Checking out a broker is easy online
— -- Q: I'm interested in investing my money with Zecco, but I can't find it as a registered broker. Should I be concerned?
A: Zecco has taken the brokerage industry by storm, primarily due to its aggressive offers of free stock trades. It's also one of the leaders in the emerging area of letting investors connect with each other in an accountable way.
You can read about the brokerage firm's low-cost trades in this story from last October. And you can read about its innovative ways of connecting investors with each other here.
The question you ask, though, is a good one and a solid reminder for all investors considering a broker. The best and easiest way to check up on a brokerage is by using the website of the Financial Industry Regulatory Authority, or FINRA, at www.finra.org. At the top left side of the page, under "Top Links," you'll see a link for "FINRA BrokerCheck." Click on it.
Next, click on the "Start Search" link. Enter the broker's name, which in this case, is Zecco, and choose the "Brokerage Firm" option. You get no results.
Don't panic, yet, though. If you go to Zecco.com, and scroll to the bottom of the page, you'll see that the brokerage is a division of Equinox Securities. With this information, go back to FINRA's BrokerCheck, back up and this time enter Equinox Securities. click on the first entry, follow the directions and you'll see the record.
According to BrokerCheck, Equinox is indeed the holding company of Zecco. The firm is based in Ontario, Calif. and is registered with the Securities and Exchange Commission and has no arbitration awards, disciplinary or regulatory events. In other words, it's clean.
Matt Krantz is a financial markets reporter at USA TODAY. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com.
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