How to choose the best penny stock broker online
Website design By BotEap.comSelecting the best online penny stock broker 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 penny stock broker?
Website design By BotEap.comDifferent brokers for different traders
Website design By BotEap.comHonestly, it’s 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 from what someone else requires. You should read my full review of over a dozen different online penny stock brokers. But for now you need to understand how to select the best online broker for your situation.
Website design By BotEap.comIf 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 profits to broker fees. But don’t simply rely on this desire to be thrifty to make your decision.
Website design By BotEap.comIf you are new to penny stock trading, you should initially consider paying a little more for a full-service broker. They can help you learn the ropes and develop good habits for trading nano-cap stocks. Sometimes the best online broker is not the one that can provide you with the cheapest service, but the one that can guide you towards good long-term habits. Services like Fidelity and Charles Schwab provide great online full-service brokerage options.
Website design By BotEap.comDiscount brokers for experienced traders
Website design By BotEap.comThen, maybe a few months later, you can connect with a discount broker like Zecco or E*Trade. These give you the functionality to run your micro-cap trading without a lot of the research bells and whistles (although both services are growing and evolving, providing more and more research tools). Over time, you can make a lot of money with these discount brokers simply because each transaction fee is 5 to 25 percent less than what you might pay for a full-service broker.
Website design By BotEap.comNo matter who you choose, you absolutely need to work with one of the best online penny stock brokers. 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.
Website design By BotEap.comBut if you’re new, again, don’t skimp on penny stock brokers. Don’t let a clever sales pitch convince you that a newsletter or software “robot” will give you all the winning picks and you just need to execute them. That, my friends, is snake oil.