Zecco Asks "Who Gets the Extra $1,000,000, You or a Mutual Fund Manager?".

Commission Free Online Broker Launches Zero Commission IRAs

BURLINGAME, Calif. -- Zecco Holdings, Inc., the parent of Zecco.com, the Free Trading Community and the home of zero commission stock trading today transforms the debate over how to invest for retirement, launching zero commission IRA accounts.

"For years a debate has raged over operating costs: Mutual funds or ETFs, which is the better deal," says Jeroen Veth, CEO of Zecco. "Assets invested in exchange traded funds have more than quadrupled over the past five years (1). Their low cost basis, trading flexibility, and tax advantages have made them a hit with investors. Critics have pointed to commissions as negating any fee advantage ETFs might have over mutual funds. That argument is no longer operative. Zero commission costs at Zecco make ETFs the undisputed low cost leader."

Low operating expenses can make a world of difference to your retirement income. A diversified ETF portfolio might have a cost basis of less than 0.14%. Compare that to an average stock mutual fund expense ratio of 1.54% (2). In fact, if you compare two sample balanced portfolios with similar returns, one invested in low cost index ETFs, and one in actively managed mutual funds, over the investment period of age 25-69, the low cost ETF portfolio may end up $1,000,000 richer.

"Who's going to get that million? You or a mutual fund manager," asks Veth. "This should be an easy choice for investors."

So, what are mutual fund managers doing to earn their 1-2% or more? Not enough. The fact is that 89% of actively managed mutual funds fail to beat their benchmark averages over a 20 year period according to Thomas P. McGuigan, CFP[R], in the article The Difficulty of Selecting Superior Mutual Fund Performance, published in the February 2006 issue of Journal of Financial Planning.

"Zecco has combined zero commission costs with tax-advantaged retirement accounts and turned conventional wisdom about retirement investing on its head," says Veth. "Investors can now build a diversified portfolio, and rebalance their portfolios themselves, without incurring additional expenses or large capital depleting management fees."

About Zecco Holdings, Inc.

Zecco Holdings Inc. (www.Zecco.com) is the company behind Zecco.com, the online financial portal and community where investors trade stocks for free. Zecco.com provides a valuable community-moderated space where great investing ideas can be freely shared, debated and tested. In a field crowded by discount brokerages like E*TRADE, Charles Schwab, and TDAmeritrade, the zero commission pricing and investor community on Zecco.com offers investors a refreshing alternative. Zecco is backed by pioneering shareholders Morten Lund of LundKenner, an early investor in Skype and Dutch telecom magnate, Marcel Boekhoorn. Headquartered in Burlingame, California, Zecco.com combines the best features of a financial portal, social networking community, and online brokerage at an attractive price: Free.

(1) ETF assets in 2001 and November 2006 were 83 billion and 397 billion, respectively, according to the Investment Company Institute.

(2) Investment Company Institute, 2006 Investment Company Fact Book, 46(th) Edition, A Review of Trends and Activity in the Investment Company Industry. ISBN 1-878731-40-8, Copyright 2006.