Posted on 09 November 2011.
Those who day trade need to find the best broker for penny stocks. Day trading is much different from typical investments. It requires a brokerage service that is tailored to meet its unique demands. Online brokers provide many more services than telephone services, so it is advised to set up an account with a reputable online broker.
The best broker for penny stocks will charge low commissions, as day traders perform more frequent trades than long term investors. Look for brokers that have no hidden fees. Some services have a minimum balance that might affect you. Others charge inactivity fees for lack of significant trading over a period of time.
You will also want to look for a brokerage that has all of the features that you would find useful. It should provide you with free access to all of the charts, price history, and other information that you need to make informed trades. The broker should also have a good track record of excellent customer service.
Scottrade is a company that is consistently at the top of brokerage rankings. The level of support available makes it the best broker for penny stocks. There are low fees and ample information available to develop successful trading strategies. There is a $500 minimum balance. For those who want to avoid this minimum balance, Trading Direct is a great company. There is a $50 annual maintenance fee with this broker, however.
Day traders should do ample research to find the best penny stock broker for their needs. Seasoned traders may have their own sources of reliable information, and may not need the level of support found with some brokers. These traders may hunt for the best broker based on cost alone. For most traders, however, the best broker for penny stocks will be one that combines service and features with affordability.
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