Top Online Stock Brokers For Penny Stocks
Finding The Best Online Stock Brokers
If you want to trade stocks, options, penny stocks… You’ve got to set up a brokerage account.
You need it to trade.
The broker dealers place your orders on the floor of the exchange – and work at your direction. And of course, they charge you a fee for this.
Now here’s the million dollar question – Do you know what the best online broker is… especially for penny stocks?
Well, they’re not all the same.
I’ve had a few brokerage accounts in my days and let me tell you… pricing, service, execution, information… it’s all different. And some firms are way better than others.
A lot of times the best online broker for you to use depends on how you trade.
But, Who’s The Best Online Broker?
If you do any research on broker dealers at all, you’ve no doubt seen websites listing the top 10 stock brokers… or top 5 stock brokers… or the best stock brokers… or stock broker reviews…
I’ve got to tell you… most of it is crap.
Not many people take the time to set up and trade with each account and do a side by side comparison…
Look, at the end of the day, no one broker is better than the other… all of them follow the same rules for trading stocks… and all of them can buy and sell stocks for you…
But there are differences…
There are two types of brokers… do it yourself and full service.
With do it yourself online brokers, you sign up and they give you an online interface. If you’ve got questions, comments, or concerns, you’ve got to call a 1-800 number and speak to an account rep.
They offer dirt cheap trades, but don’t expect much help.
The full service brokers will assign you an account rep. Often times it’s a real live person. They are there to talk to you and educate you and give you ideas. But don’t be fooled… you’ll pay for this extra service.
And often you need a big fat account!
I prefer the online brokers.
I don’t need ideas, I don’t need hand holding, and I rarely, if ever, have a question.
You need to figure out what’s best for you, and pick the broker that’s best for you.
Now what separates the different online stock brokers?
I recommend sticking with the major online brokers.
What sets them apart is their online interface.
In other words, the big difference is how their software looks and works for doing research and making trades.
So, to find a good online broker, you simply need to look at their systems and decide if they’re easy for you to use.
So where do you start?
I start with Barron’s. Seriously.
They’re the weekly newspaper published by the Wall Street Journal and they do a great job every year ranking online brokers…
And just last week, they just published their 2015 rankings of online brokers.
It’s the best source to find online stock broker reviews and I trust their work.
Barron’s Review of online Stock Brokers
Here’s the top three they identify as the best online stock brokers.
- Interactive Brokers
- OptionsHouse
- TD Ameritrade
Those three all scored 4.5 stars out of 5 stars total.
There are others, but this is a good place to start your research.
Warnings About Online Penny Stock Brokers…
Now a word of warning… not every broker allows penny stock trading. Many have limits that prohibit trading below $5! I find this ridiculous… but they’re worried about people making risky trades, losing their money, and filing a lawsuit against the broker.
So before going through the trouble of signing up and funding your penny stock trading account, make sure the broker allows penny stock trades!
Get a good broker – and start trading!
Good trading…
Brian Kent
Penny Stock Research
Note: Brian Kent has been trading the markets for more than 2 decades and now writes and edits for PennyStockResearch.com. You can sign up for the penny stock research newsletter a trusted source for the truth about penny stocks! Sign up today and get a free research report – http://www.pennystockresearch.com/free-reports/.
Category: Penny Stocks
