GalaTime

Last month, Kotak Securities becamse the first Indian brokerage firm to offer fixed fee-based brokerage model for online trading - supposedly 3x cheaper than normal. Market pundits expect this to start a price war, given the relatively high (%-based) commissions being currently charged to investors.

Now imagine a world where you can trade for zero commissions. That’s exactly what Zecco is planning to offer (for US markets)! Per the press release:

* “The big guys need the commission to keep their marketing machine going” explains Zecco.com founder and CEO Jeroen Veth, a 37 year old entrepreneur and former Merrild Lynch Vice President. “The actual cost of a trade is around $2 but if you spend $500 or more per customer in marketing costs and run your business on old legacy systems, you need all the revenue you can get.”

* The disruptive business model offered by Zecco.com is further augmented by a website that blends financial blogging, discussion forums, financial news updated and trading into a seamless web 2.0 experience.

Amazing!

This entry was posted on Friday, September 22nd, 2006 at 3:21 pm and is filed under education. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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