Penny Stock Brokers
Sunday, April 12, 2009
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A fellow penny stock blogger has written a great post on selected brokers to use, specifically for penny stocks. For as long as I've been in penny stocks, I was always told that you couldn't short them, and there was a specified amount that you were limited to (either $3 or $5 pps maximum). Pennystocker unlocks shorting penny stocks, and gives some insight on shorting and advice on how to do it. Please check out his site www.pennystocker.com. He has also written a free book on shorting, and it's a well written step-by-step guide to help those that have never ventured into this avenue of the stock market. I plan on trying this in the near future, and will use it as a guide to get started.
As for additional brokers, I currently use Scottrade as my main broker. On stocks that are greater than 3.00 per share, their transaction fee is 7.00. On anything less, look to pay a reasonable amount per trade, depending on the price and quantity of shares to be purchased. I have had great success with Scottrade getting orders filled, but sometimes it is difficult with penny stocks, because they block them occasionally. Sometimes this is a good thing, as it has saved me some heavy losses. I have always had great customer service from them.
Here is a good link for comparison of other brokerages. Just a small piece of advice...If you are going to be an active trader and not stay in stocks for lengthy periods of time, find a brokerage whose fees are reasonable. I hope to try TradeKing, or Zecco in the near future, as Scottrade's fees are ridiculous compared to the other online brokers.
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