How To Choose The Best Penny Stock Broker Online
Selecting the best penny stock broker online is absolutely key to your long-term success with penny stock trading. Your broker will play an important role in helping you find and execute micro-cap stock trades in a sharp and accurate manner. But how do you determine who is the best online stockbroker?
Different brokers for different traders
It’s honestly not that easy because brokers and brokerage fees are constantly changing and what you personally need to be successful with nano or micro cap stocks may be very different than what someone else requires. You should read my full review of over a dozen different penny stock brokers online. But for now, you need to understand how to select the best online broker for your situation.
If you really know what you’re doing and have been studying micro-cap stocks for quite some time, you probably don’t want to lose a good percentage of your earnings on broker commissions. But don’t just rely on this desire to be thrifty to make your decision.
If you’re new to penny stock trading, you should consider paying a little more for a full-service broker at first. They can help you learn to manage and develop good habits for trading nano-cap stocks. Sometimes the best online broker is not the one who can provide you with the cheapest service, but the one who can guide you to good long-term habits. Services like Fidelity and Charles Schwab provide great online full-service brokerage options.
Discount brokers for experienced traders
Then, maybe in a few months, you can connect with a discount broker like Zecco or E * Trade. These give you the functionality to run your microcap trading without a lot of the bells and whistles of research (although both services are growing and evolving, providing more and more research tools). Over time, you might make a lot of money from these discount brokers simply because each transaction fee is 5 to 25 percent less than what you could pay for a full-service broker.
No matter who you choose, it is absolutely necessary that you work with one of the best penny stock brokers online. These brokers are connected to the latest information from Pink Sheets to OTCBB. They establish and maintain relationships with market makers and other third parties that are simply not available to you.
But if you’re new, again, don’t skimp on penny stock brokers. Don’t let a sneaky sales pitch convince you that a newsletter or software “robot” will give you all the winning options and you just need to execute them. That, my friends, is snake oil.