Online Penny Stock Brokers - Which Is The Best Broker For My Trading Style?

There are penny stock brokers and then there are champion penny stock brokers.  Knowing how to differentiate the two often means the difference between losing plenty of money and profiting from a small investment.  Well, to narrow down the field, here are the best penny stock brokers ranked according to desirability, with Lowtrades.com as the best amongst the rest.

Lowtrades.com

Lowtrade's website is one of the best in the business with its outstanding overview on the basics of investments as well as its free real-time streaming investment quotes.  Add in the fact that their customer service representatives are very knowledgeable in the field and you have the recipe for being the best when it comes to online stock brokering.

Did we mention that all these excellent services come at a very reasonable, if not very affordable, fee?  You can trade online for as low as $5 although transacting over the phone will cost $25.  Still, very reasonable compared to other full-service brokers.

Trading Direct

Yet another company that offers excellent broker services is Trading Direct.  You need not maintain a minimum balance for your cash accounts although you will be charged the minimum maintenance fee of $60 annually.  Fortunately, you can waive it by trading at least once a year, which should be easy enough considering that your penny stocks have to move or else you will be exposed to higher risks.

The fees are higher than Lowtrade's at $9.95 for market or limit and $29.95 for trades assisted by a broker.

Scottrade

With its numerous products and services offered by way of its website, Scottrade is an excellent choice if conducting trades is your main business.  Unfortunately, their services are only offered in the United States, not in Canada.

If you open an account with Scottrade, you have to do so with at least $500.  You will, however, enjoy the benefits of no maintenance fees and yearly inactivity fee, which can be considered as savings, too.  You are also able to access free real-time streaming quotes and charts as well as free DOW Jones real-time streaming news.

Ameritrade

Yet another company that does not trade in Canadian exchanges is Ameritrade although this can be bypassed if you can find a dual listing in any of the American exchanges.  You will need to maintain a $500 minimum balance but to open an account, $1000 is necessary.  The perks of such a high opening balance is that you get 25 online commission-free trades for the first 5 weeks upon opening your account.

Despite such relatively high fees, you are able to access one of the best websites in the industry with plenty of valuable information at your hands.  It makes for worthwhile relationship.

E-Trade

With E-Trade, you also need $1000 to open an account although no inactivity fee will be levied on it for the first year.  If on the second year, your account is still inactive, it will be charged $25 quarterly.

However, it can be waived with 2 or more trades in two instances - first, when you have traded in the previous six months and, second, when your account balance is at $5000.

Of course, your choice for a stock broker depends on your personal criteria.  The abovementioned companies are just guides to help you weed out the undesirables from among many broker companies.