Penny Stock Brokers
Penny stocks are stocks that have a value of less than $5 and generally represent up and coming companies or those that are looking to find their stride in the marketplace. Trading penny stocks takes an incredible amount of knowledge and experience as their higher levels of volatility and market movement make them an extremely risky investment. Finding the right broker to help you formulate your penny stock trading strategy is critical to your success. Check our list of brokers below for more information.
TradeKing
- Low flat rate penny stock trading, regardless of the balance in your account or the number of trades you perform each month, including online, touch tone and broker assisted trades.
- Extra Hours Trading allows you to enter pre-market orders as early as 8:00 am ET and as late as 9:30 am ET, and post-market orders from 4:00 pm ET until 5:0pm ET.
- Offers hands-free trades available through AutoTrade, which utilizes professional recommendations to locate and purchase stock.
- Rated #1 in Customer Service by SmartMoney magazine in 2010. Rated #1 Online Broker by SmartMoney magazine in 2006 and 2007 and by Kiplinger’s in 2008.
- Access to free, four star rated online tools including thousands of fundamental analysis reports, free technical analysis tools, customizable charts, tax management tools, and much more.
| Stock Trades | Options Base | Options Contract | Minimum Deposit | Broker Assisted | Fund Trades |
| $4.95 | $4.95 | $0.65 | $0.00 | $4.95 | $14.95 (no load) |
OptionsHouse
- OptionsHouse offers one of the most comprehensive suites of interactive and educational tools available to online traders.
- Access to a full suite of professionally developed online trading tools including free stock screeners, volatility charts and probability calculators that help you make the best penny stock decisions possible.
- OptionsHouse offers a virtual environment designed to help investors of all levels improve their chances of success by testing investment strategies before using them in the market.
- Get access to a live investment coach free for 90 days by opening and funding a new trading account.
- Get free access to a wide range of financial publications such as MorningStar, the Wall Street Journal and many more.
| Stock Trades | Options Base | Options Contract | Minimum Deposit | Broker Assisted | Fund Trades |
| $3.95 | $8.50 | $0.15 | $0.00 | $3.95 | $9.95 |
E*Trade
- E*Trade offers a multitude of free tools, including free stock screeners that allow you to quickly locate penny stock opportunities.
- Online professional portfolio managers allow you unparalleled access to professional advice and investment recommendations 24 hours a day, seven days a week from the comfort of your own home.
- Access to thousands of in-depth research and charting options designed to help you reach your income goals.
- Learn from trading professionals through a combination of webinars, interactive tools, and articles that are all designed to advance your knowledge and skills.
- Has user-friendly online investment software that allows for ease of market order entry.
| Stock Trades | Options Base | Options Contract | Minimum Deposit | Broker Assisted | Fund Trades |
| $7.99 - $9.99 | $7.99 - $9.99 | $0.75 | $500.00 | $45.00 | $0.00 - $19.99 |
OptionsXpress
- Make trades and monitor investment positions on the fly with OX Mobile.
- Free access to advanced virtual trading tools that allow traders to try new strategies and adjust old strategies using virtual money in order to increase the odds of profitable trades.
- Offers instructor led educational modules designed to increase your trading success. This is offered to every account holder, regardless of experience level.
- Live chat and toll free numbers available to investors for direct access to customer service through multiple channels.
- OptionsXpress has been consistently rated among the top online brokers.
| Stock Trades | Options Base | Options Contract | Minimum Deposit | Broker Assisted | Fund Trades |
| $9.95 | $0.00 | $1.50 | $0.00 | $9.95 | $9.95 + LOAD FEE |
tradeMONSTER
- When it comes to support for active trading, tradeMONSTER tops the lists of both SmartMoney and Barron's.
- Twitter integration into your trading account allows you to stay in touch with your trading pals and lets you tweet your trades instantly.
- Low, flat rate competitive pricing for all stock trades makes trading penny stocks with tradeMONSTER painless and profitable.
- Advanced mobile applications are designed to turn your smart phone into a trading powerhouse.
- Strategy testing software allows you to enter your trades into a virtual environment and lets you review possible outcomes before you risk your own money.
| Stock Trades | Options Base | Options Contract | Minimum Deposit | Broker Assisted | Fund Trades |
| $7.50 | $0.00 | $0.50 | $2,000.00 | $7.50 | $0.00 - $15.00 |
TradeStation
- Up to the minute market news, streaming quotes, real time charting capabilities, and user created watch lists give investors the edge when it comes to making profitable trades.
- Offers free access to the industry’s most comprehensive and historical intraday and daily trading database for the most comprehensive trend analysis available.
- Powerful online order entry platform combines research, analytics and order entry on one screen for faster reaction to market fluctuations.
- TradeStation offers a wide range of easy to use trading tools including portfolio builder applications, screeners, and what-if simulators that make choosing investments a snap.
| Stock Trades | Options Base |
| $6.99 - $9.99 | $1.00 |
Interactive Brokers
- This broker is one of the better choices for active traders, given their lengthy experience in the industry.
- Interactive Brokers offers a full demo of their entire online trading suite which allows investors to get an in-depth view before signing up.
- Novice investors have access to hundreds of educational articles each designed to improve his or her chances of being successful.
- Barron's has given Interactive Brokers four stars as one of the “Best Low Cost Brokers” in the market.
- Real time interactive tools such as quotes, charts, and news allow investors to stay on top of their positions, giving them the chance to react quickly to changing market conditions.
How To Pick A Good Penny Stock Broker
Penny stocks are common stocks that have a price of less than $5 that are known to be speculative and are therefore traded over the counter (OTC) via obscure markets such as the Pink Sheets or the OTC Bulletin Board. In some cases, they are also defined as stocks with a price per share of lower than a dollar. They are also known as a micro cap equity, with a market cap that's potentially lower than $50 million or even $25 million in some assessments.
Trading newbies may find penny stocks quite attractive as it takes very little investment capital to get started; but many new traders may not realize that their losses in such stocks can be magnified. Trading penny stocks is considered a very risky proposition, especially for novice traders, as there is a tendency of these stocks to experience greater volatility and larger value movement than blue chip stocks.
One way to battle the higher risks involved with trading penny stocks and increase your odds of becoming profitable in your trades is to shore up your learning and experience via a reputable penny stock broker. There may be penny stock brokers (or penny brokers) out there that can offer you support and guidance to enable you to sift through the thousands of junk stocks on the market and find that gem in the rough that will hopefully make you a little cash. Here are a few tips on finding a good penny stock broker:
- Experience and Reputation. There is nothing more important when it comes to trading any sort of investment on the open market, but especially when it comes to trading penny stocks. Penny stocks experience the same market movements and volatility as blue chip stocks, but to a greater degree. Knowing how to read the trends, conduct sufficient research, and complete an analysis is crucial to being successful in penny stock trading. Choose a broker that has the right environment for this type of trading.
- Cost. Regardless of what kind of investments you trade, be aware of the costs you incur. Look for a broker with reasonable fees. Commissions must be kept to a minimum in order to protect your profit margin. But, the lowest cost broker is not always the best choice, so don’t pick a broker based on the price alone.
- Customer Service. Whether you prefer to trade your stocks online, over the phone, or in person, your broker should be available to answer questions you may have about a particular trade, regardless of whether they are a online discount broker or a full service broker. Full service brokers should also be available to discuss trading strategies and offer sound advice when it comes to picking stocks. Good discount brokers also offer these types of services; however they will usually come in the form of online tools, educational articles and other learning materials instead of from a live person.
Penny stocks offer active investors a great opportunity to try their luck with making money via trading and stock market timing. Choosing the right broker can help provide a positive and profitable penny stock trading experience.
{ 0 comments… add one now }