Every brokerage comes with the notable perks and areas in which it falls short in comparison to other firms. Nevertheless, there are only a few big names out there that circulate with the reputation of being trustworthy to host your money while you navigate the rocky seas of the financial markets. Naturally, some of these companies are more ideal towards penny stock investing than others. Here is a short & non-comprehensive list of some of the well-known brokerages commonly heard within penny stock communities.
1) E*trade
3) Scotttrade
4) Zecco
6) Fidelity
8) Vanguard
The following advice is just based on my own personal experience and from here-say. An ideal brokerage for penny stocks is one that provides low-commission trading, with minimal (if any) fees attached to maintaining an account with the company. From the list above, I would be as strict as say that your best bet in meeting this criterion is to immediately cross off everyone but E*trade, Ameritrade, Scottrade & Zecco. While the other four brokerages are well-suited for investments, they are not as geared towards the fast-paced online investor that seeks low commission equity trades.
Out of these four brokerage firms that I listed, I would go as far as to highlight Scottrade & Zecco. Scottrade has a lower commission schedule when compared to Etrade & Ameritrade, decent realtime trading tools, and adequate customer support. On the other hand, Zecco has 40 no-commision trades per month (Zecco stands for Zero Commission), terrible realtime trading tools, and questionable customer support. Neither firms have fees attached to maintaining accounts with their firms.
When it comes down to it, there’s a level of risk and reward that comes even from choosing brokerage firms. If you go with the new firm Zecco, no-commision trades provide a level of trading flexibility that every investor dreams about. If you’re more into the safety and well-being of your financial investments, a firm like Fidelity will cost you high commissions but the comfort of being established and secure.
On a side, but important note, several companies have been blamed by fellow penny stock investors to restricting the trading of certain stocks. This often gives rise to the belief that the company is conducting naked shorting operations with these securities. Whether this is true or not is irrelevant for now. Ameritrade happens to be the most common case I’ve come across, having restricted the trading of several penny stocks I’ve been involved in. In my personal opinion, Scottrade is the cleanest in regards to these kinds of records.
I personally have active accounts open with E*trade, Scottrade, Zecco, Fidelity, and Vanguard.
5 comments:
Nice breakdown. I have trading accounts with Tradeking, Fidelity, and Zecco, but I like each and every broker equally for different reasons.
For research, Fidelity has a plethora of investing information & research reports, plus in-depth financial & valuation stats.
For frugality, Zecco rules all! Free trades are a blessing, but I usually buy ETFs in Zecco to avoid those pesky broker fees.
For options trading, which I'm still learning about, TradeKing is a good resource, and provides helpful tools like the profit-loss options calculator.
Nice breakdown. I have trading accounts with Tradeking, Fidelity, and Zecco, but I like each and every broker equally for different reasons.
For research, Fidelity has a plethora of investing information & research reports, plus in-depth financial & valuation stats.
For frugality, Zecco rules all! Free trades are a blessing, but I usually buy ETFs in Zecco to avoid those pesky broker fees.
For options trading, which I'm still learning about, TradeKing is a good resource, and provides helpful tools like the profit-loss options calculator.
Its the toughest job in the market.
Its very hard to sometime come up with nice broker.
I like share builder You can open an account with as little as 100 dollars if you like
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