Trading penny stocks is a great way to profit fast. With the right knowledge and commitment, you can earn a lot of money in quick succession. However, one of the issues that new traders come across is finding the right broker for their penny stock trades. Penny stocks are not featured on the main stock market boards and you often have to go to a different type of broker to get access.
These kind of brokers are known as discount brokers and they are commonly used for newer traders who don’t have a huge budget. They charge for trade and allow you trader to get involved from the comfort of their own home. In this article, we will be going through the best brokers you can use for trading penny stocks, so you don’t have to guess and gamble.
ETrade
ETrade is one of the most popular trading platforms on the internet and is well-known among the new traders who want to get started. This is because of their low $500 initial account deposit, meaning that almost everyone will be able to setup an account no problem. The reason they are an excellent choice when it comes to penny stocks is because of their low fees, their low account minimum and because you can purchase 1 million shares at no additional cost.
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Their fees start at $6.95 per trade but this decreases if you make 30+ trades in a quarter. The resulting price is $4.95, which is ridiculously low. This is perfect for the active traders who are trading penny stocks frequently (which is suggested). ETrade has a very good reputation and is a broker you need to check out.
Charles Schwab
When it comes to low fees, Charles Schwab is one of the best choices. They are also well-known and have their starting fees at $4.95 a trade, which is the same as ETrade is you make the necessary trade volume. Charles Schwab is perfect for individuals who won’t be trading at high volumes because of their flat rate fee. Just like ETrade, the volume restrictions here are impressive and also allow for a maximum of 1 million shares without any extra cost, which is plenty for most traders. They do have a higher account requirement of $1000 but if you’re not looking to trade frequently, Charles Schwab is an excellent penny stock choice.
TD Ameritrade
TD Ameritrade is another very popular discount broker because of they are one of the few brokers that allow you to sign up to an account for free at no extra cost. This is why they are very popular with newer traders who have very little budgets to invest. They have a wide range of penny stocks to choose from and allow you to get trading straight away. The only reason this is not as popular as ETrade or Charles Schwab is because of their $6.95 trade fees. Their platform is also very handy for beginner traders and is definitely a broker you need to have a look at.
Conclusion
Penny stocks are great and can bring you a lot of profit. However, if you want to actually get started with penny stocks you’re going to need access to the market. The best way to do this is through discount brokers, especially if you’re on a budget. These brokers will charge you per trade and can be opened up with very little investment. The above options are some of the best for penny stocks and are fantastic if you’re just starting out.
COMMENTS
What do you think of suretrader?
I use etrade and its perfect for penny stocks