F'ed!
Those who are willing to continue to support them are either blind or completely brain dead in my opinion!
Cheers Mate!
To be fair, this is not just a problem with Zecco, it is a problem for any broker that uses Penson. Zecco is simply rolling their fees over to the customers.
I have done considerable research and a plethora of brokers use Penson, in fact - Penson is the second largest clearing firm in the United States. This is more so a cornering of the market, in my opinion.
Our accounts are held hostage and Zecco will only relinquish their death grip at the expense of their customer base.
Moreover, leaving does not secure one unless they choose a fairly reputable broker. As soon as I can, I'll be moving to Fidelity. Excuse my french, but Zecco can get fucked. I've had my account with them since 2003/4. To be treat this way is beyond absurd.
No disclosure, no meeting of the minds, no consideration. I think Zecco is in breach of their obligations and I may see fit to take legal action should I encounter anymore issues with these scum bags.
Get off your white horse Sir. It's not as if this board is flooded with posts. Some people appreciate the reposts, regardless if it was posted before.
Ok Frankie, you are obviously over obsessed with this whole issue and can't let it go and that's too bad. FYI for you - People can read what I wrote and see that I DID bring up some things not expressed here and just because they don't reply doesn't mean that they agree with your statement. Can you drop the 5th grade mentality and focus on the real issue here. Also as another FYI - many people do not have the time to go back and read all the past post.
Cheers!
Most other people? Only Drachious has focused on your message besides myself. Why? Because it was old news and unrelated to the thread you replied to.
Enough already! Most concentrate on the message that is being posted and not the etiquette you are obviously obsessed with! Good Day Sir.
Cheers!
Internet etiquette is key when there is a lack of structural organization. A note from your friendly board admin of two other boards.
Your post on 11-23-11 is great IMO
Well excuse me for not following your rules of organization and I didn't realize that we needed to follow your protocols when posting.
Just let me sum up my thoughts by saying Zecco is a joke!!!!
Cheers!
One it covers old ground, but the bigger issue is that you appended it as to a reply to a thread to which it has nothing to do with. My post was about the recent changes to the system that allow some penny stocks to violate the ADV+10%, and provides guidance to users on making investment choices with said rules in place. Your, on the other hand, is a gripe that simply repeats what has been said for a while. If anything, you should have started a new thread or replied to another post.
Simple organization is key as it allows people to find related posted and ideas since the only threading InvestorsHub allows it he reply system.
I have and what is your point? I tell it like it is from view and where is the problem with that? I thought this is what these boards were for.
Cheers
You really should read the other posts in the board before posting a gigantic article...and, I noticed you posted it in another board too...
Zecco says that it is Penson who is charging these non DTC eligible fees and they had no control over it - Really! I asked them why didn't they alert its clients ahead of time that this was coming and they wouldn't answer!!! Then I was told it would be better if I traded on the bigger boards with stocks over $1 - WTH!
It was just a few months ago when Zecco raised their fees from $4.95 per trade to $6.95 for stocks under $1 - that was a 40% increase and before that they charged $3.50 a trade w/15 free trades a month if you qualified! So, in approximately the past year or so Zecco has more than doubled their trading fees! Plus they now want us to walk through this mine field every time we trade any of these OTC & BB stocks. I checked one of the stocks they said were DTC ineligible w/a 10% limit on with my Scoottrade acct. and I had no problem at all selling all my shares without any additional fees beyond what they normally charge.
Zecco even offered me a deal to persuade me from spreading the word about how much they raised their fees last time. They gave me 5 free trades per month and only charged me $4.95 for all my trades. I took their offer and stopped tweeting to everyone about how much Zecco has raised its fees over the past year. Now I was told if I would like to transfer my holdings over to Scottrade, they would waive the ACAT fee. Ya like that is going to keep me quiet this time - NOT!!!!
As you can see Zecco does not operate fairly and will make deals to keep negative comments about the truth on how they operate off the internet and twitter. They even banned me now from posting on their blog page and blocked me on twitter. Then I was sent a message from their senior compliance officer threatening legal action if I post statements that were inaccurate! Why? Because they do not want me to spread all their dirty little secrets. Well they will not intimidate me into remaining quiet about their service and their huge increases in trading charges!!!
Now I am in the process of moving everything over to Scottrade. This is completely ridiculous and I see Zecco going down the tubes fast! They want to be a big time broker for the bigger boards and tell all us who want to trade on the OTC & BB to go F ourselves, even though we were the traders that built Zecco to what it is today.
Is this the kind of broker you want to do business with?
It is time for Zecco clients to stand up and let them know they can't get away with this! We need to do what us Netflix subscribers did - LEAVE! There are better brokers out there who do not charge these ridiculous fees. BTW - Zecco was removed from the list of the top preferred discount brokers - Hmmmm I wonder why?
Crookedneck
PS: I am not sure if I am legally allowed to post their messages to me, but I sure as hell will find out and if I can I will.
1000 @ $1.41 day. NITE 500 @ $1.40.
Just reporting that it appears Zecco has adjusted their policy a little bit. I have been trading a registered, DTC eligible company the last company days with orders that are WAY bigger than the ADV+10% and ADV+25% and I'm not having any problems at all. I'm thinking they have a whitelist (apporved pennies) and a blacklist (of non-DTC eligible). Once you get on the whitelist, you aren't hit with any of these stupid NTCC rules, but until then you will have your order rejected if you surpass the ADV+10% rule. If you are on the blacklist, you are f'ed and going to have fees.
so could you transfer $2500 then penny stocks afterwords ?
What a bunch of idiots... accident my ass, I bet if you would of ignored the notice, they'd of tried to litigate for a summary judgement.
Talked to Fidelity for about fifteen min today. I asked them about transferring a single security as well as a cash balance... they informed me that...
"We do not start new accounts with transfers of ANY penny stock."
C'est la vie!
read that when it was first in the paper actually
re: wyoming
you might find this of interest
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64694670&txt2find=wyoming
==
4kids
all jmo
They really are completely hopeless...
Not to me so much, but maybe for others looking for a broker.
But... Did you find the information helpful?
thanks 4 sharing, I was really concerned 4 u, best of luck in all your future trades
This morning at 09:32 I got this from Zecco:
It really was an entirely different market. Well, it was barely a market at all. Most penny stocks that traded decent volume only did so if they were going up. And some went as high as $20.
Before they crashed.
Thank you Janice.
LOL!! As for that, the only thing I could recommend would be to go to Silicon Investor--IHub's sister site--and read some old penny stock boards. You'd have a different perspective. Back then, most pennies had genuinely small floats. There wasn't much interest in the pre- and early internet days, because you couldn't even get a quote without calling someone.
Whole different world.
http://www.siliconinvestor.com
Do you have somewhere I can educate myself to this? I am a young guy here and that was a little bit before my time. Thanks in advanced.
By what?
So far, it seems the actions in question have been directed at stocks trading below a penny. But something tells me the threshold will be raised.
Wells Fargo stopped allowing clients to buy stocks under a penny some time ago. I believe other brokerages have followed suit. Everyone--the brokerages, the regulators, DTCC--is fed up with the fraud.
Only 12 years or so ago, penny stocks actually traded IN the pennies. Many traded over a dollar. NONE traded in the triple zeros. That began in around 2001, when Miracle Entertainment discovered that dilution was the solution, and legions of penny plungers bought into their line.
Any stock under $2 is hit by this iirc.
What? The "big hedgies" don't play stocks trading at hundredths of pennies.
to me it looks more like penson and the DTC etc are screwing Investors and adding more insult to injury...
In reality, they're fed up with the OTC mess. Watch the video of the SEC's roundtable on microcaps, or read the transcript:
http://www.sec.gov/news/otherwebcasts/2011/microcaproundtable101711.shtml
http://www.sec.gov/spotlight/microcap/microcaproundtable101711-transcript.txt
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A message board for people using the Zecco Trading Platform to discuss recent trends and issues with this broker/dealer.
https://www.zecco.com/
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