Zecco

[Majic]

Something stinks with Zecco/Penson...
I tried buying a small amount of a company that is a OTCQB, and fully reporting (files their 8Ks, 10Qs, 10Ks, etc. with the SEC).
When I called to find out why the stock was restricted, a Zecco rep first told me that it was because it was non-DTC eligible. When I told her that it was not on their list, she then said it was because it's a low volume stock. I pointed out that it's not a low volume stock. So she then said it was their "internal policy" to restrict trading in "this type of stock". She still could not explain the reason.

In short, the rep could not give me a valid reason for their restriction on this particular stock. In the end she just said that they could restrict any stock "at their discretion."

I'm really beginning to suspect that Zecco and/or Penson have other reasons for not allowing buying of certain stocks. And it has nothing to do with protecting their customers.