The primary resource that you have to spend in looking for the best penny stock brokers is time. It could get quite difficult because they could look perfect the first time you see them however once you look at their hidden fees and charges, you could easily get turned off. On top of that, there are also those that have complex commission structures that are difficult to understand and could easily confuse anyone.
Here is a quick and simple overview of 4 of the top online brokers that are a great choice when opening up your first trading account:
ETrade
ETrade has been hailed by Smart Money as the best of the many online brokers out there during 2007 and 2008. There are a lot of benefits if you let them place your trades for you however should you decide to do so, be sure to do it on the internet and not over the phone since their broker assisted trades are expensive.
- Low flat fee
- No inactivity fees
- No minimum
- Free use for 60 days upon account opening
- For every new account opened, you can get up to $500
- They are one of the few brokers that accept international clients and investors
TDAmeritrade
This company has had a lot of experience in the industry and they are one of those who deliver the best service.
- They have no hidden charges.
- They only assess a flat rate of $9.99 per stock trade and the price & quantity of the stocks purchased does not affect it
- No inactivity fees
OptionsXpress
- They specialize in stocks, futures, options and forex.
- There is no minimum account required.
- There are no activity fees.
- They charge $9.95 for all other trades except for penny stocks.
- For penny stocks, they charge either $14.95 per traded stocks or 5% of the total trade cost, whichever is higher.
TradeKing
TradeKing, like all the brokers already mentioned also boasts of a long history in the industry. They have a lot of clients who remain loyal to them because of their excellent customer service.
- They only charge $4.95 per penny stock trade.
- They do not assess additional fees for broker assisted trades.
- There is no minimum account size.
- There is also no inactivity fee.
- They get an additional commission of $0.01 per share for stocks purchased at less than $1.353.
Hopefully you will not have a better understanding of what each stock brokerage company offers so you can easily compare their features and fees. Just remember that it is always a good idea to speak with a financial or investment adviser or professional before making any important financial decisions.