Best Penny Stock Brokers


If you swing trade stocks especially for small accounts, you know that commission can add up quickly when you buy and sell a few or a dozen stocks per week. You want to find a stock broker that has all the necessary tools to execute your trade and low commission fee per transaction.

For instance, if your account is under $10,000 and you want to trade 3 or 4 stocks. Let’s say you want to invest no more than $3,000 on each stock, and your stock broker charges $10 per trade. You will need to pay $20 for buying and selling the stock, which is about 0.67% of your $3,000. This might not sound like a lot money, but it does add up. When you trade a dozen stocks a week, the transaction fees will be more like $100 – $200 or 1%-2% of your total portfolio, or about 3%-6% of your $3,000 for each stock.

When you are picking penny stocks that go up 20% or more a week, the transaction fees is just pocket change. However, when you are losing money on a trade or a couple of trades, the transaction fees will put you deeper in the hole.

For this reason, you want to find a reliable penny stock broker that charges a reasonable transaction fee.

Top Penny Stock Brokers

1. Optionshouse  – This is the stock broker I use for swing trading. They charge a flat rate of $4.95 per trade. That means you can trade $10,000 or $100,000 for the same price. Best of all, you can trade free for 60 days when you open a new account. Pricing is not the only thing that makes Optionshouse stand out among other stock brokers. Optionshouse is beginner friendly with a powerful trading platform that is easy to use. In addition, they offer a virtual trading platform which is great for beginners who want to practice their trading skills without risking any money. The virtual trading platform is just like their live system except that it doesn’t use real money.

2. TradeKing – TradeKing is another great stock broker for penny stocks that charges a $4.95 transaction fee per trade. It is a popular stock broker that offers both great services and trading platform. It was rated #1 customer service by Smart Money, and #1 online broker for usability by Barron’s. If you are currently with another stock broker, and is interested in transfer you account to TradeKing, they’ll reimburse the transfer fees for up to $150.

3. Suretrader – Suretrader is another stock broker that offers a rate of $4.95 per trade for 1,000 shares. What makes this stock broker interesting is that it has one of the largest short lists along online brokers with over 10,000 symbols to short. If you are interested in shorting penny stocks which is very risky, you can considered Suretrader. Another advantage of Suretrader is that it has no pattern day trading rules. If you want to day trading penny stocks, this is the stock broker to go.

Stock Broker Comparison

Here’s a pricing chart for the most popular online stock brokers.

stock-broker-pricing



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