This morning (June 7th, 2007), Michiel, the Director of Product Development for Zecco, called me to verify that I was still willing before unleashing the shark (reporter) on me (my words not his). While I haven't given an interview yet, and may not since there are 3 of us they could call on, I did get an opportunity to chat with Michiel about where Zecco is and what's coming next.
First I want to share a general theme in the conversation (one which I already assumed but was nice to get confirmed). The Zecco team is literally working day and night to improve their initial offering as quickly as possible without sacrificing quality in the new releases. He echoed my thoughts that their coordinators and developers are top notch.
Zecco was an idea on a napkin just 8 months ago. They had to decide what they could reasonably build to get up and running as quickly as possible while sacrificing as little as possible (welcome to the world of software development). In October of 2006, they literally went on-line with the first release. I think it is truly impressive how far and fast they have come since then. The development team continues to operate on a 4 week release cycle. This means that every 4 weeks they plan to release an improved version of some piece of Zecco based on priority. I have seen them do this several times and I have never seen a release get rolled-back (go back to the old version) due to a bug. Having worked in a development environment myself, I can say I'm impressed with what I am seeing (obviously). This is why I believe what Micheil had to say. He came off humble and honest. Even a little soft-spoken and nervous - exactly what I would hope for when giving feedback to someone who cares about their "baby"
When I signed up in February, the trading section was solid enough that I didn't know it was still new. However, the Account section required a Thomas Guide to find the ACH transfer setup area. Since then they have re-vamped the section completely (though they still need to get rid of the website-in-website ACH area which just displays the Clearing House site.) They have also added Data import for quicken and other software, which is better than any other financial institution I have used. They have also added full PDF and on-demand history/statements, new functionality and information to the online trading interface, trailing stop-limit orders (they only lack a fixed dollar version), IRAs, more complex option options, and many other features.
While the customer service people at Zecco are very good, getting to them can be a serious problem. When I mentioned that I felt it is imperative for Zecco to keep all the customers they attract now, while there is no competition in their niche, he agreed and said the same thought has been discussed around metting rooms at the highest level. He assures me they have gotten the message loud and clear, and fixing the email and phone system is high on their list of priorities.
So What's next for Zecco? ZeccoShare. ZeccoShare is like a combination of CAPS and FaceBook which uses real portfolio data as a basis for a community. In fact, in the next release a week or two away, ZeccoShare will start feeding in Motley Fool CAPS data! ZeccoShare will tie together forums for discussion with stock research, idea sharing, education, and the general social aspects of FaceBook/MySpace. In Zecco's words, it puts your mouth where your money is - or is that the other way around? Both work.
ZeccoShare is currently in beta (which I am a part of (testing it, I don't work for Zecco). They will need, and will, be adding a few more features before it is ready. Namely more portfolio info (right now it only shows ticker symbols and percentage of portfolio, as well as the last 20 trades (no dollar amounts though, of course). I have asked for company name, ticker symbol, holding as a % of the portfolio, and performance (IRR - per stock and total). In addition to this we both used the same word for what the service needs to improve further before release...flow. Things we are already used to at CAPS such as getting from company research, to a user who thinks like you do and has information and other companies to recommend, which you can then research, etc, etc...flow.
They should also be adding a rec or rating system to their forums soon. As a quick aside, their forums are filled with novices, pump-and-dump posts and new-age tech traders. There are a couple really knowledgeable people there trying to shed some light in to the dark though. It can be enjoyable to challenge some of the posts =). I believe, as ZeccoShare develops, and the forums are more widely used, seeing how someone invests (You can enter information about your investment style + blogs), and how a poster's portfolio performs, will add some interesting dimension.
This summer Zecco is going to start offering the GainsKeeper service (https://www.gainskeeper.com/us/GainsKeeperBrokerag...) for both ZeccoShare and ZeccoTrading customers! (I think he said it would be free). This will add the much requested wash-sale tracking as well as share-lot tracking, short and long term tax tracking and other cost-basis issues, which make tax time and performance tracking accurate and easy. I honestly don't know much about it, but I saw a user-group member recommend it a while ago, and it looks good! Here are two major feature descriptions which we can look forward to at Zecco:
https://www.gainskeeper.com/us/PortfolioOptimizati...
Generate pre-trade analysis
Are you thinking of selling a stock and want to know if the trade will create a wash sale? Do you want to know your tax liability if you sell a security? GainsKeeper's trading simulation tool enables investors to evaluate the tax impact of a trade based on information in their portfolios before they place the trade with their broker.
Maintain investment objectives
GainsKeeper's portfolio analytics tool lets investors set portfolio targets for asset allocation, industry diversification and market caps. The tool calculates and displays holdings by market capitalization, stock exchanges, industry classification and top holdings, as a percent of your total investments. Diversification targets can be set for taxable accounts, retirement funds, or in the aggregate. The tool also provides trend analysis on your diversification mix going back monthly, quarterly, semi-annually and annually.
I got off the phone with a really good feeling about who is behind the curtains of my broker. While there are some bumps due to being new still, the service itself is really solid and improving all the time. Each month we will see new features added and existing features improved upon. The best part is these guys really care what customers think and are passionate about improving their vision. The fact that I, a simple user, have now had an exchange with the CEO, Forums Editor and now a voice-to-voice with the Director of Product Development simply because I've spoken my mind (and I haven't candy-coated a thing!). is proof of this.
I can't wait until Zecco goes public (The DD itself will be interesting).
Zecco will be at The Money Show in San Francisco in July (http://www.sanfranciscomoneyshow.com/?scode=008330). I'm looking forward to meeting them in person and quizzing them some more on the issues!