4 of the Best Penny Stock Brokers![]()
As I trade penny stocks myself I know how time consuming the task of finding a broker can be. I have looked at many penny stock brokers that I thought would be suitable only to find later they have additional fees for trading penny stocks. Not only do some deep discount brokers charge additional fees for trading penny stocks, many of them have a difficult to understand commission structure. I know it took me a while to get my head around some of them. Many Stockbrokers don't want the business of penny stock traders as they often make considerably less money on these clients. However, fortunately after all my searching and talking with many different brokers i've come across two good choices. Ok, here's what I have found out about the costs of trading penny stocks with various different brokers:
Normally they charge $9.95 per trade. However, I spoke to them over the phone regarding penny stocks. I was told they charge $14.95 per trade or 5% of the total trade amount, whichever is highest. It would appear that optionsxpress do not really want custom from penny stock traders. They are a good broker for other types of trading though. Click here to join OptionsXpress ConclusionChoosing a stock broker is very important, as it can have a profound affect on your trading results. We have put together some of the main factors I believe you should consider when choosing a penny stock broker: Cost per Trade The cost per trade is more important for traders who make a large number of trades. If you only intend to buy a handful of stocks and hold them for several years, the cost per trade is unlikely to have a significant impact on your bottom line. Nowadays, most traders place their trades online, but for those who don't, you might want to take a look at how much a broker charges for "broker-assisted" trading. This is a fancy way of saying trading over the phone. Training Trading Community However, this said, I would be very careful about taking trading advice from others. Online communities can be a great resource when used wisely, but always remember, many of the traders who contribute to these forums and communities are not making money yet, so taking specific trading advice from them may not be suitable. Minimum Account Size Platform It is essential that you fully understand how your brokers platform works before trading with real money. Many brokers, including the brokers mentioned here, let you trade a virtual account. This lets you get used to the trading platform with pretend money. Take your time and have a play with the virtual account, so you are fully prepared when you begin trading with real money. You don't want to miss out on a great training opportunity because you are still figuring out how to use the platform, or even worse, accidentally place a big trade you didn't mean to!
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