Penny Stock Brokers

Penny stocks are stocks that are usually traded at an amazingly low price and even low market capitalization, but are usually done outside the major market exchanges. These types of stocks usually have lack of liquidity, and are generally considered to be highly speculative and high risk. They also have large bid-ask spreads, small capitalization, and limited following and disclosure. Most often, they are traded over the counter through the OTCBB and pink sheets.

Best Penny Stock Brokers

Trading in penny stocks will require having a great penny stock broker, because this is a very wise way to make money and help an investor with winning trades. A good penny stock broker is a stock broker that charges low cost commissions.

There are several penny stock brokers available online, and as investors, we should always do some research and compare the commission rates and fees of the most popular stock brokers in order to be able to find the one that would best suit our requirements.

The best penny stock broker we’ve found is OptionsHouse. They have NO hidden fees, NO trading activity requirements, and NO minimum balances! They also have one of the lowest commissions in the industry for traders – so you cannot go wrong by signing up with them for all your penny stock trades. Their Research Center gives you the insights you need to make smart investment decisions, which is great when dealing with penny stocks. They have on-site customer service with a team of experienced professionals ready to help you with any question or trading emergency – we even tested their support and it was great!

If you don’t trust our recommendation (why?!), below are some additional penny stock brokers that are also available:

  1. Zecco offers a $4.95 competitive stock trade pricing with no minimums. They also offer extensive free trading & research tools, investor community – making them a solid choice for beginner traders.
  2. ETrade offers the lowest flat rate commissions for penny stocks. They have no inactivity fees, and a very low minimum. They have expensive broker-assisted or call-in trades though, so making the trades online rather than over the phone is more recommended.
  3. TDAmeritrade is a long established broker with a very good reputation. They make an excellent choice for a penny stock broker, as they have no hidden fees. They only charge $9.99 per stock trade for any amount of stock price and regardless of the number of stocks purchased. There are no inactivity fees as well.
  4. OptionsXpress offers trading in stocks, futures, options and forex. There is no minimum required account balance, and no inactivity fees. They normally charge $9.95 per trade. However, for penny stocks, they charge $14.95 per trade or 5% of the total trade amount, whichever is highest.
  5. TradeKing is one of the most popular online stock brokers there is, and one of the cheapest as well, as they only charge $4.95 per trade. There are no additional fees for broker assisted trades and no minimum account balance required. Moreover, there is no inactivity fees as well. However, for penny stocks, they charge an additional commission of $0.01 per share on all stocks priced under $1.
  6. OptionsHouse our recommended online penny stock broker avaialble. They charge a flat fee of $3.95, plus an additional fee of $0.01 per share for stocks that are priced under $2. There is no minimum account balance required as well.
  7. LowTrades is also an ideal choice for penny stocks, as they charge a fee of $4.95 per trade, plus an additional fee of 1% per trade if more than 100,000 shares are purchased. There is no required minimum account balance for this too.

Therefore, the investors are really advised to know charges of certain penny stock brokers, before they start trading.

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We are a dedicated and successful group of professional stock market traders and investors. Online Brokerz was founded to help novice traders learn how to trade and invest successfully right from the start.

The information contained on this site does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation. In accordance with FTC guidelines, we state that we have may a financial relationship with some of the companies mentioned in this website. Please do the appropriate research before participating in any third party offers.
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