If you plan to trade penny stocks, you must pay attention to the penny stock broker’s commissions and transactions fees since they will eat away at your returns. Scottrade is an excellent choice for beginner penny stock traders and those who invest in mutual funds, and long-term (buy and hold) investors (mainly because of no account inactivity charges).
OptionsHouse is an online penny stock and options broker that provides a professional trading platform with a flat-rate commission structure for low-priced stock and options trades. TradeKing is an online broker providing low flat trading fees with no minimum account requirements and no hidden fees.
Commissions – Although the significant difference between the two types of brokerage services is the fee of each transactions based on the extent of work like providing penny stock picks, disparity in commission fees between two services of similar kind can be huge.
Opening Balance and Maintenance Charges – Note that every broker sets a specific opening balance requirement.
Research, Perks, Investment Tools and Services – You should realize that there are no brokers that furnish the same set of research, perks, investment tools and service to their clients. You should be able to find a penny stock broker who will efficiently fulfill some of the important tasks when investing. Because Scottrade is a stable, seasoned penny stock brokerage firm with a good reputation, it is the natural choice for people who don’t trust their money with newer companies but also don’t want to pay $10+ for trades with other established brokers. TradeKing online penny stock brokerage accounts offer easy-to-use investment tools with low flat trading fees and no minimum account requirements.
While a discount penny stock broker may charge $30 each trade, another may only charge not more than $10.
You should exercise extra caution though, there are brokerage firms that offer low opening balance but will let you incur huge maintenance cost if your balance goes down on a certain amount. By keeping these factors on your sleeve together with the right attitude, you’ll surely get the best penny stock brokerage firms out of your personal penny stock trading account.
They have received the maximum 5-star rating for their customer service in SmartMoney’s 2011 broker survey, making them a solid choice for people who require assistance opening and maintaining their brokerage account.
Thus, it is critical for you to search around and compare quotes of brokerage firms before opening an account with them. The broker may give you the list of penny stocks, but you will perform most of the online trading tasks. I send buy and sell alerts on the penny stocks I’m trading, which offers subscribers an excellent opportunity for profits the same way I do. Traditional brokerage firms, on the other hand, integrate working with a personal stock broker.
The broker will show you investment ideas, make reports concerning your investment portfolio, present you a run-down of your investments’ performance, and at all times be available with just a phone call or email so you can purchase or sell penny stocks.
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