Penny Stock Brokers
The online brokers are not expensive. You can sign up online, and will be up and running within days.
However, when it comes to penny stocks, not all brokers are created equal.
Each broker has a different minimum amount required to open an account. Some will allow you to get set up with no money at all, while others ask you to deposit thousands up front.
Some brokers have a sliding commission scale, where you pay greater commissions if you have less in your account. For example, if you've only got five hundred dollars deposited with them, your commission rate is greater than somebody who has $20,000.
If you are a Peter Leeds subscriber, then you get to benefit from our extensive discount broker rankings. We research the brokers, and rank them based on "friendliness" towards trading penny stocks. We:
- call all of the brokers
- e-mail them acting as potential clients
- e-mail them again, this time explaining our project
- track their responses, looking for professionalism, helpfulness and reply times
As well, for each broker we considered:
- commission rates
- hidden/special fees
Out of this research, we came up with our official list of the "Top Penny Stock Friendly Brokers."