Best Penny Stock Brokers for Buying Penny Stocks Online

If you are interested in trading penny stocks then one of the first steps that you need to take is to select a penny stock broker. I worked for a major brokerage house for a few years and many of the nations largest firms do not want their clients buying penny stocks. As a result, some of them have a fee structure that makes it to expensive to trade. The truth is that many of the accounts that trade penny stocks are small accounts and they require a great deal of oversight. The large brokerage firms would prefer to deal with customers who have accounts with six figure dollars amounts.

It is virtually impossible to trade penny stocks with a full service broker. The commissions are too large and they eat into your profits to much. I would recommend that you buy penny stocks online with an online broker in order to keep your costs in check.

Seemingly, the most important consideration when choosing an online broker for the majority of people is the cost of executing a trade. Are the commissions reasonable? Penny stock trading involves trading a large number of shares. Rather than trades with a 100 or so shares you will be making trades with potentially 1000's of shares. So you are ideally looking for firms with low flat rate costs per trade without hidden fees for low priced stocks.

The second characteristic you are looking for when choosing a penny stock broker is reliability. In this category, I would include a few things. How quick are they at executing your stock trade? How easy to use is their trading interface? How reliable is their website? How good are the tools that they make available to you that may aid your trading? Tools such as charts, research, recommendations, etc. And of course, you also need to make sure that this trading firm is not some fly by night company. You want to make sure they have been around and that they have a good reputation in the industry.

The third characteristic I would look for when trying to determine which firm is the best firm to buy penny stocks online with is to look at their customer service. At some point you will have to deal with customer service. You will have to open an account and possibly transfer money from time to time. You may have questions about individual trades that you have made. You may have questions about some of the fees that are being charged. You may have questions about your margin account. You will have questions so make sure you pick a company with a good customer service reputation.

Some of the most often used brokers when trading penny stocks are found in the list below.

ChoiceTrade

Etrade, Zecco

Fidelity

TDAmeritrade

Scottrade

TradeKing

TradeMonster

Low Trades

Interactive Brokers

optionsXpress

MBTrading