My good friend & Maxthon partner in crime, Morten Lund (early Skype investor) just announced that his latest venture Zecco.com (that I wrote about earlier this month) is going head-to-head with brokerage industry giants like E*trade and Charles Schwab by offering zero commission trading.
The time is ripe for a disruptive approach aimed at the US brokerage industry. There is absolutely no reason consumers should accept paying anywhere from $10 to $20 for a service that is easy to provide at no charge at all.
So how are Zecco going to do this?
Well, according to Zecco, the actual trade is around $2 but since the big guys has to spend so much on marketing, running old business systems and old style costumer acquisition, they have to charge the consumers much more.
Zecco will run a lean operation and rely totally on word-of-mouth, guerilla marketing and viral campaigns to spread the message.
Zero commission will definitely create a major upheaval for the financial industry – and that is good news. Its on time that the big financial institutions get’s a taste of disruption.
So what then is Zecco?
According to Morten and Soren, you can think of it as the intersection where brokerage meets Yahoo Finance meets MySpace. Zecco is offering:
- Free trading
- Free Blogging
- Free Forums
- Chance to connect and exchange with other investors and netizens.
Zecco is even going so far as to offers to share advertising revenue with users who blog on their site.
Charles Schwab – eat your heart up! Zecco is the true Finance2.0 !
Thanks to Michiel de Boer for the early warning. Press release here.
I really wish Morten, Soren, Zecco and all the LundKenner guys all the best – this is a great shot and will be very interesting to follow.