Penny Stocks Brokers – How to Choose the Right One
October 13, 2009
Finding the right broker is one of the foundation items required for success. Whether you’re looking for penny stocks brokers or a broker for anything, the fundamentals remain the same. Let’s find a good stock broker.
What you want to do is create a list of a few stock brokers to research further. Here are some basic questions to answer before putting any penny stocks brokers on your list.
First, ask the question, “How long have they been in business?”—you need to see some history. Regardless of fees and features, a company that’s brand new has no value. For all you know, they will be gone tomorrow.
Next is reputation. Do they have one? What do you know about them (or think you know about them) without looking up anything?
How about fees? Ask yourself what price range you’ll be trading in. Will you be trading stocks $1 and higher mainly? If not, find out what the broker charges for sub-$1 stocks. For instance, Scottrade offers a flat trade fee of $7 (at the time of this writing). However, they charge differently when trades involve stocks under $1.
Continuing with the example, Scottrade would make my list if I was trading at the $1 level or above. However, if I was going to mainly trade below that level, I’d put them on a secondary list (penny stocks brokers to look at if I didn’t end up with enough to research).
Another information item to find out is whether or not the stock broker has a physical location or not. If they do:
- How many locations do they have?
- Are there any near you?
- Can you just show up there?
- Can you conduct business there (account deposits, etc)?
Once you find an online stock broker that satisfactorily answers these initial questions, put them on your list for further research. In another article on Penny Stocks Capitalist, I’ll go over researching penny stocks brokers in detail.
Related: Penny Stock Broker Review : Scottrade
Penny Stock Broker Review: Scottrade
October 13, 2009
There are many options out there for trading penny stocks, so finding a good penny stock broker can be a difficult thing. Today, I’m going to talk about one of the stock brokers I’ve used personally.
Before selecting any of the penny stock brokers, there’s numerous things to discover. I wrote an article about it here: Penny Stock Brokers – How to Choose the Right One.
Over the years, I’ve used Scottrade very often and have been pleased with them. Their $7 trades allow me to get in and out and not see a big hit to my profits. However, be warned, if you’re going to mainly trade with sub-$1 stocks, their $7 trading fee doesn’t apply.
If that’s you, then there are three options. You could:
- Open up an account at Scottrade and just deal with it.
- Open up an account at Scottrade for all your trading involving $1+ stocks and open an account at another penny stock broker for the other trades.
- Just look elsewhere.
Scottrade offers fast trades and many tools within their trading environment. They are secure and highly visible. Not only have I traded online with them, but I’ve actually walked into on of their offices and performed tasks, such as account creation, depositing, withdrawing, etc.
When I wanted to open an account with thousands of dollars for speculation trading, I wanted to speak to someone face-to-face and I was able to do that with them.
When you’re seeking out a penny stock broker, I’d recommend putting Scottrade on your list of possibilities. There are other links on Penny Stocks Capitalist that will lead you to other stock broker options. Visit some of them and do your research before jumping in with any broker.
