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Frequently Asked Questions

Zecco Trading Zecco Forex Zecco Holdings  
Still having questions? Please email our Customer Service at customerservice@zeccotrading.com. We typically respond within 24 hours (business days).

For all your questions about Zecco Forex, click here.

Margin Information


  • How does margin work?
    Buying stocks on margin involves borrowing funds through Zecco Trading's clearing firm, Penson Financial Services, Inc., and using these funds to buy marginable and/or non marginable eligible securities, and also using these funds to withdraw.

  • What is the minimum balance necessary to have a margin account?
    The account must have a minimum equity of $2,000 in order for the account to maintain margin privileges, as specified by varies government and self regulatory organizations. (SRO)

  • Who sets margin requirements?
    Both the Federal Reserve Bank and FINRA set minimum initial and maintenance margin requirements. Although the NYSE and FINRA require a minimum equity maintenance of 25%, broker dealers are afforded the right to impose higher equity maintenance requirements. Currently Zecco Trading requires a minimum equity requirement of 30%.

  • What are the initial and maintenance margin requirements for listed securities at Zecco Trading?
    (NYSE, AMEX, NASDAQ only - bulletin board and “pink sheet” stocks are NOT margin eligible)

    Price (Per Share) Initial Margin Requirement Maintenance Margin Requirement
    Above $5.00 50% 30%
    $3.01 - $5.00 50% 50%
    $3.00 and below 100% 100%
    Maintenance Requirements may be higher if our clearing firm deems it necessary.


  • What are the initial and maintenance margin requirements for shorting listed securities at Zecco Trading?

    Price (Per Share) Initial Margin Requirement Maintenance Margin Requirement
    $5.00 and Below $2.50 per share or 100% of market value, whichever is greater Same as Initial
    Above $5.00 $5.00 per share or 50% of market value, whichever is greater $5.00 per share or 30% of market value, whichever is greater


  • What happens if my equity is not sufficient to meet the maintenance margin requirements?
    Your account will generate a Margin Call and Zecco Trading will notify you as a courtesy. Margin calls are due upon the creation of the call. Zecco Trading, along with our clearing firm, establishes a due date as a courtesy notice. Zecco Trading, in observation of regulatory policy, may sell your securities at any time without consulting you in order to meet the call. Typically, if a call is not met by the due date the account is considered “In Default” and Zecco Trading may liquidate positions to cover ALL outstanding calls prior to their individual due dates. Depending on market fluctuation, positions are subject to be liquidated for a greater amount than the calls. Please also know liquidations by Zecco Trading will incur a commission charge of $19.99 per trade.

  • What interest rate will I be charged on a margin loan?
    Please see our Commissions and Fees page for the latest margin interest rates.


Pattern Day Trading


  • What is a Day Trade?
    A day trade is defined as the opening and closing of a position on the same day. In the below examples, all trades occur on the same trading day. Please note that shorting and covering a position on the same day also constitutes a day trade. For the purpose of simplicity, buys and sells are used in the examples below to help you understand how to count day trades.
    Example 1
    9:40 am ET Buy 100 XYZ
    2:00 pm ET Sell 100 XYZ
    = 1 day trade
    The XYZ position was opened and closed on the same trading day.


    Example 2
    9:40 am ET Buy 100 ABC
    10:15 am ET Buy 100 MSFT
    10:30 am ET Buy 100 ABC
    2:00 pm ET Sell 200 ABC
    = 2 day trades
    Two ABC positions were opened and closed on the same trading day. Since the MSFT purchase interrupted the ABC purchases, ABC is separated into two separate positions (for the purpose of counting day trades) thus causing 2 day trades when the client closed all ABC shares purchased that day.


    Example 3
    9:40 am ET Buy ABC 100
    10:30 am ET Buy ABC 100
    2:00 pm ET Sell ABC 200
    = 1 day trade
    ABC was purchased twice with no other opening transactions interrupting the purchases. In this scenario, the ABC purchases will count as only one position (for the purpose of counting day trades) and therefore when the client sells, it will only count as 1 day trade.


    Example 4 (Options)
    9:40 am ET BTO 10 XYZ LZ (BTO=Buy To Open)
    10:30 am ET BTO 10 XYZ LZ
    2:00 pm ET STC 20 XYZ LZ (STC=Sell To Close)
    = 1 day trade
    XYZ LZ was purchased twice with no other opening transactions interrupting the purchases. In this scenario, the XYZ LZ purchases will count as one position (for the purpose of counting day trades) and therefore when the client sells, it only counts as 1 day trade.


  • How did/do I become a Pattern Day Trader?
    A margin account that makes 4 day trades in a five day business period will be classified a Pattern Day Trader. When classified as a Pattern Day Trader you are required to maintain a minimum closing daily equity greater than or equal to $25,000.

  • Is it possible to convert my margin account back to a cash account?
    If you wish to convert your account back to a cash account, you will need to send in a signed letter of instruction to Customer Service including your name, reference number and instructions.
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More details about online investing and trading stocks with Zecco Trading:


Zecco Trading has reconstructed the mold of options trading and stock trading online, making it easier than ever for you to get smart and act smart with your money. Need to sell stock or buy stock online, interested in penny stocks? At Zecco Trading, get 10 free stock trades every month when you maintain a $25,000 balance or execute 25 trades each month. Otherwise it's just $4.50 per trade. Free Online Stock Trading Details. Where else will you find a discount broker who looks out for your best interest by providing you free online stock trading and a community of investors to share ideas with?

Privacy Policy - User Agreement - Margin Disclosure - Risk Disclosure - SEC Rule 606 Disclosure - Penny Stock Disclosure - Business Continuity Plan - About Us - Contact Us

Zecco.com is a financial portal of Zecco Holdings, Inc., which also provides access to Zecco Trading, Inc.'s trading service. Zecco Holdings, inc. is not a securities broker/dealer. All securities and investments are offered to self-directed investors by Zecco Trading, Inc. Member FINRA /SIPC. More information is located on the disclosures page.

At Zecco Trading, get 10 free stock trades every month when you maintain a $25,000 balance or execute 25 trades each month. Otherwise it's just $4.50 per trade. Free Online Stock Trading Details. Options trades are $4.50 plus $.50 per contract. Only the first account of any account type is eligible for the Zecco Trading, Free Trading program. Any multiple accounts of the same type with the same registration are not eligible for the free trading program. Free Trading Program is only available through Zecco.com. $0 minimum to open cash and IRA accounts.

* Margin accounts require a $2,000 minimum balance for opening and trading on margin. Margin trading involves risks and is not suitable for all accounts.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options.

Multiple leg options strategies involve additional risks and multiple commissions, and may result in complex tax treatments. Please read Spread Trading Disclosure.

Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or ETF carefully before investing. A mutual fund/ETF's prospectus contains this and other information, and should be read carefully before investing.

Forex trading involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk. Before deciding to trade forex, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained does not constitute investment advice. Read full disclosure.

Investors should consider market, maturity, and interest rate risks before investing in fixed income products. It is the responsibility of the client to understand the terms, conditions, risks and rewards of fixed income products as risks can be substantial.

System response and access times may vary due to market conditions, system performance, and other factors.

The content of Zecco Holdings, Inc.'s and Zecco Trading, Inc.'s websites, including research, tools and securities symbols, is for educational and informational purposes and should not be intended as a recommendation or solicitation to engage in any particular securities transaction or investment strategy. You alone are responsible for evaluating the benefits and risks associated with the use of our services or products and to decide which securities and strategies better suit your financial situation and goals, risk profile, etc. The projections regarding the probability of investment outcomes are hypothetical and not guaranteed for accuracy or completeness. They do not reflect actual investment outcomes and are not guarantees of future results. Projections and tools' calculations do not take into consideration commissions, margin interest and other costs that will impact investment outcomes. All investments involve risk. Losses may exceed the principal invested. Past performance of a security, market, or financial product does not guarantee future results. Neither Zecco Holdings, Inc. nor Zecco Trading, Inc. offers any tax, legal or financial advice. Content on these websites may be out of date or time-sensitive. Content is subject to change or removal without notice.

No consideration was paid for any testimonials displayed on this website. Your experience may vary, and the testimonials are no guarantee of future performance or success. Zecco Holdings, Inc., Zecco Trading, Inc.'s and their independent providers are not liable for any errors, incompleteness, or delays, or for any actions taken in reliance upon information contained herein. By accessing our websites, you agree not to redistribute the information found therein.

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