How to Find a Penny Stock Broker
Penny stock broker come with a lot of presumptions, the mover Boiler Room didn't help their cause. A penny stock broker is often associated with pressure selling, pump and dump schemes and the like rightly or wrongly. So given those factors how do you find a penny stock broker you can work with?
What you need is a broker that you are comfortable with, can trust to place your trade orders, be reachable both online and offline. In penny stocks fees are a huge issue, you want a penny stocks broker that charges low fees but for that you don't want to be getting any hidden surprises! This guide should help you find penny stock broker for your needs.
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Instructions
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Do some research on stock trading forums about finding a penny stock broker? Note what members are saying about particular brokers. Notice if any penny stock brokers keep coming up with either good or bad responses. Good recommendations or scams look for a trend.
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Decide what you want full service or bare bones service for a penny stock broker. Three Penny Stock brokers that keep coming up are Zecco, Scottrade and Low Trades. Check each one out and others that come up positively through your forum searches.
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Research penny stock broker 'Zecco', they have built a solid reputation up in recent years. Try out their demo. They have no account minimum with any inactivity fees. You can trade very small amounts whilst you try them out or you penny stock strategy out. They offer up to 10 free trades per month on accounts over $2,500. After that, trades are a very reasonable $4.50 each.
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Next penny stock broker to look at is 'Scottrade'. Scottrade is discount stock brokers who offer penny stocks, try their demo and discuss their fees. If you want to do more than penny stocks are not a bad option. Minimum account balance of $500 is required.
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You want a bare bones penny stock broker just foe execution than discount penny stock broker 'Low Trades' may be worth investigating. I notice they have an inactivity fee of $50 if you don't place a trade every 6 months.
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Following these steps will give you a feel for a penny stock broker. Know the territory, penny stocks are very risky and you have to assume you need to be extra vigilant for stock pumping. Beware of the pushy broker and any sales pressures. At the end of the day only trade with money you can afford to lose. Good Luck!
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Tips & Warnings
Check out stock market trading forums like traderscommunity.com and elite trader.com
Discipline, discipline, discipline
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