| 25 May 2010

It's too early to tell whether Zecco's new Zap tool will change the way we interface with our trades, but we like the creative thinking. The tool, announced today, is a plug-in for your Firefox browser that essentially lights up ticker symbols on any site you're surfing to allow for one-click order entry. The tool supports stock and ETF products and buy, sell, short and cover transactions.

The company also created an "enabled" version of the product that lets financial sites create the same experience without requiring users to download any plug-ins. This product will allow Zecco to pursue what it calls "partner rewards" programs. Brokers have always been willing to pay for referrals, but this Zap Trade tool allows Zecco to make a more direct connection in this process. (Payment is still for account openings, not transaction activity.)

Most brokers have been working hard to bring outside information in to your desktop. E*TRADE (ETFC) added CNBC video to their Power E*TRADE Pro product. OptionsXpress (OXPS) brings news, research and analytical modules to their Xtend product. Zecco turns the table on the whole process and instead gives them the capability to reach out to any site with a ticker symbol.

This reaching out creates some very interesting and unique possibilities. Take, for example, that in a bit of a snarky dig at competing brokers, Zecco go so far as to point out that the Zap Trade tool will also work on the public research sections of Scottrade, E*TRADE and TD Ameritrade (AMTD). Very interesting, indeed.

To illustrate the possibilities we've included a snapshot of the TD Ameritrade website, showing a Schwab quote, with the Zecco Zap Trade tool popped open.




In case you think this is just funny, we suggest to you that it's more than that. Consider, for example, that most traders have more than one brokerage account. In fact, our latest survey told us that active traders were working with, on average, about three active trading accounts. Of course these same traders tend to favor one account over the others. Now, however, Zecco has created the ability to sneak up on you, wherever you may be trading, and remind you that could make this same transaction on the Zecco site.

We wonder how long it will be before they quickly and easily allow you to comparison shop. Imagine, for example, "Psst! Hey... did you know you could make this same trade on Zecco for only $7!" We offer that gem of an idea for free, my friends.

Zecco says the tool is in the process of receiving a patent. So this limits the possibliity that those same competing brokers could offer up similar tools.

We've been testing the tool and it works as advertised. Like we said, it's too early to tell whether it will take off. But even if users wind up not liking Zap Trade -- this product launch like declaring psychological warfare on your competitors. Well played, sir. Well played.