Best Penny Stock Brokers
What makes a good penny stock broker?
When trading micro caps, it pays to know the most essential aspects of a brokerage’s service. Not a lot of traders are aware of the fact that brokers have plenty of hidden fees, especially for traders who are specially in stocks under a dollar. So which brokerage is the best and which ones should a penny stock trader avoid in order to make the best profits while suffering the least to the gravity of commissions and fees? Here’s a comparison to give you a better picture:
- Brokerage Comparison Chart-
| Broker | Commissions | Inactivity Fees | Min. Funding | Penny Stock Fees |
| ChoiceTrade | $5 | None | $2000**** | None |
| Zecco | $4.50 | None | None*** | None |
| TDAmeritrade | $9.99 | None | $2000 | None |
| SogoTrade | $3+*** | None | $500 | Low Cost Stock Fee – <$1, ½%*** |
| LowTrades | $4.95+** | $50 biannually | None*** | Large Order Fee- 100K+ shares, 1%** |
| ShareBuilder | $9.95+* | None | None*** | Large Order Fee- 1,000+ shares, $0.025* |
| Scottrade | $7+* | None | $500 | Low Cost Stock Fee – <$1, ½%+* |
Typically the fewer fees you see, the better the brokerage is, assuming you’re not sacrificing a solid interface or quality support. The brokerages on the bottom all have small stock trading fees, which are a horrible penalty for micro cap trades. The only three brokerages that don’t have these fees are Zecco, Choicetrade and TD Ameritrade. While Zecco is less than half the cost of TD Ameritrade, TD Ameritrade has a number of great trading tools that distinguish them from the competition including their Apex service.
Brokers to avoid would most definitely be the ones at the bottom of the chart with tons of small fees for small stocks. You don’t want to mess around because even one cent per share can add up when you’re trading 1000′s of shares at a time, which you obviously will be if you’re trading penny stocks. In particular, avoid sharebuilder as they have horrible analysis tools and don’t even trade most stocks under a dollar. I tried. It was a giant fiasco and a waste of time, but fortunately not money since they wouldn’t even allow me to trade.
Anyways, my recommendation goes to Zecco because they have overall the lowest price, no fees and have great tools for trading. James Connelly actually recommends this service as well as he uses it for penny stock trades with his service, the Penny Stock Prophet. If you are serious about trading, consider checking out his system and seeing for yourself how much money you can make in micro caps. Click here to visit his website.
