Selecting the best online penny stock broker is absolutely key to your long-term success with trading penny stocks. Your broker will play a major role in helping you find and execute micro cap stock trades in a crisp and accurate manner. But how do you determine who is the best online penny stock broker?
Different Brokers For Different Traders
In all honesty, it just isn’t that easy because brokers and brokerage fees change constantly and what you personally require to succeed with nano stocks or micro cap stocks may be very different from what another person requires. You should read my comprehensive review of over a dozen different online penny stock brokers. But for now you need to understand how one goes about selecting the best online broker for his or her situation.
If you really know what you are doing and you have been studying micro cap stocks for quite some time, you probably do not 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.
If you are new to penny stock trading, you really should consider paying a little more for a full service broker at first. 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 who can give you the cheapest service but the one who can guide you to good habits over the long-term. Services like Fidelity and Charles Schwab provide excellent full service brokerage options online.
Discount Brokers For Experienced Traders
Then maybe a few months down the line, you can connect to a discount broker like Zecco or E*Trade. These give you the functionality to execute your micro cap stock trades without many of the research bells and whistles (although both services are growing and evolving, providing more and more research tools). Over time, you might make far money with these discount brokers simply because every single transaction fee is 5 to 25 percent less than what you might pay for a full service broker.
No matter who you choose, you absolutely need to work with one of the best online penny stock brokers. These brokers are plugged into the latest information from the Pink Sheets to the OTCBB. They establish and maintain relationships with market makers other third parties that simply aren’t available to you.
But if you’re new, again, don’t skimp on penny stock brokers. Don’t let some sly sales pitch convince you 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.