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Penny Stock Brokers
We have researched all of the best stock brokers in the "deep discount" category, that are worth considering as a penny stock broker. Use the table for a quick overview of commissions, fees and minimum deposits. Details for each of the brokers are listed below; use the links or scroll down to find the best stock broker that fits your personal needs. To make a suggestion for an addition, please email us.
IMPORTANT! - Before you begin searching for Penny Stock Brokers...
When browsing through the Penny Stock Brokers below, 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®, Fidelity®, and TD Ameritrade®. Zecco has a flat rate surcharge for penny stocks, but there is a caveat.. We received an email notification from Zecco on 8/19/11 stating that any settlement fees for Non-DTC securities will now be passed on to the trader. They state that these fees can be as high as $700, and you won't even know of them until as much as three weeks later. You also have no way of knowing if a stock is DTC, or Non-DTC without doing specific research on your own. For this reason we are removing Zecco from our 'Gold Level', and we do not recommend trading penny stocks with Zecco at this time.
ETrade and TD Ameritrade 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... TD Ameritrade now also offers free Level 2 quotes for PinkSheets and OTCBB using their Command Center 2.0 platform. You must be APEX qualified but this is pretty easy to get and from our experience doesn't get taken away if you are inactive (unlike ETrade Pro). 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 or TD Ameritrade even though the commissions are on the higher end.
With that said, please check out all the details!
- Penny Stock Brokers Compared -
- Stock Broker Details -
Silver Level: This broker offers a low price, and good service, but you will incur extra fees for low priced stocks.
Bronze Level: These brokers have good service and features, but are priced quite high for penny stocks.
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Last Updated: 9/8/12
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