Penny Stock Brokerage Firms

Penny Stock Brokerage Firms : there are a few critical points to look for. The majority of brokers have fees that make penny stock trading more expensive than their big, colorful price tags lead you to believe. The truth is that a lot of brokers don't want to deal with small accounts trading penny stocks as they make the most money from large and active accounts.


To deter penny stock trading , brokers may have fees that affect the trade of low priced stocks, usually less than a dollar. Another typical method is to have a "large order surcharge" that kicks in with trades of more than 1,000 or 100,000 shares. With penny stocks, most notably sub-penny stocks, a small $500 position could be over 100,000 shares. These additional fees are usually noted with an asterisk in small print at the bottom of the page. We have made note of these fees with the brokers listed on this page, just look at the "Penny Stock Fees" column on the chart and read the notes. If you find a broker not listed here, make sure to look at the fine print... and if they have a good commission, and none of these pesky fees, let us know!
As you will see, the brokers that have none of these fees are ETrade®, Zecco®, Fidelity®, and TDAmeritrade®. ChoiceTrade® has a new fee going into effect 12/1/10 that adds 1% of the trade value to orders in excess of 500,000 or more shares. This new fee is driven by their clearing firm, Penson, and we expect it to go into effect with Zecco at some point as well. If you aren't going to trade low sub-penny stocks it won't be an issue. If you trade a $1000 or less size, then you will be fine trading stocks as low as $0.0020. Triple-zero stocks however, will be out of the question unless you want to add ~$10 to your commission.

With ChoiceTrade and Zecco offering half the trade commission of TDAmeritrade, they are very attractive options for penny stock trading. They are also Penson cleared brokers, resulting in very few trading restricted stocks, or phone-order-only stocks. ETrade, TDAmeritrade, Fidelity and Schwab on the other hand, offer more impressive tools and customer service. For example, with ETrade you pay $7.99-$9.99 a trade, but if you do 30+ trades per quarter you'll get free access to Power ETrade Pro 5.0, which includes Level 2 quotes, even for PinkSheet and OTCBB stocks... This is a feature that could cost you well over $50 a month for a comparable service. Because of this, a lot of traders are better off to go with ETrade even though the commissions are on the higher end. please check out all the details pennystocknation.com...

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