Zecco is a SCAM

[Frank0051]

Read this: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=75042441

I can get you the SEC meeting minutes if you want.

You can still trade pennies for $6.95 - I do, just trade registered ones and you'll be fine. I don't know why on Earth someone would want to take the risk to trade an unregistered one anyways. And, trust me, I'm not fan of Zecco management: they have banned me from posting on their Facebook page and the community forums, but sometimes you have to realize that the world is larger than your little, "Zecco is trying to scam us" false reality.

[Frank0051]

There are actuall a couple other clearing houses. Basically, the SEC wants to cut back on unregistered securities trade. They looked at the largest clearing houses for unregistered securities, and Penson was by-far the largest. So, DTCC, FINRA, and the SEC leaned on Penson and one or two others. The reason is simple: they waste a shit load of time, money, and energy dealing with customers that claimed they were scammed by shell companies, but there isn't much the SEC can do because they were trading as fly-by-night unregistered companies.

There are minutes of an SEC conference available somewhere that talks about this.

Also, it will be interesting to see how the liberalization of registration requirements under the new JOBS Act (or whatever it is called) will change any of this enforcement push.

[Mango]

I will continue to update this site daily with comments by some of the thousands of people that have been scammed and screwed over by Zecco

All I can do is...

Commend you for leaving Zecco...This place screwed me and many others who trade pennies...

I am a college student playing with minimal funds looking for high reward and completely accepting of the risk...Zecco/Penson changed the rules of the game with no warning and did something I was sure would be illegal...I guess the market just favors the big players (companies) at the expense of the investors/customers like the rest of the world does

[Mango]

Zecco screwed me also... charged me ungodly fees and then made me turn over my shares of another penny stock. Really upset me...they then proceeeded to by offering me a few free trades to somehow attempt to make up for the fact that they 'stole' my shares... it's pure BS

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68131202

[Mango]

You likely work for either Zecco or Penson. I don't run from a fight, I choose to stand my ground!

You do what you think is best and I will do what I know is right!

[Mango]

Do you have any idea how many different lies I have caught Zecco in? That is just another one. What do you think they are going to say, that they're making huge returns on the scam they have going with Penson? Of course not.

Zecco built their business model on free trades, and now $4.50 and $6.50 commission trades, with the ability to make a profit based on that business model. Now you're trying to convince me that they need to gouge someone for $700 per trade, but there's no profit in that for them?!?!?!

The fact that they use deceit and trickery to trap traders into these stocks and then extort these same traders with exorbitant fees before there will let them out of those same stocks, tells even the dullest and naive mind that it is a scam!

Go try and convince someone else, I wasn't born yesterday! This has SCAM written all over it.

They are simply passing along the new fees Penson - their clearing house - has put in place. Those fees were implemented after Penson was pressured by DTCC, FINRA, and the SEC.

[Mango]

It is a flat out SCAM. Funny NONE of the other clearing houses have those fees, just Penson and their affiliate partners working the SCAM with them.

[Frank0051]

All you will do is lose all of the money you pay to your attorney. They are simply passing along the new fees Penson - their clearing house - has put in place. Those fees were implemented after Penson was pressured by DTCC, FINRA, and the SEC. The only thing Zecco is guilty of is bad communication - but, I'm sure the user agreement we all signed allows them to update their fees with little fanfare.

In short: don't waste your time or money attempting to bring suit on something that is completely legal. Instead, use your time to do your DD in order to avoid buying unregistered securities and non-DTCC stocks.

[Frank0051]

Of course it is legal, they are passing on Penson's fees, which were implemented after pressure from DTCC, FINRA, and the SEC.

[Frank0051]

The answer is simple: don't trade unregisterd securities and you won't get screwed by DTCC and Penson's rules.

[Mango]

Basically the brokerage advertises $6.95 trades for penny stocks. I bought and sold successfully a dozen or so times times. Most recently I bought a stock with the ticker CGFIA. I bought 330,000 shares on 6/27 for $198 Total, then another 300,000 shares for $150 total on 7/19. On 7/25, less than a week later, I put in a sell order and the sell and several days later found the order was rejected, I was never notified of this.

On 7/29, I put in another sell order, I checked back later, and it was also rejected with no explanation or email or message, nothing. I wrote Zecco an email, and was notified that the stock can no longer be traded through their website, and that a $200-700 brokerage fee will apply and the stock can only be traded over the phone. So as it stands I'm stuck with about $350 worth of shares that can not be traded without an outrageous brokerage fee that was never mentioned when I bought it (and I've even sold this stock in the past online through their site in prior weeks). This is a complete scam!

I wrote my bank an email and may try to dispute the ACH deposit. If they can not help me, I'll be reaching out to the BBB and perhaps a lawyer friend for advice. Any suggestions?

More bad experiences from Zecco the scam broker

[Mango]

Garry J says:
July 21, 2011 at 6:10 pm

I have had zecco for 4 months now and it was great when I first signed up. They’ve changed so many rules and add on fees that I question if they are even legal. My first few transfer of 5000$ went through within few days. Then I made a transfer of $20k+ and took them more than a week to put it in my account although my bank account was clear of that transfer. The first time I bought stock from zecco, I had under 100$ left so I bought some shares of penny, OTC stocks and now they changed the rule. I can’t even sell them. Selling $100 worth of penny stock, I have to shell out $700 transaction fee. Anything this company does is “BAIT AND SWITCH”. Most people that refer friends with their referral program don’t even get the $75 promised.

Found this post online. Many have found out the hard way that Zecco is one Scamming broker.

[Mango]

Anyone that can post any information on the names and addresses of the top people at the scamming companies of ZECCO and Penson please respond to this post by public or private reply.

thank you

[Mango]

Post all of your messages from the SCAM ZECCO.

Let's all see what that scamming company said.

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.

[atotalbum]

It would be great if there was a class action id be first to hop on board...these guys are criminals in my opinion

[atotalbum]

go with ETRADE or ameritrade...ETRADE seems to best for pennies

jmho

[gail]

yup, i turned them into both the sec and that other group, but they really didnt care much, they turned me back over to zecco saying zecco said it was resolved. um NO, i simply pulled out and shut my bank acct down and got by without paying the scam fee.

keep on them, dont let them get away with it.

[BrassOnes]

I got it fine. Gainskeeper txfrd directly into Turbotax with no issues. 1099's have been available for a while now. It is a little hard to find but still only took a minute.
I'm on board w/ the lawsuit for the DTCC crap. $200-$700 to sell something that's worth half that? It's bad enough when your stock tanks...

[pappi]

Not quite sure what you mean by illiquid, but T Rowe Price brokerage very effectively ensured all my zecco shares were moved out. i had a few penny losers of major proportion there was no point in selling and hadn't yet bothered to take as a tax write off.

Although I provided both old and new zecco account number in form to TRP, Zecco claimed I had to refile with only one account number. TRP, once they figured this out, said they would take care of the matter and I did not personally have to resubmit any form.

I hope this helps you.

-p

[ChartDad101]

Was anyone able to transfer there îlliquid shares?

www.LvGigs.com

[Flobewan]

I agree, but for me I only had a few trades with Zecco, so mine will be easy. I just put that out there for info to help peeps.

[Frank0051]

I still wouldn't file with it unless you absolutely have to given the new reporting requirements going into place this year for 1099 and brokerages firms (cost reporting). I've gotten one of the new ones and they show the cost basis and everything. Basically, the IRS is looking for a more automated process to find tax cheats for capital gains.

[Flobewan]

Yeah, that should get you damn close and you can always file an amended return if you have to.

[Frank0051]

That's actually not a bad idea, just make sure your account history looks okay for the early part of 2011. Some transaction data may have been lost for the early part of 2011 due to the transfer to a new system.

[Frank0051]

Again, if it's on Penson (just like added fees for unregistered stocks), then of course the SEC isn't going to do anything because it isn't Zecco's fault. Besides, I imagine this would have to be reported to the IRS or something like that.

And, I wouldn't file without it. That would be a very, very bad idea given the new 1099 reporting requirements that went into effect this year.

[coreyp314]

thanks! much appreciated

[Flobewan]

Go to trading, then go to history, put dates in for 2011, use the dropdown and select CSV. Then you can open it in Microsoft Excel. You will have all your buys and sells for 2011. You may also have some just sells for a particular stock if you bought it before 2011 so you will have to look up the buy separately.

[coreyp314]

where do you go to on their site to do this?

[coreyp314]

anyone know where to report these guys to? this is crap that we have to wait another month for our tax forms.

[Flobewan]

You can go on Zecco and download your stuff into a spreadsheet.

[gail]

omg, thx flo for p/m'ing me the..

..

link to this post. i was going to try and pull it on line, as my tax appt is friday.

i will just have to file without it.

i already reported zecco to the sec for one thing that they didnt care about them doing but maybe someone can report this?

just sad. i once loved zecco. im glad i got out just in time. but im still going to pay for their mess ups. sigh.

[Frank0051]

So did I, hence why I'm asking who we can report this to. This affects more than Zecco, this impacts a ton of mini-firms if Penson is really responsible.

[Flobewan]

OMG, I thought by law they had to have them out by 15 Feb

[Frank0051]

No, they won't:

"1099 Tax Form Delay – We are sorry to inform you that the delivery of the 2011 Consolidated Form 1099 for your Zecco Trading account(s) has been delayed by Penson Financial Services, our clearing firm. This impacts both the hardcopy by mail and the online, downloadable version. We now expect the delivery of these forms to take place no later than March 15, 2012. We sincerely apologize for any inconvenience that this delay may cause."

Penson fails us again. Anyone know who we can report this to?

[gail]

ok, my appt is the 17th and they..

..

suck right to the end for that late info..

but hey, thx for the info.

[Flobewan]

I chatted with Zecco about that and they will be available online 15 Feb and mailed out by 15 Feb.

[gail]

did anyone get their tax info mailed yet? i cant even get it on line, zecco sucks.

[megabux]

It's been a long time since I traded a stock under a penny. I decided to transfer some funds into my Zecco account a week ago as I had a few stocks I wanted to buy. When I first attempted to buy a penny stock, it was rejected. I tried purchasing less shares and that was rejected too.

I then tried to purchase a different penny stock and again, rejected. When I called and inquired about it, they explained about all of these new rules that are now in place for low volume penny stocks. I ended up purchasing a triple zero stock (.0001) for only $50 since all other higher purchasing amounts were rejected. I'm so glad that they were rejected b/c when I tried to put in an order to sell at .0002, it was rejected. Today, I tried to put in an order to sell at breakeven (minus commission) and that was rejected too.

The rep I spoke to told me that with these stocks, you can only sell 10% of the 20 day average volume. I asked "will I incur multiple fees from this" and she said "yes, it is a $6.95 fee each time you sell shares of the stock." I told her that sound absurd and she said "we can work with you. If you want to sell the 10% portion today we will charge you the $6.95 and waive the fees for the rest of the shares you sell of this stock."

Unreal. I have transferred the rest of my balance out of Zecco. I can't believe the hassles you have to go through these days with trading penny stocks. Is it like this with all brokers or just Zecco?

[Mango]

I, and many others, feel your pain with Zecco! It amazes me that a company would have the audacity to treat their customers like they do. Changing their self imposed rules into such a non-friendly, and costly manner (for their clients). They don't even give you a way out, but basically trap you into paying exorbitant fees.

My Buying $CAMS with Zecco Experience

Yesterday I bought $CAMS using zecco and woke up this morning to a worthless security notification from zecco. Saying its a worthless security and that I will be charger $7.50/Monthly for keeping the security there.Be advised I cant sell this position. After all the SH*t Zecco has put its customers through with not being able to trade low volume stocks or sell there positions, I dont know why people stay. I asked them to waive the $50 transfer fee so I can move to Ameritrade. The rep spoke with the manager and they came back and said no. I have been with them for 2 years or so, Dealing with the BS. After all the money I have paid in commissions and for them to literally take my money from the $Cams position isnt right.

Im furious. I cant believe they would want to leave the relationship like this.

First $4.95 trades with 25 free trades, Then it goes to 10 free trades, Then nothing. Then $6.95 trades and we cant trade pennies. WTF.

Anyone else have this issue with holding $CAMS using zecco.


If you care please join.

www.facebook.com/pages/Boycott-Zecco/300883323284620

Twitter: @BoycottZecco

[xichen]

Any one here want to sue zecco about not allow to sell already owned low float penny stock?

[ChartDad101]

My Buying $CAMS with Zecco Experience

Yesterday I bought $CAMS using zecco and woke up this morning to a worthless security notification from zecco. Saying its a worthless security and that I will be charger $7.50/Monthly for keeping the security there.Be advised I cant sell this position. After all the SH*t Zecco has put its customers through with not being able to trade low volume stocks or sell there positions, I dont know why people stay. I asked them to waive the $50 transfer fee so I can move to Ameritrade. The rep spoke with the manager and they came back and said no. I have been with them for 2 years or so, Dealing with the BS. After all the money I have paid in commissions and for them to literally take my money from the $Cams position isnt right.

Im furious. I cant believe they would want to leave the relationship like this.

First $4.95 trades with 25 free trades, Then it goes to 10 free trades, Then nothing. Then $6.95 trades and we cant trade pennies. WTF.

Anyone else have this issue with holding $CAMS using zecco.


If you care please join.

http://www.facebook.com/pages/Boycott-Zecco/300883323284620

Twitter: @BoycottZecco

[ChartDad101]

Anyone else get this message from Zecco? Worthless Security

Please be advised that a worthless/non-transferable security has been identified in your account.

The Depository Trust and Clearing Corporation (“DTCC”) deems a security worthless and non-transferrable when a security does not have a transfer agent or Company contact for a period of six years or more. DTCC will charge all Zecco Trading customers for holding worthless and non-transferable securities monthly.

Each month, DTCC furnishes a list of all security ids (CUSIPs) that are worthless and non-transferrable. The report is compared to trading activity for each CUSIP. In some cases, a security may be trading, but is still deemed worthless by DTCC. The accounts that hold a CUSIP deemed worthless or non-transferable will be charged a fee of $7.50 per CUSIP per month unless Zecco Trading receives a written request to sell this position to worthless. You will need to send that request directly to Zecco Trading for receipt by the 22nd to avoid that month’s charge. All accounts that hold a CUSIP deemed worthless or non-transferable will be charged $7.50 per CUSIP per month at the end of each month. To request a worthless security to be removed from your Zecco Trading account:

1. Print and fill out a Request for Dispositions of a Nontransferable Security form
2. Send it to Zecco Trading:
Fax to 818.230.6400-or-
Email to [e-mail]* -or-
Mail to: Zecco Trading, PO Box 10010, Glendale, Ca 91209, USA

Request for Dispositions of a Nontransferable Security form

If DTCC receives information that a new transfer agent is assigned to the security, they will re-instate the position and we will do the same for the account.

Sincerely,

Margin Department
Zecco Trading, Inc.















http://www.facebook.com/pages/Boycott-Zecco/300883323284620

[ChartDad101]

Boycott ZECCO add us on Facebook. And share your story. We must bring awareness to this issue. Like the Facebook Page and Share.

http://www.facebook.com/pages/Boycott-Zecco/300883323284620

[sneakapeek]

I just transferred out of Zecco Trading into ING Direct Sharebuilder.

ING Direct's transfer mechanism is only DTC, they do not support ACATS.

However, Zecco billed my account the $50 ACATS transfer fee and not the $25 DTC transfer out fee.

Zecco uses Penson as their clearing house and ING Direct uses Pershing as their clearing house.

The transfer form sent from ING to Zecco was specific and clear to use the DTC mechanism for the account transfer.

Zecco is claiming that since the equities transfer took place between Penson and Pershing by ACATS, they can charge the ACATS fee.

ACATS transfers are initiated by the receiving firm with a TIF being submitted to NSCC and NSCC issues a ACATS control numbers to both sending and receiving firms.

The DTC transfer process needs to be initiated by the sending firm.

How can I determine the method by which my equities moved? I can't see the specifics but can only "trust" what I'm being told by Zecco, and I don't believe them.

Their customer service is giving me the run around, I'm asking for the ACATS control number and they aren't providing it (not that I could tell if it were real or not).

Is there any mechanism for the average consumer to tell if an equity was moved by ACATS versus DTC? These are all large (>$1B) American stocks or ETFs, all DTC-eligible.


I'm much happier with ING for a buy and hold, dollar cost averaging DRIP investor account, Zecco was good when it was free.

The $1 per trade at ING, with the ability to buy constant $ amounts on a regular basis with fractional shares beats the $4.95 trades at Zecco.

[pappi]

Dear Crooked et al.:

I am in sympathy. I have also successfully migrated my (now former) zecco account to my T Rowe Price Brokerage. Yes, TRP charges 9.95 per trade. Historically, this remains a bargain, even for penny trading. And they are not policy messing, like Zecco. In fact, they recently DROPPED their trade fees from twice current.

The transfer process is easy. Target broker has an ACT form (account transfer) which one simply fills out and signs. Guaranteed (or Medallion) signature certifications may be needed.

Zecco initially balked because I provided my new Zecco acc. number and penned in my old one. But the ACT empowered broker simply resubmitted with the proper account - no need for me to redo anything. And the entire account was poof! migrated.

Zecco charges a modest fee, so have that amount in your cash balance.

Also disappointed in Zecco, but moved on,

Pappi

[crookedneck]

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.

[pappi]

Anyone transfer out of Zecco to T Rowe Price?

[Yosako]

Was it a non-DTC stock?

[Yosako]

You don't need to verify anything - if you buy it, then it'll magically get in the list.

[Snook]

Is anyone able to verify VKML is not on Zecco's non-DTC list?