Just noticed another advertising play. If Zecco works brokerage firms are going to have a hard time figuring where to cut costs. Zecco wants to charge zero commissions for trades, they plan to make up the shortfall by selling advertising.
One of the fellows behind Zecco was an early backer of Skype, Morten Lund, Zecco’s CEO is Jeroen Veth.
“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.â€
Zero commission trading would certainly be disruptive. It will be interesting to see how brokerages such as ETRADE reply.









