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September 25, 2006 / ronkenner

Wow. Zecco is getting of to a great start …

Here is the original press release that set the Zecco.com ball rolling. 

The Price War is Over.  The Investor Won.  Trading Now Costs $0. LOS ANGELES — Zecco.com today announced that it will launch the industry’s first zero commission online trading site on October 9th.Since the arrival of online brokerages in the early 1990’s, aggressive competition has helped reduce commissions from an initial high of $40 to a present average of around $9. While competition remains fierce, massive operating and customer acquisition costs make it difficult for the industry’s larger players to reduce commissions further.“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 Merrill Lynch Vice President. “The actual cost of a trade is only around $2 but if you spend $500 or more per customer in marketing costs and run your business on old legacy systems, as many of the big guys do, you need the revenue commissions generate,” explains Mr. Veth.“Our model is different. We run a lean operation, use the latest technology and rely entirely on word of mouth, guerrilla marketing, viral campaigns and public relations to get the message out. As a result, we can look at the $2 per trade as the cost of doing business while maximizing our revenues from interest accrued from margin loans, broker accounts and additional premium financial services such as options,” notes Mr. Veth. The trading experience offered by Zecco.com is further enhanced by a website that blends other free services including financial blogging, discussion forums, and up-to-the-minute financial news into a seamless web 2.0 experience. In another unique twist, Zecco.com shares advertising revenue with users who blog on the site as a way to continually improve the site’s content.“Think of Zecco.com as the intersection where online brokerage meets Yahoo Finance and MySpace,” explains Mr. Veth. We believe investors want to share ideas and opinions – and we want to make it possible for anyone – customer or not – to do that on our website. We offer not just free trading but also free blogging, free forums and the chance to connect and share with other investors and netizens. In fact we even offer to share advertising revenue with users who blog on our site.” The mix of a disruptive business model and a web-savvy social networking approach may be unique to the financial industry – but not to the team of investors and founders behind Zecco.com – among which can be found early Skype investor Morten Lund, famed entrepreneur Marcel Boekhoorn and Soren Kenner, former chairman of McCann Erickson MRM Europe.  

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2 Comments

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  1. Neuromancer / Sep 25 2006 13:55

    Man you need to turn down the wick a bit this at first glane this looks like spam

  2. sorenkenner / Sep 25 2006 18:16

    Hi Neuromancer … yeah just the straight out press release. Not truly for the blog as such … but sort of fun to have it in there all the same. But flame or no I still love the concept … what could there be not to like about being able to provide consumers with a free service that others are charging a bundle for?

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